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Inside Digital Hollywood--Thursday, Nov. 1

ibm.jpg"The End of Advertising as We Know It" is an IBM study that will be released next week, per IBM Global Media & Entertainment Leader Karen Feldman. Karen and I were on the same Digital Hollywood panel, Advertising Innovation! Broadband, OnDemand, In-Game, Social Networks, RSS, Blogs, PODs & Mobile, at Digital Hollywood on Thursday. The study's control group was 2,400 demand-side global consumers. It will address media consumption and advertising preferences by age group along with revenue models for both paid premium and ad-supported content. For media buyers in the control group it is determined that ad marketplaces, like SpotXchange, will see increased adoption by agencies over the next three years and 30 percent of their total ad spend will be placed through the marketplaces. It was also recognized that online marketplaces across all media are needed to bring both efficiency and transparency to the media buying and selling process. This sentiment was given by former CNN Sales & Marketing Director Larry Goodman in his October interview with SpotXchange CEO Mike Shehan .
Another hot topic was that budget allocation is still not based on consumers changing media habits that heavily favor Internet usage. Driven by broadband penetration, shifts can be noted both at home and in the workplace. Issues challenging the shifts include digital rights negotiation during ad production along with the length of the ads which prevents agencies from moving television budgets to the Internet. This will be addressed during the 2008 creative process. With improved standards for measuring and delivering video ads across all access points budgets will start moving into the broadband channel. This all will ultimately help speed up "The End of Advertising as We Know It".
By Paul Bowlin On November 3, 2007
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