Analogue vs. Digital

A recent IBM survey says

personal Internet time rivals TV time. Among consumer respondents, 19 percent stated spending six hours or more per day on personal Internet usage, versus nine percent of respondents who reported the same levels of TV viewing. 66 percent reported viewing between one to four hours of TV per day, versus 60 percent who reported the same levels of personal Internet usage.

Consumers are seeking consolidated, trustworthy content, recognition and community when it comes to mobile and Internet entertainment. Armed with PC, mobile and interactive content and tools, consumers are vying for control of attention, content and creativity. Despite natural lags among marketers, advertising revenues will follow consumers’ habits.

So we arrive at a moment of profound change

To effectively respond to this power shift, IBM sees advertising agencies going beyond traditional creative roles to become brokers of consumer insights; cable companies evolving to home media portals; and broadcasters and publishers racing toward new media formats. Marketers in turn are being forced to experiment and make advertising more compelling, or risk being ignored.

And that is what Communities Dominate Brands was all about. Sadly many companies were not prepared to preadapt. But as Stephen Jay Gould and Carlota Perez point out change is one of the most stressful and demanding things an organism or organisation can do. It just depends on how much it wants to survive and has the necessary infrastructure to do so. Although sometimes it/they have no choice. The chnage to too far reaching, too quick for organisations to adapt to a new environment.

Reading Jeff Jarvis take on this, he explains

I prefer to look at the opportunities this profound disruption brings:
As we already know, of course, anybody can make TV (second hat tip Steve Jobs), distribute it (YouTube et al), and market it (via the link). The problem remains that even though the costs are a fraction of the old, big stuff, you can?t support it with advertising ? yet. But that will come. Witness today?s announcement that YouTube has settled on its means of delivering ads. See also this from the IBM survey: 63 percent in the U.s. said they would watch advertising before or after quality, free content (34 percent said they?d be willing to pay). Speed up, advertisers.

As for advertising agencies becoming “brokers of consumer insights”: they should wish. Before, agencies and media were the gateways to the audience. Now, companies can converse directly with customers and get plenty of insights without gatekeepers. I?d rather be Facebook than an ad agency, wouldn?t you?
Cable companies becoming “home media portals” is a fancy way to say pipe. Period.
Broadcasters and publishers shouldn?t be racing to new media formats for one-way content. They should be racing to enable new kinds of relationships among communities of information.
And marketers shouldn?t just be experimenting with new forms of marketing ? though they should. They should be trying new means of conversation with their customers.

So a new socio-economic ecology is born and we are its midwives, as we have said so many times driven by the 6th and 7th Mass Media, cultural and societal evolution.

In another IBM survey it said

Through 2010, the traditional media business will remain dominant, growing at a compound annual rate of 5% to $340 billion, IBM forecasts based on various projections. However, it warns that most such estimates do not include the expectation of cannibalization from developing business models, concluding that they “should be tempered by the realization that spending on new channels will eliminate some of the revenue forecasted for traditional media.”

Walled communities will be a $240 billion business in 2010, making for a 10% compound annual growth rate, the study predicts. New platform aggregation will be a $50 billion business in 2010, growing at a 16% CAGR. Content hyper-syndication would be smallest at $25 billion but showing the biggest growth rate at 33%, according to IBM.

The IBM study encourages media firms to experiment with new approaches now to get to a point where they can determine the most balanced and financially best approach.

However, that could lead to conflicts with old partners, which may lead to the remodeling of existing business relations and revenue splits

This is innevitable as new technology and infrastructure overturn old industries and their business models.

So for many boards its a real headache. balancing revenue and profits made in the old way to how they will be made within the next 5 to 10 years.

My advice is get your thinking caps on ? NOW.

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Posted in: 7th Mass Media, Advertising, Culture, Economics, Engagement Marketing, Generation C, Media, Mobile, Participation, Social Networks, Television, Web/Tech

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