Transcript

Shifting Ground the Changing Scope of Advertising

SHIFTING GROUND NEW THE CHANGING SCOPE OF ADVERTISING The changing online ecosystem has penetrated all corners of business. The advertising game has evolved for centuries, but within the last few years it's undergone a deep transformation. Here we look at four key shifts in the industry. CHANGING OBJECTIVES At the root of recent changes in the advertising landscape is a shift in priorities. MASS-MARKETING ERA NEW-MEDIA ERA Deliver a message to a consumer. Initiate a conversation with the consumer. THEN NOW CHANNELS TO FORMATS THEN CHANNELS NOW FORMATS Advertisers originally thought in terms of channels: television, radio, print, out-of-home, etc. Advertisers now must work across all channels and think in terms of formats like video, audio, still imagery, and applications. CHANGING FORMATS ONLINE By using content in more than one channel, advertisers can extend the run of various formats. GENERAL RECALL BRAND LINKAGE CREATIVE TYPE 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% REPURPOSED TV ADS WEB ORIGINAL VIDEO ADS FLASH ANIMATION ZINTERACTIVE ADS MORE CONSUMERS WATCHING MORE VIDEO As people spend more time watching online video, they're exposed to more in-stream, in-banner, and in-text video advertising. PROJECTED ONLINE VIDEO AD VIEWER PENETRATION* 80.6% 72.0% 75.1% 77.7% 66.8% 59.2% 2007 2008 2009 2010 2011 2012 * Percent of all Internet users FIXED TO MOBILE THEN FIXED NOW MOBILE Traditional advertising could only deliver a brand's message to fixed points like a television commercial or print display ad. New-media advertising offers countless opportunities to deliver content to consumers on the go. MOBILE ADS ON THE UPSWING More consumers are using phones to access content than ever before, and advertisers look to catch them between texts and in apps. 82M More than 82 million 31% of all U.S. mobile 31% 27 The average smartphone user has 27 downloaded apps. Americans access the subscribers now have web on their phones. smartphones. PROJECTED MOBILE ADVERTISING SPENDING BY FORMAT - MESSAGING - DISPLAY - SEARCH 700M 600M 500M 400M 300M 200M 100M 2008 2009 2010 2011 2012 2013 OUTBOUND TO INBOUND THEN OUTBOUND NOW INBOUND Outbound represented the old-media-driven view of communications where brands only broadcast their message to consumers. Consumers today embrace "inbound worlds" that they access on their own through websites, mobile apps, on-demand content, and more using a host of devices. HOW CONSUMERS ACCESS BRANDS' CONTENT New technologies offer a variety of ways for consumers to access content through smartphones, e-readers, netbooks, tablets, and the standard home computer. Popular online channels include: SOCIAL MEDIA ON-DEMAND VIDEO MOBILE APPS BLOGS FORUMS SOCIAL BRANDS Brands enjoy many benefits from establishing a presence in social media. In addition to engaging existing customers in conversation, brands can attract new customers. COMPANIES WHO ACQUIRED NEW CUSTOMERS THROUGH SOCIAL MEDIA TWITTER FACEBOOK LINKEDIN COMPANY BLOG |41% 41% in 41% 46% THERE'S AN APP FOR ... EVERYTHING Plugged-in consumers use their smartphones to access a variety of content. Brands looking to penetrate the mobile app marketplace have just as many options. MOST COMMONLY USED SMARTPHONE APPS APP TYPE 10% 20% 30% 40% 50% 60% 70% 80% GAMES WEATHER MAPS/NAVIGATION/SEARCH SOCIAL NETWORKING MUSIC NEWS ENTERTAINMENT BANKING/FINANCE DINING/RESTAURANT SPORTS PRODUCTIVITY SHOPPING/RETAIL VIDEO/MOVIES TRAVEL FOOD/DRINK COMMUNICATION LIFESTYLE/HEALTH HOUSEHOLD/PERSONAL CARE * Percent of smartphone owners who used these apps in past 30 days mdg Sources: Adweek I eMarketer | Nielsen I Forrester I HubSpot mdgadvertising.com

Shifting Ground the Changing Scope of Advertising

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This infographic the deep transformation the advertising industry has made through the advent of the internet, smart phones, and social media. The infographic explores four key shifts in the industry.

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