Sunday, January 17, 2010

The Broadcast Ad model is in intensive care


It is not etched in stone that content will (and should) remain free. I tend to agree with my former employer Rupert Murdoch that the ad model is evolving into something that barely resembles its former self.

As society becomes more technologically complex, there exists the temptation for economics to somehow match its pace, stride for stride. For a short while, people will happily come along for the ride. But, eventually, a point of saturation is reached. Yes, the brain can handle thousands of thoughts in a second, but it is not a qualitative process whereby educated and informed decisions can easily be made. Once we become too saturated with data, we need to pause, analyze the buffer, then communicate with others about our analysis. Only then can we make appropriate choices.

The ad model is suffering from implosion because there simply is too much advertising to consume. People are tuning it out. This should not only be expected, but welcome. As humankind pushes back at the breakneck pace of technology, new and innovative models for creating and distributing content will begin to emerge. Many of them will likely employ various methods for generating revenue such as advertising through product/brand insertion, and tiered pricing for different levels of access.  

The answer is not limited to mutually exclusive notions because we are in the middle of a major shift in the roles that technology & media play in society. It may take a decade or two for this shift to be complete, and in the meantime, businesses must consider employing strategies that embrace complimentary mutiple approaches in order to reach and connect with a temporarily exhausted end-user.

No comments:

Post a Comment