Newfangled works with independent agencies to create lead development web platforms for their clients.

Newfangled works with independent agencies to create lead development web platforms for their clients.

Advertising 2.0



A couple decades ago the typesetting industry was humming along. Advertising agencies and design firms relied upon type houses to return their type specs as formatted galleys ready to be pasted up on mechanicals which would be sent over to a pre-press house where film strippers would photograph and prep them for burning onto offset plates for printing. Can you count all the jobs and industries in this process which have been seriously changed, and some even eliminated, by technology?

That all happened years ago, but technology disruption is occurring faster than ever. For example, over the past few years land line telephone communications have experienced serious upheaval. Cell phones, internet telephony (Skype), and VoIP services like Vonage are moving land lines toward obsolescence.

So guess who's on deck for upheaval today? Traditional media and advertising. Already the internet is eating away at the margins of traditional advertising and marketing, but soon it will significantly impact their normal revenue models.

This newsletter is not intended to be an overly dramatic, gloom and doom forecast for the advertising industry. Rather it's intended to motivate advertising agencies and traditional marketers to be alert to technology changes so that they will not lose out on the corresponding opportunities that arise from disruption. The urgency of the changes taking place has motivated me to make the subject of Advertising 2.0 a regular feature this year of our Web Smart newsletters. This month's newsletter casts a broad net to give a bird's eye view of the changes taking place. In the coming months I hope to follow up specific areas to keep a watch on. It is my goal not only to inform about the trends in Advertising 2.0 but to also provide practical steps for those not quite tracking with these trends, so that they will be better prepared to make adjustments as marketing shifts.







Comments

Justin | March 2, 2007 9:38 AM
While I can appreicate the point of your Blockbuster/Netflix comparison, your statement about Netflix not having any shelves is incorrect. They do in fact have enormous warehouses (distribution centers) with shelves stocked full of thousands of DVDs. 60 Minutes ran a piece in late 2006 on Reed Hastings, the founder of Netflix, and they showed how one of these distribution centers operates. Ironically, Netflix is starting to feel the heat from companies (such as iTunes and Movielink) which provide download services for movies and other media. In January, Netflix quietly launched it's "Watch Now" feature – a near-DVD quality streaming service for its subscribers. You can read more about it here: http://en.wikipedia.org/wiki/Netflix
Eric Holter | March 2, 2007 10:06 AM
Thanks for the comment Justin. Indeed, you're right. Netfix does store inventory but they don't have to maintain thousands of retail brick and mortar shelves. Certainly digital delivery is on deck for yet more disruption to the entertainment distribution industry. I've been looking forward to access on demand media for awhile. Looks like it's here in part, and just around the corner in whole. Thanks again!

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