Seeing The Forrester For The Trees

21 07 2009

I’ve been working in digital since the earliest days, and I am a true believer.

Cut me and I bleed bytes.

But, still… are we not seeing the Forrester for the trees?

How does Forrester’s projection that in 5 years digital will account for 20% of the total advertising spend count as a massive change in advertising?

The curve is sexy. Noteworthy. But… it’s still only 20%.

In fact, a reasonable interpretation of the below chart is:

“despite all the hype, what this chart really says is that 80% of the ad spend in 2014 will be in the traditional media that we have been far too quick to declare dead”.

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072009-Bernoff

But obviously, things are not 80% the same as ever. Not by a long shot. So what’s happening here?

I don’t buy the argument that TV is dead, or that nothing at all is changing. What both arguments miss is a broader perspective. When I step back from the question of digital vs. analog and old vs. new, I see two tremendous shifts.

The first is an explosion of content and a fragmentation of audiences that has blown a massive hole in the business models of all content businesses. This makes it tougher to reach a mass audience.

The second is a shift from long-term brand-building activities to short-term direct marketing activities.

The Two Biggest Changes And Challenges In Advertising?

Digital is a major part of what is driving the changes in advertising, but it remains only a part. In my opinion, there are two major changes and challenges that marketers must grapple with. They are:

  1. Re-aggregating fragmented audiences into a meaningful size; and
  2. Re-learning how to build brands for the long-term

Advertising IS changing forever.

But when we focus too tightly on digital vs. analog share of ad spend, I believe we are missing the big picture.

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17 08 2009
What If Your CEO Is Right To Be Afraid Of Social Media? (Part Two) « i C P G

[…] CAUTIOUS: A recent Forrester report says that 80% of the ad spend in 2014 will still be in traditional media.  We’ve been trying to bury TV since the early […]

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