Advertising Trends: Changing Media Choices
There is a major cultural shift occurring in how people use media for entertainment, news and information. Many traditional media outlets, such as newspapers and major commercial television networks, are seeing their customer base eroded by the emergence of new media outlets. The Internet has become the major driver of this change. In particular, a number of important applications tied to the Internet are creating new media outlets and drawing the attention of many, mostly younger, consumers. Examples include:
- Social Media – Possibly the most significant example of how media usage is changing can be seen with the rapid expansion of social media. Social networking websites, such as Facebook and Twitter, not only offer a venue for social exchange but these are also developing into locations where news and information is obtained.
- User Generated Video Sites – In large part due to the popularity of YouTube, what now qualifies as video media has changed. Now anyone can produce videos and post for the world to see. The result is that advertising choices for video production is no longer limited to television programs as marketers can present their ads as part of online video.
- Small Screen Video – While accessing video content over the Internet through computers linked to high-speed data networks is common, the streaming of video over wireless networks to small, handheld devices, including smartphones, is still in its infancy. Many television networks are now experimenting with making its programming available in formats suitable for small screen viewing. This includes offering marketers advertising opportunities. With the number of small screen devices continuing to grow rapidly, it is likely this format for advertising is poised for tremendous growth over a short time frame.
- Mobile Device Apps – Smartphone and tablet computer applications or “apps” are proving to offer rich new ground for advertisers. While most marketers are limiting their ads on apps to text and static image advertising, improvements in video performance and data speeds are opening the door for “in app” video ads.
- RSS Feeds – This is an Internet information distribution technology that is popular with news websites. With RSS feeds, new information posted on a website can be delivered instantly to anyone who has signed up for delivery. The information sent to feed subscribers can include inserted ads.
- Podcasting – In addition to offering RSS feeds, many news websites offer free downloadable audio and video files that can be experienced on computers, smartphones and iPod devices. While, at one time, this form of content delivery was widely used, many users are now accessing the information directly from the website rather than downloading files (e.g., watch news programming on mobile device). As this trend continues, the effectiveness of inserting ads in podcasts is likely to decline.
- Online Gaming – While gaming systems have been around for some time, gaming accessible over information networks is still evolving. As Internet and mobile network connections increase in speed, gamers are expected to shift away from games loaded on their local computer and, instead, access games online. This shift is opening new territory for advertisers by enabling marketers to insert special content, including product advertising, within game play.
For marketers these new technologies should be monitored closely as they become accepted alternatives to traditional media outlets. While these technologies are currently not major outlets for advertising, they may soon offer such opportunity. As these technologies gain momentum and move into mainstream acceptance marketers may need to consider shifting advertising spending.
Marketers should also be aware that new media outlets will continue to emerge as new applications are developed. The bottom line for marketers is they must stay informed of new developments and understand how their customers are using these in ways that may offer advertising opportunities.
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