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Major shifts in advertising industry outlined in new report from IBM’s Global Unit

by Scott Hoffman on October 2, 2009

An IBM global report, “The end of advertising as we know it,” predicts that the next 5 years will hold major changes for the advertising industry, more change than the previous 50 years combined. For the report IBM surveyed more than 2,400 consumers and 80 advertising experts and identified four change drivers which will shift control within the advertising industry:

Attention – Consumers are increasingly in control of which advertising they give attention to in a multichannel world.

Creativity – Social technology, the rising popularity of user-generated content, and new ad revenue-sharing models, amateurs and are now creating high quality low cost advertising content & distribution.

Measurement – The ability for Advertisers to measure individual reaction and results, will lead to a shift from brand based campaigns to “impact-based” (Direct Response) formats in the next 3 years.

Advertising inventories – Will be bought and sold through efficient exchanges, bypassing traditional intermediaries. The study predicts more than 30% of the advertising inventory flowing through these exchanges in the next five years.

In my opinion, I think attention is going to be the biggest change agent that the advertising industry will face in the next few years, but you can make up your own mind by reading the full reports, available in PDF:

Download complete IBM Institute for Business Value Study
Download executive summary

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