The last 25 years have seen an extraordinary shift in the digital media business. New media already dwarfs old media in market value. In fact, it’s almost 3x the size of old media, which is worth a mere $480 billion compared to the combined power of Apple, Google, Facebook, Amazon and Yahoo, who together are worth $1081 billion.
All this was revealed last week at Business Insider’s Ignition conference, along with the biggest trend, the appearance of multiple screens.
In advertising, we’ve already experienced this. Our publisher clients are well along in their mobile strategies, and we brought out our first high impact tablet ad formats almost two years ago. Now we are exploring how best to advertise on smart phones, and how to be engaging without being intrusive. Our first foray into this is with our InArticle video format, which allows visitors to view a video ad within the article they’re reading and expand it to full screen if they wish.
In Asia, “phablets,” large screen phones that act like tablets, are capturing the market, often because they are the user’s only computer. Indeed, 60% of online devices are now phones or tablets. PCs are becoming dinosaurs.
Mobile video is booming, along with other forms of mobile entertainment. And mobile e-commerce is now 20% of e-commerce traffic.
According to Henry Blodgett, money follows eyeballs, and if the eyeballs are on mobile, the money will follow the attention. Digital now accounts for 25% of ad spend, and it grows about 20% a year. While Blodgett asserts that digital is already bigger than TV, other analysts say no (for now). But there’s no question the growth of digital video is hard to ignore, and ways to monetize it, including our own InArticle format, are proliferating.
Most teenagers do not see a need for cable, do not intent to pay for it, and watch just about everything streamed online. And since these are the future audiences, it’s hard to believe TV is not in for a drubbing in the next few years. Our clients are already bringing their TV creative to our online publishing partners.
Online, all forms of advertising are growing, even display. But social ad spending is growing the fastest, with Facebook and Twitter reaping their rewards at last. Mobile ad spend is still way behind, but it will have to grow, because the eyeballs are already there. And mobile ad prices are still low, so they represent great value.
For us, with our affordable ways of achieving unduplicated reach for advertisers, 2014 ought to be an incredible year.