Do You Realize That Television’s Most Formidable Competition Comes From Retail?

by Jodi Manning
December 2008

TV vs. Retail

That the store is becoming a communications medium all of its own, with colossal targeted traffic and captive eyeballs that beg to be emotionally triggered at the Critical Moment?

That trade promotion is about half of all marketing money spent today?  Or that all digital advertising segments, display, search, rich media, DVR, in-game and mobile will grow in the next five years to reach over $23.5 billion in ad spending?

With digital media accounting for 10 percent of overall ad spending in 2010?  At a four percent compound annual growth rate (CAGR), reaching $2.4 billion by 2010?

That ad spend for newer categories such as rich media, in-game, and mobile advertising, starting from a lower base, is expected to grow at higher CAGRs: rich media, 31 percent, reaching $5.7 billion; in-game advertising, 50 percent, reaching $432 million?  With mobile advertising forecast to reach $2 billion in 2010?

Of course, you know all this.  So you’ll also be aware that in only three years’ time you will fully expect to find anything you want to know, buy, bid on or watch to be on that thing you keep in your pocket or purse.  Marketers and the media now talk about our fist (TV), second (PC) and third (mobile cellular, iPod, PDA, etc.) screens.

Our third screen is rapidly growing from a cute little tactic to one of the three major marketing media that can influence consumer behavior.

THE BIG QUESTION IS, just like in-store, what content will work to promote a brand in the mobile environment?  And how should it be presented?  More importantly, what sort of companies will sit at the forefront of this seeping change?  The 30-second TV spot seems so utterly inappropriate, yet it is astonishing how conventional clients and agencies are paralyzed by their inability to escape from the paradigm in their media schedules.   And so it will go on and on and on.  Endless unpredictability, endless possibility.

We think it requires a very special type of company that can both work in this fascinating environment and find ways of keeping pace with it.  One thing is for sure.  The marketplace will not require a company that has grown up in conventional ways with conventional structures, disciplines, approaches and solutions.  Tomorrow’s communications company will be fluid, entrepreneurial, diverse, eclectic, technological, viral and constantly seeking to endorse and exploit change.  PowerPact.  Moving with the consumer.

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