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Advertising and Branding Industry – Online and Social Media Trends

Advertising and Branding Industry – Online and Social Media Trends

Hi, I’m Jack Plunkett, today we’re going to talk about the advertising industry. Now, there are two ways to look at advertising. One is with kind of a narrow view, and when you see market research numbers about how big the advertising industry is it’s really focused on “media buying”. So when you see a number that so many hundred billion dollars has been spent on advertising in some nation or other, that’s usually just media buying. Paying for online ads, TV, radio, billboards, what that all adds up to. Now let’s look at the advertising industry from a very high level. There we’ve got the world’s biggest ad agencies and the world’s biggest media outlets. So the giant ad agencies tend to be global in scope so they can help their big clients like Coca-Cola or Pepsi-Cola in multiple nations at once and in multiple types of media at once. One of the changes that has gone on in the ad agencies is as the advertising media have evolved, they’ve had to virtually reinvent themselves from simply just creating new TV, or radio, or print ads to being very, very deep into digital advertising expertise for online ads, etc. Now also on a high level in advertising, you’ve got the giant media outlets. The big cable networks. The big television networks and the big online platforms. So a lot of the big delivery platforms in media such as Comcast have also been buying content, so Comcast has purchased 100% interest in NBC Universal, which includes of course NBC television. Then we have companies like Disney, that not only owns all of the Disney theme parks and all of the Disney brands, makes all the Disney movies, but also owns giant cable networks like ESPN, so on a very high level, the agencies have become very multi-faceted so they can deliver all the modern techniques and strategies needed and the giant media companies have also become very diversified. Now if you’re studying this industry, the single most important thing for you to do is constantly see how technology is making the advertising and related media constantly reinvent themselves, and the most important things for you to watch going forward in the future are social media advertising, advertising on mobile devices and online advertising in general. They are totally interconnected. For instance, the single most popular way of looking at Facebook is on a smartphone, one of the most popular ways of accessing a website is through a smartphone, one of the most popular websites in Facebook. It’s all interrelated. In mobile devices devices keep an eye on location-based advertising where ads can now be tailored based on the GPS that’s inside your smartphone. It knows you’re close to this store or this entertainment venue. On social media keep an eye on the fact that Facebook has become one of the world’s most sophisticated advertising media almost overnight by being able to deliver absolutely tailored audiences down to very finite things. The age of the person you’re speaking to, the occupation, the geographical location, the various interests. In fact when you think about it, the companies that know more about us as individual consumers than anyone else on the planet are A, Google, because it has very, very in-depth records of all of our search preferences. B, Facebook because it builds giant profiles on us, actually we build giant profiles on ourselves. They know who our friends are, they know what we like, they know what we do. Amazon, because Amazon knows what our purchasing likes are or even the things we look at we’re thinking about purchasing. And Netflix is growing in power in this area also because Netflix is developing an incredible profile of what our entertainment desires are. Building entertainment profiles of us. You put all this together and use the power of predictive analytics to look at giant bases of potential advertising viewers, maybe tie it in to databases from companies like Experian that can also tell you how much someone’s home is worth, what their credit rating is, what their income is. We’re getting more and more and more targeting the ad down to the individual consumer. Incredibly powerful, incredibly sophisticated. Meanwhile on the ad buying side, we’re using more and more artificial software to place ads, to actually buy the ad for the advertiser in what’s called “programmatic buying”, which says Company A is willing to pay so much for a spot on a website of a certain type, at a certain day aimed at a certain type of person, and when artificial software says that ad slot and that capability is available the buy is made automatically, without anyone having to take any action whatsoever other than having set it up. That’s a quick overview of the advertising business today. Remember it’s changing very rapidly. To keep up with it, be sure to see our annual publication, Plunkett’s Advertising and Branding Industry Almanac, and our related industry research channel on our Plunkett Research online system. Thanks, I’m Jack Plunkett.

1 thought on “Advertising and Branding Industry – Online and Social Media Trends

  1. Be sure to see our Advertising, Branding & Marketing Industry page on our plunkettresearch.com website. You'll find a great industry overview and a very useful statistical table.

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