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How Advertising Has Changed

In: Business and Management

Submitted By a4kur
Words 689
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How has advertising changed in the last 10 years? http://www.allvoices.com/contributed-news/15570378-how-has-advertising-changed-in-the-last-10-years "Let’s dial back to 2004. In a vote of confidence, General Pervez Musharraf wins re-election — Janet Jackson’s breast exposed during Super Bowl halftime show — Google introduces Gmail product. (The launch is met with skepticism) — Dick Cheney and George W. Bush testify before the 9/11 Commission — Oldsmobile builds its final car ending 107 years of production — Facebook launched as social networking site open only to Harvard students — Statue of Liberty reopened to the public.
None of the following were around in 2004: Android; Instagram; Mashable; BuzzFeed; The Cloud; Netfix; Tablets & Smart Phones; Huffington Post; Tumblr; Hulu; Twitter; iPhone; Wikipedia; iPad; or YouTube."
-Matt Scheckner, Executive Director, Advertising Week
The world has certainly changed a lot since 2004, and the field of marketing is no exception. On the occasion of Advertising Week’s 10th anniversary, we ask: What are some of the biggest changes advertising has seen in the last decade?
1. Mobile
Popular consumer mobile devices (smartphones and tablets) simply didn’t exist 10 years ago. (The iPhone was first released in 2007 and the iPad came in 2010.) But already, a third of all visits to the most popular online retailers come from mobile devices.
Writing in Harvard Business Review, Harvard Business School dean of marketing Sunil Gupta sees the current state of mobile ads as “a period of fumbling while marketers try to repurpose ads that worked in the old media,” similar to advertising at the debuts of TV or the Internet. He advises marketers to greatly improve the tiny, annoying ads popping up in mobile apps, as “mobile ad budgets in the US are expected to increase from $2.3 billion in 2012 to almost $11 billion in 2016.”
2. Social Media
Facebook debuted in 2004 as a service just for Harvard students. It now has over a billion users worldwide and generates billions of dollars in ad revenues (including 15.8 percent of all global mobile ad revenues just months after unveiling ads in mobile). But even without buying ad space, a presence on social media has become a necessity for companies.
Microblogging site Twitter has been positioning itself as a fresher alternative to Facebook. And with a pending IPO, its push for ad revenues is expected to explode.
With social media users volunteering so much information about themselves and their online habits–and with social networks tracking users’ online movements even further–advertisers have been throwing themselves into this world for better-targeted and more efficient ads.
3. Streaming Content
YouTube was created in 2005. Hulu and Amazon Instant followed, and in 2008, Netflix made its digital content unlimited to subscribers. Pandora and Spotify brought radio to the Internet but made it better. Suddenly, millions of people were watching more TV and movies online than on cable.
But as the HBS dean noted when discussing mobile ads, moving marketing from an old medium to a new one doesn’t work. Online viewers are used to control over what their watching, so marketers have had to compromise with shorter commercials, “choosing your ad experience,” or the ability to skip. But in exchange, advertisers have greater opportunities for targeting those already interested in their message. As one ad creative put it, “We need to stop interrupting what people are interested in and be what people are interested in.”
4. Big Data
More data on consumers is available than ever before and our ability to process it is growing by leaps and bounds. A McKinsey study found that data-driven companies were 5-6 percent more profitable than their peers and those figures might have been double digits when applied to sales and marketing.
What’s exciting is not just these developments individually but how they overlap and interplay with one another. Users are streaming content through social media on their mobile devices, generating tons of data; those data are being used to expand offerings and target content; and it goes on. What does all that tell us about the next 10 years?

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