i came across a great article on the future of media…
SEVEN DRIVING FORCES SHAPING MEDIA
1. Increasing Media Consumption
Humans are intrinsically media animals. As we get greater access to media and content, we are discovering that our appetite for information and entertainment is virtually insatiable. It is commonplace for people of all ages to consume multiple media at the same time, with television, internet, newspaper, messaging, and other media frequently overlapping.
Average total media consumption will exceed waking hours. Most media will be consumed with partial attention. Advertising impact will decrease.
At the same time as we are consuming more media, every existing media channel is being fragmented, and new ones are being added apace. In the example of television in this chart, we watch ever more television, but the proliferation of new channels means continually less viewer time per channel. Now that the Internet and mobile are creating an explosion of new channels and content, audiences are being divided into smaller and smaller segments.
Current mass media markets are ephemeral. Revenues per channel will decrease. In all except a handful of cases, production costs will need to scaled down.
Early talk about consumer-generated media has become a stark reality over the last two years, with an explosion of media participation across blogs, photos, videos, social networks, and more. The costs of quality content creation are plummeting. Already a large proportion of content available is non-professional, and people’s media activities are increasingly focused on participatory channels such as social networks.
An infinite supply of content. Increased fragmentation of attention. Pro-Am (professional-amateur) content models will emerge.
Media is becoming personalized. Ultimately this is about user control, in enabling every possible choice in what, when, and where people consume media, and its formatting, filtering, and presentation. At the same time, real-time information on viewers enables highly targeted advertising based on behaviors, location, and other profile data. The fate of personalized advertising will depend on how societal attitudes to privacy evolve.
Users’ expectations for control over their media will increase. Abuse of personalized advertising will create a backlash. Some will opt-out, and others will opt-in if sufficient value is created.
5. New revenue models
Within the current trend away from subscription and towards ad-supported business models, the way that advertising is sold is dramatically changing. As illustrated, the vast majority of the online players with the greatest reach are advertising networks, not stand-alone sites such as Google or Yahoo! Unbundling sales and content is allowing far greater scalability of content production costs. The promise of micropayments for content may re-emerge within a decade.
Advertising aggregation will be central to the media landscape. Media companies will segment and unbundle ad sales and content creation.
6. Generational change
The chart shows that each generation is fairly consistent in its media consumption patterns, however that each group behaves very differently. The average audience age of traditional media such as television and radio continues to increase. Over the medium to long-term, generational change will result in dramatically different profiles for media consumption and participation.
Media channels will be increasingly age-segmented. Advertisers will accelerate their shift to new media outlets. Sharemarket valuations will reflect age profiles of audiences.
7. Increasing bandwidth
In developed countries the Internet has now shifted from dial-up to broadband in the home. A rapid pace of increase in bandwidth will continue indefinitely. It will not be too long before the majority of developed country homes receive over 100Mbps. At the same time mobile bandwidth is soaring, with a variety of technologies contributing to pervasive high-speed access to content.
Video on demand anywhere, anytime. Personal clouds will allow music and video collections to be accessed anywhere without local storage. The rationale for allocated media spectrum and infrastructure will fade.
some interesting views on how things will progress. the emergence of ad networks is a critical issue for media businesses as (while it seems like a scalable option) it takes sales control away from the media owner and that isnt that great.
there are many questions of market power here and, most especially, brand! a powerfull brand can demand a premium which a PPC rate cannot provide due to the association benefits provided to the advertisers.
that said, the argument would be, better content (brand) thus more pageviews and clickthroughs – though we know this isnt always the case… a media owner’s ability to package a special event or a specific audience is what marketers buy. marketers buy this sometimes for direct response but sometimes for lonbg term brand building – but for both the concept of ROI is ket – the challenge for media owners is to change what content is. as long as advertising is always an “interruption” or a transfer of attention i am not sure how well it all scales.