|New Media Captures Huge Advertising Dollars as Technology and Advertising Collide|
SCOTTSDALE, Ariz., September 11, 2007â€” MultiMedia Intelligence (http://www.MultiMediaIntelligence.com) reports that the new media opportunity of Internet advertising, Internet TV, IPTV advertising, mobile TV advertising and in-game advertising will grow to US$41 billion worldwide by 2011. This will more than double the new media advertising segment of 2007, which collectively will reach almost US$18 billion worldwide in 2007.
The total available market (TAM) for worldwide advertising is approximately a $0.6 trillion market. The disruption of traditional media advertising models by new media is still at its nascent stages, as the largest advertising market, TV, is just beginning to feel the impact. However, traditional content owners like music labels, studios, television affiliates, game publishers, and cable and satellite providers are being pulled into the new technology-driven world as disruptive technologies such as time shifted TV, Internet delivered content, and mobile video change media consumption habits.
â€œThe traditional media industry is under assault from rapidly changing technology and user behavior,â€ according to Rick Sizemore, Chief Strategy Officer for MultiMedia Intelligence. â€œThe digital video recorder has empowered consumers and is toppling traditional TV advertising models. The $185 billion dollar TV advertising industry is now in the cross-hairs of the technology industry. Technology not only puts consumers in control of what and how they consume content, but also integrates community, participation and interactivity into the media experience. New technology-driven advertising models are emerging on the Internet, on mobile devices, in video games, and on public displays. These are significant opportunities, but will be massively disruptive to the traditional advertising industry.â€
Recent research by MultiMedia Intelligence has identified the following:
Â· Media companies face a strategic choice of control versus reach. Syndicated and viral distribution of content via the Internet, social networks and user generated sites provides the broadest reach and empowers consumers. Yet, this model strips the control of media distribution from content owners and disrupts existing business models.
Â· There are new potential advertising and branding models leveraging platforms with hardwired branding all the way down to the semiconductor level. Few have even considered some of the potential models where electronic devices feature chips that are integrated with and owned by the â€œBrand,â€ with a product subsidy cascading the to the end consumer.
Â· Internet Search will end 2007 as the largest of the digital advertising segments with US$6.8 billion in revenue. However, IPTV advertising will rise to a top spot in 2008 as video is delivered by the might of the worldwide telcos.
Â· Comprising just under 4% of new media advertising revenue in 2007, the three new media video categories of Internet TV, IPTV and mobile TV will combine to make-up almost 20% of media advertising dollars in 2011. Clearly, even in new media, video will be king.
The research, â€œAdvertising & Technology Collide: Semiconductor Companies, Technology Providers, Media Companies and Ad Agencies Partner to Move from Disruption to Monetization,â€ (MMI070301DA) examines the impact of new technologies on the advertising industry. It first examines why current advertising is becoming less effective and the critical role of the DVR. It then addresses the resulting impact on the â€œupfrontsâ€ and the impact on ratings providers, such as Nielsen. Digital technologies, platforms and the impact on advertising will subsequently be examined. This includes such platforms as set-top boxes, PCs, game consoles, DVRs and portable devices. It will finish by discussing new and creative ways that advertisers can utilize core technologies and examining some of the new digital advertising opportunities, including Internet advertising, IPTV advertising, Internet TV, mobile TV advertising, and in-game advertising.
About Multimedia Intelligence
MultiMedia Intelligence specializes on the markets and technologies for delivering IP-based video to the â€˜nthâ€™ screen. The company provides a comprehensive set of marketing & business development services to its customers.
For more information, contact:
Rick Sizemore, Chief Strategy Officer
Title: Advertising & Technology Collide: Semiconductor Companies, Technology Providers, Media Companies and Ad Agencies Partner to Move from Disruption to Monetization
Published Date: September 2007
Abstract & Table of Contents (html)
Author: Rick Sizemore
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