Digital Media Outlook Report 2009

Found this report by Siddharth Rao of Webchutney on TalkingTails. Very interesting to note that the largest advertisers in the offline world are only testing waters online right now – and the real online spend hasn’t really started. Most people are (still!) confused about what advertising online means and how it impacts their business – perhaps because the trickle effects of a banner AD are very small – when you conduct a TV/Print campaign people come into the stores and talk about it,, and the sales show a substantial positive impact of the campaign and the information about this goes up the organization hierarchy.

The same doesn’t happen in case of banner ads, and impact on revenues of a single ad/campaign is quite small and most marketing managers are unable to estimate how its affecting footfalls into its brick and mortar stores.

I believe a more effective means of tracking customers trickling into stores after an online campaign would definitely make a positive difference. Hopefully, with the advent and ubiquitous spreading of mobile phones, we’ll start seeing a difference in the Outlook Reports of 2011 and 2012!

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Clay Shirky’s predictions about the future of Mass Media

Just found this article on The Guardian site. Clay Shirky’s a professor at NYU and a scholar of Mass Media and the effect internet trends would have on them. Worth a read — I agree with some of his predictions (and presumptuously adding some of my own):

  1. Newspaper’s will diverge into 2 classes – magazines such as Economist which will exist for the people willing to pay for high quality coverage, and mass coverage of all possible news on the internet that will be available free and paid for by advertising dollars. Communities such as Twitter might help surfacing the right news.
  2. Niche newspapers and magazines will only exist online — the distribution costs for anything that doesn’t have economies of scale are not justified.
  3. TV will also change dramatically – The current state of the industry is that content is tightly controlled by the Channels, and hence to maintain quality, studios invest a lot of money (at least in India). We will see a lot of rise of amateur content, but only so much, since professionals will soon (and have, if I am not wrong) start publishing on YouTube and the like. However, the sudden loosening of the grip on distribution (since there are no longer any channels), will mean the quality of the content will change. Video distribution will be controlled far more by social networking sites (a la Facebook) than are blog posts.
  4. Books will be relatively less affected, at least until we hit a e-book reader that really rocks! My guess, though is devices like Kindle will improve a lot in the next decade or so, and might affect book sales greatly. Print-on-Demand will grow, but I am still not aware of how much it costs to print just one copy, so I am not in a position to comment. A large part of the cost if the cost of distribution, PoD will really succeed if the following equation is satisfied (since you will still pick up books at a store):

cost_of_traditional_book + cost_of_distribution_to_store > cost_of_printing_just_one_copy

The full article can be found here.

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