The border that separates real and digital advertising is getting smaller every day. My prediction is that we are going to move toward a complete transformation of advertising’s operating mode, which today is based on a service model.
Born in the 50’s, this concept had its hour of glory with television and ruled for half a century until the birth of digital advertising and marketing in 1995.
This new form of advertising on the Internet opened new opportunities which Google knew how to take advantage of by attracting small advertisers who could not afford costly agency services. It’s the first major disintermediation that has taken place.
Stock exchange history, despite the drop in stocks of 2008, shows that Google’s capitalization is, today, without contest. The price on 19 August at $140.55B, largely exceeds that of main advertising agencies all together with a service-based business model.
As I have often written in this blog, innovation and new business models are ignored by the big advertising agencies. Their innovation cycle is practically non-existent and they, like all other traditional media, are driving towards an extinction phase. In effect, traditional advertising is unpopular, it doesn’t bring any value to consumers, it only brings value to agencies and the media, eventually to brands…..
By taking into account these parameters, and as the graphic below explains, today the innovation cycle is favorable to a complete redefinition of the advertising model. Like in the 50’s, the agencies knew how to take advantage of the television media, it is now time to build a new advertising model.
The XXXXX project has the code name “Posterity” and is based on the assessment that an advertiser does not bet on the creativity of an agency but more on that of individuals. This project is in production phase; I am available for investors, or all other entities to launch a concept that will revolutionize the advertising world and will be the second disintermediation, after Google’s.
