A major shift away from traditional advertising to interactive ad formats will occur in the next five years, according a report released by IBM Global Business Services. It’s title is “The End of Advertising as We Know it.”
The main future growth areas will involve advertising distributed through mobile communications devices and the Internet, followed by ads embedded in video games. Growth in these areas is anticipated to be up to four times faster than that of traditional media used for direct marketing.
Two-thirds of the executives polled expect 20% of ad expenditures in the next three years will shift way from impression-based pricing formats where the actual impact of ads can be tracked — and priced accordingly.
Internet advertising will increasingly be distributed through online advertising networks and social networking Web sites.
Greater data tracking capabilities will improve the ability to target individual consumers with personalized advertising based more on lifestyle data, than contemporary methods for targeting by Zip codes and at the household level.
IBM’s findings are based on surveys of more than 80 advertising executives and analysis of recent trends concerning how consumers have gained more control over how they view, interact with and filter out electronic forms of advertising.
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