“There’s a chance to invest right now in China, India, Russia and Brazil, which will pay off big over the next five years… These economies are going to boom, and ads there are going to go directly to mobile and directly to the Internet.” Says David W. Kenny, the chairman and chief executive of Digitas.
He also believes that “It is only a matter of time until nearly all advertisements around the world are digital.”
Will it? Are we seeing early signs of it yet?
David W. Kenny’ s advertising agency Digitas, was acquired by the Publicis Groupe for $1.3 billion six months ago. Publicis has also acquired an agency in China “…which analysts within Publicis estimate is growing at about 20 percent a year, much faster than global growth in the market, which hovers around 5 percent a year.”
WPP Group, another advertising major recently acquired 24/7 Real Media, an advertising network that positions his company to compete more directly with Google.
Nielsen asked 1,000 consumers on its new “engagement” panel if they could recall any TV commercials they had seen — only one third of them could. In contrast, 79% could recall at least one TV show. This is not the least bit surprising because traditional TV advertising creates NO value for consumers in the moment — or very little.
Contrast your average interruptive TV ad with the other end of the advertising value spectrum, which is currently occupied by search advertising. Search advertising brings you relevant information about a company’s products or services, in the moment when you’re thinking about it, and typically takes you directly to the company’s website where you can actively “engage” (depending on the quality of the site).
First published on August 17, 2007