Advertising Industry in the Digital Age Suzanne M. Kirchhoff

ISBN:

Published: November 9th 2009

Kindle Edition


Description

Advertising Industry in the Digital Age  by  Suzanne M. Kirchhoff

Advertising Industry in the Digital Age by Suzanne M. Kirchhoff
November 9th 2009 | Kindle Edition | PDF, EPUB, FB2, DjVu, audiobook, mp3, RTF | | ISBN: | 9.70 Mb

The advertising industry is a major sector of the U.S. economy, employing hundreds of thousands of workers and accounting for about 2% of the nation’s annual output, according to some estimates. Advertising campaigns by large firms and smallMoreThe advertising industry is a major sector of the U.S. economy, employing hundreds of thousands of workers and accounting for about 2% of the nation’s annual output, according to some estimates. Advertising campaigns by large firms and small businesses provide consumers with product information and generate crucial income for newspapers, television and radio stations, magazines, and other ventures.

The advertising industry is in the midst of a fundamental restructuring, however. The deep recession has depressed ad spending. At the same time, the industry faces longer-term challenges as consumers migrate from traditional media to digital platforms such as websites, cell phones, mobile e-readers, and gaming networks. The emerging digital market offers great advantages including lower distribution costs, the ability to target ads to individuals rather than broad groups, and more precise tools to measure ad impact.

But the rise of cut-rate online advertising has hurt media companies and businesses that depend on ad revenue. The changing structure of the market is also forcing changes in ad presentation and content, with implications for consumer privacy, Internet regulation, and media profitability.U.S. advertising spending declined in 2008. Deeper reductions are forecast for 2009. The sharp drop in ad dollars has prompted advertising agencies and media companies to lay off tens of thousands of workers and curtail production. Though the market is projected to gradually stabilize, some ad-dependent businesses like newspapers and magazines may not see revenues return to pre-recession levels for years, if then.Online advertising has slowed during the recession, though it is expected to claim a growing share of the market over the longer term.

Internet advertising has nearly doubled since 2005, to about 12% of the market, and some forecasts call for it to more than double again by 2014. Digital advertisers are experimenting with a variety of approaches to reach consumers, who are not only dispersed among a multitude of Web pages, games, and social networks, but have more power to screen content using pop-up blockers or video recording devices. Firms are using “behavioral advertising” (tailoring ads to individuals based on technology that tracks their Web activities) or, increasingly, marketing on their own websites or through bloggers.

The most successful approach to date is “search” advertising—where companies like Google and Yahoo sell ads as part of consumer-initiated information queries on their browsers. Search advertising, dominated by a few large firms, accounted for nearly half of digital ad revenues in 2008. The online market is generally compressed, with the top 10 digital ad firms garnering 71% of online revenue in the second quarter of 2009.Congress has long regulated advertising to protect consumers and ensure fair competition.

Lawmakers are now debating whether, or how, to update advertising laws for the Internet age, without stifling growth or unduly hurting media outlets dependent on advertising revenue. House members are mulling legislation to enhance privacy rights, which could limit the growth of behavioral advertising. The U.S. Food and Drug Administration (FDA) is examining pharmaceutical marketing in social networks and recently set policies for online marketing.

The Federal Trade Commission (FTC) has released guidelines calling on bloggers to disclose paid product reviews. Other potential issues include looking at advertising in online games and online political advertising.



Enter the sum





Related Archive Books

  1. 12.08.2013Winston Churchill
  2. 28.06.2012Its Not about You


Related Books


Comments

Comments for "Advertising Industry in the Digital Age":


bokinabo.pl

©2012-2015 | DMCA | Contact us