Business Models

Advertising Data Resources

Data about overall advertising industry, likely will include comparison forecasts.

World Advertising Research Center

Data from the IAB specific to online advertising. Includes yearly revenue chart going back to 2001.

IAB Insights

Data from Advertising Age, including annual reports and analysis of advertising spending

Ad Age Data Center

Answered question from “Google Answers” about advertising industry revenue (from 2003 but sources may still be relevant)

Google Answers

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Business Models

Bob Greenberg on skills in delivering engagement

Sometimes I make reference to the “top five reasons I left Razorfish.” I’m sure there’s more than five reasons on that list. But the #1 reason was that I saw a widening divide between my values as a UX designer and the values of an advertising agency.

As the gap between my values and the values of the organization grew, I saw a real trend away from delivering meaningful, well-structured experiences, and towards what I called “TV Commercials online.” Personally, hearing things like the “Shave Everywhere” microsite held up as the future of online media really troubled me. I heard the work of information architects being derided as “wonky” while the values of traditional agencies and their ability to deliver a “big idea” were celebrated.

Bob Greenberg says here what I continue to believe, which is that the future of advertising online isn’t more viral videos — it’s taking some of the money that used to be spent on brand marketing and awareness and using it to improve the experience of consideration and decision-making.

Here, the “rational” experience of brands trumps the “emotional” delivery of a clever tagline or visual. Yet ad agencies have almost no experience in the former and way too much comfort in the latter. Even when they develop online campaigns, traditional agencies tend to approach the Web as just another place to deliver a metaphor. So instead of creating useful tools, applications, demos, customer support communities or streamlined ways to complete a transaction, they fall back on familiar stunts and gags, such as viral videos.

I suspect the reason agencies haven’t tackled consideration and preference is because they are far beyond their capabilities rather than simply outside their comfort zone. Real engagement requires entirely new teams of people—like information architects, data analysts and an army of technologists of various stripes. The traditional teams found at agencies simply do not possess the skill sets needed to tackle areas that are deeper inside the funnel, where purchase decisions increasingly take place.

via Art & Commerce: Funnel Clouding.

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Business Models

The Three Party Market

Part of a longer piece on measuring the value of the “free” economy. He separates ad-supported out from “real free” (not paid for with ad clutter) but I think the distinction is not so clear cut, and I suggest that more and more “freemium” services will enable opting out of ads for a cost.

The second form of free is the “three-party market”, which is to say the world of advertising-supported free media. That’s most radio and broadcast television, most web media, and the proliferation of free print publications, from newspapers to “controlled circulation” magazines. For the top 100 US media firms alone, in 2006 radio and TV not including cable advertising revenues were $45 billion.

Online, almost all media companies make their offerings free and ad-supported, as do many non-media companies such as Google, so I’ll include the entire online ad market in the “paying for content to be free to consumers” category. That’s another $21-$25 billion. Free paper newspapers and magazine are probably a billion more, and there are no doubt some other smaller categories I’m omitting and a lot of independents not included in the numbers above. Let’s call the total of offline and online ad-driven content and services $80-$100 billion.

The Long Tail: How big is the free economy?.

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