The new digital formats revolutionize the advertising model of companies, which should bet on a more interactive marketing with a measurement of investment in real time

The new users of social and digital media have revolutionized the way of advertising, conditioned by the great growth of online formats and digital media and the consequent decrease in investment in traditional advertising. It is expected that the Internet and mobile phones absorb 20% of the total investments of advertisers.

In this context, the way in which companies communicated or sent information to different audiences has become obsolete. Instead, it is evolving towards a more interactive model, with niche offers for micro-audiences, support for different formats and where companies can measure the benefit of their investments in marketing and advertising in real time. Thus, 63% of the marketing directors interviewed expect their spending on online and interactive marketing to increase and 65% to decrease their investments in traditional advertising.

These are some of the conclusions of the study “Beyond advertising: in search of new access to the digital consumer”, carried out by IBM from a survey of 2,800 consumers and professionals in the world of advertising. The report indicates that there is a gap between advertisers, content owners, media and media agencies, which will have to transform the way information is distributed to their audiences to meet the needs of new “digital” users.

“To succeed, especially in the current economic situation, media agencies need to develop new skills to support the demands of the sector, in constant evolution. This includes offers to micro audiences, real-time measurement of the benefits of investments and cross-platform integration, “says Saul Bernam, global director of Strategy and Change Consulting Services at IBM and co-author of the study. “Now is the time for companies to move faster to be more effective with their resources and be prepared for the future.”

According to the report, four important trends emerge in the market:

1. New habits of consumers and adoption of new formats . Consumers increasingly use services with digital content, such as Twitter, YouTube or Facebook. Between 2007 and 2008, the use of social networks skyrocketed from 33% to 60%, online music downloads increased from 22% to 46%, the use of mobile Internet almost tripled and access to music and video through of mobile phones multiplied by four, from 7% to 35%.According to the findings of the study, mass marketing faces many challenges, at a time when the audience is increasingly difficult to segment. Reaching different user groups will require directing the offer to each of the specific niches and being able to perform searches adapted to new platforms, new offers and defined geographical markets.
2. Changes in advertising investment . In the last ten years, advertisers have adapted to their audiences and have opted for more interactive and measurable formats, such as the Internet or mobile phones. Digital formats give advertisers the ability to more effectively measure and analyze the results of campaigns to demonstrate the value of their investments.
3. Platform integration . The constant migration to digital platforms blurs the traditional difference between the most used media for advertising, such as TV, press, radio, and marketing (telephone, mail or promotions). The objectives of both have been traditionally different: the former were used more to generate brand image and the latter to make segmentations, measurement of results, etc.The new digital formats – social networks, online videos, mobile phones, games and digital TV – can be used to simultaneously cover both objectives; a change towards what the studio calls “brands-actional” advertising. As a result, advertisers who previously focused on offering the marketing market with a quick return on investment or brand image oriented advertising can now cover both areas at the same time.
4. Adaptation of content providers to meet new demands . According to the study, the current content providers (agencies and distributors) are not prepared to meet the demands of consumers and digital advertisers. 80% of the advertising professionals interviewed expect the sector to take at least five years to be able to offer advertising that is truly applicable to different platforms (including sales, distribution, measurement and analysis).

The study highlights that, in order to be successful and satisfy the growing digital demands of consumers, advertisers must provide consumer-oriented marketing, which means combining more granular segmentation and measurement with the integration of several platforms. This integration will allow the messages to reach consumers in different platforms, in a more attractive and innovative way.

“Media, entertainment and advertising agencies need to realize that, if the right conditions exist, consumers are willing to share information,” said Bill Battino, Managing Partner, Global Communications Sector, IBM Global Business Services and co-author of study. “The study indicates that consumers are willing to give information about their uses and preferences in exchange for content and marketing offers segmented and related to their tastes. The companies that are capable of responding to this demand, will have an important competitive advantage “.