Surveying the Digital Future: The Impact of the Internet Falling Apart or Coming Together: Media and Advertising in a Digital Era Jeffrey Cole, Ph.D. Director, Center for the Digital Future at USC Annenberg School iMedia September 8, 2009 Hunvalski

We are undertaking the study of the Internet that should have been conducted on television in the late 1940s

Countries and Regions in World Internet Project United States Singapore Italy Sweden Japan Great Britain India Iran Australia Bolivia Hong Kong Canada New Zealand Colombia Russia Mainland China* Macao South Korea Germany Hungary Spain Chile Argentina Estonia Portugal Czech Republic Mexico France United Arab Emirates

United States

Singapore

Italy

Sweden

Japan

Great Britain

India

Iran

Australia

Bolivia

Hong Kong

Canada

New Zealand

Colombia

Russia

Mainland China*

Macao

South Korea

Germany

Hungary

Spain

Chile

Argentina

Estonia

Portugal

Czech Republic

Mexico

France

United Arab Emirates

Navigating through the media world: It used to be easy Predictable, Consistent Rules Now, everything is coming apart

Navigating through the media world:

It used to be easy

Predictable, Consistent Rules

Now, everything is coming apart

Everything is Coming Apart Schedules have almost disappeared The Old Way Newspapers—once a day Music-12 songs every 18-24 months TV-On a guide

Schedules have almost disappeared

The Old Way

Newspapers—once a day

Music-12 songs every 18-24 months

TV-On a guide

Everything is Coming Apart There are too many choices

There are too many choices

Everything is Coming Apart The end of the printed newspaper is close at hand Most (not all) magazines not far behind Music almost free

The end of the printed newspaper is close at hand

Most (not all) magazines not far behind

Music almost free

Everything is Coming Apart Most of today’s platforms are on life support—global warming changes the rules and the timing

Most of today’s platforms are on life support—global warming changes the rules and the timing

Everything is Coming Apart Consumers beginning to abandon subscriptions for traditional media and show little interest in paying for digital content (at least for next five years)

Consumers beginning to abandon subscriptions for traditional media and show little interest in paying for digital content (at least for next five years)

Everything is Coming Apart The problem for traditional media advertising is engagement The rules of digital advertising are much more complex than the ads of “big media”

The problem for traditional media advertising is engagement

The rules of digital advertising are much more complex than the ads of “big media”

Broadband changes everything and rewrites the rules of media (and everything else) Broadband brings together all those things that have been coming apart Television grows in importance.

Broadband changes everything and rewrites the rules of media (and everything else)

Broadband brings together all those things that have been coming apart

Television grows in importance.

Everything is coming together Social Networks: “The Real Deal” Time Magazine got it wrong!

Social Networks: “The Real Deal”

Time Magazine got it wrong!

Everything is coming together In a broadband world, “newspapers” and radio can compete like never before. Radio’s intriguing dilemma.

In a broadband world, “newspapers” and radio can compete like never before.

Radio’s intriguing dilemma.

Everything is coming together Consolidation like we have never seen before. Some media players become bigger and more successful than ever before (further aggregating consumers). The problem for jazz stations and psychology professors!

Consolidation like we have never seen before. Some media players become bigger and more successful than ever before (further aggregating consumers).

The problem for jazz stations and psychology professors!

Everything is coming together There are only three ways to acquire content and only one will prevail in the short term. More options in the future. Brand more important than ever.

There are only three ways to acquire content and only one will prevail in the short term. More options in the future.

Brand more important than ever.

Everything is coming together Addressability, new metrics and a “reversal of the laws of nature” makes the new (and more complex) rules of advertising worth the effort. With proper counsel and navigation, advertisers enter a new era. Unless privacy laws interfere

Addressability, new metrics and a “reversal of the laws of nature” makes the new (and more complex) rules of advertising worth the effort. With proper counsel and navigation, advertisers enter a new era.

Unless privacy laws interfere

Everything is coming together Learning curve much steeper than the action curve

Learning curve much steeper than the action curve

Everything is coming together Forget Web 3.0, the “next new thing” or the killer-ap, we will be there when we never think about broadband speeds, and can get anything we want, when we want it, wherever we want and set our own schedules and create our own environments.

Forget Web 3.0, the “next new thing” or the killer-ap, we will be there when we never think about broadband speeds, and can get anything we want, when we want it, wherever we want and set our own schedules and create our own environments.

CONTACT INFORMATION Web: http:/digitalcenter.org E-mail: [email_address] Phone: (310) 235-4444

Web: http:/digitalcenter.org

E-mail: [email_address]

Phone: (310) 235-4444