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UH-OH: It’s the end of ad inventory as you know it (and how you can still feel fine).


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A provocative look at the future of the ad impression, and how the evolution of agencies and publishers may or may not result in its demise -- or devaluation.

Published in: Business
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UH-OH: It’s the end of ad inventory as you know it (and how you can still feel fine).

  1. 1. UH-OH.<br />It’s the end of ad inventory as you know it (and how you can still feel fine).<br />Ian Schafer, CEO & Founder,<br />March 1, 2011<br />Heckle me @ischafer.<br />
  2. 2. Brands are pulling agencies in directions that will force them to move into territory that will be dangerous to the traditional online inventory model.<br />
  3. 3. “Engagement” isn’t just gaining momentum.<br />It’s gaining a more significant share of spending.<br />
  4. 4. The good news: There is still time to lead.<br />The bad news: Demands for “quality engagement” must be met.<br />Engagement is more difficult to buy, and more difficult to sell.<br />
  5. 5. Online branding may soon not have a home.<br />
  6. 6. We are waking up to the fact that “branding” is difficult to measure.<br />But there is promise for “connections”.<br />Impressions will be evaluated upon how hard they work.<br />
  7. 7. “Inventory” is headed into some scary territory as buyers seek ultimate efficiency..<br />
  8. 8. Inventory will become marginalized.<br />Automation will further commoditize inventory unless targeting compensates for it.<br />Lack of inventory scarcity will force advertisers to continually attempt to hack attention through other means.<br />
  9. 9. Platforms are gaining power.<br />And it’s changing everything.<br />
  10. 10. More time is spent “using” platforms than “reading” websites.<br />Platforms like Facebook, Twitter,Foursquare and Zynga are leading the charge in experimenting with new ways to engage.<br />It’s no longer just about adding value to consumers – it’s about adding utility and enhancing experiences.<br />
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  13. 13. “Strangely enough, it seems that the more information that is made available to us, the less well informed we become.<br />Decisions become harder to make, and our world appears more confusing than ever.”<br />Jeremy Rifkin, Entropy: A New WorldView, The Viking Press, 1980<br />
  14. 14. “Mo’ money, mo’ problems.”<br />P. Diddy<br />
  15. 15. Can ad impressions withstand increasing ROI demands, falling CPMs, and even more measurement proxies?<br />
  16. 16. Engagement models are making progress. Develop your own.<br />Be aware of inventory polarity and marginalization, and embrace or reconfigure.<br />The platform era is here. Play nicely with others.<br />Agency evolution is going to impact the definition, delivery, and sale of “inventory”. Figure out how to sell to new breeds.<br />Effectively define and measure engagement or be left behind.<br />
  17. 17. Those that are most adaptable<br />to change will survive.<br />
  18. 18. THANKS.<br /><br />@deepfocus<br /><br />@ischafer<br />