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Occupy Madison Avenue?




  Joseph Turow
  Annenberg School for Communication
  University of Pennsylvania
                                       1
Media Planning and Buying
• Historically been involved in little public
  controversy.
• Notable exceptions
  – Early history of media and advertising
  – Ratings issues




                                                2
In recent years, that has changed.

• An important reason is that the business
  has moved to the center of the advertising
  industry after decades of being considered
  a backwater.
• Terry Kawaja charts reflect that change
Media Buying Before 1985

Agency
                     Ratings
Planners            Companies   “Publisher”
and
Buyers




           Client

                                              4
5
What is the public concern?
• Media agencies, data companies and
  marketers are working with media firms
  (publishers) toward the goal of labeling
  individual consumers (often anonymously)
  with demographic, lifestyle, social, and
  other characteristics as a result of tracking
  their behavior across digital media.
So what?
•   “Privacy”
•   “Creepy”
•   Social discrimination / the long click
•   People are concerned and lack
    knowledge.
Implications for Media Firms
• The new advertising food chain—pushes
  down publishers
• Media buyers and post-publishing world
• Content farms
• Church/State dissolution
So,will all this lead to an Occupy
Madison Avenue movement?
• Perhaps, but more likely:
• Short-term gains targeting lead to long-
  term losses for the industry as well as the
  media system via encouraging mounting
  public suspicion and cynicism of media
  sources and marketers.




                                                9
Marketers haven’t fully stepped up
to the plate.
• Industry explanations of how the system
  works are lame.
• Even people in the industry don’t
  understand. Jargon makes it harder.
• Language of Digital Advertising Alliance a
  case in point.



                                           10
Why not greater transparency?

• In frank moments, industry leaders cite two
  problems working against greater
  transparency regarding why individuals get
  particular targeted ads:
 Difficulty of explaining categories’ origins.
 Fear of giving up corporate secrets.
These problems can be solved.
• And more generally, people in the
  advertising industry need to think carefully
  about the world they are creating through
  their media planning & buying decisions.




                                                 12

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adtech SF 2012: Keynote - Occupy Advertising by Joe Turow

  • 1. Occupy Madison Avenue? Joseph Turow Annenberg School for Communication University of Pennsylvania 1
  • 2. Media Planning and Buying • Historically been involved in little public controversy. • Notable exceptions – Early history of media and advertising – Ratings issues 2
  • 3. In recent years, that has changed. • An important reason is that the business has moved to the center of the advertising industry after decades of being considered a backwater. • Terry Kawaja charts reflect that change
  • 4. Media Buying Before 1985 Agency Ratings Planners Companies “Publisher” and Buyers Client 4
  • 5. 5
  • 6. What is the public concern? • Media agencies, data companies and marketers are working with media firms (publishers) toward the goal of labeling individual consumers (often anonymously) with demographic, lifestyle, social, and other characteristics as a result of tracking their behavior across digital media.
  • 7. So what? • “Privacy” • “Creepy” • Social discrimination / the long click • People are concerned and lack knowledge.
  • 8. Implications for Media Firms • The new advertising food chain—pushes down publishers • Media buyers and post-publishing world • Content farms • Church/State dissolution
  • 9. So,will all this lead to an Occupy Madison Avenue movement? • Perhaps, but more likely: • Short-term gains targeting lead to long- term losses for the industry as well as the media system via encouraging mounting public suspicion and cynicism of media sources and marketers. 9
  • 10. Marketers haven’t fully stepped up to the plate. • Industry explanations of how the system works are lame. • Even people in the industry don’t understand. Jargon makes it harder. • Language of Digital Advertising Alliance a case in point. 10
  • 11. Why not greater transparency? • In frank moments, industry leaders cite two problems working against greater transparency regarding why individuals get particular targeted ads:  Difficulty of explaining categories’ origins.  Fear of giving up corporate secrets.
  • 12. These problems can be solved. • And more generally, people in the advertising industry need to think carefully about the world they are creating through their media planning & buying decisions. 12