The Changing Face of Advertising

John Reid
Thursday, July 12th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

So think about the last twenty years in media you know it used to be called broadcasting. Like we do hear on the radio but now so much of what we consume in the media is micro casting designed specifically for you you don't see. The same thing your neighbor sees. That's the way advertising has gone to Camelot is a media observer and the author of the new book. For enemy is the ethic disruption of the ad business and everything else and Ken joins us now. To explain what he means kids so I guy get the difference between broadcasting in micro casting but we're really seeing things change in the had a business. No we are and what's happening to the and businesses is that it's being disrupted the way newspapers and music and magazines have been disrupted over the years. And and it's happening very fast they have a testing world and why this matters is that advertising it basically is subsidy. Happened network television is gone without advertising most newspapers and magazines. With Paris most apps FaceBook and Google which it's almost totally the dynamic as. What parish without advertising. And yet the question is. What form of advertising take from the public increasingly. Easier for enemy they don't like being interrupted by era. And so what increasingly as you suggested in the in the intro. Increasingly they're doing is saying how well the more data we have the more we can target ads that you so we can personalize them. We can give you things that we know your interest today. So we won't won't that be great if we if we do that job and so John hate you know. On your GPS would follow me on his cellphone we can locate where you are the only two blocks from the slowly border sport jacket last month. If you walk two blocks that's good today John how will give you 20% often sport jacket now when you see that as a service. As individualized. Not a man I'm interruptions it's something that's really serving you all you see it this kind of creeping caddie knows so much about me are you following me on the street. And that's the basic question for the future will will that data that they have an ability to personalize this it's. He broke the privacy issue or not. What what what are we discovering about the way people are responding to that I would bet that there's a generational gap between. People my parents' age people my age in their late forties. And you know the millennial suit don't seem to care about any of the information they're turning over to these companies. Well there's no question that there's a gap between the millennial Suk who seem less concerned according to data research. It then then then their parents do about. That giving up their data on the other hand that the generation after them generations see. The research on generations C which is basically teenagers. Is that they are more concerned about privacy. Then then in the running for a this is all. And it's being cooked down right now we don't know would be very definitive answers to these questions. And no one of the basic questions for the future is how will the public. Recoil. At the data people these companies have and they used to that now or lace see this service. And and and if they recoil will the government and impose privacy strictures. Dream and I collect all the data they know collapse. We see stories just about every week about the decline of traditional print media do you think there's hope for newspapers when so much of the and budget is going into digital. Material that's that's designs for specific individuals and groups. Ten years ago. Newspapers in America generated almost fifty billion dollars worth of that dollars. Today they generate about eighteen billion dollar threat and that number is going to happen to ever attacking his slain. Some newspapers and that and that newspapers become more digitize it. Did the amount of revenue they generate Samantha and visual newspapers much less. Basically attempts. But what it generates the print newspaper you don't spend much time on the. There's only newspapers that you learn from newspaper at some newspapers or are challenged industry. What about this online subscription model on and every day I have to go through armed Virginia and newspaper the Richmond times dispatch. And I'd paid for copy but I've often forget to sign and so on blocked from seeing certain stories until I signed in. Do you think this online subscription model will hold up because succeed see a lot of people do want news for free. They do but but if you but increasingly would newspapers are doing is having with the colon metered model which it says that they'll allow you to watch this program read a couple of articles for months afraid. But access they charging them and the question will people pay for it. And and increasingly. The evidence is that they don't pay for it. So the digital newspapers do very well let's say the new York times of the Washington Post the Wall Street Journal. But they do much less well at that local newspapers. Is it be discerned how people are sneaking ads into the contents and and I see things popping up all the time there's pretty annoying when I'm when I'm trying to. Find information is that what we're gonna have to deal with more on her back going forward. You you will mean is that call product placement but then you get something called made that switch is made of advertising is basically. You think you're reading a news story it's the same type face the conservatives really have had by the company at eight. But it's all it's a reflection of the desperation the advertising world. To figure out how to we'd keep. Subsidizing had a we keep growing and and therefore subsidizing the media so we have to try different things including tricks. To trick the public into thinking you know they're not watching a man when in fact they really are. All right last question for you if he predicts for me what's on media is gonna look like. And ten more years will newspapers have completely collapsed to a magazine still exist. Or will everything be micro cast for the individual and just hope that this all shakes out where somebody's making money. I'm not American enough to. Pretend to have an answer that question I mean clearly. Newspapers. I assume there will be seeing many more digital newspapers and print newspapers will be. Like the dinosaurs gone because they're expensive to produce. And distribute. But will the question then becomes will people subscribed to that digital newspaper or will they take. Felt that things get for free also FaceBook removal. Couldn't that may not be as reliable. As your local newspaper. And that is. Yet those those are reporters and writers and editors and I. In Richmond they'd do it the newspaper but they don't. You know if you do you often don't know where that information coming from when you pick when you read a feed on FaceBook. Who really is interest saying after a century youth of relative stability things have shaken up in the last. Decade or so Ken eleven or dramatic media observer and the author of the book for enemies the epic disruption of the ad business really appreciate your insight this morning thanks for me.