Can the Media Industry Right-Size the Advertising Ecosystem?

Each show contains this signature exchange between the twoPinky quotWhat are we going to do today BrainquotBrain quotSame thing we do every day Pinky Try to take over the worldquotI can imagine that similar conversations take place at Amazon39s headquartersquotWhat are we going to do today Mr BezosquotquotSame thing we do every day Try to take over the worldquotIn Amazon39s case the latest takeover conquest may be the advertising industry According to a recent edition of the Benedict Evans Newsletter Amazon sold close to 40 billion of advertising last year bigger than Prime bigger than the entire global newspaper industry and probably more profitable than AWSAnd while there is some dispute about whether ads on Amazon are really advertising rent or something else you can39t deny the incredible influx of revenue to the tech retailing giant and the impact it has had on quottraditionalquot advertising outlets The fact is that eight of the top ten global media owners by ad revenue are tech companies with Amazon in fifth place behind Alphabet Google Meta Facebook Bytedance TikTok and AlibabaEvans then asks the following compelling questions quotSo what are the ads doing for Amazon Some people think they39re degrading the experience amp8211 certainly it39s hard to shop without wading through them But you could also ask whether this is amp8216advertising39 or amp8216marketing39 amp8211 indeed you could ask the same about Google39s search ads Is paying for placement an ad or trade dollars or end caps or a slotting fee Does that distinction break down Does it matterquotFrom my perspective the bigger story is the transition away from quotmedia advertisingquot to quotretail advertisingquot Are hightraffic websites or popular social media apps going to permanently alter how we producers and consumers understand advertising Does it scare you that Walmart had 27 billion of ad revenue last year while the New York Times had 523 millionWe are in the midst of a period of enormous upheaval in the media and entertainment industry The quottruthsquot about the industry we once considered irrevocable are being dismissed What once was fantasy is now fact And companies that can39t or won39t adapt will face the same fate as Blockbuster and SearsIn the words of another of my sons39 favorite fictional characters quotThere39s been a great disturbance in the forcequot But it39s during times of uncertainty where longstanding walls can come down and new bridges can be built This is the time where inspired and creative financial leaders can help guide their companies39 bridgebuilding campaignsMFM wants to support that effort by providing you with educational programs on a broad crosssection of business financial technology and leadership topics taught by thoughtprovoking pioneers in these fields The MFM Annual Conference features an array of these educational offerings and the opportunity to network with hundreds of your colleagues from every sector of the industry The Annual Conference takes place May 2224 in Los Angeles Register before April 17 and receive a significant discount I look forward to seeing you there and working with you to create the future of the media and entertainment industryClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Can the Media Industry Right-Size the Advertising Ecosystem?

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Joe Annotti

American Lung Association and the Ad Council Unveil New PSAs Highlighting the Significance of Early Detection for Lung Cancer - Ad Council InSites

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Can the Media Industry Right-Size the Advertising Ecosystem?

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