I've written frequently that "change" is an over-used word. In a business plan I wrote in 1980 when I was an executive at CBS-TV, I emphasized the need for change, as emerging technologies such as cable impacted our businesses and revenue models. Before and since, there has been non-stop change in the media and advertising business. Do you remember any time in your career when change has not been an industry mantra? "Transformation," "Transition," "Reinvention." All over-used and redundant. But today, unlike just a few years ago, patterns are emerging that inform us how to change, that empower us to form a reasonably reliable vision for the future, and to adapt our businesses and revenue models accordingly. Here are five future looking trends in media and advertising that we can confidently incorporate into our strategic planning, organizational restructuring and investments.
NEW OWNERS, NEW PLAYERS, START-UP BOOT HILL
- Many of the leading legacy media companies are in-play, positioned for mergers, acquisitions and privatizing.
- Tech-focused Silicon Valley media companies will acquire and partner with legacy media companies that own large content libraries. The value of long-form content libraries will grow exponentially in value, as the economics around new production of original long-form programming decline. Marketers, studios and distributors will partner to re-introduce golden oldie content from the past.
- Media alliances will expand and strange bedfellows will engage. Most legacy media companies are in-play – buying and selling. Can Verizon/AOL and Time Warnerpossibly reconnect? Very unlikely but a fun theory. .. Will Apple and Disney connect? … Yahoo without Alibaba will be valued at only and estimated $3 to $4 billion - pocket change for many companies… Amazon will emerge as the most prized, innovative and valued mediacompany when it connects One-Click Purchasing to advertising and content… What will AT&T do next? DISH? … Pay attention, above all else, to what John Malonedoes… What will Oracle, Adobe, Salesforce, IBM and corporate outliers acquire in the media space?... What unknown suitor is lurking?
- Thousands of VC-funded companies in the ad tech space will be acquired, merged or relegated to start-up boot hill as the industry contracts and consolidates around market leaders, as it always has.
Read the other Trends here:
1 - AGENCY AND MEDIA REALIGNMENT AND REINVENTION
2 - REINVENTING CONTENT
4 - DATA, BIG DATA AND EMOTIONAL DATA
5 - SMART STAFFING