• by Troy Young , September 4, 2008

Across all media we are witnessing a move toward demand-based consumption where users control what and when they watch. This is foundational to a generation coming of age in an online-driven media world.

At the same time, we've never had more avenues to reach the consumer. Think about it--games, personal communications (email, social networking, chat), mobile, reference (dictionary, health reference etc.), commerce (Amazon, eBay--all now over interactive messaging opportunities. These are new additions to the media marketplace, many of which break targeting conventions based on content adjacency. With users averaging 20 sites visited per week, audience aggregation will become much more important than simple contextual buys.

The communication challenge is also complicated by fragmentation across media channels. People browse the Web while skipping between stations and talking on the phone. In a complex web of media connections, demonstrating media value is even more important. More media and more attention fragmentation will mean that media sellers have to work harder to prove value to advertisers.

Changes in how media is consumed will have lasting effects on the economics of media. Here are a few ideas to consider:

1. Guaranteed time with consumers becomes scarce as a new generation comes of age demanding media control. Captive media environments will command premiums for an ability to deliver against mass awareness objectives.

2. Demand media environments will come under continued pressure to show measurable results. This will come in the form of sales performance or tangible brand engagement. We've seen this with the success of response advertising on the Internet. It will force brand marketers to start thinking more like their response brethren.

3. Repetitive messages inside of a stream of content are a luxury of mass media. Message frequency will pose significant challenges in demand environments. Experience quality will become far more important than frequency. Understanding how to value quality will challenge the industry.

We believe that engagement directed attention will emerge as an important measure of value as media becomes more measurable and brands move budgets to demand environments. At its most basic, pricing will reflect basic indicators of a user's willingness to engage in a conversation, like rolling over an ad. More complex measures encompassing time, intensity and pass along will emerge as the market matures. Media that demonstrates the ability to deliver highly engaged users will become more valuable.

This also creates a need for new ways of delivering ad experiences that will bring portable, fun, media experiences to consumers where they spend time. Think personalized, interactive magazine ads, not 30-second video spots.

Advertising in demand media will require learning to react to new types of consumption patterns, and this is just the tip of the iceberg as we as an industry try to adapt to the next generation of media.