It's the End of the Web as We Know It

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Here is a piece from Steve Rubel, a writer for Ad Age.  It interprets a trend that all businesses and marketers need to at least be aware of.

Wither the web? It's hard to believe but soon, if not already, the web is going to become a lot less interesting to consumers -- and just as it approaches its 20th birthday.
 
According to Morgan Stanley, within five years global internet consumption on mobile devices will surpass the same activity on PCs. This sounds like good news. It's natural to think that browsers on the third screen (phones) and the fourth screen (tablets) will simply replace time spent in front of the same on a PC. That's not the case.
 
Mobile devices, by their nature, force users to become more mission-oriented. As more internet consumption shifts to gadgets, it's increasingly becoming an app world and we just live in it. Innovation, fun, simplicity and single-purpose utility will rule while grandiose design and complexity will fall by the wayside.
 
It won't be enough just to build branded mobile applications that repurpose content across all of the different platforms. That's like newspapers taking the print experience and replicating it on the web as they tried back in the 1990s. Rather, we will need to rethink, remix and repackage information for an entirely different modality than platforms of yore.
 
First, let's look at the trends.
 
1) The canvas. The iPad has been deemed by some a blank slate. When you use any mobile device, you're really only able to do one thing at a time. This means that we become entirely engrossed in whatever we have on the screen. Companies will need to up the ante if they hope to keep users in their fold longer. Development costs will go up, and the economics of content and experiences will look more like Hollywood -- where a few hits deliver enough profit to pay for the dogs -- than Madison Avenue.
 
2) Content snacking. How often do you consume media meals -- e.g. engage with a unit of media like a newspaper, magazine or film from start to finish in one sitting? My guess is that you do this less than you did 10 years ago. Content snacking rules today. Popular digital metrics, such as time spent, may soon be useless.
 
3) Infinite choice. It never ceases to amaze me what a single mobile device can hold. Every time I turn on my phone, my finger needs to decide what's more important to me at that time -- friends, work, entertainment, etc. Choice will scale, human attention is finite, and mobile devices put all of this in our pockets. Time is your competition.
 
To succeed, here are three new behaviors we need to consider:
 
1) Adoption. Marketing and media has long been about invention. We like to control our own destiny by bringing to bear the best content and experiences we can muster. However, in an app world it's easier to seek out those who have been successful and partner or acquire them. That's the road chosen by Disney with its purchase of Tapulous, and eBay (an Edelman client) with its acquisition of Red Laser.
 
2) Collaboration. In the mobile world, there's strength in numbers. To fight shrinking attention spans, companies will need to increasingly create partnerships to cut through the noise. Look for applications to pop up that are co-branded and curate content in high-interest verticals.
 
3) Context. When it comes to mobile, one size doesn't always fit all. Content producers will need to rethink how they package up information and chunk it down. ESPN, for example, is rolling out mobile applications that cater to local markets, in addition to wider offerings that are all things to all people.
 
Marketers and media companies must adapt to this new construct -- and fast -- or they will get left behind.

"The following essay is also my AdAge column this week."  Steve Rubel
 

US advertisers to spend more on digital than print: study

Do you need to rebalance your ad expenses to fit the trend? If your ROI is declining, make sure you consider more digital, and that includes social media.
 
US companies will spend more this year on digital and online advertising and marketing than on print for the first time ever, according to a study released on Monday.

Companies will spend 119.6 billion dollars on online and digital strategies and 111.5 billion dollars on newspaper and magazine advertisements and other print campaigns, according to the study by California-based Outsell.

Outsell, which provides research and advisory services to the publishing and information industries, described the spending shift as "an industry milestone crossover event."

It said overall US spending on advertising and marketing will increase by 1.2 percent in 2010 to 368 billion dollars.

Outsell said 63 billion dollars, or 52.8 percent of total online advertising spending by companies, would be on their own websites, which it said constitutes a "powerful form of direct to customer marketing."

"Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding," Outsell vice president and lead analyst Chuck Richard said.

"As they emerge from the recession, they need more accountability, and they're spreading their spending over a widening set of options," he said.

By category, Outsell said spending on print newspaper advertising was expected to drop 8.2 percent to 27 billion dollars while print magazine advertising will rise 1.9 percent this year to 9.4 billion dollars.

US newspapers and magazines have been facing declining print advertising revenue, falling circulation and the migration of readers to free news online.

Outsell said that spending on direct mail marketing campaigns would rise 2.7 percent to 24.4 billion dollars and spending on custom print publications would be 3.0 percent higher at 19.3 billion dollars.

Spending on print directories would fall 8.3 percent to 11.6 billion dollars while spending on print newsletters would be flat at 11.4 billion dollars.

"2010 will not suddenly erase the painful memory of crumbling ad spending in 2009, but it will provide much closer to a flat year for several of the traditional media types," Outsell said.

"This means that publishers with significant shares of traditional media in the mix and who pounded their expenses and debt into shape sufficient to survive the brutal 2009 should be able to carry on at those levels in 2010."

Spending on television advertising was forecast to drop 6.5 percent to 59.6 billion dollars.

Outsell surveyed more than 1,000 US advertisers in December 2009 for its annual "Marketing and Advertising Study 2010."