We just finished collating a monthly digest of online sector research and it’s fascinating to see the polarizing effect in the digital media and marketing sectors: firms with good business models, strong products and great people are weathering the storm, but those without are seeing sustained revenue falls as customers shift. Okay, so this shouldn’t be a surprise, but the recession is accelerating structural change, forcing brands to find new ways to connect with customers and improve their supply chains and value chains. This is across retail, media and marketing services and is unlocking new disruptive business models. What emerges after the storm has passed will be an advertising and media industry with a fundamentally different structure. Advertisers are boosting their online spend, while heavily cutting classic media. Social networks continue to leap forward - with Facebook putting on 50m new customers since January to cross the 200m mark – and the race to own the mobile space has never been faster. It’s not simply a recession, it’s a transformation.
Meadows-Klue on Media
Scattered postings from a hitchhiker's travel journal
The journey; on the road to the digital networked society
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Milestones
- Broadband battle with US UK penetration of fast broadband connections slips ahead of US for first time.
- Silver surfers swell Almost two out of every three of those coming up to retirement in the UK are online; double where the UK was in just 2001
- 9% of China online And with vast growth rates to match it's not hard to understand why every dot com is looking East right now.
- Blogtastic 1 new blog created every second as blogging goes mainstream.
- The magic billion Crossing the threshold of '1 billion people' now online worldwide.
- Beethoven rocks the house 1.3m downloads of Beethoven tracks, making him 1-9 in the download chart. Thanks to BBC Online the stereotype of music being just for kids gets blown apart.
- Ebay addicts More than £4bn traded on eBay here this year, accounting for 1.3% of UK sales and an average of £3,000 per trader; latest news – the tax man’s interested in a slice!
- Broadband Britain Finally broadband home access outweighs dial-up, but spare a thought for the poor folks still on dial up.
Navigators
- "The future of advertising is the internet"
Bill Gates 27/10/05 - "It is happening now and is strong, rapid and large. [And there’s a] tremendous violence in traditional media as it continues to get displaced by digital."
Sir Martin Sorrell, 27/10/05 - "What is happening is a revolution in the way young people access news. Unless we awaken to these changes, which are quite different to those of 5 or 6 years ago, we will, as an industry, be relegated to the status of also-rans."
Rupert Murdoch, American Society of Newspaper Editors, 13/04/05
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