Consumption habits have become increasingly fragmented, with more people watching programming, including television shows and live sports, on different online platforms. As a result, traditional television, with its 30-second commercials, is losing its commanding share of advertising dollars. Digital media is expected to pass TV as the biggest advertising category in the United States this year, with roughly $68 billion in ad sales compared with $66 billion for TV, according to the Interpublic Group’s Magna Global.
With online ad spending growing, finding ways to stand out among the onslaught of other online ads has become more important for advertisers. And therein lies a possible conundrum: Advertisers want their ads to look less like ads even as they are fighting harder for attention.
Based on our brief class discussion (see slide 33 Lecture Notes from July 11, 2016) and an earlier post on this blog, use the 10X Change diagram to map ad-related business models mentioned in class. Briefly explain parameters for each model.
(a ppt version of the 10X Change diagram is available for download here).
Question 2 (bonus).
What major technology developments enabled key ("disruptive") business model transitions?
Question 3 (bonus). Use the 10X Change diagram to map potential ad-related business models that are now available with augmented reality games like Nintendo Go. What technologies (existing or new) can further improve such models?