New Media Will Disrupt Global Advertising Industry

There is a revolution starting to unfold in the advertising industry where the rise of the Internet and a group of new media firms (such as Google, Facebook, Apple, Twitter and Amazon) are about to change the media and marketing landscapes. As traditional print and broadcast media moves onto a digital platform, the large Internet-based firms have acquired a natural monopoly of customer data. Not only are the Internet-based firms using this data to generate large advertising revenues but they are also taking over many of the traditional roles performed by full service advertising agencies such as media buying and selling using new technology based trading systems. This is changing the economics of advertising and causing disintermediation and disruption in an industry where the established business model hasn’t changed in over 50 years.