Publish Date: Dec 05
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The Changing Face of Advertising in the Digital Age is a comprehensive industry report analyzing the changes taking place in the advertising industry. It probes the challenges and opportunities created by digital technologies for the advertising industry, examines new advertising solutions and business models, analyzes consumer uptake, and predicts industry growth patterns and winning solutions.

“It’s not surprising that 9% of the consumers in our survey said none of the advertising methods presented is relevant to them,” said Harry Wang, research analyst at Parks Associates. “New advertising models for the next decade must leverage emerging digital technologies to enhance consumers’ viewing experience, increase information relevancy, and offer higher ROI for advertisers.”

Download PDF of Table of Contents

The Bottom Line is a concise, executive-level summary of the current state of the market, evolutionary path, and the implications for companies doing business in this space.

A Parks Associates’ Resource Book contains a wealth of consumer survey data and company profiles—a must-have reference for product/market planning.

The Bottom Line

1.0 Notes on Methodology
   1.1 Consumer Data
   1.2 Definitions

2.0 Overview of Advertising Industry
   2.1 Constituents and Roles of Players
   2.2 Traditional Advertising Channels
   2.3 Ad Spending (1998-2004)
   2.4 Creating Value or Wasting Resources?

3.0 Changing Consumer Habits
   3.1 Do Consumers Really Hate Commercials?
   3.2 Lifestyle Changes and Media Fragmentation
   3.3 A Changing Paradigm: Personal Relevancy vs. Maximum Exposure
   3.4 Interactivity: Where is the Uptake?

4.0 The Rise of the Internet
   4.1 The Internet’s Influence on the Advertising Industry
   4.2 Major Internet Ad Formats
   4.3 Viral Marketing in the Internet Age
   4.4 Advertising on Podcasts and Blogs
   4.5 Internet Ad Spending: Growing the Pie or Stealing the Share?

5.0 Digital Technologies: A Disruptive Force
   5.1 The Power of DVR
   5.2 On-demand Platform with Interactive Ads
   5.3 Cellular Technology: New Platform for Advertising
   5.4 Location-based Advertising
   5.5 In-Game Advertising
   5.6 Technology: A Double-edged Sword

6.0 Trends and Critical Issues
   6.1 Industry Trends
   6.2 Seeking the Holy Grail: The Five “W”s
   6.3 Advertising as a Business Model
   6.4 Factors that Impact Ad Spending

7.0 Predictions and Implications
   7.1 Advertising Spending Forecast (2005-2010)
   7.2 Prediction of Key Growth Segments
   7.3 Conclusion and Implications

Resource Book

Section I: Consumer Usage of Electronic Devices and Media Consumption Habits

Section II: Consumers’ Attitude towards Advertising

Section III: Overview of Advertising Channels

Section IV: Company Profiles—Advertising Technology and Solution Providers
   Captivate Network
   C-Cor Inc.
   DoubleClick
   Double Fusion
   ExtendMedia Inc.
   Gizmondo Europe Ltd.
   Ingenio Inc.
   Macromedia Inc.
   Massive Inc.
   OpenTV Corp.
   Packet Vision Limited
   SeaChange International Inc.
   TiVo Inc.
   Transit Television Network
   WideRay

Section V: Company Profiles—Media Tracking and Reporting Agencies
   Arbitron Inc.
   ComScore Networks
   ErinMedia
   Nielsen Media Research
   Nielsen NetRating
   Rentrak Corporation

Section VI: Company Profiles—Internet Portal and Search Engine Companies
   Ask Jeeves Inc.
   Google Inc.
   InfoSpace Inc.
   MSN Search
   Yahoo! Inc.

Advertising Industry Structure
Top Ten Advertising Spending Industries in the U.S.
Media Platforms’ Dependence on Advertising Revenue
Comparison of Different Advertising Models on Tradition Media Channels
Spending on Advertising by Media Platform (1998-2004)
Advertising’s Influence on Purchase Decisions of CE Products
Types of Advertising Consumers Found the Most Relevant
Changing Consumer Media Habits
Entertainment Device Household Penetration (2001-2005)
Examples of Successful Interactive Ads
Traditional Media Companies on the Defensive
Comparison of Different Online Ad Formats
Podcasting and Blog Advertising Vendors and Media Measurement Firms
Internet Advertising Spending Relative to Other Media Formats
Ad Rate Increase for TV advertising (1999-2004)
Spending More on Internet and Other Media, While Cutting TV Ad Spending
DVR’s Appeal to Consumers
Mobile Phone as a Media Platform
Mobile Operators Experimenting with Different Ad Formats on Mobile Phones
Comparison of Positioning Technologies
Advertising Industry: From Mass-Advertising to Relevancy Advertising
Targetability and Relevancy Come with a Higher Price Tag
Total Advertising Spending in the U.S. (2005-2010)
Ad Spending Forecast by Segments in the U.S.
Breakdown of U.S. Ad Spending in 2010

Resource Book

Household Entertainment Device Penetration among Online Population
Mobile Phone as an Entertainment Platform
Media Habits Change among People between the Ages of 18 and 24
Media Habits Change among People between the Ages of 25 and 34
Media Habits Change among People between the Ages of 35 and 44
Media Habits Change among People between the Ages of 45 and 54
Hours Spent Watching TV, by Gender
TV Watching Behaviors across Age Groups
DVR’s Appeal to Consumers
Top Three Reasons for DVR’s Appeal
Skipping Commercials Is a DVR Function Appealing to All Age Groups
Number of Shows Recorded on DVR per Week by Age and Gender
Types of Internet Video Viewed by People between the Ages of 18 and 24
Types of Internet Video Viewed by People between the Ages of 25 and 34
Types of Internet Video Viewed by People between the Ages of 35 and 44
Types of Internet Video Viewed by People between the Ages of 45 and 54
Online Shopping Frequency by Age Group
Online Shopping Frequency by Income Group
Frequency of Online Radio Listening by Age Group
Frequency of Online Radio Listening by Income Group
Frequency of Using Fee-based Music Service by Age Group
Frequency of Using Fee-based Music Service by Income Group
Frequency of Using P2P Music Sharing by Age Group
Frequency of Using P2P Music Sharing by Income Group
Frequency of Watching Streaming Video Online by Age Group
Frequency of Watching Streaming Video Online by Income Group
Frequency of Playing Online Games by Age Group
Frequency of Playing Online Games by Income Group
Ad Format with which Consumers Interact Most, Crossed by Gender
Ad Format that Consumers Consider Most Relevant. Crossed by Gender
Source of Influence on Purchase Decision of CE Products
Advertising’s Relevant Influence on Brand Buyers for CE Purchase
Advertising vs. In-store Display: Influence on Consumers for CE Purchase
Advertising Formats with which Consumers Interact Most, by Age Group
Advertising Formats that Consumers Consider Most Relevant, by Age Group
Types of Advertising with which Consumers Interact Most, by Age Group
Types of Advertising Consumers Consider Most Relevant, by Age Group
Comfort Level with Passive Audience Tracking and Telescoping Ads
Frequency of Clicking Banner Ads, by Income Group
Frequency of Using Keyword Searches, by Income Group

Authored by: Harry Wang
Executive Editor: Tricia Parks
Published by: Parks Associates

© December 2005 Parks Associates
Dallas, Texas 75230

All rights reserved.  No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America. 

Disclaimer
Parks Associates has made every reasonable effort to ensure that all information in this report is correct.  We assume no responsibility for any inadvertent errors.

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