Online Advertising To Face Growing Obstacles

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booo2.jpgDeloitte’s Technology, Media & Telecommunications (TMT) industry predicts that, in 2008, at least one technology innovation developed in an emerging market will become a disruptive force in Western economies.

“Western companies understand the importance of innovating in emerging markets,” said John Hegel, co-chairman of the Deloitte Center for Edge Innovation. “They should not miss the much larger opportunity for innovation blowback to use emerging markets as seedbeds for innovation that can be used to attack more entrenched positions in more developed countries.”

Meanwhile, the transformation of mobile networks from primarily outdoor to increasingly indoor usage will create new opportunities for network operators, who will need to move rapidly as the process of fixed displacement takes hold. In advertising, the growing online advertising market will contend with increasing consumer antipathy to online ads and concerns about the tracking of online behavior.

Predictions 2008 is a series of three reports examining emerging developments and how they will shape the TMT market. They were written by the Deloitte TMT industry group with input from leading industry analysts and executives. Each report includes recommendations on how to best take advantage of these trends.

Accompanying the Global TMT Predictions this year is a closer look at the U.S. market in a separate report called the Deloitte 2008 Industry Outlook. This report for Technology, Media and Telecommunications looks directly at trends impacting the U.S. market in 2008.
   
Key trends identified in these reports include:

    Technology

      — Innovation Blowback: Technology industries are demonstrating
         Increased interest and investment in developing products to reach
         Large, low-income populations in emerging economies such as India,
         China and Latin America. In a phenomenon called innovation  blowback,
         expect to see at least one of these innovative products, services, or
         management practices be introduced back into Western economies in
         2008 and act as a disruptive force, targeting the entrenched
         positions of incumbents in these more developed economies.

      — Green Technology Issues: LED lights, nanotechnology and water
         conservation technology predictions are all examples of how
         technology will play an important roll in green issues in 2008.
         Additionally, the growing importance of green technology to U.S.
         corporations will lead to the creation of a new certification body
         for energy-conservation claims.

      — Privacy & Protection of Personally Identifiable Information: The
         rising value of digital protection, the flight to privacy and a move
         to online authentication will become increasingly important as
         increasingly sophisticated consumer targeting plans emerge, along
         with continued data security breaches involving personally
         identifiable information security.

    Telecom

      — Getting Mobile Indoors: With an increasing portion of network traffic
         moving indoors, how will mobile operators adapt to this changing
         landscape? Network sharing will be a strategic decision made by many
         operators in 2008.

      — Accessibility as a Business Driver: Demographics are creating new
         market opportunities for communications services and products. Market
         segmentation will play a key role in creating new product target
         markets.

      — From Credit Crunch to Communications Crisis: A vital question for the
         telecommunications sector is the extent to which the current credit
         crunch may provoke a crisis in the telecommunications sector in 2008.

    Media & Entertainment

      — Online Advertising: Despite increased spending on online advertising
         ($10 billion invested in specialist online advertising companies
         alone), there is growing antipathy by consumers to the online
         advertisement and the tracking of online behavior.

      — Long Live Traditional Television, Thanks to Internet Television:
         Internet television will increasingly broaden the user experience of
         traditional ‘TV’ as opposed to providing a viewing experience that
         competes with it.

      — The Living Room Moves Closer to Being Public Enemy Number One: More
         elaborate TV/entertainment set-up in living rooms means higher energy
         consumption nationwide. The media and electronics industries will
         need to consider how the carbon footprint of the living room can be
         reduced without returning to antiquated technology.

Compliments of PR NewsWire

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