I thought my television remote was broken the other day. I'd gotten to the part of the TV show where there was a pause in the programming. Loud and colourful 30-sec adverts started dancing across my screen, pushing everything from shampoo for women with blonde hair (note my picture, I'm a brunette) to car insurance (I don't own a car). I was hitting the fast-forward button, but nothing happened. I got as far as taking the back off of the remote to jiggle the batteries when I realised I was watching live programmed TV and I COULDN'T SKIP THE ADS.
Watching live telly, this is just something I have to put up with for now, but online is a different story. From the films we stream online to the playlists we create and share with our friends within digital music services -- consumers are now willing to pay for ad-free content in a way that we couldn't have conceived of five years ago. Forrester's Online Paid Content Forecast, 2012 To 2017 (EU-7) shows that with successful paid services for music, video, games, and news now available in Europe, the number of online content buyers in Western Europe is set to grow between 8% and 12% over the next five years, and revenue from paid content is set to grow 65% -- from €6,2 billion in 2012 to €10,2 billion by 2017.
What does this mean for marketers?
You will have fewer chances to reach consumers with traditional advertising
The very services driving growth in digital content consumption are limiting pure advertising opportunity for brands, by adopting payment models that don't require brand advertising for revenue and even driving consumer appetite for more ad-free content.
Brands must develop content capabilities to avoid losing ground
Yodel is the UK courier company everybody loves to hate and official delivery partner of many of our top online retailers including Amazon.com. Just back in August, Mothercare and Matalan joined John Lewis in ditching the supplier due to overwhelming customer pressure. UPDATE: Yodel got in touch to point out that the reasons these retailers no longer work with Yodel are unknown and that Yodel does not believe it to be due to customer pressure] — pressure that miserable customers are consistently applying across social media and Amazon’s own online sites begging Amazon to stop using the courier. So widespread is Yodel despair — and trust me, one bad interaction with Yodel can leave one feeling despair — that an Amazon shareholder wrote to the company’s investor relations department in the US to raise the issue, reported The Guardian.