I'm a web strategist and aspiring know-it-all with a passion for all things digital. I've worked in PR, advertising and not-for profit industries, and now I run a creative agency. These are the things I think about, and am sometimes compelled to write. More...

Changing Media Economics

I was in NYC last week, and got to spend a bit of time chatting about advertising with one of my favourite New Yorkers, Noah Brier.  Of course, we talked about the way media consumption is changing and what it means to the traditional view of advertising, and one of his comments really clicked with me.

I won’t attempt to paraphrase, but his point was that advertising has always been about media ownership.  That is to say, advertisers paid to own a small piece of the media that could be used to carry their message.  Buying an ad in the New York Times is the rough equivalent of owning a portion of a page – it’s yours to do with as you please.

This was valuable because the media was controlled by a small number of people and corporations.  Media was scarce, therefore it had value.  Now, thanks to the web, anyone with broadband and the inclination to do so can be a media owner.  Sure, a tumblog probably doesn’t have the reach of the Times, but it has the potential to, just as a YouTube video has the potential to exceed the viewership of a prime time network show.

When you’re selling media ownership in a world that’s giving it away for free, two things happen.  First, as supply approaches infinity, value approaches zero.  Second, the number of choices that any one person has keeps getting higher, and as a result, their individual tolerance for noise goes down.  People now have the luxury of consuming media on their own terms, and if they can’t get something the way they want it from one source, they can get it from another.

Of course, none of this on its own is completely groundbreaking, but one of the nice things about talking to smart people is that it often leads to small moments of clarity, as this did for me.   Hopefully it did the same for at least a couple of others.  If not, go read Noah’s blog… it’s always good for a dose of clarity.

  • http://www.noahbrier.com/ Noah Brier

    Was a great chat Ryan, good, as always, to see you.

  • http://www.nitmesh.com Damiano Vukotic

    We are now all equal amongst the media owners on these new platforms and with all content becoming more valuable, brands and their agencies are having to devise new methods to promote their products these expedential times. It’s an exciting time to live and witness the massive changes in technology and their consumption as well as all the social effects it’s having on our society. Then it begins to get really interesting.

  • http://www.ryananderson.ca Ryan

    Damiano – I agree. I feel almost cheated that I studied communications before this whole change started to take place. The really mind-blowing thing is that we’re only a fraction of the way there – where it will all be in five years is an incredible thing to think about.