Posted By Sri Mishra
Media Industry Supply Chain – How Brands Reach Their Customers Through Advertising Channels
This series explains the basics of advertising media industry supply chain. We start with the Digital ecosystem
Series 1: The Digital Ecosystem
The first digital ad appeared 23 years ago in Oct 1994 on a NetScape browser. It is hard to believe how much the digital media supply chain has evolved over the last two decades.
Today’s advertising media industry ecosystem is a complex maze of channels (TV, mobile, social networks, search sites, websites, print, billboards etc.), devices (desktops, mobile, tablets, Traditional TV, Streaming TV), and technology (internet, AI, Machine Learning, Big Data).
So how do today’s brands and their agencies reach their customers on right channel, with right advertising content, at right time, on right device at right time at optimum cost.
How do they do it? This is what we will discuss in this three part series.
First thing first, how big is the media spend market in US and who are the key players. Based on eMarketer data, the total media spend is projected to grow from $201B in 2017 to $234B in 2020 (Please see chart 1). TV & Digital (social, display, search, online video) account for $150B out of the $200B market. Digital is growing faster but TV still has large footprint and cannot be ignored (Please see chart 2).
The digital component of the ecosystem has evolved tremendously over the last decade with the maturing of internet as medium to connect brands to their consumers along with the choices of devices and channels.
Choice of devices for the consumers have proliferated and evolved, from good old desktop to mobile devices. Choices for advertising channels have also proliferated – from publishers websites to social, search, video, streaming and mobile.
Road 2 Insights 