Advertising executive discusses future of industry

As part of a special presentation to local associates, Bob Noble, chairman and CEO of Springfield-based Noble World Communications, brought in Joe Cappo, Crain Communications senior vice president and former Advertising Age publisher.

The June 14 presentation included perspectives from Cappo's many decades covering the advertising industry that were highlighted in his book, "The Future of Advertising: New Media, New Clients, New Consumers in the Post-Television Age."

"I constantly encourage forward thinking in my associates," Noble said in a news release. "We become irrelevant if we're not ahead of the curve in terms of understanding media and its impact on consumers. Joe Cappo was the perfect person to help us examine the forces shaping our industry over the next 35 years."

According to the news release, Cappo gave agency representatives his take on the top 10 threats to advertising as it is currently known.

Consolidation by agencies and the media. Fewer players, less competition, less accountability.

Client conflicts. The larger agencies become, the more likely they are to have conflicts within client rosters.

Media proliferation. Cappo believes network television is slowly fading to black. Cable networks are exploding and offer smaller, more targeted audiences to advertisers. Radio has reinvented itself over the past decade, but now faces new threats, in terms of advertising revenues, from satellite stations. Magazines are going from mass appeal to class appeal. Newspapers are in a state of suspended animation, essentially not changing for the past 50 years. The Internet has quickly grown to provide services once the exclusive domain of print and is definitely the medium of the future.

Integration. Clients want marketing, not just advertising and solutions. Integration is the key; however, most traditional ad agencies are ill equipped to deliver. Promotions and public relations services are often the forces driving integration on the agency side.

New media and technology. The Internet is taking ad dollars and reducing the need for human interaction. Last year, Cappo said, 35 percent of all stock sales occurred online. Technology now gives some television viewers complete control over ad exposure. In the standard three-hour television movie, there is one hour of commercials. Tivo and Replay TV give consumers the ability to zap advertising. Even cable providers are beginning to offer pay-on-demand service. With consumers less receptive to advertising in the future, product placements are going to be the television advertising norm.

The bottomless well. There are many ways to sell products including public relations, promotions, direct marketing, product placements, sponsorships, special events and place-based marketing (sponsorship of stadiums or other venues).

Retail is flexing its muscle. Stores can no longer be forced to carry one brand exclusively. Many retail chains charge fees to put products into the distribution system, with no guarantees individual stores will carry those products. This also is the era of global super retailers. Proctor & Gamble sells 18 percent of its products through Wal-Mart, Cappo said.

Changing consumer. The majority of the population is growing older. More families are choosing not to have children and there is an increased acceptance of gay relationships, which may be childless. As a whole, consumers are better educated, with greater ethnic diversity than ever before, and very receptive to experiential marketing.

Saturation. Too many scattered messages, with decreased viewing tolerance.

Multitasking. Younger consumers are on the computer, listening to music and talking on a cell phone, all at the same time. There is less focus and concentration, which makes it more difficult to get one's point across.