A world without paid media is not the end of the mediascape as we know it, according to IPG Mediabrands CEO Danny Bass.
Speaking as the closing keynote at the AdNews Media Summit yesterday afternoon, Bass said it's predicted from various sources that 20-60% of media budgets will move into new channels over the next three to five years.
That means a big change for an industry built on paid media. Bass was speaking at the end of a week which has seen his agency UM lose both the Coles and Target business - a huge blow it its Melbourne office.
“The industry is looking at potentially billions of dollars moving away from areas we know. The movement in paid media will have an enormous effect on each and everyone one of you,” Bass told the crowd.
"It's really important that we as an industry address this paid media issue and we address it head on.”
The deal between the consumer, the brand and the media owner has changed, explained Bass, but the industry is in a positon where it can “control the disruption”.
“The rise of the adblocker is not as bad as everyone is saying, but it’s a warning from the consumer,” he said. “Consumers are saying I’ll have ads, but not in the way you are serving them to me now. We can control this disruption, we can own this and we can be the heroes - the future is now."
The world is no longer linear
Bass says the role of the media agency is becoming more complex, as the world is no longer linear.
“Channels you can invest client spending grows more and more every day,” he said. “Moving forward, wherever you are in the industry, you need salience, you need scale and you need to become one with culture.”
Using the example of Sydney’s make your own Kit Kat shop, Bass said creating culture is important as a world without paid media is no longer ruled by random distractions.
“In a world without paid media there’s an opportunity to take control [of your brand] and set yourself free from restrictions,” Bass added.
“It’s imperative we evolve too. Just as our phones have become our clocks, our lifelines and our communities, brands and their products must become more.”
Also at the Media Summit, keynote speaker Dr Karen Nelson-Field said artificial intelligence is the next frontier of marketing. Read more here.
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