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> But the funny thing is that advertising spending is actually increasing, both in the United States and globally. Moreover, it has grown three years in a row,
by mbesto 13y ago
> But the funny thing is that advertising spending is actually increasing, both in the United States and globally. Moreover, it has grown three years in a row, reaching more than half a trillion dollars in 2012. This is true even of live-television ads, which are the most intrusive and the easiest to avoid, yet are nonetheless growing at a healthy pace—by eight per cent last year in the United States.
For every $1 one company spends on advertising, another has to spend $2 to steal your attention. Inevitably this means the industry will continue to grow infinitely as companies continue to try to buy your attention. Look at PPC, it's a perfect example of an openly efficient market to buy your attention.
My favorite quote that illustrates this is from Seth Godin:
Attention is a bit like real estate, in that they're not making any more of it. Unlike real estate, though, it keeps going up in value.
http://sethgodin.typepad.com/seths_blog/2011/07/paying-attention-to-the-attention-economy.html http://sethgodin.typepad.com/seths_blog/2011/07/paying-atten...
- betterunix 13y ago"For every $1 one company spends on advertising, another has to spend $2 to steal your attention. Inevitably this means the industry will continue to grow infinitely as companies continue to try to buy your attention" It sounds more like the industry will grow to the maximum that the economy can sustain, and no further. It may appear to be unlimited now but that probably means that the economy can sustain far more advertising than we are seeing today. Every time a new communications system is developed, the market will shift -- and we have so many systems now that the market is just catching up to all the ways we have to advertise. I also suspect that there is another game occurring, which is the ads-versus-ad-blockers game, and that will also reach some equilibrium. As advertising becomes more aggressive, defenses against advertising will become stronger.
- mbesto 13y ago> It sounds more like the industry will grow to the maximum that the economy can sustain, and no further. Fair point. I would argue that as long as (1) globalization exists (2) the population increases, it can sustain growth. In other words as long as the number of eyeballs increases so too will the people try to farm them up. > Every time a new communications system is developed, the market will shift -- and we have so many systems now that the market is just catching up to all the ways we have to advertise. Regardless of communication medium, in theory it doesn't mean the market spends any more or less on advertising. The goal is all the same, grab attention and convert to buyer. So I'm not sure what you mean by "the market will shift".