It seems that in the past ten or fifteen years, new technologies have dramatically changed not only consumer behavior in terms of television usage, but have had an equally dramatic impact on how we (as media planning strategists) perform our jobs.
A perfect example of this dynamic is the path toward convergence that first began with the ability to control your analog television with the same remote control unit used for your cable box. The idea of convergence, that one day all of our electronic devices will be controlled through a central box or system, was given little attention from advertising pundits throughout the 1980's and 1990's. As technological advances in consumer entertainment became more prevalent, we began to see that convergence was indeed worthy of discussion.
Now, in 2013, to the extent that convergence is possible, I live in a converged household as we attempted to describe it back in 1999. There is one box in my house that controls, my television, my phone, and my internet access. In addition, I am now able to use this same box to time-shift my television viewing in a way that was never imagined in the days of VHS and Beta.
These technological advances have had a profound impact on traditional consumer advertising. In the past, we were required to negotiate with individual television stations and individual cable companies. While to a large extent, local advertising still works under this paradigm, the sands are shifting. As more consumers turn to satellite options vs. fiber-optic cable companies, the idea of advertising with local cable companies becomes more problematic. In 1999, the vast majority of cable households received their cable signal via local cable companies. However, satellites and other Alternative Delivery Systems (ADS) have now taken a big bite out of local cable subscribers and thus, audience. Whether satellite companies like DISH will begin offering local ad insertions in the near future, or not, the decision to invest in local cable schedules now bears close scrutiny.
Such is the way of technology. Joseph Schumpeter wrote about the concept of creative destruction, describing it as a phenomenon in which new technologies obviate old ones, with a resulting change in behavior, economy, and required worker skills. Despite the fact that Schumpeter was an economist from the mid 1920's, the same dynamic holds true for technology. It is truly a paradox that we cannot enjoy the rewards of creative destruction without also accepting that not everyone will be better off. In fact, some technologies have wiped out entire industries. When was the last time you shopped for a typewriter?
Just as innovation comes from new applications of old ideas, technological advances are most often the result of older technologies. For example, just eight or ten years ago, Steve Jobs doubted the viability of a tablet platform. However as technological advances continued, allowing functionality similar to that available on a laptop, the concept gained favor within Apple and was released with much fan fare in 2010.
I imagine that future advances will work under the same paradigm. Old ideas lead to new ones. Limitations of old technologies encourage the development of new ones. And so it will go with no foreseeable end in sight!
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