Two moves that media companies have to do to compete with Facebook and Google

Too many TV channels make a living from advertising

Too many radio stations make a living from advertising

Thousands of sites and applications base their business model on advertising revenue

And the advertisement pie? Is shrinking re-calculating its path.

This new route does not include significant budget cuts for non-smart, non-targeted, less measurable platforms. In other words, the significant new parts of the advertising pie will not turn to television channels and sites lacking customer data-, generic applications and, of course, traditional newspapers.

The direction is clear — most of advertising budgets go to smart media platforms mainly the big tribes of Google ,Facebook, and Amazon — the most accurate players in terms of data targeting capabilities.

The Advertising and Marketing industry needs to rethink two main issues:

1. Advertising budgets that go to media companies cannot be cut by 50% (this is the forecast for next two years), while content costs, production and development remains more or less unchanged.

Automation technologies need to be implemented in content and production. These solutions are available.

In addition, it is necessary to adopt an extreme approach to micro-segmented activity in media and content. For example, some bloggers and youtubers around the world show amazing profit and loss data. Why? Because production costs, investment in content and development remains negligible, while revenues rise at an impressive rate.

It is time to implement the change. TV companies should (really) start thinking and acting as content companies, on any platform, for any audience.

TV players are encouraged to think a bit like YouTube — small, thin, aiming at a clear cluster of consumers and above all, function as an independent profit and loss unit. Bringing value does not necessarily entail a high budget. The formula for a successful YouTube channel lies with a passionate content creator, who creates a channel for passionate content consumers (those who are passionate for the same category), who are smart, small and highly defined (micro cluster).

Websites need to implement a bloggers’ thinking and action framework — small, thin, efficient, addressing a clear micro segment with clear value creation for advertisers who wish to work smarter on the Micro Publisher — Micro cluster- Micro budget triangular basis:

The End Of Mass Is Here!!!!

1. Targeting & Social Intelligence –

Traditional media players should implement technology platforms for targeting, user profiling and accurate measurement.

Advertisers choose to invest in Facebook and Google because they offer social intelligence data, control, simple planning and performance analytics. You will not find this on Linear TV or on any traditional sites. Technological solutions such as these already exist for television, sites and for applications.

And most importantly, start getting to really know your customers, otherwise there’s no chance that smart advertisers will invest in your media.

#media