Who is helping individuals communicate to vendors?

As noted below, GetSatisfaction is another answer.

I think the future of advertising is not traditional “interruption marketing” as it has been for years, but a way for brands to interact or “engage” willing consumers, who have opted in to a set of data. Yes people often lie/don't care about what they say they are interested in, but 5,000 users opted in to information about skiing is worth more than 50,000 visitors who “we believe through 2nd and 3rd party tracking/measurement are males 18-34 making over $60k.” At least in my opinion/experience, but I don't think mainstream marketers have gotten there yet. I believe they will soon…
Already mentioned, but I wanted to reiterate – The proliferation of a single sign-on web will make breakthroughs in the second half of '09. If publishers were able to access, and allow users to opt in accordingly, to all the 3rd party data that is in Facebook, Twitter, and Google accounts, and serve ads against this data then all ads will essentially become “direct marketing.” Going past Cookies and creating a more user-based version of ad targeting.

During 2009 offline measurement of digital will be made more feasible. “Print this coupon/mention this website”- even coupon codes – will not suffice. There is currently some interesting technology being developed in this field. and I think its going to get very exciting next year. The fact that there is so much speculation about the end of display ads will force the issue IMHO. Better data beyond click-thrus and “engagement” (way beyond impressions) will encourage bigger ad shifts from traditional media to digital.

Its an exciting time to be in advertising and technology because the two are combining and supporting each others advancement. But as some one mentioned already the power of a handshake and face to face (trust) will be more important than ever in this economy.

Happy Holidays!

Great comments thus far….I will add my .03 cents to the valuable dialogue.

Firstly, I do NOT see agencies displacing (disintermediating) 3rd party ad networks. As someone who participated in the early growth and success of Ad.com I can tel you first hand that the “cream of the crop” (top 10 networks) do much more than simply “buy and sell media”……there is a TON of work that gets done on every front — (sales/relationships/technology/arbitrage/managing loss/maximizing wins) that go into a successful networkk — that it is a huge challenge.

Now, I am speaking about the big players here — the other 295 networks CAN AND WILL BE replaced at some level…but not the big 5 or 10, and here is why……

Managing losses. In any network — a “lions share” of the focus, and attention is not simply around maximing gains or profit — but managing losses. Sometimes it is called an “opportunity impression or opportunity advertisers…”

“How do you keep a top publisher in the network happy — when no advertising campaigns are generating profit on their inventory? How do you maintain their “take rate” (impression accepted when offered from any given publisher, a certain % is the norm) — this is one of the issues…..

And now the “elephant in the room, that no one in agency land wants to answer regarding them getting into the 3rd party network business….”

When an ad network buys media from a publisher — they buy the impressions and data on behalf of the NETWORK. An IO (insertion order goes out from network X to publisher Y) buying media and MANAGING THE RISK ON BEHALF OF ALL THE CLIENTS OF THE NETWORK. It is an unspoken understanding that the network, manages the risk — and arbitrages the media — but the NETWORK OWNS THE DATA…..the company analyzes across their portfolio of publishers and advertisers the best way to get results and either –MAXIMIZE WINS OR MANAGE LOSSES.

Now, if an agency tries to do this….

Will the largest client be “footing the bill to build a network?”

If clients A's largest client by a factor of 10 — is client Y — will client Y be effectively paying for the building and architecting of an ad network? Will the client not be the anchor of the entire operation….?

An now, the most important question —

Who owns the data? The largest client of an agency? Will there be a sharing of 2 critical elements of building a agency ad netwrok business

1) knowledge sharing across the agency

2) sharing of data across clients

Knowledge sharing across agency — in a network it is expected and part of the business that both account management and delivery share what “works and does not work” across all publishers and advertisers……sometimes, this is FROWNED ON in agency land. I recall having a conversation of a IBM brand manager who told me one of his major concerns was that his brand was paying for the “agency to learn, and IBM to SHARE our gains and knowledge…” This is a huge issue. Communication across client will be tantamount to success — and I'm unconvinced clients will allow it.

Issue #2 is data. What happens if agencies largest client leaves the agency? Who gets data? Will the agencies largest client (client Y) be funding and paying for all the agencies 3rd party learnings and data? Is data being shared across the agencies client? Who benefits the most — agency or client? Will the smaller agency clients disproportianlly benefit?

And, the most critical aspect of building a 3rd party ad network that gets little attention:

“When it comes to managing losses, as opposed to maximizing gains — which agency client gets that placement?” Remember, in any tremendously successful network — minimizing losses in real time is as important, (if not more) than maximizing gains….and, I'm not sure agencies are SET UP TO DO THIS — no matter the technology – (exchange/trading floor/etc)…

Just my .04 cents…

Thanks DH.

Andy Monfried

The authenticity and honesty and trustworthiness of the storytelling is paramount. The fate of social organism is dependent on it. 'Course, it's also gotta be bitchin' good and engaging storytelling. or the young'uns will disappear into the woods faster'n you can say “Little Big Man”.

with that said… i don't think this will happen in scale though its happening a little at a time … F1000 doesn't like changing their ways and this is a fundamental shift.