Scottsdale Angels investor and CEO, Andy Jacob, has predicted the demise of traditional advertising avenues, indicating that theyll be gone in five years like the proverbial dodo.
In five years, nobody will be watching traditional TV as we know it today
Traditional 30-second and 60-second TV commercials will be gone. All commercials will run for 7 seconds or less, if at all, and online video advertising will be gone. In todays world, advertisers have less than 3 seconds to get someones attention and a commercial longer than 7 seconds will only agitate consumers. And forget about inline video ads. Consumers hate them with vitriol.
Jacobs is the business guru that correctly predicted the 2007 subprime meltdown in 2003 and took media heat for his correct prediction that E-commerce would easily surpass 1 trillion dollars in 2012. He also accurately foresaw the demise of big box stores in 2011 and has now turned his attention to traditional advertising that he says will be non-existent in five years.
People hate inline ads, finding them intrusive and obnoxious. The annoying advertising ploys pop up to interrupt the viewing experience. Advertisers have sought to catch consumer attention, but have instead succeeded in angering the very people they want to attract. Individuals are constantly bombarded with pop up ads that must be clicked and closed, while self-playing ads constantly appear and play at full volume to embarrass and distract.
Short attention spans
A study by Microsoft showed that people have an attention span of approximately eight seconds, one second shorter than the goldfish. The company concluded that it was the effects of a lifestyle that relies highly on digital content. People do have the ability to concentrate longer, but when it comes to ads they typically know in far less than eight seconds if its something they want to view.
The 7-second bite
Google has already launched its plan for six second pre-roll ads. Even a 15-second ad can feel like an eternity to those who are focused on watching something specific. A six-second bite is much less likely to attract the ire of viewers.
A group of teens on Vine proved multiple times that this could be accomplished successfully. The teens produced highly popular 6-second bites on Vine for four years that were efficient, effective, and actually attracted consumer attention.
The rise of streaming
Individuals no longer have time to wait for a TV program to air at a designated time. People are now turning to streaming for specific content on their schedule, not the networks. Streaming is available 24/7, making it accessible to every individual no matter what their work schedule or lifestyle. Adding to the desirability is the affordability of streaming services vs. cable and satellite TV.
Trust in social media
Social media has become the primary communication channel of choice across multiple age groups. The overwhelming value of word-of-mouth advertising is just as true today as it was 100 years ago. When friends or family post
a video or like a product, its accepted as a tacit recommendation by those who see it.
The next generation
What will replace the current advertising landscape? Jacobs could be making his most bold prediction to date.
The only advertising that will exist at the end of the day is peer-to-peer. Billboards will be gone, radio ads will be gone and radio ads will be gone. Newspapers are out, online video ads are toast, malls will be out of business, online ads will go by the wayside, and every other form of advertising will not be worth a nickel. The only advertising that eventually will cut through are recommendations from friends.
About Andy Jacob
Andy Jacob is the CEO of Scottsdale Angels. He has more than 20 years of successful business building expertise and specializes in building better, stronger and faster companies. Hes been featured in national print and broadcast media, is a financial and business expert for multiple media outlets and the author of The Startup Quiz.