Thursday, November 1, 2012

Online paid-content market threat to traditional advertising

Rise of tablet computers and smartphones could help paid-content market rise to £8bn a year by 2017, says report

The Forrester report found that over the next five years, the amount spent on music, games, film, TV and news content by consumers in western Europe will surge by 65% from €6.2bn (£5bn) to €10.2bn.

However, the knock-on effect of the rise of paid-for services is the loss of digital "pure advertising" opportunities for companies.

"Although content consumption across connected devices is on the rise, the very services driving digital content growth are limiting pure advertising opportunities for brands," she says. "Payment models don't require brand advertising for revenue and … are driving consumer appetite for more ad-free content."