Are Media Companies Investing Enough in Interactive TV, Mobile and Online?

10/13/2010 07:54 am ET | Updated May 25, 2011

How many of the thousands of media companies that are now dependent almost exclusively on advertising revenues will survive intact to 2020 without making substantial changes to their core revenue-generation models?

Advertising, by definition, is a one-way communications technique for distributing commercial messages to audiences via multiple media options. In 2010, advertising in traditional advertising (including online) represents only an estimated 30% of marketers' total communications budgets, according to Jack Myers Media Business Report. By 2020, marketers are projected to invest only 15% to 20% of their almost $1 trillion in total marketing communications budgets in advertising – with the other $800 billion going toward direct consumer activation -- using coupons, incentives, direct marketing, point-of-purchase, events and other non-advertising marketing tools, much of it via interactive online, mobile and TV media.

Is it a business imperative that traditional media content and distribution companies invest in the human and technological resources to actively develop interactive tools and resources that connect marketers to consumers? Are they investing sufficiently and proactively today? What do you think? Comment Here.

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