Interruption Marketing – Business Model Innovation
Everyone hates advertising … agreed? Ok, maybe not everyone, but from the point of view of the consumer (those of us who are exposed to advertising) to those of the producers (not the ad firms, but rather the manufactuerers, software companies, food companies, etc … i.e. the guys that make products that are advertised to get your attention) most of us are tired of being interrupted to look at products that are irrelevant to us while we wait for the show to go on. As Seth Godin puts it, basically, we live in a world of interruption marketing.
So my question is, with the internet, Tivo and other technology can we finally say goodbye to advertising as we’ve known it in the past. Interruption marketing is an old world concept that is still around because we haven’t figured out a better way. I day “death to advertising” and recreate a new business model where finding the perfect customer who is willing to buy a relevant product is born.
The question is: “Can the historical advertising model be replaced with a new business model?” This is an important question that Seth Godin hints at in his “Permission Marketing” book. But we need to delve deeper to see if we can create a new business model that is fundamentally different from the Google advertising model.
“Can innovation be used to create an entirely new business model?”
Netflix did it with direct to your door DVDs by making a couple of slight, but highly consequential changes to the Blockbuster model. Tivo did it by crafting revenue streams outside the advertising world.
If advertising is an externality (where you are forced to view ads without permission or compensation … i.e. traditional TV), can interruption advertising be driven into the ice age?
Over the next few weeks, I will explore how business model innovation can change an entire industry and if it is possible in the advertising world.
See you on the wire