Media engine gathers head of steam

Myers, Jack
February 2000
Advertising Age;2/14/2000, Vol. 71 Issue 7, ps2
Trade Publication
This article focuses on the role of media in advertising. Imagine if, at the beginning of the 20th century, Henry Ford's Motor Co. had acquired John D. Rockefeller's Standard Oil: two of the most powerful economic forces of the century joining to produce automobiles and the gasoline to drive them. Today, we have a similar situation: the combination of America Online with Time Warner merges the distribution engines of AOL with the content fuel of Time Warner's branded assets. When Myers Group published Media Spending Forecasts for 2000 through 2005, several observers suggested our forecasts for online spending were far too aggressive. The forecast called for online advertising revenues to grow from $2.5 billion in 1999 to $32.5 billion in 2005, excluding e-commerce related revenues. We also forecast that interactive TV total revenues would reach $28 billion in 2005, far outpacing Forrester Research's projections of $19.3 billion in 2004. Achieving these seemingly unreachable revenue levels would require a market catalyst. But the consultancy also understood the pace of technological advances has been progressing for the last year at Moores Law -- which says that computer power will continue to double every 18 months -- times two. It is only logical that the marketplace will find its way toward exponential growth of consumer acceptance of interactive technologies, and that advertising revenues will follow.


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