Nick Griffin, Portfolio Manager at K2 Asset management, explains why he sees a massive shift away from traditional media spends into digital and social channels. When looking at the global digital distribution Griffin sees acceleration at a frightening rate as some of the biggest brands communicate to him that they have “given up” on television advertising. These brands are directing ad spend to Facebook and Google or outdoor advertising in response to the changing way consumers obtain and process information. Advertisers realise that digital content replicates very quickly and gets to consumers efficiently and effectively via two channels, “we use the example of Mick Fanning, gets attacked by a shark, we all saw it but 99% of us saw it on YouTube or Facebook first”. In this video Griffin explains who he sees as the big winners and losers out of the redistribution, of the $700 Billion global advertising market, caused by digital disruption.
Very interesting stuff here, but a couple of misconceptions. There's plenty of mobile engagement for news services, not just fb and Google. Also, it's hard to see the Mick Fanning thing as an advertising opportunity, even for Youtube. Google is so effective because ads due to search targeting and fb is so effective because of demographic targeting. But for TV, yes, Netflix, Stan and Presto presto are a huge challenge for FTA as they will take market share of viewing hours. However, whilst people are tuning in en-mass, there is value in that space.