Lessons from Online Practice: New Advertising Models

ABSTRACT The advertising industry is crossing an inflection point, passing from the conventional mass media interrupt and repeat model for advertising to a family of advertising models centered on relevance. This article reviews the developments and events that have brought us to this point, and then outlines three new models rising in importance—On Demand, Engagement, and Advertising as a Service. Although they differ, the models share similarities: a focus on dynamic relationships among brands and consumers; penetrating insights into consumers through data on behavior and preferences; and support from technology. These new models provide marketers with flexibility and a range of options they can apply as consumers and situations warrant. Now is the time for brands to experiment with a model, or combinations of models, that suit the brand best. One conclusion is certain: we will never see another 75-year period of advertising centered on one model and four dominant media.