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Live On The Scene At DMA

Staff Writer
Published: 2004-02-24

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This is a time of enormous change in American advertising, says David Verklin, Chief Executive Officer, Carat North America.

Verklin, who oversees a $3.7 billion media service that is just one of Carat's three worldwide divisions, spoke today at the DMA/AIM net.marketing conference & exhibition in New York City.

The thesis of Verklin's speech stressed the fact that the marketing industry has changed more in last 36 months than it has in last 36 years and the next 36 months promise to be just as profound.

The digital ways that marketers can deliver their messages are changing very rapidly. Wireless, broadband, video on demand, and personal video recorders (PVR) are just a few of the new methods marketers are using.

Verklin also says global advertising is currently controlled by twelve companies and that this kind of consolidation is a new trend that can be expected to grow in the future. Roughly 80% of the time incorporated sells to these twelve companies and just three companies control 53% of the billboards on Earth.

American advertising is continuously evolving and is heavily influenced by what's going on overseas. The European advertising model has finally arrived in the United States. Now, there are those who develop advertisements and there are space buyers who buy the ad space. That division wasn't so heavy 36 months ago.

"Look overseas for new ideas," Verklin tells American advertisers. Many American concepts come from other countries, including some of our most popular products and television shows. It is increasingly important that we are aware of what other countries are doing -- and not just in Europe.

For example, 75% of South Korea now has broadband. What's wrong with that? Well, it's a big problem for car companies such as Hyundai. With online entertainment and shopping readily available, fewer people leave the house. That means fewer people are buying cars nowadays. Could that trend be heading for America soon? Only time will tell…

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