Group-Think and Advertising

I'm always fascinated by how group-think works.  Ideas get bandied around for years without gaining much traction.  Then when you least expect it, the level of interest crosses some invisible, critical-mass line, and suddenly everyone is a believer.  It's an avalanche reaction, that takes even the experienced industry-watchers by surprise.

Advertising-funded services is one such group-think example.  Nine months ago when I would mention it to anyone in the telecoms industry, it would illicit a tolerant, patronizing assurance that “in the future, anything is possible”.  But we are only nine month on, and it has now become an unassailable truth.  Everyone believes it is inevitable and we only have to work out the annoying details of the business model, the regulations, and the linkages between our industry and the industry that buys the advertising spots.  Fascinating!!

Last week in Nice at Management World, the TM Forum did its bit, by announcing that Ogilvy (the worlds largest advertising agency) was joining the TM Forum, and that it's Chairman, Rory Sutherland would be joining the TM Forum Advisory Board.  We also had the CTO of Paramount Pictures, Alan Bell, speaking at the event and participating in a range of executive meetings during the week.  Judging by the enthusiasm I witnessed we truly are on the way to a world where advertising funded communications services will become a reality. 

But lets not under-estimate the challenges of the regulations that will inevitably govern what will, and will not, be allowed.  The technology to insert complex advertising into communications & entertainment services already exists, and many different business models have a fair chance of working.  But regulation about the use of personal data for targeted advertising is a big open question.  That’s the one that we all have to keep our eyes on, because that's going to be the whole ball-game!!