Shifting 500 Billion Dollars in Power

Advertising is a 500 billion dollars business globally. Even in 2014 90% of the advertising is still bought manually buy having people calling each other and exchanging requests for proposals, proposals, and insertion orders. Only Google and Facebook managed to leverage their unique position with their respective audiences and forced advertisers to buy programmatically, while television, online display, newspaper, radio and all other types of advertising are still sold and bought in extremely inefficient manual manner. Besides Google and Facebook, also Oracle, Adobe, and a few other players are putting huge bets on the table that in the next decade or so also other type of advertising will be bought programmatically, just like stock trading moved online in the 1980s and 1990s.

Shifting 500 billion dollars in power from old economy to new economy will have huge repercussions not just for media industry but also to society at large. Through their influence on the masses media industry has big political influence and old economy will use every possible mean to keep its power. No wonder than that Google, for example, is now one of the biggest Washington lobbyist fending off under the belt blows from the old industry vanguards but also blocking new entrants to this lucrative market through political means.