2008 Forecast: Advertisers Become Mini Media Moguls

In 2008 the biggest brands, with the biggest advertising budgets, will become “mini-moguls” bankrolling a host a of new digital media properties. Advertisers are increasingly leveraging the reach, distribution and relatively low cost of digital content production to become formidable media publishers. We saw this trend start to develop early last year, but it will accelerate exponentially into 2008 as advertisers divert more and more of their budgets online and come up with creative ways to produce content that is not explicitly advertising.

These brands, by actually creating and acquiring digital content (as opposed to 30-second spots), will find that they can go directly to consumers with a shocking amount of success. In so doing, these savvy marketers will bypass both online and offline media outlets and more traditional advertising formats.

Long Live The King

One of the best examples — and most lavish– of this transformation is Burger King’s foray into creating a series of low-priced, highly-branded video games for Microsoft’s XBOX and the creation of BK Gamer where consumers can interact online.

Created by Crispin Porter + Bogusky and Blitz Games, the titles were a massive success selling a whopping (forgive me) 3.2 million copies for $3.99 each. The games were one of the top series of titles during the ‘06 holiday season, rivaling sales of more traditional faves like “Gears of War.” Measured in terms of user engagement (time spent, impressions, recall, affiliation, etc.) not to mention hard ROI around sales and revenue, this was a watershed moment for way consumers could start to interact with brands in the digital era.

Entertainment, “Advertainment” or Utility?

This is not to say that “advertainment” will rule the day in ‘08. Some of the savviest marketers will start to create digital media properties that provide truly useful services to consumers. And, in so doing, create value where impressions used to rule the day. Here are a few quick examples:

1. Consumer Electronics: Advertisers (Sony, Samsung, Toshiba, Nokia, etc) could create elaborate buying consumer electronic buying guides for consumers that provide a wealth of information and reviews on the products they manufacture as well as from competitors in the category.

2. Finance: Credit card companies, banks and brokerages could start to provide web-based personal finance software (as a “service”) that allows consumers to better manager their finances. Think Quicken-like software provided to consumers for free such as Mint.com and Wesabe.

3. Consumer Packaged Goods: Look for CPG companies to great a number of editorially drivne product guides around key themes, such as “green” products, that balance professional editorial with consumer-generated content and robust communities.

The key for success with any of these is the ability to build interest in categories (e.g. coffee) not specifically brands (e.g. Starbucks) and then use these prosperities to better understand the likes, dislikes and ultimate desires of consumers. And, once trust and participation is established, then provide relevant offers and promotions based on consumer behavior (e.g. a special coffee blend just for gourmets).

Digging the Future

Sony’s HDNA campaign with Digg is a great example of this type of approach. In this case Sony provides HD fans with a living, breathing digital tool versus a banner or pre-roll. To quote:

Here are some stores you Dugg—we Digg ‘em too. This site, which is powered by the Digg open API, is built to serve as a filter for the Digg community, and beyond. We’re hand selecting the very best and most relevant Digg stories we think HD lovers will find interesting. How have we done? Is there a story that we missed? Please drop us a note with your feedback: hdna@storieswedigg.com.

Put together by John Battelle’s Federated Media, this is another great example of a brand that builds a relationship with consumers instead of just “marketing” to them. It’s also the wave of the future and the impact on brands, consumers and traditional media outlets will be one of the defining stories of ‘08.