INSIGHT June, 2014 | Page 5

THE FUTURE OF ADVERTISING

EFFECTS

It will have a major effect on the internet landscape as we know it, but what will it possibly mean for the advertising business as the internet was destined to be the perfect place for marketers? For one, digital advertisers can expect the higher cost of premium bandwidth to be passed back on to them. Let's say you, as a company, want your ads on Youtube, Youtube is currently paying a high fee to the ISP to ensure hi-speed access of content, and conversely your advertising. That means Youtube gets to charge you higher rates for advertising on its network since their costs now have increased. What an marketer wants is to have as many high-quality pieces of content to be delivered to consumers whenever they want and under whatever circumstances they want. The only problem here is that the consumers’ current type of viewed content is dominated by data-heavy content such as online video streaming. According to broadband-service provider Sandvine, Netflix and Youtube account for fifty percent of all north American fixed network data. These costs of delivering data-heavy content will rise exponentially for content providers such as Youtube.

Online streaming websites operate mainly on the income of advertising and these platform need to find solutions in order to keep the platform up and running where both the advertising business as the platforms benefit from. American multinational telecommunication company AT&T recently came up with sponsored data for its users which allows companies with bigger budgets to make their content easily accessible than that of smaller companies or creators. People can now view promoted content on the new 4G network for free by using a sponsored data plan instead of their own data plan. For example, they can download and use certain applications for free since it is sponsored by a big company. This can be a new business model in the future of the internet, especially for the data-heavy content provider such as Netflix and Youtube.>>

NET NEUTRALITY SIMPLY EXPLAINED

The traffic you create simply by browsing the web is treated equally by the companies, internet service providers like Comcast and AT&T, that have built the infrastructure of the internet which route and direct traffic between you and your internet provider. In essence, it argues that no bit of information should be prioritized over another. It takes a lot of complex reading to fully understand what net neutrality is and what the actual changes will mean for us as an environment. Therefor useful animations, like here at the bottom of the column, have been made to explain it to you in plain English along with simple animations.

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