Business - Written Tuesday, September 29, 2009 by Denis Hancock - 0 Comments

Social media, and a structural decline in advertising spend

Yesterday a colleague sent me a link to a funny Onion article titled Pepsi to Cease Advertising. The key satirical statement was directed at shareholders in the company – declaring that PepsiCo is now “what it should have been all along: a company that just makes soda, and doesn’t get caught up in trying to make everyone like it.” But like all great satire, there is an important grain of truth in the message of this article. I believe that advertising spending, while not going away entirely of course,  is facing a relatively large structural decline. I also believe social media is a big part of what is driving this. And for most companies, this could be an absolutely great thing, as the decline in price may not come at the cost of a decline in impact.

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