The Adaptation of Advertising Production in the Age of Digital Disruption

Abstract

This research is a study of the Adaptation of Advertising Production in the Age of Digital Disruption, which the objectives of this research are to study the effects of digital disruption situation on the advertising production and to study adaptation of the advertising production to digital disruption situation. Methods used were documentary research from Books, Journals, Articles and Online Based Articles integrated with in-depth interview from 12 people involved in the advertising production chosen by purposive sampling which working about advertising agencies and production houses. This research found that the effects of digital disruption lead to the decreasing on both the working timeline and the budget for advertising production processes. Because, brand owners want to communicate with consumers by using online advertising videos than before, in term of both quantity and frequency. For online-media, consumers usually pay less attention on advertisements. So, the brands should promote their goods or services to meet the new behaviors of their customers. Also, the cost of promoting via online-media will be lower, according to the brand owners understanding, which leads to the lower budget for advertising production processes. Although, there are not much differences between television commercials and online advertising videos. This affects the financial aspect of the large corporations that have much reduced income but still have high fixed cost. At the same time, there are a large number of new and smaller competitors. Advertising agencies that were business intermediaries have also become less necessary. From the aforementioned impacts, this study recommends guidelines for the adjustments of the advertising agencies and production houses as follows: the guidelines should start with adjusting qualifications of executives, followed by organizational adjustments in various ways, including 1) Downsizing the organization 2) Establishing subsidiaries to work for low budget jobs 3) Providing supporting services to other productions 4) Adding a dedicated online section 5) Providing one-stop service 6) Producing TV commercials along with online advertising video at the same time. All parties involved should leverage digital technology to assist in the work process and seek collaboration between advertising agencies and production houses in order to adapt to the digital disruption.