Creativity is Poppin’ in New York’s The ADVERTISING Club

Gina Grillo, President & CEO, The AD Club of New York

Gina Grillo, President & CEO, The AD Club of New York

What role does The AD Club of New York play in the modern advertising industry? AD Club President & CEO Gina Grillo discusses the Club’s impact on the industry and the evolution of creativity over the years. (As originally published in Madison Avenue Insights, April 10, 2014) 

By Ronald R. Urbach

1896 was a big year – the first modern Olympic Games were held in Athens, Greece; the first x-ray was taken, and, of course, The ADVERTISING Club of New York was born. Located in the heart of Manhattan, The ADVERTISING Club is the industry’s premier venue for networking and creativity and professional development. As such, the club plays a vital role in cultivating advertising professionals of tomorrow and supporting the thought leaders of today.

While The ADVERTISING Club may be best known for the International Andy Awards, which recognize creativity and innovation in advertising around the world, it has garnered its most recent attention for its “I’mPART” initiative, which celebrates diversity within the advertising and marketing industry and works to recruit a wide variety of fresh young voices and talent to the business. That goal is embedded in last four letters of the name – Promote, Attract, Retain, and Train. I’mPART was recently featured in The New York Times, which celebrated I’mPART’s success in making the advertising industry more inclusive and more reflective of the diverse and increasingly global market it is trying to reach.

The Way I See It:

  • I see The ADVERTISING Club remaining an important pillar within the industry, and a symbiotic relationship forming between the older and younger generations. We will continue to see millennials mentoring the older generation on emerging technology and how to best implement it, and the older generation providing seasoned advice that only experience can provide.
  • I see The ADVERTISING Club playing a strong role in continuing change within the industry on the topic of diversity, not just from a race and ethnicity perspective, but a gender one as well.
  • I see The ADVERTISING Club paving the way for young people and creating a more inclusive industry.

The Way The Industry Sees It:

I sat down with Gina Grillo, President and Chief Executive Officer of The ADVERTISING Club of New York to discuss the impact the Club has on both the industry and the members.

Q: The ADVERTISING Club (The AD Club) of New York has been engrained within the industry since 1896, and encompasses thousands of industry professionals. In terms of membership, have you seen members you’ve attracted at a young age stay active within the Club throughout the duration of their career? What’s the longevity trajectory like?

A: Our membership of four thousand strong includes many legacy members who joined The AD Club as young professionals and have grown up and progressed in their career with us over the years. While the industry focuses on recruiting new talent, we see retention as just as big of an issue and believe it is critical to nurture talent after they have entered the field. Part of our mission as an organization is to support members along their career journey – as they move up the ranks – keeping them active both within the industry and within The AD Club. We also have a Young Professionals group that is designed to help advertising, marketing, and media professionals ages thirty and under grow to become tomorrow’s leaders. It is truly inspiring to see this ambitious, philanthropic, and outgoing group of future industry leaders develop themselves as professionals and people.

Q: It’s no secret that The ADVERTISING Club has a myriad of impressive initiatives. Are there any initiatives that the Club is especially proud of?

A: Advertising is about experimentation in communication. It is the business of inventing ideas to be discussed, debated, assessed, and adjusted daily. The AD Club exists to support this process through a number of initiatives around our core pillars – access, creativity, professional development, and diversity. We are proud of our efforts in all of these areas, but I am especially proud of our diversity initiative, i’mPART. It’s our belief that diversity of people, ideas, culture, and craft is a major driver of creativity and creates better work in our business. i’mPART is a fundraising effort that aims to raise awareness of the benefits of diversity and support the nation’s leading diversity programs.  i’mPART employs an acronym that represents the four pillars of the initiative – to Promote, Attract, Retain and Train diverse talent. It’s a movement to make diversity a priority and increase accountability for this issue through a ten-year-long benchmarking survey by PricewaterhouseCoopers (PwC), which will track the progress of diversity programs to ensure long-term success. We are committed to supporting diversity of thought and seek to inspire a diverse mindset in the advertising industry.

Q: What I find to be interesting about The ADVERTISING Club is that it acts as a hub for members of all different seniority levels to come together – ranging from high-power CMOs to junior staff members – what roles do members play?

A: The AD Club has always and will always serve as a resource for all advertising professionals at any age, level, or discipline. With this in mind, we have designed a variety of premiere training courses, speaker sessions, and workshops that unite a wide array of members. Our programs and events give members access to a network of thought leaders, the fuel for creativity, greater diversity, and the best training for professional development. Established leaders have the opportunity to come together to exchange ideas and best practices for business, while fresh faces can partake in the educational and mentorship programs we offer. The AD Club’s objective is to create connections between members from all corners of the industry. This diverse mix of experience is how we raise the bar for collaboration and creativity and ensure the industry is truly forward thinking.

Q: As they say, the future of tomorrow is in the hands of the youth of today. How can young people entering the advertising industry make a difference?

A: I believe the success of our industry directly correlates to the caliber of our talent, so the future lies in the hands of young professionals. They bring a new energy and passion for learning the industry that can both spark renewed interest among more senior professionals and introduce fresh ideas to the table. To make a difference in our industry, young people can invest in their professional development through courses and training. But, I believe mentorship is a critical part of career success, no matter how old you are. If young people can identify a mentor who provides candid advice and knows how to help nurture unique talents and skills, they will have a leg up in the industry. Today’s youth generation grew up with technology, and with a more diverse population than ever before. Through this upbringing, they hold a lot of power. They aren’t afraid to voice their opinions and make things, an attribute that will allow them to truly make an impact at a young age. We encourage young people to embrace and harness their own diverse ideas and backgrounds, and leverage them to make our industry better. Don’t hold back and throw yourselves into the business. There are more opportunities than ever to be heard.

Q: What is the coolest object in your office right now?

A: The coolest object would have to be the first ANDY award statue. 2014 marks the 50th anniversary of The ANDY Awards, a major milestone and yearlong celebration. The ANDYs have always recognized the brave process of creativity, and in their 50th year, we will unite the industry to celebrate the past five decades of advertising and usher in the future with a platform centered on bravery. Final judging took place in February in Shanghai, and it was an inspiring experience for our esteemed group of judges led by The 50th International ANDY Awards Chairman, David Droga. The ANDY is a good reminder of the transformative evolution of creativity and tech over the past fifty years and gives me hope for a better and braver future industry.

How Do You Define Bravery?



Being brave is putting yourself in a situation where you feel  uncomfortable. Sometimes it’s about saying no. It’s hard work. It can’t be taught. Bravery is about breaking rules and changing tactics, and searching in unexpected places. Bravery is about jumping up on stage in front of a crowd to give an impromptu speech. These are just a few of the takeaways from the AWE Defining Bravery event, which brought together some of the most iconic leaders in the industry – Droga5′s David Droga, The Gate London’s David Trott, Decoded’s Steve Henry, BBH’s Sir John Hegarty – to honor the ANDYs 50th anniversary and celebrate bravery in advertising.

If you missed the show, click the link below to watch the replay!

How Do You Define Bravery? -

Avoiding Missteps on Social Media Platforms

This is Part V of a blog series from Davis & Gilbert’s recent report, “Advertising Law: 2013 Lessons Learned & 2014 Practical

Gary Kibel, Partner, Davis & Gilbert LLP

Gary Kibel, Partner, Davis & Gilbert LLP

Advice,” on the significant changes in the law relating to advertising, marketing and promotions in 2013, and suggestions for advertisers and agencies to think about and address in 2014.

By Joseph J. Lewczak, Gary A. Kibel, Allison Fitzpatrick, Vejay G. Lalla, and Rohini C. Gokhale

Last year proved to be an enlightening year for companies navigating social media. As use of social platforms expanded to engage in storytelling, native advertising, and blogger and consumer endorsements, certain companies faced state and civil actions for their conduct.

In a notable state action, the NY Attorney General concluded an investigation into fake reviews on consumer-review websites, determining that companies used advanced IP spoofing techniques to hide their identities and set up hundreds of false online profiles to post phony reviews. The year-long investigation resulted in settlements with 19 companies and over $350,000 in penalties. Consumer-review websites such as Yelp also demonstrated their willingness to take action against fake reviews by suing several companies that had posted or solicited fake reviews.

Social media platforms themselves were not immune to challenges in 2013. For example, Facebook settled a class action lawsuit for $20 million alleging that the site used users’ profiles in its “Sponsored Stories” advertisements without consent.

Allison Fitzpatrick, Partner, Davis & Gilbert LLP

Allison Fitzpatrick, Partner, Davis & Gilbert LLP

One lawsuit in particular highlighted the dangers of using social media content without authorization, when a judge ruled that Getty and Agence France Presse had infringed on Daniel Morel’s copyright by distributing his photos without permission. Morel was awarded $1.2 million in damages. Remember, just because it is available online doesn’t mean it can be used for any purpose.

Acknowledging the challenges that companies face in maintaining a social media presence while complying with regulatory guidelines, the Federal Trade Commission (FTC) published an updated “.com Disclosures” guide to provide guidance on how to make appropriate disclosures online and in mobile.

Looking Ahead to 2014:

Advertisers utilizing social media should take the following steps:

Develop or update written social media policies for bloggers, spokespeople and other endorsers and make sure endorsers are making the appropriate disclosures on social media platforms. Disclosures should be clear and prominent, not buried in hyperlinks or behind buttons. Consider requiring endorsers to have posts pre-approved to verify that required disclosures appear.

Review and update social media policies for recent advertising and employment law developments, including ensuring social media policies only allow “authorized” representatives to post on behalf of the company.

Rohini Gokhale, Associate, Davis & Gilbert LLP

Rohini Gokhale, Associate, Davis & Gilbert LLP

Respect the rights of third parties when posting or otherwise using consumer content via social media platforms or hashtags.

Recognize that commercial uses of social media services and content differ significantly from personal uses.

See What You Missed at The Great Debate: Take 6

At The Great Debate: Take 6, the conversation about content took center stage as one of the most discussed and debated topics in our industry today. So what did we learn?

  • When it comes to content and brands, instant gratification isn’t enough for today’s consumers. People WWTWWTWI (want what they want when they want it) and it better be relevant and add value, or they will go ahead and create or curate it on their own.
  • One universal definition of measurement and ROI of content has yet to be identified. But if marketers provide content that creates an amazing experience, people will be inspired to share it and spread the content further. For some brands like GE, it’s all about “Brand Relevancing” – keeping the brand fresh and relevant through content. And according to Shelley Zalis of Ipsos, it’s about awareness, engagement, and then amplification.  (Check out the full interview with Shelley here.)
  • Brands: let consumers in. Let them participate in your content. They have a point of view and their contributions can create better stories. According to David Pemsel, Deputy Chief Executive, Guardian News & Media, this is how The Guardian has increased traffic and readership by leaps and bounds in recent years. As long as we keep consumers at the center, the overlap of content and technology has a rich future ahead of it. (Read the full interview with David here.)


  • Michael Kassan, Chairman, CEO, MediaLink
  • Linda Boff, Executive Director, Global Brand Marketing, GE
  • Tom Foran, Chief Revenue Officer, Outbrain
  • Stephen Kim, VP, Global Agencies & Accounts, Microsoft
  • Sam Olstein, East Coast Director, Ignition Factory, OMD
  • David Pemsel, Deputy Chief Executive, Guardian News & Media
  • Shelley Zalis, CEO, Ipsos Open Thinking Exchange
Screen Shot 2014-04-02 at 7.22.40 PM

From L-R: Linda Boff, Executive Director, Global Brand Marketing, GE; Tom Foran, Chief Revenue Officer, Outbrain; Stephen Kim, VP, Global Agencies & Accounts, Microsoft; Sam Olstein, East Coast Director, Ignition Factory, OMD; David Pemsel, Deputy Chief Executive, Guardian News & Media; Shelley Zalis, CEO, Ipsos Open Thinking Exchange; Gina Grillo, President & CEO, The AD Club of New York


Don’t Miss What’s Happening at AWE


Advertising Week Europe has officially kicked off in the lively city of London. Today The AD Club will present a special event: Defining Bravery. In honor of The International ANDY Awards 50th anniversary celebrating bravery in advertising, this unique event will feature inspirational talks about stories of bravery from an amazing lineup of industry icons, including:

  • David Droga, Creative Chairman, Droga5 & Chairman of the ANDYs 50th 
  • Sir John Hegarty, Co-Founder, BBH 
  • Dave Trott, Chairman, The Gate London 
  • Steve Henry, Co-Founder, Decoded (Founder and former Creative Director, HCCL) 

Here’s the twist: to challenge the industry to get into the bravery mindset and take risks to achieve greatness, individuals will be selected at random from the audience to join these icons on stage to tell their own stories of bravery! Don’t miss this exciting event. And while you’re there, check out some of the other great events AWE has lined up.

Must-See Events: Wednesday, April 2nd


9:00AM, News Room Studio A

ITV Presents: The 2014 Spotlight Lecture – The Golden Age of Bullshit

10:30AM, The ITV Stage at Princess Anne

Things I Wish I’d Known Then: Perspectives on 30 Years in the Ad Business

11:30AM, ITV Stage at Princess Anne 

How the Fusion of Real-Time Advertising, Native and Mobile are Changing Digital Advertising

12:00PM, News Room Studio A

Exterion Media Hosts the Big London Debate

12:45PM, David Lean Room

Turning Mobile ROI Into Reality

2:00PM, News Room Studio A

If Not Now, When

3:30PM, The ITV Stage at Princess Anne

Yahoo Presents: A Native Revolution

4:15PM, David Lean Room

ANDY 50: Defining Bravery

5:30PM, The ITV Stage at Princess Anne

Late Night at Ronnie Scott’s – Vevo Emerging Artist Showcase

11:00PM, Ronnie Scott’s Jazz Club


Must-See Events: Thursday, April 3rd

Empowering Women

9:30AM, The ITV Stage at Princess Anne

ITV and Thinkbox Present: Creative Carousel

10:30AM, The ITV Stage at Princess Anne

The New Video Ecosystem

11:15AM, Channel 6 Stage @ The #AWEUROPE Underground

Beyond the Metrics. The Power of Creativity.

12:00PM, David Lean Room

‘Participation Brands & Lifestyle Hacks’: How to Drive a Return on Involvement

12:45PM, Channel 6 Stage @ the #AWEUROPE Underground

Marketing Week Presents CMO 3.0

2:00PM, Channel 6 Stage @ The #AWEUROPE Underground

Wired Evolution of Revolution Part I & Part II

2:45PM, David Lean Room

Game Change: Unlocking New Levels of Collaboration

3:30PM, Channel 6 Stage @ The #AWEUROPE Underground

Disruptive Leadership for the Digital Age

4:30PM, The ITV Stage at Princess Anne

Mindshare Huddle at #AWEUROPE: Innovation

5:00PM, News Room Studio A

Microsoft Wrap Party

7:30PM, Koko

IP, Disclosures and Consumer Expectations: Top Native Advertising Issues

This is Part IV of a blog series from Davis & Gilbert’s recent report, “Advertising Law: 2013 Lessons Learned & 2014 Practical Advice,” on the significant changes in the law relating to advertising, marketing and promotions in 2013, and suggestions for advertisers and agencies to think about and address in 2014.

By Vejay G. Lalla and Anne DiGiovanni

Vejay G. Lalla, Partner, Davis & Gilbert, LLP

Vejay G. Lalla, Partner, Davis & Gilbert, LLP

Native advertising has been around for decades in various forms, but in 2013, digital native content became a hot topic, as well as the subject of industry and regulatory discussion around how traditional advertising law principles apply to native advertising. The President of the Online Publishers Association recently stated that nearly ninety percent of its members are providing native solutions.

In early 2013, The Atlantic published an article sponsored by the Church of Scientology that, although properly disclosed as sponsored, created an outcry from readers because the Church’s message seemed to run counter to the magazine’s journalistic values. The incident has served as a cautionary tale to advertisers and publishers that native advertising needs to be mindful of both applicable laws and consumer expectations of the brand or publication. Since this time, the American Society of Magazine Editors and the Interactive Advertising Bureau both have issued guidelines on the use of native advertising.

The Federal Trade Commission (FTC) has begun to focus on native advertising as well. The FTC sent letters to the major search engines stating that they should delineate between search results that are paid placements and search results that are organic through the use of clear and conspicuous disclosures. In December, the FTC held a workshop on native advertising that facilitated industry, academic and government experts in a discussion over what level of disclosure the FTC should demand from advertisers and publishers that engage in native advertising practices. Although the FTC may issue further guidance, it likely also will continue to monitor native advertising through enforcement of Section 5 of the FTC Act for any unfair or deceptive acts or practices in or affecting commerce.

Anne DiGiovanni, Associate, Davis & Gilbert LLP

Anne DiGiovanni, Associate, Davis & Gilbert LLP

Looking Ahead to 2014:

Issues likely to dominate include:

  • Agencies and advertisers typically bear the burden of responsibility for ensuring any content (including native advertising content) does not infringe third party intellectual property or other rights, so campaigns should be reviewed closely.
  • Agencies and advertisers should ensure that any native advertising includes proper disclosures in accordance with current FTC regulations and its history of enforcement, including by placing a disclosure obligation in contracts with publishers and media.
  • Media companies and publishers should tread carefully when taking on native advertising to make sure content is consistent with what the audience expects and consistent with their or their advertisers’ core brand messaging.


The Great Debate: Interview with David Pemsel, Deputy Chief Executive, Guardian News & Media

The convergence of content and technology – where do brands fit in? We asked Guardian News & Media Deputy Chief Executive David Pemsel, who spoke at The Great Debate on March 26th, to share his thoughts on the big issues in media and content that are impacting the advertising business.

AD Club: What is the biggest trend changing digital advertising today, and which online advertising models will last the distance?

Copyrigth Sarah Lee - David Pensel head of advertising at Guardian Media Group.

David Pemsel, Deputy Chief Executive, Guardian News & Media

David Pemsel: The move towards mobile is already having a huge impact on digital advertising; affecting brands and media owners alike. On the one side, marketers need to ensure all their communications platforms are optimised for mobile devices and tablets. On the other, media owners need to ensure the advertising solutions they offer brands are fully integrated and focus on reaching the target audience rather than prioritising channels. This is something we at the Guardian have spearheaded and will continue to champion.

Big data is another trend in digital advertising that is not going to go away. In the long-term, it will deliver better understanding of consumers and allow brands to be more targeted and personalised in their advertising. However, many media owners and brands are still not getting big data right, and haven’t yet managed to unlock the value it can bring – this is likely to change, as organisations get more clued up and better tools to analyse data are created.

AC: Consumers don’t mind being advertised to, as long as they are getting something out of it. How do you connect with consumers on all touchpoints and create a utility or value they can benefit from?

DP: As long as advertising is targeted and personalised, consumers will see value in it. And as data analytics become more sophisticated, consumers will be receiving advertising that is increasingly more and more relevant to their browsing and shopping behaviours. At a time when consumers are contending with information overload, the challenge for advertisers will be to ensure that the content they target consumers with is engaging and integrated across all platforms.

At the Guardian, we work hard to help brands get cut through with audiences and to produce great content that will appeal to them. Our unique open approach extends into our commercial partnerships and is ingrained in the way we do business. Brands choose us because we’re collaborative and open, and we work with them to find the right channels and content to reach their audiences, without compromising the independence of our editorial output.

Our partnership with UK mobile operator EE to launch GuardianWitness, our citizen journalism platform, is a perfect example of this – it allowed EE to create a unique service to showcase their high-speed 4G connectivity and to engage more closely with consumers, while helping us to develop a platform that benefits both our readers and our journalism.

AC: How is the rise of platforms like Whatsapp and Snapchat changing the way brands communicate with consumers?

DP: There is little evidence to suggest that the rise of platforms like Whatsapp and Snapchat is inherently going to change the way brands communicate with consumers – at least for the time being. Consumers don’t mind being advertised to, so long as the adverts they’re presented with are relevant and targeted to their needs. Rather than shunning platforms like Facebook and Google in favour of ad-free platforms like Whatsapp and Snapchat, we’re more likely to see a trend of consumers using a mix of public and private communications platforms, and using them for different activities, in different ways. As such, not a lot is likely to change in terms of how brands advertise.

AC: Now that anyone can be their own content creator, publisher and social media super star, how is the role of ‘influencer’ changing?

DP: The media landscape is in a state of flux. More and more people are accessing content from global sources and producing and sharing growing volumes of content themselves. People are increasingly consuming news on multiple platforms and social media is fast becoming a place for breaking news.

That said, I’m a big believer in the power of media organisations to produce quality content that will appeal to their readers. People are faced with an information overload and consumers will ultimately turn to a small number of media brands who they trust to cut through the noise and provide them with informative and reliable content. We pride ourselves on our era-defining, brave journalism, which is why our readers trust us and will continue to come back to us, and why we’re continuing to grow our readership around the world.

But media companies have a job to do to ensure they remain relevant, by embracing new technologies and adapting the way they operate. This is why the Guardian adopted a pioneering digital first strategy, and why we remain committed to that approach – we know that we need to continue to innovate to ensure we’re meeting our readers’ needs in an ever-changing environment.

The Great Debate: An Interview With Shelley Zalis, CEO, Ipsos Open Thinking Exchange

Shelley Zalis, CEO, Ipsos Open Thinking Exchange, shared her insight with us on some of the biggest trends impacting the advertising business today. Shelley will participate in a lively discussion at The Great Debate, tonight at 6-8 p.m. at The Dream Hotel Downtown. Don’t miss it!

AD Club: What is the biggest trend changing digital advertising today, and which online advertising models will last the distance?

Shelley Zalis, CEO, Ipsos Open Exchange Thinking

Shelley Zalis, CEO, Ipsos Open Thinking Exchange

Shelley Zalis: Digital advertising has gone mobile. Portable content that consumers can access anytime, anywhere on any device is the magic bullet for consumer engagement and added value. So brands must give consumers WTWWTWI!!!!!

AC: Consumers don’t mind being advertised to, as long as they are getting something out of it. How do you connect with consumers on all touchpoints and create a utility or value they can benefit from?

SZ: Content has to be created in an authentic way for each screen. We cannot just fill out a checklist and migrate content from screen to screen. Connected content must also cater to what the consumer wants and needs along their path to purchase ON DEMAND at every moment of truth!

AC: How is the rise of platforms like Whatsapp and Snapchat changing the way brands communicate with consumers?

SZ: Just because brands can be present in these new apps doesn’t necessarily mean they should. Proceed with caution and only be there if there is a natural, seamless and value added reason for deepening the relationship with your customer in these platforms. If not, they will share their negative experience which their 1,000 BFF’s.

AC: Now that anyone can be their own content creator, publisher and social media super star, how is the role of ‘influencer’ changing?

SZ: The world is not changing. The world has changed. People are multitasking and multi-screening on steroids 24/7. We are no longer living in a push world. We are living in a pull on demand world. Consumers are curating and sharing their own content especially if they don’t like what their brands are giving them. Listen to what your customers want and make sure it is value added and accessible when and where they are!

Gyro: The Whole Culture of a Business Should Be Built on Its ‘Why’


Christoph Becker, Global Chief Executive Officer and Chief Creative Officer of gyro

Christoph Becker, Global Chief Executive Officer and Chief Creative Officer of gyro

“The desire to connect with fresh business stories is much more powerful than any notion of brand loyalty…how can brands tap into the power of human relevance?”

Check out this incredibly insightful article by Christoph Becker, global chief executive officer and chief creative officer of gyro, an AD Club member.

Adweek: The Whole Culture of a Business Should Be Built on Its ‘Why’

Technology, Driving Changes in Audience Habits, Requires Adaptation by Advertisers and Agencies

This is Part III of a blog series on Davis & Gilbert’s recent report, “Advertising Law: 2013 Lessons Learned & 2014 Practical Advice,” which explores the significant changes in the law relating to advertising, marketing and promotions in 2013, and suggestions for advertisers and agencies to think about and address in 2014. 

By James L. Johnston, Partner, Davis & Gilbert LLP

James Johnston, Partner, Davis & Gilbert LLP

James Johnston, Partner, Davis & Gilbert LLP

The year in entertainment was marked by fundamental changes in audience habits driven by technological innovation.

The television industry dealt with challenges seemingly on every front. With “House of Cards,” Netflix showed it could produce award-winning programming as sophisticated and compelling as anything on HBO or any broadcast network.

Perhaps more significantly, Netflix’s practice of releasing an entire season’s worth of programming at once accelerated a sea change in viewing habits, encouraging binge viewing and altering the very notion of “season.”

On the distribution front, networks continued to fight an uphill battle against technological changes that are reshaping how television programming is delivered to consumers. The networks unsuccessfully sought to enjoin DISH from offering its Hopper service, which enables users to mass record primetime programming, remove the commercials with a simple push of a button and then watch that programming on any device. Similarly, broadcasters so far have been unsuccessful in halting the launch of Barry Diller’s Aereo service, which uses miniature antennas to pull free over-the-air broadcast signals without authorization and transmit them to its subscribers’ connected devices; the dispute now is before the U.S. Supreme Court. Together, these developments threaten to erode both the advertising and the affiliate fee revenue streams of programmers, fundamentally altering the business model for delivering video programming to viewers.

The music industry, finally stabilizing after years of upheaval caused by illegal file sharing, saw its paid digital music business begin to falter. In 2013, for the first time since the introduction of the iTunes Store back in 2003, digital music sales dropped. The decline no doubt is a result of the maturation of music streaming services such as Pandora and the entry into the streaming marketplace by Apple itself, with iTunes Radio. As Netflix has done with video, these services have altered how music content is consumed.

Looking Ahead to 2014

Advertisers and agencies will need to adapt to these changing habits by:

  • Creating marketing opportunities within subscription video services that take advantage of their unique relationship to subscribers.
  • Capitalizing on sports and live event programming to communicate messages in traditional channels, while identifying new ways to connect with consumers in an on-demand DVR world.
  • Leveraging the shift from music sales to music streaming, where more significant advertising opportunities are available, taking advantage of user location, taste and preference data inherent in music streaming services.