The Rise of the 21st Century Brand Economy

For the past few years, disruption has been a constant in the media landscape. However, patterns are emerging that give clarity to the path forward for the digital media and advertising industry. In the consumer economy, we are in the midst of a shift from a century old ‘indirect brand economy’ to a ‘direct brand economy’. Brands characterized by their direct connections to consumer are disrupting the business model of market-leading brands which is leading to a new way of doing business. These direct brands are digitally savvy and fueled by data and will be the growth engine of the new economy.

  • Permanent changes in industry supply chains are shifting the center of growth in the U.S. consumer economy.
  • Economic benefits are accruing to firms that create value by tapping into low-barrier-to-entry, capital-flexible, leased or rented supply chains.
  • The singular retail fulfillment experience has permanently changed to a variable experience, which in turn transforms all value-creation and –extraction activities before, during, and after the sale.
  • First-party data relationships are important not for their marketing value independent of other functions, but because they fuel all significant functions of the enterprise, including product development, customer value analysis, and pricing.
  • An arms race for first-party data is influencing strategy, investment, and marketing strategies among major incumbent brands across all categories.

View The Rise of the 21st Century Brand Economy  IAB 250

Address by Randall Rothenberg: February 12, 2018

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Press Coverage of The Direct Brand Economy Research