What’s on the phone tonight?: Ad agency say mobile phones may overtake TV
by James Gattuso on April 8, 2005
Who competes with whom in today’s communications world? Most policymakers today are just now coming to grips with the fact than old-fashioned wired telephones compete with wireless telephony, and that broadcast TV stations compete with cable and satellite providers. But maybe they should be thinking even more broadly. As reported Wednesday’s Financial Times, BBDO–the world’s third largest ad agency–says that cellphones and other wireless devices may soon overtake television as the biggest advertising medium. Andrew Robertson, BBDO’s CEO, says that the increasing ability of consumers to avoid TV commercials–combined with the tremendous growth of wireless–makes the shift likely. Just one more bit of evidence convergence is real, and that choice and competition is coming from more quarters than we imagine. The development should put paid to any notion that there is any undue market power wielded broadcasters in advertising, and eliminate that as an argument for ownership controls. On the glass-half empty side, it could lead Congress to include cellphones in its ever-expanding plans for indecency restrictions. Stay tuned, this should be fun.
About James Gattuso
James Gattuso is a Senior Research Fellow in Regulatory Policy in the Roe Institute for Economic Policy Studies at The Heritage Foundation. Gattuso also leads the Enterprise and Free Markets Initiative at Heritage, with responsiblity for a range of regulatory and market issues. Prior to joining Heritage, he served as Vice President for Policy at the Competitive Enterprise Institute and also as Vice President for Policy Development with Citizens for a Sound Economy (CSE). From 1990 to 1993, he was Deputy Chief of the Office of Plans and Policy at the Federal Communications Commission. From May 1991 to June 1992, he was detailed from the FCC to the office of Vice President Dan Quayle, where he served as Associate Director of the President's Council on Competitiveness. He lives in Alexandria, Virginia with his wife Dana, 8 year-old son, Peter (whom he relies upon to operate his VCR), and his four year-old daughter Lindsey (who does the DVD player.) He has no known hobbies, but is not nearly as boring as he seems.
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