If digital advertising is indeed effective, measureable and well-liked, why isn't it highly-adopted by marketers yet? Amnesia's Iain McDonald has the answers.

No matter what you read these days, there is never a short supply of pundit commentary about the pace of change around us. Some argue that technology is moving too fast for the average consumer, and others say that businesses are way too slow in adopting new technology.

From a marketing perspective, the established industry has always been driven by consumer trends, so we (the marketers) tend to simply follow them (the consumer), wherever they gather in their largest numbers. Digitally, we have not been doing this at all. For instance in Australia, close to 20 percent of consumer media time is spent online, but total digital spend for most companies is usually between five and 10 percent. The trend is similar in many countries.

As consumers, the more time we collectively spend somewhere (for instance, watching TV), the bigger the investment on content. Shows like "Lost" exist because there are enough of us watching to support the huge cost of development through global ad support and syndication. So this is where it gets interesting when we look at the digital industry -- it ought to be seeing a greater spend (simply put, bigger advertising budgets should mean better websites), but there are certain things which seem to consistently slow things down for us -- the people that live and breathe digital. Seeing as Top 10 lists are still the big thing on blogs these days, I thought I'd take a leaf -- here's my list of the things holding us back in digital advertising. Watch out, opinion and generalisations ahead!

The Government
Let's face it. If they can't even sort out the roads, how are they going to sort out something vastly more complex? In Australia, one of the most remote places on earth, you would think that the Government would have had some foresight years ago for the huge implications on the economy. Some pundits claimed that economical growth could even be linked directly to broadband penetration. Jury's still out on that one, but the reality in Australia is that our broadband offering, compared to that of our neighbours in Japan or South Korea, is woeful. In the meantime, the AU Government's promise of WiMAX has us all waiting... again.
Bottom line: Overpriced, underpowered broadband = frustrated, confused consumer = less money invested in digital marketing.

Telecommunications companies
Companies like Telstra, which own the traditional networks, are at a tipping point. With technologies such as VoIP appearing as a metaphoric iceberg to their bottom line, they have recoiled. It doesn't stop there; why would a company like Telstra consider launching IPTV when it owns 50 percent of Foxtel, Australia's main supplier of cable TV? In short, it doesn't move until its hand is forced.
Bottom line: They have nowhere to go, but they will make us all wait until they have milked every cent available from old technology.

The education system
Right now, the main training ground for working within the digital industry is the industry itself. Considering the potential size of the digital advertising industry in the next 10 years, I have to ask, "Where are all the people to work in it going to come from?" So what about an industry body that regulates, lobbies and advises? We're supposed to have a few of those but they all seem pre-occupied promoting their Annual Awards. Sigh.
Bottom line: Higher education system is not supporting the digital era. High school students are probably savvier than their high school teachers, and the digital industry still needs a dedicated body that packs a punch.

Heat and power
All these new technologies (faster, smaller laptops, mobile phones, etc.) are gobbling more power and producing much more heat as a byproduct. Mobile devices that run GPS, Wi-Fi and 3G simultaneously find themselves needing a recharge so often that it stops consumers using these great features. New battery technology and personal fuel cells are on the way, but in the meantime, our laptops will continue to burn our legs and mobile phones will remain primarily as device for calling people.
Bottom line: Constant recharging makes Jack a dull boy. Consumers are waiting for that battery breakthrough.

Next week: 6 reasons why Australia's digital advertising industry isn't reaching its full potential.

Iain McDonald is co-managing director of Amnesia (Avenue A Razorfish, Australia). Read full bio.