PwC Report: Media and entertainment companies in quagmire to blend data insights and consumer intuition

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Consumers want more flexibility, freedom and convenience in when they consume their preferred content. The media audience does not see significant divide between digital and traditional media yet. As a result, while global revenue from digital media will continue to exhibit stronger growth, non-digital media will still contribute well over 80% of global consumer revenues in 2019.

According to a report by PWC, what’s emerging is an environment where consumers regard any distinction between ‘digital’ and ‘non-digital’ as irrelevant. Instead of favoring one or the other, they’ve taken on board the proliferation of content and access options enabled by digital, and are exploiting it to seek more flexibility and freedom – for which read ‘choice’ – in what, when and how they consume.

In making these choices, they’re migrating to offerings that combine relevance and convenience – attractive content, easy discovery, social community – with an inspiring, personalised experience, however it’s delivered.

The environment is a combination of two aspects; resilience and resurgence of aspects of traditional media which is why consumers are still spending on live music ticket sales and cinema box office. For consumers across the world, it is all about content experiences whether digital or not.

The challenge for entertainment and media companies is to blend data insights and consumer intuition to maximise the value of the experiences they offer. The prize for achieving this is heightened by the fact that the consumer has never been more up for grabs than today.

Internet Advertising

Advertising growth is primarily digital driven by mobile and video. Like consumer revenues, advertising will see digital growth and non-digital resilience: while global digital advertising revenue will rise at a 12.2% CAGR against just 1.2% for non-digital advertising, non-digital will still contribute over 60% of global ad spend in 2019.

Internet advertising is the fastest growing segment of advertising overtaking broadcast TV advertising. By 2019, digital advertising as a whole – including digital out-of-home – will account for 38.7% of total global advertising revenue, up from just 16.6% in 2010.

A primary driver of digital advertising throughout the forecast period will be rapid rises in mobile and video Internet advertising. Mobile Internet advertising will surge at a 23.1% CAGR to 2019, overtaking display Internet advertising globally in 2018, and supplanting paid search in the US in 2016 as the leading Internet advertising category. And video advertising spend globally will rise at a CAGR of 19.5%, supported by a near-doubling of global smartphone connections to 3.85bn in 2019.

Over The Top (OTT) services is one of the upcoming trends. The trend is familiarizing users with a video experience free from advertising, supporting a shift from ad-supported to subscription-based consumption. And as viewers migrate from traditional networks to digital alternatives, advertisers will follow, driving broadcast TV advertising’s share of global total TV advertising down from 97.2% in 2014 to 94.3% in 2019.

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Melissa Daniels
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