PwC Report on Media and Entertainment

PwC Report on Media and Entertainment

I’m really glad that we launched yesterday, because otherwise, someone might be able to insinuate that we took our strategic cues from the new PwC  report on Media & Entertainment located online here: http://www.pwc.com/gx/en/global-entertainment-media-outlook/insights-and-analysis.jhtml

Check out their analysis on the “connected consumer” move to a personalized and portable media experience on devices:

Connected consumers are driving companies to apply innovation and agility in order to understand and meet their needs

Consumers, who are increasingly connected and calling the shots but also increasingly confused by the blizzard of content offerings and models available to them both legally and sometimes illegally, are driving companies to apply accelerated innovation and agility to understand and meet their needs. Led by the burgeoning middle classes in emerging markets, consumers worldwide will continue to increase their spending on E&M as they migrate towards digital and, increasingly, mobile consumption across an expanding array of devices. The underlying journey is from ‘mass media’ to ‘my media,’ and the E&M companies that successfully accompany consumers along the way will be those that have the speed, flexibility and insight to engage and monetise an ever-more-diverse consumer base by delivering personalised, relevant and, ultimately, indispensable content experiences.

And here’s what they say about the need of advertisers to use data to maintain a communication with multi-screen users and to start shifting budgets into real multi-platform spending:

Multi-platform analytics drive advertiser insights into the connected consumer’s behaviour, expectations and buying intentions

Advertisers, which absolutely must keep pace with the irresistible consumer shift towards ‘my media’ and digital consumption behaviours, will increasingly harness big data to understand, target and engage consumers at an ever-more-personal level. This will require that they generate and apply multi-platform analytics-driven insights into connected consumers’ behaviour, expectations and buying intentions while they use new measurement techniques to ensure relevance and demonstrate returns on ad spend. Rather than enough big data, the biggest challenges will lie in collecting and extracting the small data—the kind that leads to true understanding of consumers’ future behaviour—and striking the right balance between consumers’ desire for relevance and their emotional and regulatory right to personal-data privacy.

The truth is that we did our own research, and came to the same conclusions as the analysts at PwC – that the digital advertising business is going to grow and that the growth should follow consumer behavior onto IP connected devices.  The PC has peaked as a media device, and media budgets going to the PC have peaked, too. Devices do not support the PC cookie economy, so starting with a clean slate is the only viable way to approach bridging device fragmentation, and delivering a connected consumer audience to advertisers.  Well done, analysts at PwC.  We may not purchase your report (but encourage those at large media companies to do so), but we’re on the same page.  In fact, we started a business to do just what you said needs doing.  Imagine that.

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