Insights

Data-Driven Media, Anonymous Audiences no Longer Exist!

Global Head of Media
Valtech

September 11, 2015

There’s a new model of content consumption in town, and the data now available cannot be ignored...

So there’s a new model of content consumption in town, the subscription model. Instead of per-per-view, renting individual films or even piracy, services like Netflix, Amazon Prime Video, Hulu and more are enticing people away from traditional media viewing methods and into a pay-per-month mode of thinking.

So what does it mean?

1.

Advertisers have far less control than they used to, specifically television advertising revenue growth is lagging behind Digital media by over 14%. People are consuming media on their own terms rather than those of the ad agencies. Who wants to sit through minutes of people trying to sell you something in the middle of Breaking Bad? Not when the alternative is watching it uninterrupted in bed with a pizza.

http://www.statista.com/statistics/276654/global-advertising-growth-by-media-category/

2.

If broadcasters jump on this bandwagon, as some have, they have a wealth of new data and information available to them on their viewers’ habits. They no longer have to made educated guesses, the can know. As “1984” as this sounds, it can definitely be a positive thing. Recognising views for the individuals they are will revolutionise the way in which content is delivered to us, and it’s already begun! Netflix suggests programmes I might enjoy based on what I’ve watched. It knows where I stopped watching things earlier so I don’t have to worry about finding my place again. No more scrolling through scenes like on DVDs… I can’t remember the last time I watched a DVD…

3.

Broadcasters are going to have to stay ahead of the startup innovation curve, developing digital platforms that enable users to behave how they want. There are simply too many other alternatives for people for large traditional production houses to rely on their historic successes. Revenues from these digital platforms have experienced incredible growth in recent years, and the technologies are only getting better.

http://www.statista.com/statistics/276024/digital-tv-platforms-advertising-revenues-in-the-united-kingdom-uk/

More personalised content, more relevant suggestions and an increasing willingness for consumers to hand over more and more data proves that digital has outgrown mass distribution. Now, the viewers are in control, and that should keep media companies on their toes, whatever their size.