Emerging trends in digital media landscape
• Push notification is growing: People are no longer reading anything longer than a push notifi cation on their mobile. Due to this trend of glanceable content , companies like Huffington Post have journalists who are just writing notifi cations. The headline writers are the next generation of the successful news creator. Even publishers like NY times have realized this trend and have set up a dedicated team to exclusively focus on creation and scheduling of notifi cations and push alerts without overly annoying and interrupting users. Research clearly shows increasing number of users will only engage with the publisher when they send a push and they will not read something on their own.
• Ubiquitous smartphones: Smartphones outsell PCs by 5:1 now and in the next few years they will raise to 10:1. Eventually, smartphones will end up becoming smarter and feature rich. TV viewing has dropped by 30% in the last 4 years for the 18- 24 segment - the most prized segment for advertisers. The millenials check their mobile phone every 10 minutes and 80% of their time mobile is always by their side and 80% of them check their mobile phone as their first activity in the morning.
• Vertical video formats: Vertical video formats are growing faster as they have better user experience. According to snapchat which is serving billions of vertical videos in a day, vertical videos outperform horizontal video upto 9 times. We see in the near future, all breaking news events will be covered with Live Video in HD on mobile with multiple angle views.
• Robo journalism: With technologies in areas like Natual language processing and pattern recognition from companies like Automated Insights and Narrative Science, are being used to creat automated earnings report for the Associated Press and sports reports for Yahoo. Readers couldnt tell the difference between reports generated by algorithms and journalists. Twitter bots are already generating thousands of bot updates everyday with Japan leading the way.
• Next generation drones: Next generation drones will redefine breaking news production and will severely disrupt the traditional news gathering infrastructure. Washington Post and CNN are working on an experimental drone production system. Amazon Prime Air is yet another example of ecommerce and drone technology are married.
• Virtual reality and augmented reality: will explode further and these will redefine the content production itself. Applications like breaking news, adventure, shopping, sports and entertainment segments will be the initial segments where VR will be deployed.
• Shifting beyond clicks and views: Companies are shifting beyond from clicks and views to increasing levels of engagement as their top priority while balancing the need to driver greater reach. Today, consumers seek whatever they want, be it products, content or experiences, when they want it through the best means that is available to them at that present moment and circumstances. In this consumer journey, consumers are the king. Only those brands which recognize this gospel truth, can succeed in engaging the consumers long term.
• Ad-fraud on the rise: With the explosion of digital advertising, the grwoth of ad fraud is also increasing at a staggering rate. In the US alone, the ad fraud amounted to US$6.3 billion ie 20% of total advertising in the US). Research showed that software bots viewed 11% of display ads and 25% of video ads. This will be a serious challenge in the years to come.
• Growth of social ecommerce: We will see more and more ecommerce applications be embedded into the social media pages. For example, Pinterest allows users to buy items that are shown on the page directly.
• Television will see pain in the coming decade: In the coming decade, television will start seeing the pain that newspapers felt a few years due to loss of advertising revenue to digital. Younger generation is increasingly starting to embrace “cord-cutting" , canceling their cable TV service or getting rid of channels they are not interested in. 50 million households in the US now subscribe to OTT like netflix. Such disruptions have forced companies like ESPN to lay off jobs in the wake of falling cable revenues and loss of advertising to digital. PayTV households is steady at 97 million whereas OTT is climbing up from 23 million in 2010 to 50 million in 2015. In a startling statistics, median viewer age is 60 for MSNBC and CNN. Broadcast networks 62-64 and Fox News 68 and these networks have lost signifi - cant amount of ad dollars due to millenials deserting from TV to digital medium. Old media will not die. Instead , old media will shrink further and become a niche player similar to print.
• Explosive growth of OTT players: Due to explosive growth of OTT players, we will see companies like Netflix will start mimicking traditional content producers instead of just depending on others content. Netflix is planning to invest $6b in original content which is more than the entire budget of BBC and their revenue is expected to be $12.2 billion by 2020. Netflix is watched more hours per month than almost every other network in the US.
• Ad-blocking tech vs digital advertising: 198 million users have used some form of ad blocking technology which is threatening the digital advertising in a big way. If ads are blocked, free content will disappear as it will be economically not viable. This may lead to a compromise where users will choose which ads they would like to watch which in turn will force advertisers to produce better content and user experience for their audience.
• Messaging apps beat social media apps: Top 4 messaging apps , whatsapp, FB messenger, Wechat and Viber have overtaken top 4 social media apps with 3 billion monthly active users compared to 2.5 billion users for social media apps. We will see messaging apps will grow further. Interestingly, facebook owns two top messaging apps and 2 top social media apps.
• Brands cannot repurpose TV ads: Brands will have to recognize that repurposing TV ads for digital medium will not work and brands have to think ads specifically catering to each medium. What appears great in a TV ad will not look good in a vertical ad in samsung mobile. Brands will have to become technologically aware of the context and device of the consumer and shift to context based marketing from a traditional general purpose online and mobile digital marketing. Smart marketeers will study the media mix of their audience and serve advertising accordingly.
09 Oct 2017 Issue
Pickle is India's media and entertainment business guide that positions India in the global markets and reach out to decision makers. Read More