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How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
How media consumption habits are changing.
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How media consumption habits are changing.

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Full video here: http://www.catchtalk.tv/events/digitalmediastrategies?video=how-media-consumption-habits-are-changing-douglas-mccabe-ceo-enders-analysis …

Full video here: http://www.catchtalk.tv/events/digitalmediastrategies?video=how-media-consumption-habits-are-changing-douglas-mccabe-ceo-enders-analysis

Douglas leads the publishing and transformation practice at Enders Analysis. An opinion leader on print and online media, he reports on media substitution, and consults on digital commercial strategies for content and service businesses. He is a former director of Fish4, the online advertising portal, and before that he led sales development and market intelligence at Waterstones/HMV.

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  • 1. Digital media strategies Media consumption and supplier strategies Douglas McCabe | douglas.mccabe@endersanalysis.com | 07966 015 469 4 March 2014
  • 2. Three waves of tech disruption Digital media strategies 2014 Web emerges - 1995 Penetration grows 75% penetration Ongoing evolution and disruption Smartphones emerge - 2007 50%+ penetration Growth to 75% in UK by 2015 Tablets emerge 2010, 400m sold by 2013 Penetration grows to 50% of homes by 2015 2 Steadily increasing impact on newspapers and magazines, with circulation declining and consumption shifting away Mass audience moves online Systemic deflation of online ad revenues, waves of new entrants Mass migration of time, attention and ad revenue Further major disruption in user behaviour and competitive landscape
  • 3. Mobile is becoming the predominant access platform 0 25 50 75 100 125 150 175 200 225 250 Global quarterly unit shipments (m) PCs iPhone & Android smartphones Tablets [Source: Gartner, Apple, Google, Enders Analysis] 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Global install base (m) PCs iPhone & Android smartphones Tablets [Source: Apple, Google, IDC, Enders Analysis] Digital media strategies 2014 3
  • 4. UK consumer is going ‘mobile’ 17 24 13 70 0 40 0 10 20 30 40 50 60 70 80 Mobile internet devices in use, UK (m) Residential broadband lines Smartphone units Tablet units [Source: Enders Analysis] 70% 61% 51% 44% 40% 37% 35% 34% 33% 16% 18% 20% 21% 21% 22% 22% 22% 23% 14% 21% 29% 35% 39% 42% 43% 44% 44% 0% 20% 40% 60% 80% 100% 2012 2013f 2014f 2015f 2016f 2017f 2018f 2019f 2020f Share of internet consumption (% of total) PC Smartphone Tablet Excludes TV-based and offline app usage [Source: Enders Analysis] Digital media strategies 2014 4
  • 5. Mobile is transforming internet consumption Digital media strategies 2014 5 492 506 519 519 558 489 479 483 533 519 521 535 504 244 270 299 358 417 397 408 410 476 475 442 435 429 52 53 52 65 69 75 71 77 87 90 84 86 90 787 829 870 942 1,045 960 958 969 1,096 1,084 1,047 1,056 1,023 0 250 500 750 1,000 1,250 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 PC Mobile app Mobile browser 2+ PC users, 18+ mobile device users; mobile includes tablets from Feb 2013 [Source: comScore] US time spent online by device (bn minutes)
  • 6. Audience and consumption shifting from browser to apps 0 10 20 30 40 50 60 70 Stated cumulative app store downloads (bn) iOS Android [Source: Apple, Google] 21% 48% 10% 10% 11% Facebook Facebook and other social apps Other social apps, no Facebook No social apps No smartphone Survey of UK 15-24s [Source: Enders Analysis/TNS-RI survey] Digital media strategies 2014 6 UK 15-24s’ use of social apps, May 2013 (% of mobile users)
  • 7. Mobile internet provides many alternatives modes of interaction Digital media strategies 2014 7 Desktop internet Mobile internet Website in web browser – unchanged since 1990s Niche apps (email, IM, music) Website in web browser, web search Apps and app stores – no clarity on roadmap In-app payments, hybrid apps, widgets, voice search, social messaging, barcodes, location, push notification etc Over 50 social messaging apps have more than 1m downloads on Google Play Search is no longer the dominant acquisition channel Web is no longer the dominant interaction model
  • 8. Atomisation and silos Digital media strategies 2014 8 Atomisation • Existing trend on the desktop web to unbundle content • Embedding within social networks detaches content from the original site • Content is shared, tagged, pinned – spreading far away from the origination point • Cards turn your content into packets that can go anywhere Silos • Apps generate far higher engagement than the web – if you can get an install • Compelling model for browsing content in a specific vertical – and gaming, of course • Google and Apple exploring ways to deep-link into apps from the web
  • 9. Twitter building rich advertising inventory Digital media strategies 2014 9 [Source: Twitter] Drive app installs Link to app Collect names and email addresses
  • 10. Facebook revenue by source Digital media strategies 2014 10 0 500 1,000 1,500 2,000 2,500 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Revenue $m Desktop ads Mobile ads Payments & Other [Source: Facebook, Enders Analysis]
  • 11. Changing nature of search: from web to Google Now Digital media strategies 2014 11 Text search Type a search term in a box Google gives you list of pages that it thinks contain the right answer, based on key words Example What’s the weather like in Bristol? Result: a link to the BBC weather site page for Bristol Answer Type a search, or do a voice search with GoogleVoice or Siri Google or Siri gives you what it thinks is the answer, plus links Example What’s the weather like in Bristol? Result: “ the weather is terrible”, plus links Predict Google has seen your email and knows you’re going to Bristol, so it puts the weather on your home screen Siri knows why you’re going Example Intelligently suggest info on weather, travel, restaurants, traffic in Bristol, London …and…
  • 12. Activity and device usage: time of day analysis Digital media strategies 2014 12 Device use by time of day Morning Transit Work Noon Work Transit Evening Night Smartphone Tablet Desktop - - Types of news contents by order of importance Social interactions: Facebook, google+, twitter [Source: Monday Note] Smartphone Desktop Tablet Smartphone Desktop News stories Morning briefings News stories Features Quick updates / alerts Data Morning briefings News stories Infographics Videos Videos Videos
  • 13. Newspaper digital revenue starting to gather momentum Digital media strategies 2014 13 99% 98% 98% 92% 92% 90% 76% 68% 54% 1% 2% 2% 8% 8% 10% 24% 32% 46% 0% 20% 40% 60% 80% 100% Express Sun Mirror Mail Times Telegraph Independent Guardian FT UK national newspapers’ print versus digital revenue, 2013 (% of total) Print Digital Circulation and advertising revenue only; excludes Metro [Source: Enders Analysis]
  • 14. By 2020, 15% of viewing will not be to theTV set, rising to 29% among 16-34s Digital media strategies 2014 14 97 94 92 90 88 86 84 83 82 81 81 2 2 2 2 2 3 3 4 4 4 4 1 4 6 8 10 12 13 13 14 15 15 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f 2019f 2020f Connected viewing as a share of total viewing (%) TV: Live linear/PVR time-shift TV: On demand/DVD Viewing to other screens [Source: Enders Analysis, based on BARB/InfoSys+ and other sources]
  • 15. Home video returns to growth: digital spend offsetting packaged media decline 16.2 18.2 20.0 21.1 21.0 20.6 20.1 19.4 17.3 16.3 14.6 12.9 11.8 0.7 0.7 0.7 0.7 0.8 1.0 1.3 1.6 2.1 2.3 3.4 5.2 6.5 16.9 18.9 20.7 21.8 21.8 21.6 21.4 21.0 19.4 18.6 18.0 18.1 18.2 0 5 10 15 20 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 US digital home video expenditure ($bn) Physical formats Digital/over-the-top Includes all retail and rental spending on physical and digital f0rmats [Source: DEG] Digital media strategies 2014 15
  • 16. Mobile monetisation is rising fast after slow start Digital media strategies 2014 16 34 38 35 36 38 41 38 39 39 5 7 6 6 8 11 12 13 16 0 10 20 30 40 50 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 US internet advertising spend per device user ($) PC Mobile/tablet [Source: Enders Analysis based on IAB/PwC, comScore]
  • 17. Common challenge of adapting to multiple devices, screen sizes, platforms & use cases Digital media strategies 2014 17 Move to media consumption over mobile devices Coherent content strategy over multiple platforms Strong mobile apps/extensions Significant ongoing investment & core competency in new technologies
  • 18. Operating model challenges Digital media strategies 2014 18 Print Digital Browse at newsstand Buy single copy Subscribe Events and reader offers Pinterest Tumblr Twitter Follow link to website Share on social media iPhone app Kindle edition Visit website homepage iPad app Android mobile app Android tablet app Read article Download or subscribe to: Comment on article Read more articles Return visit Google Facebook
  • 19. Multiplatform data Digital media strategies 2014 19 Consumer retail model • Single customer view model, with multiple touch-points • Older demographics are multimedia • Parallel trials • Relevant customisation and personalisation Content structure • Atomised consumption and very complex distribution • Content structured in packets for the most flexible usage Operating structure • Control and dashboard • Rapid decision-making • Feedback loops
  • 20. Brands are the key drivers Digital media strategies 2014 20

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