Hollywood IT Association - Digital Marketing Analytics - Panel - PwC Public, BLW Sept 2012

1. • www.pwc.com
Digital Marketing and
the Analytical Engine:
Transformational
Opportunities for
Entertainment

2. Digital technology has changed personal and group
communications, and the business landscape
The Old Normal:
Traditional business
with a growing digital
element
The New Normal:
Digital is the central driver of
future operating models,
consumer relationships, and
revenue growth
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3. Consumers’ new “normal”
The multi-screen experience They are
Mobile
The changing reading experience
Recommendations shape choice
‘My time’, but it’s a shared experience
Paying for quality and ‘the experience’
They are
Social Targeted advertising – make it worth it
Connectivity and rights barriers
Work – catching up with the way we play
Love it or hate it, always ‘on’
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4. Digital infrastructure enables more direct
consumer engagement…and metrics
Digital spending drives global content growth
Digital is defined as:
Experience Radar Demand Estimator
• online and mobile
2500000
Internet advertising
• mobile TV subscriptions
• digital music
2000000 • electronic home video
• online and wireless video
games
• digital consumer
1500000
magazine circulation
$ million
Monterey county has potential for improving the
spending penetration of 529 Savings Plan; the bank will
need to use both brand AND product marketing
to realize opportunity
• digital newspaper
1000000 circulation spending
• digital trade magazine
circulation spending
• electronic consumer,
500000 educational, and
professional books
• satellite radio Segmentation vs. Micro-offers
subscriptions
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • broadband and mobile Segmentation - Top Down Approach Micro-Offers - Bottom up Approach
Non-digital Digital
Internet access Segments Micro-Offers
High
Prediction
What might happen?
Monitoring Social Web Analytics Behavioral Economics
What’s
happening now?
Complexity
Analysis
Why did
it happen?
Reporting
What
happened?
PwC Visualization of web traffic courtesy 4
of Adobe’s Omniture Business Unit
Low Business value High

5. How is the industry using these analytical
techniques?
• Do we have the right content in the
right windows for the right amount How can I more effectively
of time? target my advertising to
those viewers who are most
relevant and who are most
• What kind of content is right for this likely to take action?
new service/platform?
Comcast trials comparing
The value of content cannot be Behavioral vs. Standard Ad Targeting
considered exclusively 70
Hunstville
financial. 60 Baltimore
50
40
The analytical model allows for 30
a combination of quantitative
20
and qualitative valuation,
10
taking into account both
financial and brand aspects of 0
Effectiveness Efficiency
content value. Source : Comcast Spotlight Pre ss Re le ase ; Advertising Age , Bank Te chnology Ne ws
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6. The industry challenge is to engage with
customers at an individual, personalized level…
in a privacy-assured manner
PwC found that:
Gaining customer insight requires a shift of
mindset
• 76% of respondents are willing
to share personal information when
they were offered free benefits. Customer
ownership
Consumer dialogue
• 80% of respondents said they
were willing to share personal
information if the company lets “Pull”
them know upfront how they are
going to use it.
Privacy Creating an
• A Consumer Privacy Bill of Rights “Push” environment in
might actually increase consumers’ which the
willingness to share information. customer
believes they are
in control Privacy
• 87% of survey respondents want
to be able to manage what and how
personal information is used.
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7. Digital Marketing and the Analytical Engine:
Transformational Opportunities for Entertainment
• Michele Edelman
Vice President of Marketing
Direct to Consumer, Warner Bros.
• Jane Mohon
Senior Vice President, Marketing Services
Sony Pictures Home Entertainment
• Field Garthwaite
Chief Executive Officer, IRIS.TV
• Nanea Reeves
Chief Operating Officer, Machinima
• Lisa Joy Rosner
Chief Marketing Officer, NetBase
• Moderator: Blake White
Director, Advisory, PwC

8. PwC