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M&E industry in Asia Pacific
Building success in the digital era
September 2013
Page 2
Asia Pacific’s consumer engine is driving strong growth in ad
revenues — greatly benefitting M&E companies
1 APAC’s...
Page 3
Digital holds a strong promise for APAC’s M&E industry
By 2017, digital will
account for 27% of
APAC’s total ad
rev...
Page 4
Greater investments in networks, proliferation of mobile devices
and growing online content is driving digital medi...
Page 5
Challenges in monetizing digital media persist; companies are
exploring innovative methods to increase digital reve...
Page 6
Complex challenges of the digital era require M&E companies to
become more agile
An agile organization is utilizing...
Page 7
For digital agility, M&E companies need to leverage technology
throughout their organizations
Digital leaders
forge...
Page 8
M&E companies are innovating their product and service bundles
to serve customers directly
► According to EY‘s surv...
Page 9
Digital leaders view customer engagement as a virtuous cycle
► D2C is more than engagement and distribution but abo...
Page 10
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Peter Markey - Building success in the digital era

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Peter Markey - Building success in the digital era

  1. 1. M&E industry in Asia Pacific Building success in the digital era September 2013
  2. 2. Page 2 Asia Pacific’s consumer engine is driving strong growth in ad revenues — greatly benefitting M&E companies 1 APAC’s GDP will grow at a robust CAGR of 7% over 2012–2017. It will the largest region in terms of GDP by 2017. 2 Rising affluence and increasing urbanization in APAC is expected to fuel consumer spending on M&E. 3 APAC’s young population is driving M&E consumption. Asia Pacific (APAC) M&E drivers Advertising revenues are growing in APAC Source: Global Forecast Model: 2000-2017,‖ MAGNAGLOBAL, December 2012 $138 $144 $156 $168 $181 $196 $0 $40 $80 $120 $160 $200 2012 2013e 2014e 2015e 2016e 2017e InUS$billion
  3. 3. Page 3 Digital holds a strong promise for APAC’s M&E industry By 2017, digital will account for 27% of APAC’s total ad revenues, up from 19% in 2012 Ad revenues in APAC, 2012 and 2017e Source: Global Forecast Model: 2000-2017,‖ MAGNAGLOBAL, December 2012 ► APAC’s digital ad revenues will grow at a CAGR of 15% during 2012–2017 to US$53 million. ► In 2015, APAC will displace EMEA to become the second largest region by digital ad revenues. Digital 19% Television 43% Print 24% Radio 5% OOH 9% Digital 27% Television 43% Print 17% Radio 4% OOH 9% 2012 Total = US$138 billion 2017e Total = US$196 billion
  4. 4. Page 4 Greater investments in networks, proliferation of mobile devices and growing online content is driving digital media consumption Increasing investment in networks ► APAC accounted for 40% of the global network capex in 2012. ► Government support and subsidies are driving network expansion. ► Wireless subscribers will grow at a CAGR of 36% over 2012–2017. Penetration of wireless broadband to reach 48% in 2017. Proliferation of mobile devices ► Low cost and more capable mobile devices are being launched. ► Smartphone penetration will rise from 35% in 2012 to 68% in 2017. ► Tablet shipments will increase at a CAGR of 20% over 2012–2017. Tremendous growth in online content ► Global and local M&E companies are increasingly investing in digital content. ► Social media, online news, blogging and online TV are driving online consumption.
  5. 5. Page 5 Challenges in monetizing digital media persist; companies are exploring innovative methods to increase digital revenues Key challenges in digital media monetization Proliferation of digital M&E companies is increasing competition for online ad revenues Mobile advertising yet to gain traction as ROI measurement remains a challenge Low propensity of consumers to pay for online content such as through subscription and pay-per-use models Offering premium and customized content online, such as international TV shows, live sports programs, video windows and HD content Companies providing differentiated value to drive monetization Providing interoperability through access to content across multiple platforms and devices Focusing on anytime access by providing on-demand movies, TV shows and music online Driving user engagement with interactive programs, share/ recommend features and implementing ‗freemium‘ models Online gaming companies in China have successfully monetized their offerings — 64% of Chinese gamers pay for online games each month
  6. 6. Page 6 Complex challenges of the digital era require M&E companies to become more agile An agile organization is utilizing… The ability to ―fail forward,‖ fast To learn from inevitable missteps, fix them rapidly and move on Cloud-based infrastructure To enable lower-risk rapid deployment and scalability, breaking organisational silos Rapid resource or new product deployment To beat the competition to market in response to new customer opportunities Cutting-edge analytics That identify — in real-time — new customer-serving opportunities Advanced social listening Programs to keep on top of changing customer sentiment ► M&E companies are facing a challenge to keep up with the rapidly changing technologies, platforms and distribution models. ► To overcome these challenges, M&E companies need to be agile and shift from a ―make and sell‖ to a ―sense and respond‖ business model.
  7. 7. Page 7 For digital agility, M&E companies need to leverage technology throughout their organizations Digital leaders forge the agility vision ► 3rd-party cloud solutions allows for rapid scale-up ► Cloud based, back office facilitates real-time planning Tools ► Creating a culture of innovation is the top priority ► Centralised strategy, complimented by local execution ► Lack of skills is a key obstacle to building and maintaining cloud ► 43% of executives prioritise ―acquiring digital skills‖
  8. 8. Page 8 M&E companies are innovating their product and service bundles to serve customers directly ► According to EY‘s survey of 522 global M&E executives, 84% of the executives expect to have direct relationships with their customers by 2015 ► Pillars of D2C: Personalized, differentiated, anytime/anywhere 64% 63% 61% 51% Personalization Anytime/anywhere access Create unique content Supplemental/premium content for a fee How will you ensure customers pay for digital products? Source: ―Digital Agility – NOW,‖ EY, June 2013 Percentage of respondents
  9. 9. Page 9 Digital leaders view customer engagement as a virtuous cycle ► D2C is more than engagement and distribution but about feeding customer feedback into product and service innovation ► Data analytics, mobility, cloud and social are core enablers
  10. 10. Page 10 Thank you

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