Media and entertainment companies aren’t moving fast enough to embrace new business models and the ever-changing needs of digital customers. That’s the warning shot fired by IBM Global Business Services in its annual survey of the digital marketing landscape.
“Media and entertainment (M&E) companies need to move beyond traditional advertising: the scenario of the future is consumer centricity,” the report states. “Yet content owners, media distributors and agencies have not sufficiently responded to these changes, partly due to significant hurdles. Investment decisions are being hindered by new format uncertainty; the lack of cross-industry standards across formats, processes and especially metrics; and significant internal challenges.”
Over the next two years, claims the report, interactive marketing will account for 27 percent of all dollars spent in the US, up from 13 percent in 2007. TV, print and radio will drop from 41 to 32 percent.
The report identifies four capabilities that brands, content-owners, and agencies need to develop quickly:
Creative: From media-centric development to cross-platform innovation, this requires experimentation across platforms and consumer participation in the creative process. The starting point for innova- tion will increasingly be the consumer, not the media platform. “As the number of participants broadens and technology keeps driving down costs, participants cannot afford not to experiment,” the report states.
Insights: The future requires integrated insights to enable true ROI analysis, moving from anonymous household measurements and demographics based targeting, to individual and contextual targeting supported by integrated dashboards and action-based measurements. IBM expects significant new insights will come from set-top boxes that will enable and transform interactive targeting in areas like cable, telecommunications and satellite.
Workflow: Customer-centric advertising will required new advertising formats, increased versions needed to support targeting and the continued downward revenue forecasts for the industry. New tools and applications can help improve both efficiency and effectiveness by automating management of production development processes.decision making.
Collaboration: Looking ahead, cross-industry partnerships and consistency are vital to enable benefits of scale and other operational efficiencies. “As the advertising ecosystem evolves, we will increasingly see new forms of collaboration, including new ways of partnering throughout the industry value chain to consumer-centric marketing, the industry as a whole will also need to collaborate to make key decisions.
Although it doesn’t mention the debate over data ownership specifically, the report suggests that campaign and consumer behavioral data will need to be shared among content owners and agencies.