11 November 2014

Media companies are struggling to embed the organizational characteristics which are vital for success in the digital age, according to research published today.

A report by Econsultancy and Adobe has found that data-driven marketing, investment in technology and willingness to experiment are among the areas in which companies in this sector are lagging behind.

The Impact of Digital Transformation in the Media and Entertainment Sector report, produced by Econsultancy in partnership with Adobe, is based on a global survey of nearly 200 media and entertainment executives, and explores how companies in this sector approach digital marketing, as well as the key trends, opportunities and industry-specific issues shaping their digital strategies.

The research identified five key characteristics associated with modern, digitally-forward media organizations:

-) Implementing the necessary technologies to support revenue growth
-) IT keeping up with the pace of change within the industry and business
-) Having a culture of testing, experimentation and learning
-) Having a holistic view of the audience
-) Minimizing silos and having an integrated structure

The vast majority (97%) of media companies surveyed acknowledge that digital has disrupted their sector while around two in five (44%) see themselves as leading the digital charge, compared to an average of less than 20% across all sectors.

But although media companies are typically very much aware of the impact digital has had on their sector and acknowledge its importance, none of these five characteristics listed above are in place at even half of the organizations surveyed.

Adobe’s Digital Distress study separately found that three in five marketers (61%) agree that digital marketing approaches at their organization are in a constant cycle of trial and error, but there’s evidence that the media and entertainment sector still needs to work towards building a culture that supports experimentation.

Only four in ten companies surveyed claim that they are ‘driven by data and experimentation’. Additionally, agility is a key concern for two-thirds of media companies, with nearly a third (30%) of respondents saying they’re not agile enough to be ‘effective given today’s fast-changing consumer access choices’.

The media sector is also in the early stages of data-driven product development, which is far from a frequent practice: half of those surveyed are trying to develop capability, with only a third already possessing it.

Media marketers also appear to struggle with utilizing data to inform marketing decisions, as using data and analytics to make marketing decisions is a ‘huge’ or ‘significant’ challenge for over half (55%) of companies.

The research also found that:

-) Around half of organizations surveyed perceive processes and systems (53%), understanding technology requirements to grow digital revenues (52%) and compatibility of multiple vendor solutions (49%) as either ‘huge’ or ‘significant’ challenges.

-) US organizations are 32% more likely to have already implemented the digital marketing technologies necessary to support revenue growth, but they’re 30% more likely to say that having the skills to utilize technology to its full extent is a ‘key challenge’.

-) The top three areas of focus are analytics (either web or mobile), social media measurement and content management systems, with over half of respondents using these technologies.

-) Over half of media organizations are either already using a DMP (46%) or planning to adopt one in the next 12 months (21%).

-) Three-quarters (74%) of media companies expect the ‘use of data to personalize, segment and deliver unique content experiences’ to be an important trend leading up to 2020.

Get this report:

The full report is available on the Econsultancy website here:

https://econsultancy.com/reports/impact-of-digital-transformation-in-the-media-and-entertainment-sector

The briefing is available to Econsultancy subscribers, or on a pay-per-view basis.

For more information about this report, contact:
Linus Gregoriadis, Research Director, Econsultancy
linus.gregoriadis AT econsultancy.com

About Econsultancy

Econsultancy’s mission is to help its customers achieve excellence in digital business, marketing and ecommerce through research, training and events.
Founded in 1999, Econsultancy has over 250,000 subscribers, is used by more than 500,000 professionals every month, and has offices in New York, London and Singapore.

Econsultancy subscribers get access to research, market data, best practice guides, case studies and elearning – all focused on helping individuals and enterprises get better at digital.

The subscription is supported by digital transformation services including digital capability programs, training courses, skills assessments and audits. We train and develop thousands of professionals each year as well as running events and networking that bring the Econsultancy community together around the world.

Subscribe to Econsultancy today to accelerate your journey to digital excellence.

Call us to find out more:

New York: +1 212 971 0630
London: +44 207 269 1450
Singapore: +65 6809 2088

Published on: 11:10AM on 11th November 2014