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Beyond Digital

Global trends on connecting

media & entertainment to

the future

Kasper Risbjerg

Social Business Manager @ IBM

@kasperrisbjerg

risbjerg@dk.ibm.com

dk.linkedin.com/in/kasperrisbjerg/

Greater digital connectedness is here to

stay

• Worldwide, consumers increasingly

expect content on demand wherever

they are – all the time.

• 78% identified themselves as digital

device adopters; of these, more than

half report reading newspapers online.

• “Connected living” is impacting almost

every aspect of our daily lives

• Emotional dependency on technology

People check their smart phones an average of 34 times per

day

More video is uploaded to YouTube in

one month than the three major U.S.

networks created in 60 years

Digital Device Adoption

Early adopter 12%

Mainstream consumer

35% Late adopter 32%

Straggler 21%

A Tipping Point

“the moment of critical mass, the threshold, the

boiling point, where little things make a big

difference”

- Gladwell

How connected

consumers want to

consume content

Viewing on demand

• Over half of early adopters and

mainstream consumers consume

online video such as Hulu and

Netflix

• 71 percent of adults use video on

demand sites. Parents are the

largest user group – not just young

adults

• 81 percent visit sites like YouTube

Non-linear viewing

• Consumers are increasingly

distracted

• Three-fourths of adults reported

surfing the web while watching TV

• No longer passive consumers of

media

Mobile access

• The “place-shifting” capability

• +50% of early adopters and

mainstream consumers regularly

access content on their smart

phones or other portable devices

• In 2015: a gap of 780.8 million

mobile devices vs. 479.1 million

PCs

Social consumption

• Consuming anywhere while

connecting with people everywhere

• Social content consumption have

also reached a critical mass

worldwide

• 41% upload photos

• 44% post messages

• 52% engage in social networking

• 64% text friends

… while watching TV

Challenges presented by the changing media

landscape

Content cannibalization is real

• Traditional media and devices are in

decline

• Breaking news is widely available on

their own sites and on social networking

sites

• +2x as many consumers use online

sources for breaking news than printed

newspapers

• Consumers are showing signs of “cord

shaving” – and even “cord cutting”

Mass audiences are shattering

• Mass audiences are splintering into

behavioral micro-segments

• Age is far less meaningful than before in

differentiating micro-segments

• Contrary to popular belief, not all early

digital adopters are college age

• 65% of consumers aged 55-64 report

surfing the Web and texting with friends

while watching TV

• Same goes for 49% of consumers aged

65+

• 52-75% uses all of digital content services

Digital revenue streams have

yet to deliver value that is

comparable to traditional models

Ad-supported models have

yielded a substantially lower

return than broadcast TV, for

example

More than two-thirds of early

adopters are willing to pay for

content

Digital revenue

models generate less revenue

Go beyond digital to deliver customized

experiences

Act like a B2C company

• Build direct consumer interactions,

where feasible

• Access and aggregate any direct

consumer information you can

• Wring out compelling consumer insights

down to relevant micro-behavioral

segmentation levels.

• Use deep consumer understanding to

tightly pull together the players together

Target consumers based on their “digital

personalities”

Providing tailored customer experiences

require insightful consumer profiles that

include digital behavioral personas.

• Profiling consumers on their willingness to

access content and their behaviors in

interacting with and immersing in it

• Using historical “structured” behavioral

selections as well as real-time

“unstructured” data to complete the picture.

Target consumers based on their “digital

personalities”

Efficiency Experts

• 41% of the global sample

• These consumers see the adoption of

digital devices and services as a way to

make life easier

• “The path of least resistance”

Content Kings

• 9% of the global sample

• Dedicated gamers, newshounds, movie

buffs, music lovers and TV fans

• Content Kings want an “all-access

pass” to content

Social Butterflies

• 15% of the global sample

• Social Butterflies cannot imagine not

being able to instantly access any of

their friends, regardless of time or place

• Highly addictive to social media and

their smartphones

Connected Maestros

• 35% of the global sample

• Connected Maestros combine the

behaviors of Content Kings and Social

Butterflies with even more sophisticated

behaviors

• Connected Maestros, with their “always

on” behaviors, are a window into the

future

• 32% of Connected Maestros are early

adopters compared to < 5% of the other

digital personalities

Deliver relevant, enhanced experiences

To be relevant, differentiated customer

experiences have enhanced characteristics

• Seamless integration across devices

• Being personal, insightful, relevant and

contextual

• Immersive, with lines blurred between

being a spectator and being a participant

• Social embedded into the content

Consumers say they look forward to

interacting more personally with digital content

Deliver relevant, enhanced experiences with

Analytics

• A wealth of real-time data is available

• Aggregate a total picture of a consumer’s digital personality,

habits and priorities across touchpoints

• Integrate past and current data to optimize the use of

customer analytics

• Link to advertising based on customer analytics in real-time

• Drive personalized marketing campaigns tailored to a diverse

array of platforms and devices

Deliver relevant, enhanced experiences with

Social

• Identify content that is attractive to targeted customer segments and engages them in real-time

• Provide instantaneous access to a shared experience with others in the throes of the same content/ experience

• Create communities based on common interests and tailor marketing messages for “viral” travel along pre-existing social networks

• Create and cultivate brand ambassadors to enhance ratings

• Develop exclusive content for social media users as a customer retention strategy

Connect consumers, content and

monetization

• Consumers want relevant messaging, pricing models that provide choice and flexibility, and a seamless experience across their devices

• New revenue models need to evolve beyond a “one size fits all” mold and offer the relevancy, choice, integration and packaging options consumers demand

• 39% preferred to watch a movie on a website and pay by viewing ads

• 36% preferred a subscription model on tablets

• 36% preferred to pay per use on smartphones

Expansion of a game developer’s revenue

model

• What actions are you taking to build consumer and consumer- style interactions and insights?

• How will you identify the digital personalities of your most important and valuable consumers?

• In what ways can your content be transformed into experiences that leverage analytics and social media?

• What sorts of revenue streams are possible and which payment models should you offer?

Looking ahead

US Open 2012

• Partnership with ESPN and United

States Tennis Association

• 22 years of collecting and delivering

data

• (Predictive) Analytics: real-time updated

statistics, Slam-tracker

• Social: unique profiles, different ways of

interacting

• Accessible everywhere - virtually and

physically

US Open 2012

http://ibm.co/11Mh013

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