Media and Entertainment
5 Lessons From Digital’s Impact on Media Companies
Digital media has changed how consumers watch their favorite shows, get their news and so much more. Learn how the media industry is evolving with the latest trends.
The media revolution won’t be televised—but it might be streamed. As digital media continues to redefine consumption habits, how do media companies react to the latest trends? J.P. Morgan recently gathered select industry leaders to learn the challenges and opportunities they are facing as technology reshapes the media business.
1. When it comes to niche content, we’re just getting started.
From the shows we watch to the websites we visit, the proliferation of content developers and delivery channels in recent years has led to increasingly niche content—and that trend will likely accelerate to keep pace with consumer demand.
The current era of “Peak TV” is a prime example. The number of original series has been climbing in recent years. Netflix alone planned to launch 1,000 hours of original programming in 2017, more than double from the year prior.1
2. Curation and audience targeting are the new frontier.
As media multiplies in volume but narrows in reach, media companies need to make it easier and quicker for relevant audiences to discover their series, articles, podcasts and platforms. To that end, content curation will be critical for media companies going forward.
With the increasing importance of content curation, the next challenge becomes finding the right data to target and monetize audiences successfully. For instance, publishers that target audiences and serve up digital ads based on analytics from third parties—such as web browsers or social media—can face challenges if the third party changes the data they provide.
Likewise, digital channels have changed where consumers get their media, so data for audience targeting needs to catch up to this new reality. Viewers of a television show could tune into a network broadcast, or they could stream it later on web, mobile or over-the-top (OTT) channels—but each of those audiences is measured in its own separate category. Merging those categories can help companies refine how they measure an audience and, in turn, monetize their content properly.
3. Being an early technology adopter can be worth the risk—if sales aren’t the only goal.
As new platforms and technologies emerge—such as virtual reality—there can be indirect benefits for brands that jump in early to add them to their marketing mix.
While there may not be a large audience within an emerging platform, a brand can generate potentially valuable publicity by utilizing new technology in a fresh, timely and innovative way. A recent example is the Burger King® ad that took advantage of audio recognition with Google Home, or even Nabisco’s tweet regarding Oreo during the 2013 Super Bowl power outage.
Even if the latest platform doesn’t have a big impact on sales, trying it out with a small budget could help a brand recruit and retain top talent who want to work in an innovative, leading-edge environment.
4. Social media is elevating the oldest form of marketing to new heights.
As audiences become splintered and move away from traditional media channels, brands need to find effective ways to advertise in digital channels.
Influencer marketing can be effective at driving brand awareness and sales—even if the influencers aren’t celebrities. The key is authenticity and organic integration. Consumers might not believe a famous athlete in the same way that they’ll trust someone they follow every day in their social feeds and view as a peer, particularly if that influencer’s endorsement rings true with the rest of their social media persona.
While studies by influencer marketing agencies report that influencers can deliver higher engagement rates2 and a lift in foot traffic and promotion redemptions,3 the challenge for brands will be in measuring the impact of this evolving form of product endorsement.
5. Technology can enhance content, but content creators are essential to great storytelling.
The abundance of available content has, in some ways, sent us back to a time before modern technology when people lived more sheltered lives, interacting only with like-minded people who lived nearby. Niche content can be a boon to consumers because of its sheer variety, but it can also keep consumers’ worldview narrow. Content creators can widen that worldview by allowing people to see the world through someone else’s eyes and create empathy. Even as technology innovations help to enhance storytelling, effective and original content is still forged by an authentic, human touch.
For more information on this event and how J.P. Morgan can support your media and entertainment company, contact Eli Acosta at email@example.com or (212) 270-1833.
1. “Netflix Has 30 Original Series Today, Will Double That in 2017, Content Chief Ted Sarandos Says,” Variety, December 5, 2016.
2. “Micro-Influencers Are More Effective With Marketing Campaigns Than Highly Popular Accounts,” Adweek, March 30, 2017.
3. “This Report Shows Just How Effective Influencer Marketing Can Be for Brands,” Adweek, April 27, 2017.
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