PwC Media Outlook Predicts Rapid Mobile Ad Growth & Resilience of “Live Experiences"
PwC released its annual forecast for the media and entertainment industries today. The Global Entertainment and Media Outlook 2015-2019, presents long-term predictions for such segments as B2B media, consumer and educational books, consumer magazine publishing, and internet advertising.
The headline splayed across PwC's press release for the report is "The Digital and Traditional Media Divide is Irrelevant Among Consumers." Although the statement may seem obvious to some, it's a worthwhile reminder to those in the publishing industry obsessed with the print-digital discussion (dare we say distraction). Consumers simply don't care. They want the right content, at the right time, on the platform that makes the most sense. The lesson here, reports PwC, is that "consumer choice is paramount."
According to Joe Atkinson, PwC's U.S. advisory entertainment, media & communications leader: "To succeed, E&M businesses will need to develop new capabilities as what matters most is the ability to combine content with a user experience that is differentiated and compelling on the consumer's platform of choice. This requires managing customer relationships not by distribution channel, but by adopting a holistic approach via segments anchored in richer user profiles and powered by deeper data and analytics expertise."
While digital media will continue to expand in the U.S., with digital spending expected to grow at 11.1 % compound annual growth rate (CAGR), non-digital media is still expected to be a significant contributor to media revenue. In particular, revenue from "shared, live experiences," such as concerts and live sporting events will grow over the next five years, reports PwC. And many publishers have already found success in live events business,which Publishing Executive has reported on extensively.
Another unsurprising but valuable takeaway from this year's Outlook report is the need to monetize media on mobile platforms. U.S. mobile advertising is predicted to surge to a 25.6% CAGR in 2019 to become the leading internet advertising category. It's clear that advertisers want to be on this platform, but creating a positive editorial and ad experience for mobile readers is still a challenge.