Entertainment and Media Growth in the Age of Uncertainty
What is the Current State of the Industry? ■
Rapid growth across the entire industry.
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Disruptive technologies have shifted channels and communication.
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New brands and products have taken a strong stance against the incumbents.
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Consumer behavior has shifted the approach to creating impact. 2
All Signs Say Digital ■
U.S. Media & Ent. industries invest $7.34 billion on online and mobile advertising in 2016.
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Expected to grow to $11.52 billion by 2020.
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Entertainment industry alone accounts for 4.8% of all digital ad spend.
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Digital Music Revenue has surpassed Physical and is only continuing to grow.
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Five Elements Shifting the Industry â–
Demography/Behavior - Younger Audiences are becoming incredibly comfortable with digital consumption, remaining connected most of their day.
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Consumption - High frequency, localization and personalization in response to consumer demand and connectivity.
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Five Elements Shifting the Industry cont’d ■
Competition - Innovative and young competition on the rise. Trying to stick out with better content and services The bundle is your friend!
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Business Models - The access model and multi-platform community building to deliver the better experience.
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Geography - New powerhouse markets in LATAM and AP. 5
Where is the E&M Shift headed? ■
The Industry - From Physical to Digital.
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The Talent - From Artist to Marketer.
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The Brand - From Sponsor to Artist.
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The Customer - From Consumptive to Experiential.
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What are E&M Companies looking for? ■
How can we break through all the noise and command consumer attention?
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How can we use better analytics to connect and establish trust?
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How can we continue to innovate while staying true to our authentic voice?
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How Brands are Capitalizing
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Content is King ■
Brands move beyond the traditional sponsor role to meet consumer expectation.
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Create, Curate, and Host original content The most powerful tool for connecting with audiences and building a brand’s personality.
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Name recognition falls flat without a memorable experience attached to it.
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Brands must move from being an attachment to a tastemaker.
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Red Bull Music Academy ■
Introduces fans to a wide variety of undiscovered and emerging artists.
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Mixes live events, musical releases, and artist training for multi-faceted and dynamic content.
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Red Bull brand becomes connected with the unique feeling of music discovery and enjoyment.
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Fans can connect with artists throughout the entire musical process. 10
Experience is the New Black ■
Successful marketers must work to enhance and immerse their customers in their entertainment experience.
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Hosted events breed shareability and virality.
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True brand loyalty comes from adding value to an experience, not a sales pitch.
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What does your customer love? Are you adding more of what they love in the world? 11
Heineken House ■
Branded stages within music festivals create ownable and repeatable experience.
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Use of exclusive artists drives fan engagement and excitement.
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Create a culture around the brand to stand out from the crowd and start conversations.
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How can you join these conversations? 12
Thinking Future
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Invest in New Mediums - VR/AR ●
Immersive and engaging experiences.
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Create a new level of storytelling and entertainment.
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Provide truly “leaned in” and intimate connection between brand and audience.
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Reinvention of the Music Video.
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Saturation of diverse outlets - Mediocrity is not viable.
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Invest in New Mediums - AI ■
Voice is the new touch.
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Service, engagement, and personalization can be taken to the next level.
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Emerging IOT culture means brands and artists are accessible more often, in more places, in more ways Places are full of possibility - media is always on
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Marketing MUST HAVES ■
Snapchat ○ ○ ○
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Instagram ○ ○
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High-quality video/photo New story feature essential for more personal, engaging profile Ideal for product sponsorships and branded content
Facebook ○ ○
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Share concert clips Tease new music releases Short format leaves fans wanting more
Live streaming opens creative doors Easily shareable, promoted events
YouTube ○
86% of young people cite YouTube as their primary medium for staying up-to-date with music industry 16
Artists Are Also Marketers ■
Even small scale artists can leverage modern tools to build their audience.
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Access new tech to understand their fans wants and behaviors to maximize their work’s impact
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The future is about empowering artists with the tools, resources and knowledge to find their audience, target them with messages, promote content, events and merchandise. 17
The Modern Audience
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New Needs in the New Era ■
This is the attention economy. The proliferation of Media and content means attention must be earned with creative and experiential content. Engagement is the new currency.
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Every screen and platform must be activated and consistent to truly engage the consumer.
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Non-personalized messages don’t win. 19
More Screens - More Opportunity ■
U.S. teenagers spend an average of 9 hours/day on entertainment media.
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46% of this is spent on mobile - often at the same time as other media channels.
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Connecting these screens with consistent and relevant content is key for success.
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“Anything that’s longer than 30 sec. Most young people won’t watch” 20
Streaming and OTT - A Key Battleground ■
Streaming service users are hypersensitive to interruptive, mediocre ads.
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Users demand constant access to music Library - despite not owning it.
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Rapidly improving listener analytics make advertising on these mediums more accurate than ever.
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Shift from Ownership to Access 21
Presence is Critical â–
61% of teens will abandon a song/artist if they are not available on streaming services.
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Teenagers consume over twice as much daily streaming audio than older users
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Both Brands and Artists can connect with this audience by hosting original and curated songs/videos 22
Marketing in the Minefield â–
The modern audience is highly selective Densely saturated market require unique, creative and cross-platform advertising to create impact.
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Advertising cannot serve as an interruption - It must represent content and part of an experience.
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Placements, sponsors and affiliations must communicate value. 23
Evolve or Get Left Behind ■
Talent - Seek human swiss army knives that understand the landscape and the data.
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Digital and Video is key - Presence and prevalence will ensure longevity and healthy brand development.
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Be Bold - Move first and fast or risk being relegated.
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Don’t be customer centric - Be fan-centric.
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Key Takeaways ■
Brands and Artists must always be ON.
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Experience is the NEW BLACK.
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Invest in new mediums for new engagement.
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Brands must DO, not just SAY.
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There is power in personalization. 25
Thank You q@catalystsf.com
www.catalystsf.co m 26