From how we listen to music, to what device we use to watch TV, the way we consume entertainment has completely changed. We record while we rave at concerts, we tweet while we watch television. There is no escaping the fact that seismic shifts in technology has altered the landscape irreversibly.
Digital transformation is re-writing the script in every industry, from retail and travel to banking, and publishing. But, when it comes to the entertainment industry, redistribution of power to consumers, mean they now have ultimate control over their experience. From subscription models to ad-skipping services, the implications are huge for marketers and how to best engage with audiences in this new environment.
The prequel – A brief history of the digitisation of entertainment
Back in the ‘90s, media and entertainment was largely a physical business. Much of what we consumed was via physical methods, such as CDs and DVDs. But illegal file sharing via networks like Napster and LimeWire spelt major concern for the sales model, with music sales in the USA dropping over 50% in the decade from 1999 – 2009.
Much of the infrastructure that allowed early digital media piracy has now been replaced by paid digital ecosystems. It seems users are now happy to pay for good quality entertainment services, with 13 million subscribers to Apple Music, and 81 million households now signed up to Netflix, respectively.
The desire to stream what content, when we want it, and on what device we choose is redefining the entertainment industry. Now worth $1.93 trillion, the entertainment industry is poised to reach $2.36 trillion by 2019, thanks in part, to its successful adoption of digital technologies and the new ways this allows the industry to reach and connect with its audiences.
That’s entertainment – how today’s consumers want content
Studios and media corporations no longer hold the power. The consumer is now in charge, in the world of entertainment. Songs have moved from records to the cloud thanks to on-demand streaming services led by Spotify, with most platforms offering either paid for subscriptions or free versions with ads.
New technology means we can now binge watch TV shows on our laptops, televisions and mobiles at the touch of a button, and the on-going development of mobile apps is set to help continue to take TV outside the living room.
And, it’s not just music and TV shows that are being changed by digital transformation – podcasts are experiencing a renaissance, driven by breakout shows like Serial and the wealth of content now available, while global video game revenue is at an all-time high.
Consumers are now willing to pay for entertainment programming in subscription fees, one-click single downloads, or by watching advertising in return for free content. And with the rise of mobile, it’s never been easier to seek and consume more content.
How can marketers navigate the new entertainment landscape?
For marketers, the shift to digital channels have unlocked masses of customer data, which can be tapped into to help create and deliver experiences that entertain, engage, and delight each consumer based on their preferences and likes.
Such personalised insights are helping to make it easy to automate programmatic ad-buying. But just as with any other type of marketing, brands must remember their audience is made of individuals, and a personalised, unified customer experience must always be the aim. The key to succeeding is to deliver one-to-one levels of engagement, in context.
As users spend more time in apps, including music platforms, advertising budgets are moving accordingly. Spotify and similar platforms allow users to log in with their Facebook credentials thereby sharing rich data on musical tastes and listening habits. In addition to sponsoring uninterrupted music without ads or promoting ad messages in between songs, savvy marketers are using branded playlists to share music that resonates with their target demographics, from clothing and lifestyle brands such as Abercrombie & Fitch and Nike, to travel organisations like W Hotels.
The rise of the second screen means that people are engaging with their favourite (and not so favourite) shows on social media more than ever. Social data can help marketers to deepen their understanding of consumers by creating aa 360-degree profile of the customer, which can be actioned in real-time, to deliver engaging marketing in mirco-moments - gaining maximum effect. Entertainment companies need to be able to market across channels, and use the data captured in each, to manage and maintain customer relationships and monetise their offering, to remain competitive. In an industry where the customer holds the power – every communication is a possible is a possible path to purchase.
What a time to be entertained
With the help of omnichannel engagement platforms, marketers can utilise a plethora of consumer data, including preferences, likes, viewing habits, preferred devices, behaviour and commentary on social channels to create captivating experiences. Data can become more than just white noise, but actionable intelligence. Now, marketers can use this laser-focused data as the basis for targeted campaigns that entertain and delight. The digital revolution is being televised, tweeted, and live streamed - it’s up to us as marketers to ensure we’re able and ready to respond.
By Christopher Baldwin, head of UK marketing at Selligent
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