From Colin Mann in Cannes
David Lancefield, Entertainment & Media (E&M) partner, PricewaterhouseCoopers (PwC), has suggested that innovative, new measurement models are required to harness the power of cross-platform advertising and content monetisation for E&M.
“The combination of the worst cyclical downturn in decades, with the structural transition to online, has resulted in a burning platform for change for the E&M industry," he says. "Incumbent organisations have seen a significant decline in their core business and advertising revenues have fallen substantially, with many advertisers taking money out of the market or switching to online media."
He suggests that senior management recognise that their businesses need to change and fast – but they are struggling with the question: "What does the media organisation of the future look like? And it’s personal too – how will their roles evolve in this new world?"
"Expect to see more open, networked organisations, dipping into the insights, skills and relationships of others," he predicts. "Strategic partnerships will become an increasing feature of this landscape, as a way of tapping into new revenue streams whilst not taking on too much risk, and new applications for technology will surface in the quest to monetise content. For example, cloud computing and behavioural algorithms offer new ways to manage content and leverage the vast databank that flows from digital
Innovative, new measurement models are required to harness the power of cross-platform advertising and content monetisation for E&M. Success requires collecting, analysing and reporting financial information across all channels in order to calculate the return on investment per brand. Understanding the interaction of brands across channels, particularly the potential for cannibalisation and synergies, is a priority. As is willingness to pay and the factors driving uptake and churn. In practice, these interactions are often under-analysed even when new decisions are taken on which brands, services or platforms to invest in, close or reposition.”