The linearity of media is broken. What will happen to advertising?
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jesper rhode | 2015-05-27 | Page 1 (65) Communication no longer linear @jesperrhode
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Transcript of The linearity of media is broken. What will happen to advertising?
jesper rhode | 2015-05-27 | Page 1 (65)
Communication no longer linear
@jesperrhode
jesper rhode | 2015-05-27 | Page 2 (65)
From Programmed to programmable
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Viewing habitsConsumer TV/Video consumption on a more than weekly basis
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014
Source: Ericsson ConsumerLab TV & Media 2014 StudyBASE: Brazil [Showing: Use several times a week or more]
Scheduled broadcast TV
Streamed video (YouTube, short clips, movies, programs, TV-series)
Recorded broadcast TV
DVD, Blu-ray etc.
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Connectivity
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The singularity
Source:http://www.ourworldindata.org/
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50 billion connected devices
1875 1900 1925 1950 1975 2000 2025
50B
50.5
PLACES
PEOPLE
THINGS
Everything that benefits from beingconnected will be connected
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The Internet
ofThings
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Sensors invading ourlifes
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Coming to a shoe nearyou
Price
Interest
Business Models
Eco systems
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Big business for the internet of things
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DIGITAL
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2,7 BILLION $ E-COMMERCE
2.7 BILLION PHOTOS TAKEN
13 MILLION $ CROWDFUNDING
58 PETABYTE MOBILE TRAFFIC
700000 NEW INTERNET USERS
2.7 BILLION LIKES ON FACEBOOK
133 MILLION HOURS YOUTUBE VIDEO WATCHED
328 MILLION APP DOWNLOADS
EVERY DAY
Source: Ericsson
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2014 - Third economy, California
Facebook + Apple + Google130.000 Employees1.400 BUSD in revenue984 BUSD in market cap.
1990 - Second economy, Detroit
Chrysler + General Motors + Ford1.200.000 Employees 1.600 BUSD in revenue30 BUSD in market cap.
Wealth creation
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UK: Total time spend in media and communication services per day. 2010 - 2014
16-24 year segment spend time worth 14 hours per day on media
Parallel media consumption is boosting the time spend
Sou
rce:
Ofc
om20
14
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UK: Average daily total time for media and communication inclparallel activity
16+ spend the same time on a TV Set as on PC/Smartphone, but 16-24 year segment spend 2,5x on PC/Smartphone (515 min/day)
Sou
rce:
Ofc
om20
14
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UK: Proportion of media and communication time by age
The time spend on the TV set is displaced to TV on other device, Texting and Gaming, while audio migrate from the Radio to other device.
Sou
rce:
Ofc
om20
14
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UK: Top 10 most missed activities S
ourc
e: O
fcom
2014
The 16-24 segment is have excluded historically essential services from the top10 list: Live TV, Live Radio, Email, and Newspapers (incl online).
Live TV has been replaced with Recorded TV, and Books are still highly placed on the rank
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Trans-Formation
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Industry & Digital Transformation
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Total profit =$1.9BTotal profit =$3.7B
Profit pool disruptionOperating profit
1995
FilmretailCamera
retail
Camera
manufacturing
Filmmanufacturing
Photofinishingretail
Photofinishingwholesale Agx paper and chemicals
Photofinishing equipment
Enhanced services
2005
Segments that did not exist in 1995
Filmcamera
mfg
D-compactmfg
Memorymfg
Digital cameraretail
Rolled & single use film mfg
Film camera retail
Rolled film retail Retail photofinishingPhotofinishing equipment
Paper & ChemicalsEnhanced services
D-SLR mfg
Memory retailDigital imaging softwareOnline photofinishingPhoto printers, retailPhoto printers, mfg
Source: Analyst reports, company reports, Bain analysis
20
10
0
30
40
50%Photography example
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New media roles
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Media – a First mover
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Virtual Agencies
› Hire veteran talent› Communicate, communicate, communicate› Make technology work for you› Invest in face time› Separate workspace from life space› Look for Talent - Everywhere
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Narrative Science
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Context
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Zuck’s Law
› “I would expect that next year, people will share twice as much information as they share this year, and next year, they will be sharing twice as much as they did the year before”
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Abundance x Scarcity
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Connected car evolution
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Second Screen
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Mobility
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Mobilizing business
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Time spenT x $$$
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The growing middleClass in Brazil
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In less than a decade when the Brazilian population grew 10%, the middle class grew 204%
Souce: Data Popular / Google 2015
…and today they spend 495 billion Reais per year. Same amount as the whole of Switzerland or Portugal.
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Brazilian middle classwith global size
48
44
34
30
Mexico
Italy
Canada
Brazil Middle Class
Million Intenet users
Souce: Data Popular / Google 2015
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54%10%
36%
Online
C ClassAB ClassDE Class
Souce: Data Popular / Google 2015
The Middle class is dominating the internet
48,3 million users
89,4million users
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TV and Smartphones86% of Brazilian smartphones users use them when seeing TV
Souce: Data Popular / Google 2015
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