Post on 15-Jul-2015
25 March 2015 Copyright © Econsultancy
Impact of Digital Transformation in the
Media and Entertainment Sector
In association with Adobe
Linus Gregoriadis
linus@econsultancy.com
Professor Richard Foster, Yale University
econsultancy.com/transformation
Only 63% of S&P 500
companies a decade ago are
still in the index
The context for digital transformation
25 March 2015 3
Econsultancy digital transformation maturity model
Emergent Managed Optimised
Change
management, KPIs
Digital capability development
not central to organisational
strategy/KPIs
Strong digital vision and
strategy, organisational
priorities/KPIs change
Digital vision lived through
leadership and operations,
top-down bottom-up, agile and
adaptive strategy
Data and
technology
Siloed data sources, basic
analysis tools, technology
restricts, legacy platforms
Software-as-a-service tech,
multichannel, joining up data,
basic modelling
Joined-up data/tech
empowered front line staff,
customised dashboards,
scalability of the cloud,
actionable modelling,
integrated digital and
online/offline, real-time
decisions
People, teams,
culture
Isolated knowledge, vertical
skillsets, poor training
CoE, specialists and
generalists, tech skills, more
fluid structures, collaborative
environment
T-shaped, deep knowledge,
human layer over tech,
knowledge sharing, highly
fluid/collaborative, agile
culture
Working practices,
processes, tools
Rigid structure, waterfall
project mgt, infrequent release
cycle
Agile development, SCRUM,
test and learn, rapid
prototyping and build
Interdisciplinary agility, cross-
functional, small, nimble
teams. Permission to fail.
Entrepreneurial
About the survey…
• Global survey of nearly 200 media and entertainment
executives based mainly in North America and EMEA
• Focused exclusively on global media and entertainment
brands with video and publishing assets
25 March 2015 4
97% of companies acknowledge that digital
technology has disrupted their sector
25 March 2015 5
44% 44%
9%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
We are leading theway and are part of
the digital disruption inour sector
We are underpressure to evolve
and adopt emergingtrends and business
models
We are threatened bydisruptive forces inour sector and are
seeking ways to meetthese challenges
We don’t see much change in our sector,
either from established or
emerging competitors
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
44% of companies say they are blazing a trail
25 March 2015 6
44% 44%
9%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
We are leading theway and are part of
the digital disruption inour sector
We are underpressure to evolve
and adopt emergingtrends and business
models
We are threatened bydisruptive forces inour sector and are
seeking ways to meetthese challenges
We don’t see much change in our sector,
either from established or
emerging competitors
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
MEDIA AND THE NEW
DIGITAL ORGANIZATION
25 March 2015 7
Key characteristics of a successful media organisation
• Organisational alignment and integrated
marketing
25 March 2015 8
Key characteristics of a successful media organisation
• Organisational alignment and integrated
marketing
• Culture of testing and learning
25 March 2015 9
Key characteristics of a successful media organisation
• Organisational alignment and integrated
marketing
• Culture of testing and learning
• The right tech to support revenue growth
25 March 2015 10
Key characteristics of a successful media organisation
• Organisational alignment and integrated
marketing
• Culture of testing and learning
• The right tech to support revenue growth
• IT keeps pace with required change
25 March 2015 11
Key characteristics of a successful media organisation
• Organisational alignment and integrated
marketing
• Culture of testing and learning
• The right tech to support revenue growth
• IT keeps pace with required change
• Holistic view of audience
25 March 2015 12
Fewer than half of companies have these characteristics
25 March 2015 13
45% 45%
39% 38%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
We have a cultureof testing and
experimentation
We have thenecessary
technologies tosupport revenue
growth
We have anintegrated
organizationalstructure (we have
minimized thesilos across our
organization)
Our IT keeps pacewith rapid change
within ourbusiness
We have a holisticview of audience
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
ORGANISATIONAL
STRUCTURE &
ALIGNMENT
25 March 2015 14
25 March 2015 15
01 UNCONVINCED
Board are not persuaded of
the merits of digital
investment
Digital
transformation
Board buy-in
02 CONVINCED, LOW KNOWLEDGE
Board are convinced of the importance of digital but
effective prioritisation of investment can be an
issue
03 GOOD KNOWLEDGE, ENGAGEMENT
Board are fully involved, making informed
decisions, regularly updated but digital still
separate
04 FULLY INTEGRATED
Digital is a fully integrated part of
wider business decision-making
25 March 2015 16
Securing
executive
support 77%of marketers
describe this
as a challenge
25 March 2015 17
Cross-functional alignmentis a challenge for 93% of media companies
93%of media companies
The majority have an understanding of top-line
business KPIs…
25 March 2015 18
30%19%
34%
28%
36%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our organization isn’t agile enough to be effective given today’s fast-changing consumer access
choices
Our organization doesn’t have a broad enough understanding of our topline business KPIs
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
Key challenge Minor issue Not an issue
…but agility is a key concern
25 March 2015 19
30%19%
34%
28%
36%
53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our organization isn’t agile enough to be effective given today’s fast-changing consumer access
choices
Our organization doesn’t have a broad enough understanding of our topline business KPIs
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
Key challenge Minor issue Not an issue
DIGITAL MARKETING
TECHNOLOGY
25 March 2015 20
25 March 2015 21
85%
Percentage of media companies who cite
tech requirements, processes & systems,
and compatibility as challenges
Digital marketing technologies – plans to adopt
25 March 2015 22
10%
12%
15%
15%
17%
18%
18%
18%
19%
21%
24%
25%
Video advertising and analytics
Testing and optimization
Social media measurement
Attribution management
Marketing mix modeling
Content management system
Asset management
Web / mobile analytics
Marketing automation
Data management platform / audience management
Multichannel campaign management
Personalization
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
3 in 5 media companiesare either using testing and optimization technology (47%)
or planning to adopt it in the next 12 months (12%)
25 March 2015 23
Testing and optimisation
Biggest targeting challenge: lack of integrated data
across platforms/systems
25 March 2015 24
50%
40%38%
27%
23%
0%
10%
20%
30%
40%
50%
60%
Lack of integrateddata across
platforms/systems
Privacy issues tyingthird-party data to
first-party data
Lack of automationfor audience
measurement
Insufficient volumeand differentiation
of data for accuratetargeting
Inadequateresources to
purchaseappropriatetechnology
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
More than a third planning to implement DMP
25 March 2015 25
37%
31%
21%
6%5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
We areimplementing a
DMP in the next 12months
A DMP is the plan,but not in the next
12 months
We are not sold onthe benefits
Not relevant to ourbusiness
Other
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
US organizations are nearly twice as likely as their EMEA
counterparts to implement a DMP in the next 12 months
25 March 2015 26
44%
23%24%
5% 5%
26%
46%
15%
8%5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
We areimplementing a
DMP in the next 12months
A DMP is the plan,but not in the next
12 months
We are not sold onthe benefits
Not relevant to ourbusiness
Other
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
CULTURE OF LEARNING
AND TESTING
25 March 2015 27
Only 4 in 10 media companies are ‘driven by data
and experimentation’
25 March 2015 28
38%
31%
25%
6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
We are driven by dataand experimentation
We make most of ourdecisions via
committee/consensus
We aspire to being adata-driven organization,but are still largely led by
C-level imperatives
We are almost entirelydriven by C-level
imperatives, with little orno movement towarddata-driven decision
making (HIPPO)Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
25 March 2015 29
Top priorities
+Content User experience
Leveraging data and analytics to make marketing
decisions is a ‘huge’ or ‘significant’ challenge for over
half of companies
25 March 2015 30
54%31%
15%
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
Huge or significant challenge Slight challenge Not a challenge
Data-driven product development: majority are trying to
develop capability with only a third already possessing it
25 March 2015 31
33%
50%
16%2%
Econsultancy / Adobe Impact of Digital Transformation in the Media and Entertainment Sector
Current capability Working on capability Planning to have capability No plans
25 March 2015 32
Don’t have the analytics skills to optimise
their content and experiences
2/3
LOOKING AHEAD
25 March 2015 33
25 March 2015 34
Most important trends
to influence media organisations74%
62%55%
49%
41%
18%
1 2 3 4 5 6
1
2
3
4
5
6
Use of data to deliver unique
experiences
Personalised customer experiences
Cross-channel customer communication
Social-centric content
Mobile-first
Programmatic advertising
25 March 2015 35
Personalisation is the future
Summary
• Organisational alignment and integrated
marketing
• Culture of testing and learning
• The right tech to support revenue growth
• IT keeps pace with required change
• Holistic view of audience
25 March 2015 36
Thank you!
Download the full reporthttps://econsultancy.com/reports/impact-of-digital-transformation-in-the-media-and-entertainment-sector/
3725 March 2015