AUDIENCES &ANALYTICSA GUIDE TO AUDIENCE & ENGAGEMENT ANALYTICS FOR THEMEDIA AND ENTERTAINMENT INDUSTRY

TABLE OF CONTENTS

UNDERSTANDING YOUR AUDIENCE 3

WHAT IS AUDIENCE ANALYTICS?

CONCLUSION – SHOW THE DATA

4

12

AUDIENCE ANALYTICS STEP-BY-STEP

Connect with the Right Data 6

7

8

10

Establish Appropriate Metrics & KPIs

Top reports you need to measure yourbusiness performance

Audience Analytics and Predictive Models

6

INTRODUCTION

M edia and entertainment (M&E) is no stranger to audience data.Long before the days of clicks and shares, TV and movieindustries were tracking audiences and developing audience

engagement strategies, while newspapers have been tracking andevaluating circulation figures for more than 200 years.

However, today’s audiences bear little resemblance to those of just 20years ago, let alone 200. The sheer abundance of content now availableis matched only by the number of ways audiences can choose toconsume that content.

Alongside these changes, the scope of audience data available to theaverage M&E marketer has skyrocketed. Viewing history, searches,reviews, ratings, location and device data, clickstreams, log files, andsocial media sentiment - and that is just online. Nonetheless, thepotential to mine this data offers unparalleled insights into increasinglycomplex audience behaviors.

In this playbook, we take a look at some of the key trends facing theM&E industry and the crucial role data analytics will play in howbusinesses engage with and track their audiences for decades to come.

PAGE 2 | A GUIDE TO AUDIENCE ANALYTICS FOR THE MEDIA & ENTERTAINMENT INDUSTRY

Your audience is one single reader.

JOHN STEINBECK

Audience behavior is becoming increasingly complex. There is more contentthan ever before, across more channels than ever before, and more devicesupon which to consume that content than ever before.

And, because of this, audiences can be more demanding than ever before.

Long gone are the halcyon days of the audience as passive recipients ofentertainment. Instead, they are active consumers able not only to instantlyswitch between competitors at will, but also to share, review, and engagewith content in ways audiences have never been able to before.

At the same time, events such as COVID-19 have highlighted how quicklyaudience behavior can change. As we step further into the 21st century, it isunlikely that audiences will fall into a new but set pattern of behavior.Instead, the new norm is likely to be one of constantly evolving behaviors -that needs equally constant tracking and analysis to stay on top of.

UNDERSTANDINGYOUR AUDIENCE

PAGE 3 | A GUIDE TO AUDIENCE ANALYTICS FOR THE MEDIA & ENTERTAINMENT INDUSTRY

“More media companies will think like e-commercecompanies – what are customers consuming? What arethey interested in? How can we deepen our relationshipwith them?” - Subscription Impact Report, Zuora

Average time a US adultspends on their smartphone

each day ¹

The number of globalon-demand audio song

streams in 2020 ⁵[ ]

The churn rate for OTTservices in the US Q1 2020

- up 6% YoY ³

Average monthly UShousehold spend on streaming

services in Dec 2020 ⁴

3h 46m

2.2 trillion

41%

The % of US adults who getnews on a smartphone,computer or tablet ²

86%

$47

The estimatedworldwide eSportsaudience in 2020 ⁶[ ]

495m

[ ]

[ ]

[ ]

[ ]

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WHAT IS AUDIENCEANALYTICS?

Building a detailed picture of youraudience and audience segments

Analyzing the data to revealinsights and inform strategy

Integrating audience data frommultiple sources

IS THIS NEW?

No, at least not in principle. Understanding audiences has always been crucial forM&E businesses. What’s new is the complexity of audience behavior, the amountof data that is available, and the sort of detailed insights that can now be gleaned.

imply put, Audience Analytics is the process of Integratingaudience data from multiple sources, building a detailed pictureof your audience and audience segments, and then analyzing that

data to reveal insights and inform strategy.

2. DATA VISUALIZATION

3. AUGMENTED ANALYTICS

1. DATA INTEGRATIONWHAT SORT OF INSIGHTS?

Well, by developing a detailed understanding of youraudience, you can develop better, more targetedcontent, deliver it at the best time, and acrossthe most effective channels, to increaseengagement, enhance acquisition, andultimately drive revenue.

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ACQUISITIONUnderstand how, why, andwhen your audience issubscribing to your platform,viewing content, or purchasingtickets – use this knowledge toboost acquisition strategies.

RETENTIONUnderstand how, why, andwhen you are losingsubscribers or viewers anduse this knowledge to reduceaudience churn.

ADVERTISING &SPONSORSHIPOptimize advertisingconversion rates and providedetailed audience feedback forsponsors to attract and retainhigher revenues.

IMPROVED CONTENTAccess huge amounts ofaudience data to understandwhat content resonates bestand feed this intelligence intoyour content developmentstrategy.

ENHANCEDENGAGEMENTEnhance audience engagementand build an accurate pictureof how they feel about yourcontent with in-depth trackingof social media channels.

Go one step further and targetspecific audience segmentswith one-to-one contentdeveloped just for them.

HYPER-TARGETING SCHEDULING & CHANNELOPTIMIZATIONUnderstand when, where, andhow your audience consumescontent and use this tooptimize your scheduling andchannel strategy.

7 WAYS AUDIENCE ANALYTICSCAN ENHANCE YOUR BUSINESS

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AUDIENCE ANALYTICSSTEP-BY-STEP

The M&E industry has access to a huge amount ofaudience data. But, this needs to be harnessedcorrectly.

The process here is fairly straightforward:

CONNECT WITHTHE RIGHT DATA

BUILD EFFECTIVEREPORTS

ESTABLISHAPPROPRIATE KPIs

GENERATE INSIGHTSTHROUGH ANALYTICS

To even start to understand how your audience interacts and engages withtheir content, marketers need to have the right data. And this data needs tobe integrated. Isolated, siloed data won’t work, because you will never be ableto understand the correlation between channels or devices.

Therefore, it becomes imperative to collect all your data in a single place soyou can create a complete picture of your audience.

Data integration is a complex technical process. But, the first step isdetermining what data you need to connect to.

This will depend on your business, however, it helps to group your datasources into the types of data they are providing:

DATA LESS ORDINARY

Don’t only look to the most obvious data sources. By connecting with different, less ordinary,datasets you can draw out some truly valuable insights.

For example, if you have live events, integrate weather data to see how this is impacting ticketsales. Or, by connecting to platforms like Brandwatch, Sprinklr, or Hootsuite, you can startopinion mining.

CONNECT WITH THE RIGHT DATA

ADVERTISING PLATFORMS SOCIAL MEDIA PLATFORMS

CUSTOMER ENGAGEMENT PLATFORMS CONTENT PLATFORMS

Facebook FacebookAdRoll LinkedInCriteo InstagramGoogle Ads Twitter

Mailchimp TikTokHubspot OutbrainDrift TaboolaGoogleAnalytics

YouTube

STEP ONE

Once you have the right data, you can start identifying the rightmetrics and KPIs to track.

Broadly speaking, you can split these between metrics for trackingperformance on the one hand, and KPIs for tracking engagementand revenue on the other.

Again, individual KPIs and metrics will depend on your business andgoals but, the following is a good framework to get you started.

ESTABLISH APPROPRIATEMETRICS AND KPIs

ESTABLISHING YOUR AUDIENCE ANALYTICS – STEP TWO

METRICS - PERFORMANCE

KPIs – ENGAGEMENT

REVENUE-DRIVEN KPIs

ADS

ADS

ADVERTISING-BASED

Impressions, Clicks, Costs

CPM, CTR, CPC, CPA, CVR

Total Ad Inventory Revenue,Average CPM, Page RPM

SOCIAL

SOCIALInteractions (Likes, Shares, Comments),Sentiment, CTR

SPONSORSHIP REVENUETeam Sponsorships, Media Rights,Product Placement

SEO

SEO

Impressions, Clicks, Referring Domains

CTR, DA, Average Ranking Position

TV

TV

PRINT

Average Viewing Time, Audience Share,GRP

Readers per copy

CONTENT

CONTENT

Page Views, Organic Traffic

Time on Page, Scroll Depth, Social Shares,Asset Downloads

OTHER METRICS

EMAILSubscriptions, Open Rates, CTR

SUBSCRIPTION-BASEDAnnual Revenue per User, TotalCustomer Value, Churn Rate

Demographics, Geographical coverage,Firmographics

LIVE PERFORMING

WEBSITE

WEBSITE

EVENTS REVENUE

Users, Sessions, New Users

Pages per Session, Avg. SessionDuration, Bounce Rate

Ticket Revenue per Event, Total AnnualTicket Sales, Event Sponsorships

PRINT

Total Reach, Follower Growth

Audience Reach, Total Viewers

Number of Attendees, Ticket PricingVariations

Circulation, Unsold Copies, Readership

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With the right KPIs, you can build reports.

Reports help you visualize your KPIs, compare them, andtrack your audience more efficiently.

To be most effective, reports should be linked to corebusiness areas or functions.

TOP REPORTS YOU NEED TOMEASURE YOUR BUSINESSPERFORMANCE

ESTABLISHING YOUR AUDIENCE ANALYTICS – STEP THREE

CONTENT PERFORMANCE

SOCIAL MEDIA PERFORMANCE

CUSTOMER SUBSCRIPTION

ADVERTISING & SPONSORSHIPS

Content performance reports will allow you to track the performance of variouscontent types (clustered by topic, length, keywords...) against different audiencesegments (age, location, gender...) to understand which types of content are resonatingwith the audience and feed this intelligence back into content development strategiesto hyper-target specific audience segments.

Social media engagement reports will display the total engagement with youraudiences on social channels, from basic metrics (Likes, Shares, Comments), throughClicks driving traffic to your website or other properties, to complex analysis thatdisplays Audience Sentiment and other parameters showing levels of awareness andadvocacy among key target audiences.

Develop audience journey reports by finding out what channels audiences came from,what content converted them, and what their next engagement steps were. Forexample, combine CRM data with social platform platforms and ad channels data. Usecohort analysis reports to determine key acquisition or churn moments and compareaudience segments with each other.

Deconstruct the structure of your advertising revenue by analyzing the performanceof each channel, or even individual inventory. Build detailed ROI and conversion ratereports for your sales team that demonstrate the value of your inventory and helpattract and retain more advertisers and sponsors.

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ohort analysis helps you dive deep into your data byanalyzing audience behaviors and trends. It’s apowerful and sophisticated reporting technique, that

helps you boost your understanding of different audiencesegments.

HOW DOES IT WORK?

A cohort is a group of people with shared characteristics orcommon criteria. It could be the first article or video theywatched on your site or the country/region they are from.

By having this element in common, that cohort becomes anaudience segment you can analyze and compare with othercohorts to gain deeper insights into content performanceacross multiple customer segments. Things like viewingpatterns, conversion trends, and content popularity, forexample.

C

COHORT ANALYSISREPORTS ANDWHYYOU NEED THEM

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MONTHS

HOW TO READ A COHORT ANALYSIS CHARTaudiences (December andJanuary), but also which months/events have performed bestwhen it comes to audienceretention.

However, things get moreinteresting when we start to readdown the columns. In the chartabove, we can see there is a bigdrop in numbers for mostmonths between columns 3 and4, noticeable by the distinctchange in shading between thosecolumns. What this is telling us isthat three months after the firstevent is a critical time foraudience retention. Armed withthis knowledge, a business cannow start to address why this is,and, for example, develop aloyalty campaign around the 3-month mark to draw audiencesback in.

In this example, we are trackingaudience retention from events.The grey column ‘0’ depicts thenumber of attendees whoattended an event each month -it could be a single specific eventor all of the events that month.The subsequent columns showthe number of attendees whothen returned for another eventand which month they did so.

Reading along the top row ofdata, we can see that of the 2,560people who attended events inJanuary, 1,059 went on to attendanother event one month later,794 went on to attend anotherevent two months later, 596 wenton to attend another event threemonths later, and so on. Fromthis, we can immediately see notonly which are our best monthsfor acquiring new event

You can also read the datadiagonally. If we look at the July2020 row, there is a slight jumpand this trend continuesdiagonally up and right acrossthe chart. The June row sees ajump in additional sales in month2, May sees a jump in month 3,April in month 4, and so on.

Clearly, something happened inJune 2020 that drew audiencesback in. Perhaps this was a verypopular event with a widegeneral appeal or, it might havebeen due to some external factorthat the business will need todetermine so they can adjusttheir strategy to capitalize onsimilar opportunities.

Once you’ve integrated all your data, determined yourKPIs, and built various reports to track your success, youneed to start drawing some insights from it all - and thiswhere data analytics comes in.

AUDIENCE ANALYTICS ANDPREDICTIVE MODELS

ESTABLISHING YOUR AUDIENCE ANALYTICS – STEP FOUR

WHAT IS DATA ANALYTICS?

Data analytics is where you can extract the most amount of valuefrom your data and start generating insights.

This can be done manually - many M&E businesses have teams ofdata analysts whose job it is to do precisely this.

Or you can let a computer do it for you, which is the next step -artificial intelligence.

For example, you can:

Understand which channels are bringing the most customers - and optimizeyour marketing budget accordingly

Learn which groups of customers spend the most and what they are spendingtheir money on - and target them with specific offers and sales

Reveal which customers are least likely to make a second purchaseand why - and develop an appropriate customer retention strategy

WHAT IS AI ANALYTICS?

AI, or Augmented, Analytics is where you enhance your data analysis byutilizing artificial intelligence to sift through it and draw out insights.

One of the key benefits is that AI can analyze data, find patterns, revealanomalies, and generate insights at a scale, speed, and level of detailimpossible for individual human analysts. This means you can uncover keyanomalies which would otherwise be impossible to spot by conventionalanalysis.

For example, with AI analytics you can:

Once making the decision to utilize AI for your data analysis, this also opensthe door to the next step - predictive analytics.

Spot a drop in conversion rates among a specific customer segment thatwould be missed if you are only looking at aggregate data.

Identify a dip in ROAS on a specific campaign showing ineffective campaignspend increase

Catch a drop in engagement rate that would indicate unsuccessful newcreatives

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“We’re only at the beginning ofthe technology-based radicaltransformation of the media andentertainment industry.”JUKKA PAAJANENSenior Director at Oracle

Predicting better than pure guesswork,even if not accurately, delivers real value.A hazy view of what’s to come outperformscomplete darkness by a landslide.

ERIC SIEGELAuthor of “Predictive Analytics: The Powerto Predict Who Will Click, Buy, Lie, or Die”

When it comes to understanding increasingly complex audience behaviors,this is a game-changer - the difference between only ever looking backwardat what has already happened and, instead, looking forwards and beingproactive about what audiences are going to do.

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WHAT IS PREDICTIVE ANALYTICS?

Predictive analytics is the process of using historical data to find patternsand make assumptions to predict future developments.

While strictly speaking this can be done by human analysts, the excruciatingcomplexity of predictive analytics is AI’s playground. By using AI, marketerscan draw out incredibly sophisticated predictive insights that would beextremely costly and time-consuming using human analysts, if notcompletely impossible.

For example, with predictive analytics you can:

Forecasting media budget allocation at a total brand/campaign or channellevel based on what is the most effective at achieving your KPIs.

Identifying potentially costly problems as early as possible beforethey become a major issue.

Predicting the impact of content for specific audience segments includinghigh-potential markets and demographics they should target, or forecastand reduce churn rates.

ANILMALHOTRAPresident, AnalytixLive

As audiences rapidly evolve and change, having the right data is a necessityfor entertainment providers. In fact, most M&E businesses are alreadyworking out how to improve their audience analytics.

The question remains though, what is the best method for doing so? Everybusiness is different so it is important to understand the data analyticsmarket to know which approach will work best for your business.

There are three core components to establish a data-driven approach toyour audience:

• Data Integration - collecting and harmonizing the data from all yourdifferent data sources

• Data Visualization - displaying that data in a visual data dashboard

• Augmented Analytics - using AI and machine learning to draw outinsights and predict behaviors.

CONCLUSION -SHOW THE DATA

“Above all else show the data” - Edward Tufte

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Datavisualization

Augmentedanalytics

Dataintegration

There are a lot of different options available to the M&E industry.

For instance, some businesses focus only on the data integration part -they can bring all your data into one place but you will then need to set-up the visualization part yourself. Likewise, some services provide datavisualization, but you will need to work out the analytics side to yourself.

In Adverity’s case, we offer all three as an end-to-end solution.

Businesses can use a single vendor for their entire audience analyticsset-up, or pick and choose the modules they need and combine themwith their own in-house systems.

This is especially useful if today you only need data integration, but lateryou’ll need to scale up to include additional modules.

CASE STUDY

We went with Adverity because they would take careof all the technical stuff. And the support we receivedmade us feel like a real partner, not just a customer.

LEARN MORE

adverity.com

Adverity is an intelligent marketing analytics platform specialized in enablingdata-driven marketing teams to make better decisions and improveperformance, faster and easier. By transforming siloed data into actionableinsight, Adverity reduces the complexity in demonstrating the return oninvestment of multichannel campaigns.

Through automating data integration from hundreds of sources, our vendor-agnostic, end-to-end platform delivers a single view of marketing performanceacross your business. With the help of powerful data visualizations, Adverityreveals tangible business impact of marketing activities and improvesperformance by uncovering real-time opportunities to fuel growth withaugmented analytics.

Adverity is on a mission to empower teams to effortlessly utilize their data andturn it into powerful insights, decisions and actions. Founded in 2015, Adveritypowers the marketing intelligence of some of the world’s leading brands andagencies, including IKEA, Red Bull, GroupM, Unilever, Omnicom, Barilla, JD Sportsand Forbes. Our fast-growing company is headquartered in Vienna, and hasoffices in London and New York.

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