PwC partner Keren Blakey says organisations now not only have better understanding of how to engage with digital consumers but they’re also working out how to make money from them.
“The industry held its ground over the past year and has an encouraging future.”
Revenues in the sector grew by 4.3 percent in 2011. Blakey says she expects this growth to continue throughout the 2012-2016 forecast period by an average of five percent.
She warns that challenges remain around how to keep pace with consumer trends, new technologies and the evolving ways of consuming content in digital and mobile world.
“Consumers are continually evolving in their preferences on how to consume content and, as result, sales of tablets and smartphones are rocketing and fuelling growing revenue opportunities in the digital delivery of advertising, entertainment and media content. Consumers can now be reached anywhere, anytime.”
Digital is now moving towards the heart of many media companies and presents the greatest opportunities for growth. What previously looked like wide gap between old and new operating models is being bridged.
But, crucial to relevant industries attracting, retaining and entertaining consumers, is the current, existing and expected investment in infrastructure that will place New Zealand at the forefront of the digital economy.
“The shift in emphasis to digital and online media is expected to continue apace, driven by the development of faster and cheaper digital devices such as internet televisions, smartphones, tablets and notebooks, the increasing footprint of high-speed connectivity and the advent of ultra-fast broadband,” says Blakey.
According to the PwC report:
• Consumer expectations are changing and becoming more demanding.
• Technology is disrupting the industry.
• Mobility is driving change in the way users consume content.
• Major investment in New Zealand’s infrastructure is underpinning the transition from traditional to digital.
• Businesses must engage in increasingly complex processes in order to engage and stay connected with their customers across multiple channels.
• Value pools are shifting to customers, global players and holders of content. There is an increasing need for change in business models as local players seek scale to compete effectively.
• Advertisers are following consumers as they spend more time online.
