The advertising sector will lead the way in the next five years ahead of all media, as 33% of all total advertising revenue is forecast to be digital, compared to 17% of consumer revenue, a recent PricewaterhouseCoopers (PwC) report has predicted.
However, the report said that profiting from the migration by increasing revenue from digital consumers will not just be about the application of digital technology.
It will be about applying a ‘digital mindset’ to build the right behaviours, advancing from a digital strategy to a business strategy fit for a digital age, the PwC’s Global entertainment and media outlook 2014-2018 has advised.
“The bedrock of a strategy fit for the digital age is the digital mindset: getting ever closer to the customer – across the entire organisation, and in everything it does,” Marcel Fenez, PwC Global leader, entertainment and media, said in a statement posted on the organisation’s website.
“We now see that mindset embedded in many entertainment and media companies. But the industry needs to get even closer to the consumer and adopt more flexible business models,” he added.
“To do this, companies must exhibit three behaviours: forging trust with consumers; creating the confidence to move with speed and agility; and empowering innovation. This will be an important step in monetising the digital consumer.”
Furthermore, the report forecasts that total entertainment and media spending on digital services will grow at a 12.2% compound annual growth rate (CAGR) between 2013 and 2018, and account for 65% of global entertainment and media spending growth, excluding spending on Internet access.