#MATI-Marketing & Ad:Tech Israel_Feb 11, 2014_The Future of Ad Supported Media
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Vickie Nauman's presentation at the Marketing and Ad:Tech Summit discusses the evolution of digital media since the advent of Napster in 1999, highlighting the shift in power from distributors to consumers, and the impact of connected devices. Key trends include the fragmentation of consumer attention, the rapid growth of mobile ad-supported services, and the disparity in media consumption across global markets. Nauman predicts that the future of digital media will largely rely on ad-supported models, as consumers prefer these options over subscriptions.
#MATI-Marketing & Ad:Tech Israel_Feb 11, 2014_The Future of Ad Supported Media
- 1. My Digital Odyssey, Lessons Learned, & the Future of Ad-Supported Streaming Media Vickie Nauman Marketing and Ad:Tech Summit Tel Aviv February 2014
- 2. Pre-Digital • 10 years in marketing & US terrestrial radio Traditional and physical media defined by: Distinct channels into a finite potential audience Programming and ads for a targeted demographic Limited by: Printing capabilities Broadcast signal reach Retail inventory Scarcity of content But all that changed…. NETWORK
- 3. My Digital Odyssey • 1999 Napster 1.0
- 4. My Digital Odyssey • 1999 Napster 1.0
- 5. My Digital Odyssey • 1999 Napster 1.0 The Disappearance of Scarcity
- 6. My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services
- 7. My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services Legal battle lines drawn Power shifted from distributor to the consumer Geographic limits lifted from media marketplace
- 8. My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services • 2004-2007 global digital landscape Digital licensing and partnerships in Europe, Asia, US Each country varied: Cell phone adoption Payment methods Network standards (ie GSM) Importance of local culture on media appeal Intellectual property rights
- 9. My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services • 2004-2007 global digital landscape “Global digital” actually patchwork of country-specific laws, standards, devices and gatekeepers Resulting in country-specific user behavior in digital media
- 10. My Digital Odyssey • • • • 1999 Napster 1.0 2000-2004 early legal digital services 2004-2007 global digital landscape 2007-2014 connected devices proliferation of “smart” everything watches, glasses, phones, tablets, etc emergence of platforms explosion of content
- 11. My Digital Odyssey • • • • 1999 Napster 1.0 2000-2004 early legal digital services 2004-2007 global digital landscape 2007-2014 connected devices Hardware, software, and content must integrate elegantly …but services have still not reached sustainability
- 12. The Future of Digital Media? • DEVICES AND PLATFORMS: will continue to evolve rapidly – table stakes In 2009, 2.5B connected devices – 2013 10B – projected 30B by 2020(1) • CONSUMERS: fragmented mind / wallet share in digital media “firehose” • GLOBAL: countries’ media consumption patterns developing differently 48% of Swedes streamed music in 2013; Japan only 4%(2) • LEGAL: copyright / usage laws lag behind technological innovation • SERVICES: emergence of new models & price points, mobile ad-supported The MASS MARKET model for media remains - low threshold for consumers - simple to use and understand - advertising based (1) Gartner Oct 2013 (2) IFPI 2013
- 13. The Future of Digital Media? • Betting Big on Mobile Ad-Supported Users want it: 70% cite terrestrial radio as top music discovery in 2013 (3) 15% of total radio listening in the top 5 US markets is now online (5) 70% of digital listening is on mobile – 30% desktop(5) Mass consumer adoption to digital media is largely free ad-supported(3) 72% of listeners prefer ad-supported rather than subscription(5) Advertisers are joining the party: US mobile ad spend doubled to $9.6B in 2013(4) $35B in annual revenue in audio advertising globally, $18B is US alone(5) API and tech-enabled ad engines launching (3) Midia Cons Dec 2013 (4) eMarketer Dec 2013 (5) Triton Digital 2014
- 14. Thank you! Vickie.Nauman@7digital.com Vickie Nauman President 7digital US Los Angeles, CA