By Kim Sang-ik
While the digital era presents significant opportunities, it also poses serious threats, especially to companies that remain mired in an analog mindset. Companies of all types that survive and thrive will be those able to engage customers with relevant information and offers, encouraging long-term dialogue and deeper relationships. New kinds of technology platforms and capabilities will enable them to build these relationships.
When it comes to media and entertainment companies providing digital channels, the winners will be those that successfully migrate to a performance or outcome-centric monetization model. They will be able to identify how to develop, distribute and sustain digital relationships with their customers.
They will forge focused and accountable partnerships with marketers to present more relevant and compelling advertising propositions founded on a much deeper, more data-driven understanding of their consumers’ preferences and interests, learned and developed through time.
Marketers will pay digital dollars, not just digital pennies, to publishers able to identify specific target audiences at discrete phases of the purchase consideration process and who have a clear interest in a particular category and service.
More generally, the digital age will have truly arrived when companies have learned to create engaging, customized and relevant online and mobile experiences for consumers. Addressability, interactivity and dynamic delivery supply are the keys to why traditional approaches of interaction with customers are failing in new media, and failure will continue until they are fully accounted for in the packaging and sale of digital relationship with customers.
The consumer and digital environment is dramatically changing. The media & entertainment eco-system is under a progressive transformation caused by digitalization. The advertisement market will be fueled by digitalization.
These are requiring the players to move toward a high-performance business with fundamental and therefore difficult changes. To ensure the future value, key players need to take the lead for change: media and entertainment companies have to demonstrate the value of digital relationship with customers by acquiring capabilities and usage of sophisticated technology to respond to marketers’ demand of transparency, audience metrics and analysis of customer usage. That will be critical for any media & entertainment company that wants to make money in the digital age.
Kim Sang-ik is a partner at Accenture Korea