broad cast asia 2012 rob van den dam 20 june 12
DESCRIPTION
The Connected Consumer Era has arrivedTRANSCRIPT
© 2012 IBM Corporation
IBM Institute for Business Value
The ‘Connected Consumer Era’ has Arrived
Rob van den Dam
Global Communications Sector Leader IBV
© 2012 IBM Corporation
IBM Institute for Business Value
2
Agenda
Challenges presented by the changing
media landscape
2
Looking ahead
Go beyond digital to deliver customized
experiences
Global digital behavioral trends of
consumers
© 2012 IBM Corporation
IBM Institute for Business Value
3
IBM questioned close to 17,000 consumers in 25 countries to evaluate
global behavioral trends in the age of consumerism
2 types of surveys conducted in 25 countries mid 2011 (2011 Global Telecom Consumer Survey & 2011 Digital Consumer Survey)
Japan
South Korea
India
China
© 2012 IBM Corporation
IBM Institute for Business Value
4%
-3%
-6%
-10%
-14%
-16%
-18%
-19%
-19%
-23%
-32%
-24%
Utilities
Food & drinks
Transportation
Mobile
broadband
Mobile Telepony
Pay television
Sports
Fixed Telephony
Clothing
Holiday/vacation
Electrical
appliances
Going out
Mobile Telephony
Mobile Broadband
Transportation
Pay television
Utilities
Elect. Appliances
Fixed Telephony
Holidays
Food & drinks
Clothing
Going out
Sports
40%
36%
33%
33%
32%
28%
27%
27%
20%
16%
16%
5%
M obileTelephony
M obile broadband
Transportat ion
Fixed Telephony
Holidays/vacat ions
Clothing
Electric/Gas Utilit ies
Food & drinks
Going out
Electrical appliances
Pay television
Sports
Mobile Telephony
Mobile Broadband
Transportation
Pay television
Utilities
Elect. Appliances
Fixed Telephony.
Source: 2011 IBM Global Telecom Consumer Survey,
Question: Compared to previous years, are you likely to spend less, the same or more on the following products / services in the next 2-3 years?
Consumers in Asian emerging countries expect to increase spending
on almost everything, including Pay TV and communication services Net Increase/Decrease Net Increase/Decrease
Holidays
Food & drinks
Clothing
Going out
Sports
Mature markets
4
average
-15%
average +26%
China
© 2012 IBM Corporation
IBM Institute for Business Value
Source: 2011 IBM Global Telecom Consumer Survey,; S08 How often do you access the following media/content services over the Internet?
User Generated Video
Online Audio Content
Online Music Video
Full Length Movie
Live Video Broadcast
Online news Video
40%
40%
35%
32%
24%
36%
Daily
Usage
21%
22%
18%
16%
11%
16%
1
2
3
4
5
6
1
2
3
4
5
6
5 5
User Generated Video
Online Audio Content
Online Music Video
Full Length Movie
Live Video Broadcast
Online news Video
Mature markets
Internet users in these emerging markets access media/ content
services more frequently than their counterparts in mature markets, …
Access to
media/content
services
40% of Internet users in
emerging countries
listen to online
audio content daily
40% of Internet users in
emerging markets
access user
generated
video daily
© 2012 IBM Corporation
IBM Institute for Business Value
45% 48% 50% 47% 49% 52%
22%22% 22%
22%23% 23%
9%
8% 8% 9%8% 7%5%
5% 5% 5%4% 6%7%
6% 6%6%3%
9% 6% 6% 7%
6%5%
4%3% 4%4%3%
4%6%
0%
20%
40%
60%
80%
100%
Online
audio
content
Live video
broadcast
User
generated
video
Online
Music
video clips
Online
News
video clips
Full movie
Other smart phone
Android device
Blackberry
Tablet PC
iPhone
Laptop/Netbook viaMobile Broadband
Laptop/ PC via FixedBroadband
Q08. Which of the following do you use to access the media/content services in the last question
Daily users
…and around half of the heavy content/media users claim to do that
via a mobile device
Source: 2011 IBM Global Telecom Consumer Survey, 6
Devices to access media/content services
© 2012 IBM Corporation
IBM Institute for Business Value
Source: 2011 IBM Global Telecom Consumer Survey,; S06 How often do you use the following communications services – Social networking sites ?
7 7
Mature markets
In the emerging markets 60% of consumers with (fixed and/or mobile)
internet access use social network sites to communicate
60% 60%53%
68%
26%32%
35%
24%
14%8% 12% 8%
0%
20%
40%
60%
80%
100%
Emerging
Markets
China South
Korea
India
45% 44% 46% 41%
28% 26% 24% 33%
27% 30% 30% 27%
0%
20%
40%
60%
80%
100%
Mature
Markets
US UK Germany
Daily WeeklyOccasionally
Usage of
Social Networking Sites
© 2012 IBM Corporation
IBM Institute for Business Value
70%
64%
51%
45%
31%
22%
19%
17%
66%
51%
28%
35%
19%
13%
23%
8%
Internet search
Recommendations from friends/family
Social media
Web sites of providers
Traditional advertising
Emails/ promotional offers
Retail stores
Shopping portals/ auctions
Emerging markets
Mature markets
Source: IBM Institute for Business value Global Telecom Consumer Survey 2011,
Question: What are you preferred sources of information when you are looking for communication products and services?
Internet Search, Family/Friends and Social Media have become
the preferred sources of information
8 8
Preferred Sources of Information
© 2012 IBM Corporation
IBM Institute for Business Value
The “Connected Consumer” era has arrived
9 9
Media and Entertainment
evolutionary eras
© 2012 IBM Corporation
IBM Institute for Business Value
Today’s connected consumers are empowered, demanding instant
access to personalized content, wherever they are
I want access to
content tailored
to the device I
am using
I want access to
content
whenever I am
ready for it
I only want to pay
for content I access
I want content
choices based on
my past
consumption
behaviors
I want content
options based on
my preferences
I want access to
content relevant to my current
location
I want to choose
whether I immerse
myself socially in
selected content
10 10
© 2012 IBM Corporation
IBM Institute for Business Value
11
Rampant adoption of digital devices has fueled the growth of digital
content consumption behaviors globally
Source: IBM’s 2011 Digital Consumer Survey
Global Content
Consumption
Behaviors Viewing on demand
“I’ll Catch You
Later”
Viewing on the run
“Do you want that
to go?”
Distracted Viewing
“THIS I have to check
out right now”
Social Viewing
“How YOU doin’?”
© 2012 IBM Corporation
IBM Institute for Business Value
12
The new behaviors of connected consumers have greatly impacted
M&E providers in both mature and emerging markets
Viewing on demand
91%81%
95% 97%
68%62%
71%
82%
US UK Japan China
Video on Demand
On Home TVs
Distracted Viewing
94% 91%100% 97%
85%78%81%
90%
US UK Japan China
Surfing the Web While Watching TV
Social Viewing
55% 58%
76% 76%71%
46%
31%
52%
US UK Japan China
Uploading Photos On Social Media Sites
Early adopters (12 % of global sample)
Mainstream consumers (35% of global sample)
Source: I
IBM’s 2011 Digital Consumer Survey
87% 88%95% 99%
91%
73%65%
55%
US UK Japan China
Viewing on the run
Search/Email
On Mobile Phones
© 2012 IBM Corporation
IBM Institute for Business Value
Address content
cannibalization Consumers are already
reducing their existing level of
pay TV service, or even
canceling it entirely
To be able to meet demand for connected content it is critical to
understand the key challenges
$
Get in tune with todays
digital consumers Consumers now wield
unprecedented power over how
brands are perceived
Serve a splintered
mass audience Age is far less meaningful than
before in differentiating micro-
segments
Finding new digital
revenue models Digital revenue models are
weaker than traditional revenue
streams
13 13
Challenges
© 2012 IBM Corporation
IBM Institute for Business Value
Content cannibalization is real
Traditional media and devices are in decline
14 14
Mobile video use
Reduction in TV viewing
23%
35%
73%
23% 28%
41%
United
States
Japan
China
Respondents in China, Japan and
the U.S. watch substantial less
regular TV as their use of
mobile video increases
Source: IBM’s 2011 Digital Consumer Survey: Q13: Please indicate
how watching television shows through online or mobile/portable
devices has impacted your “regular” television consumption (watching
on your television set as the regularly scheduled time).
© 2012 IBM Corporation
IBM Institute for Business Value
15
Providers need to recognize that consumers are in control and
conducting conversations in which they may not be included
Blogs
Tweets
Peer
Reviews
Social
Networks
In the connected world, consumers have
unprecedented power to build and
demolish brand strength as they
blog, text and comment via social media
about their various consumer experiences
Customer Analytics can be
used to mine digital channels, such
as blogs, tweets, social networks and
peer reviews
RTL Nederland analyses social
media buzz to optimise its
product offering 4 May 2011. RTL Nederland is a trend-setting
multimedia and entertainment company with a
leading position in the Dutch broadcasting market. It
owns five television channels, two ……….
© 2012 IBM Corporation
IBM Institute for Business Value
45%47% 47%
48% 48%48%
52% 52%53%
52%
60%61%
60%
56%
59%
Movie on Tablet Newspaper on
Website
Video Games on
Smartphone
Magazine on
Tablet
TV Shows on
Website
All consumers Late Adopters Stragglers
Source: IBM’s 2011 Digital Consumer Survey, Q14: What is your preferred way to pay for the following types of media content?
Lack of Willingness to Pay for Digital Media Content By type of content and device, globally
% o
f R
espondents
16 16
With weaker revenue streams, digital revenue models have
yet to deliver value comparable to traditional models $
© 2012 IBM Corporation
IBM Institute for Business Value
Age-based segmentation NO longer suffice – adoption
distinctions between younger and older audiences have closed
Source: IBM’s 2011 Digital Consumer Survey; Q5: How would you categorize your adoption of consumer electronics devices?
>65
2%
55-64
5%
45-54
12%
18-24
14%
35-44
29%
25-34
38%
Global Digital
Adoption Leaders
by age, 2011
17 17
94%
64%
85% 86%
96%
75%
90%87%
96%
69%
86% 86%
93%
72%
82%76%
100%
82%79%
74%
China Japan US UK
18-24 25-34 35-44 45-54 55-64
88%
95%
58%
73%
90% 88%
67% 66%
91%86%
53% 52%
79% 78%
37% 35%
80%
71%
30% 31%
China Japan US UK
Willingness to Adopt New Consumer Electronic Devices, 2011 By Age and Country
Internet on Mobile Phone, 2011 By Age and Country
Q6: How often do you use the following digital content services?
© 2012 IBM Corporation
IBM Institute for Business Value
Behavior-based segmentation is now essential to delivering compelling
consumer experiences
Digital Consumer Segmentation Analysis, 2011
Source: IBM’s 2011 Digital Consumer Survey; IBV analysis
Lo
w
Hig
h
Ac
ce
ss
to
Co
nte
nt
Low Low High
Intensity of Interaction
Note: * of respondents
Efficiency
Experts
Content
Kings
41%*
9%*
Social
Butterflies
Connected
Maestros
35%*
15%*
18 18
© 2012 IBM Corporation
IBM Institute for Business Value
Lo
w
Hig
h
Acc
es
s t
o C
on
ten
t
Low High
Intensity of Interaction 19 19
“All Access Pass”
Smart
“Always On”
Immersive
“Path of Least Resistance”
Convenient
“We Gotta Talk”
Social
Content providers need to deliver experiences tailored to their digital
consumers’ personalities
Example Digital Consumer Experience Models
© 2012 IBM Corporation
IBM Institute for Business Value
For example, sports programmers should consider how their fans
segment and the resulting differentiated services they require
Illustrative Future Sports Fan Experience Models
Instrumentation and gaming blur
the lines between “spectating”
and “participating”
Advanced analytics enable
tailored, “smart” sports
entertainment experiences
The ability to connect socially
matters more than the
production quality
Experiences largely driven by
enhancements to the broadcast
model
Smart
Social Convenient
Immersive
Sports stats available
simultaneously with action Virtually play with
professionals or other fans
Experiences created and
controlled by consumers
“Traditional” viewing with added
convenience of instant availability
Lo
w
Hig
h
Access t
o C
on
ten
t
Low High
Intensity of Interaction 20 20
© 2012 IBM Corporation
IBM Institute for Business Value
A critical mass of global consumers embrace the ability to interact
more personally with content
Source: IBM’s 2011 Digital Consumer Survey, Q18: As content becomes more digital, we as consumers will have the opportunity to experience
various forms of content in new ways. Please rank on a scale of 1-5 (5 being very appealing) how appealing the following types of
experiences would be for you.
Appeal of Interacting More Personally With Content By Country
48%
26%
42%
24%
37%
23%
74%78%
40%
49%
Control Replay, Angle of Scene Play Alongside a Sporting Event
% o
f R
espondents
UK
US
China
Japan
Germany
21 21
© 2012 IBM Corporation
IBM Institute for Business Value
Content is still king – BUT must be augmented with the three other key
attributes of the Connected Consumer Era
Connected Consumer Era Key Attributes
Content
More video is updated to
YouTube in 60 days than
the three major US
networks created in 60
years
22 22
Distribution
Seamless, integrated
experiences across
devices
+
Social
Social - embedded into
the content experience,
and Immersive - lines
blur between “spectating”
and “participating”
+
Analytics
Smart: personal,
insightful, relevant,
contextual analytics
+
© 2012 IBM Corporation
IBM Institute for Business Value
23 23
Providers Must Move Beyond Digital To Deliver Tailored Experiences
Target consumers based on their “digital personalities”
Deliver individualized experiences, not just content
Act like a B2C company, no matter where you are in the
industry value chain
Connect consumers, content, and monetization
© 2012 IBM Corporation
IBM Institute for Business Value
Recent IBV Publications
24
© 2012 IBM Corporation
IBM Institute for Business Value
Thank you
Rob van den Dam
Global Telecom Industry Lead
IBM Institute for Business Value
[email protected] www.ibm.com/iibv
25 25