Media Trends: Q4 Report
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1 Media Trends: Q4 Report By Marketing Mechanics DECEMBER 2014 Media Trends Q
2 Introduction Marketing Mechanics are pleased to present Q4 Media Trends Report of Our research is based on insights prepared by media industry leaders and combines those facts and statistics which influence trends in the media space. The shift from traditional to digital media with new technologies, cloud, wearables, business models, and social media developments in both new and mature markets continued in While technology has always been a driver of change in consumer demands, increasing digitization has escalated the speed of its transformation. Key trends outlined in the following chapters are: Increase in consumer spend online driven by increase in smart phone penetration Reported growth by both Facebook and Twitter in B2B segments Print overall readership statistics Radio increase in advertising 2014 as personal medium Spend on media in 2014 sees increase TV advertising, digital, broadband, in home video entertainment and cinema. Decreases were noted across consumer magazine publishing Increase in content branded sites and authentic experiences These trends have altered the way we as both consumers and marketers access, consume, and pay for our media, by creating endless choices. From infinite device options to a choice of print vs. electronic, linear vs. on-demand, free vs. pay, own vs. rent, and transactional vs. subscription. Even the concept of accessing media for free, is essentially paid for with their digital footprint as online behaviour is monitored through increasingly real-time targeted advertising. These shifts in fragmented multi-screen media consumption will ultimately shape the tactics selected in our marketing plans for Media Trends Q
3 Online Trends Increase in consumer spend online driven by increase in smart phone penetration Australia now holds the world s 7th highest Internet penetration title. This sees 1/3 Australians researching 3 times per week for purchasing options; a massive opportunity for businesses to capture new markets while building their online brand (Website, SEO, Ads). The online shopping experience has changed. Path to purchase is dependent on the ease of access and value proposition. A mix of both online and offline options must be available to suit preferences of shoppers in each segment in the market to develop more favourable market conditions in The increase is due to the continued development of mobile media, with 77% of all Australians (aged 13 years and above) own a smart phone. (AIMIA Trends 2014) Figure 1. Average monthly spend and number of purchases 1 in 5 Australians spend more time on their smartphones than talking with their partner or friends. This figure rose 1/3 among males ages Australians are more likely to use their smartphone, then laptop, then a desktop. Most interestingly, 69% of Australians check their phone when they wake up. In an always-on world, mobile devices are always at-hand as consumers move from screen to screen, according to a new emarketer report, Key Digital Trends for Social Media Reported growth by both Facebook and Twitter in B2B segments A significant 92% of marketers indicate that social media is important for their business, up from 86% in Social networking appears to be the glue that binds together the experience of multiple device usage will be the year that marketers begin to master the art of engaging with media multitaskers, often via social. This will be reflected in socials growing share of digital ad spending. Facebook Facebook remains the leader is social media logins in Australia with 46% (68% of women use Facebook daily, compared to 57% of men). This is a slight market share growth of 2% due to demand in music entertainment site category (9%). Facebook is also the third market leader in the B2B social media Market. Twitter Twitter experienced market growth (1.3%) since Q2 of This places Twitter as the third market leader with social media login with 7%. This was reduced due Yahoo increasing popularity. Google: Figure 2. Social Media Login Preferences Q4 Google is still the leader in the B2B market and second market leader with social media login with 34%. Google SEO is more focused on the Google Authorship (Google assessing the authority of the Author ) in Media Trends Q
4 Other social media Instagram has earned 15-20% share among mobile-focused companies ramping up competition with YouTube for short movies. Furthermore, LinkedIn has become the second market leader in the B2B social media market (introduced LinkedIn Connected providing users with relevant updates about people in their network in order to strengthen professional relationships) Figure 3. B2B Social Login Trends In effect, mobile enables the social platforms consumers use to share, produce and engage with content. The big shift is the water cooler conversation that once took place the next day at the office now takes place online, in real time. And an increasing portion of that real-time conversation centers on video. In this way, social and video content help connect consumers cross-device interactions. In fact, social, mobile, video and advertising are on a rapid convergence path. Digital Advertising Increase in digital advertising Digital advertising is becoming a dominant force in the global media advertising market. Excluding the online and mobile components of TV advertising, in 2017 digital advertising will overtake TV, which for decades has been the largest advertising medium, and by 2018 digital advertising will be 8percent larger. Even including the digital components in TV advertising totals, digital advertising will nearly reach overall TV advertising levels by We project digital advertising to continue to increase at double-digit rates, growing 15.1 percent compounded annually to 2018 and accounting for 65 percent of the total increase in global advertising over the next five years. Print Magazines Continual website revamps to optimize for mobile and social aspects In Q4, we have seen magazine companies continue to revamp their websites to optimize for mobile devices and social aspects and include more multimedia content. More print magazines are still being sold than their online versions. Overall digital sales hold 43.6% of market share, with News Life Media holding the number one spot as digital magazine publisher in Australia, selling 3.8 million print and online magazines. Bauer Media dominates the homemaker category at 26.8% market share and once again, Better Homes and Gardens is the number one magazine, with 3.2% up year-on-year to 1,819,000 readers per average issue, with Australian Women s Weekly and Woman s Day trailing close behind. Advances in technology, News Engine, have seen new techniques given to the structure of data, aiming to solve the problem of ambiguity in written text Newspapers The newspaper industry transformation to a balance of printed and digital newspapers has been underscored by the first year-on-year data released by EMMA (Enhanced Media Metrics Australia) for the 12 months to June, 2014*. 42% to 79% of each newspaper s audience is now using a computer, mobile or tablet to get its news fix. The Sydney Morning Herald readers have increased to 7.5% in year till June The newspaper lost 87,000 print readers in the same time, though digital newspapers have increase to 237,000 viewers. The Herald Sun reported a Media Trends Q
5 readership loss, 187,000 decrease of print readers and increase of 164,000 of digital readers. The Age was the only newspaper that had increased the print readers up to 3%. Radio Radio increase in advertising 2014 as personal medium Radio continues to play a large part in the daily listening activities of many Australians and the increase in availability of listening ranges from the radio over the air, streaming on the Internet or through digital radios in vehicles. Metropolitan commercial radio advertising increased with 1.99% in the last financial year (till June 2014) and reach in total $ million. Commercial Radio Australia reported a strong increase in June Perth came out the strongest this year with 4.39% rise to $98,858 million Adelaide was the only market to decline in ad spend by 0.56% to $ million Sydney was up to 2.29% to $ million Melbourne grew by 1.73% to $ million Brisbane was up to 1.33% to $ million Outdoor Increase category growth due to the introduction of digital outdoor advertising The Australian market has experienced heightened competitive pressure due to rapid growth of digital outdoor advertising in APN+Adshel and ooh! Media continue to dominate this category. XtrackTV, new train advertising, produced by APN Outdoor is the world first format, cross-platform digital screen network giving advertisers access to 8.4 million contact per week through a digital broadcast network of screens at Sydney and Melbourne busy train stations. Q4 has also seen a boost in intrusive-contact marketing with recent partnership, NewsLifeMedia and Tapit, which offers contactless technologies to its mobile apps and content. Cinema advertising overall has increased due to the recognised 40% increase in brand consideration for advertisers Television FreeViewPlus is now available, this is a combination of digital free-to-air television and online catch-up services Freeview has announced Sony and LG as the first manufacturers of FreeViewPlus receivers Branded content Increase in content branded sites and authentic experiences Engaging with consumers through content creation will be another growing opportunity for brands continuing into Successes of 2013 include House and EE s Guardian Witness platform, will see more such initiatives going forward. Native advertising and close partnerships with established publishers will be cost-effective ways of content creation for brands. Media Trends Q
6 Contact Marketing Mechanics MARKETINGMECHANICS.COM.AU SYDNEY PARK BUSINESS CENTRE SUITE 3, MADDOX ST, ALEXANDRIA, NSW 2015 Media Trends Q
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