The Creativ Brief: The Why Behind Digital Media Domination
62%. Digital media now accounts for 62% of media consumption worldwide.
There’s a lot of digital trendspotting, but little analysis on why digital media is vanquishing its older, analog relatives.
Five years ago, I wrote a prediction post that still holds up (self-congratulations). Here are the 3 reasons digital now accounts for two-thirds of media consumption.
For advertisers: digital media provides more granular metrics beyond simple reach and impressions such as engagement, time-spent, click-through-rate, and most importantly conversion data. It also delivers better targeting capabilities that provide cost-savings and relevancy.
For publishers: digital media provides more depth to programming, design, range and experiences. Programmers can understand when, how, and who is watching content. In app configurations can improve dramatically based on user behavior. Specific targeting has broadened the pool of businesses that can advertise at scale, generating more revenue.
For Consumers: digital media is simply a better product. Cable and satellite set up remains onerous. On demand entertainment, tailored to your preferences, supplies more relevant content. Watching or listening when, where, and how you want delivers increased flexibility and allows audiences to consume even more media.
Your father’s radio and broadcasts never stood a chance.
3 Stories Dominating Media and Tech Headlines
The cost of pitching is exorbitant. That’s the message from a new study conducted by the Association of National Advertisers released this week. The cost for large brands to conduct a new agency search hovers around $408,000. Agencies spend an average $204,000 to win large pitches.
Why it matters: Both agencies and brands are wasting money in the pitch process; money that could be better spent on marketing. Ironically, 64% of marketers claim that cost-saving is the main reason for agency reviews. Drawn out pitch processes are expensive, exhausting, and lead to burnout on both sides of the business. The report recommends making agency decisions quicker and conducting them less often.
YouTube and the NFL struck a $14 billion dollar deal for the rights to NFL Sunday ticket. The move allows NFL superfans to watch games that aren't aired on local CBS and Fox Stations.
Why it matters: Most people under 30 tend to watch short-form clips of games on social. The deal allows Youtube to bring high quality brand-safe content for advertisers and distribute NFL games to a younger audience. This follows a similar trend of tech-forward platforms buying up sports rights.
TikTok Expands Creativity Program for creator partners.TikTok’s updated program is designed for creators to make longer content by offering “higher cash incentives for qualified views” in an attempt to expand its offerings and compete with the long-form content powerhouse that is Youtube.
Why it matters: Creators are major drivers of platform adoption and stickiness. TikTok, along with Amazon, Meta, and YouTube have all created creator funds to attract and retain the best talent in their ecosystems. In the advertising world, longer, better content means more ads, and thus more money for all parties.
Client Spotlight - Cultural and Entertainment Summit at FOX Studios
Hosted by THE FIFTH agency and Brand Innovators; Studio and brand executives from Paramount, FOX, Tubi, Fanatics, Kia, Mattel, Samsung, Hulu, Disney, The Black Tux, Amazon Prime and more descended on the FOX studio lot to discuss marketing, cultural, and consumer trends. The day conference included executive panels, studio tours, and a boogie networking dinner at Juliette restaurant.
Stat of the Week - Digital Domination Graphed
Chart by Miles Mahoney
2017 was a digital milestone. In 2017, total time spent on digital media (streaming TV and audio and social media) surpassed traditional media (broadcast, radio, cable) for the first time.
The average time spent with digital media is expected to increase to roughly 478 minutes a day by 2025.
The average time spent with traditional media is expected to decrease to roughly 258 minutes a day by 2025.
The trend will only accelerate.
New Team Member Spotlight - Miles Mahoney
Miles joins Creativ Strategies as executive operations coordinator. Originally from Boston, Massachusetts, he recently graduated from Occidental College with a degree in Economics.
Previously, Miles did copywriting and content strategy for an LA-based podcast as well as research for a Music publishing company. I’m excited to have him on the team!