Press Coverage

Media executives adjusting their business models to keep up with digital, mobile and social

Active International 19 Aug 2015

Active International, Australia’s largest corporate trade company, is excited to announce today the results from its recent US study examining how media executives are adjusting their business models to accommodate the rise of new digital, mobile and social (DMS) advertising channels.

The US study reveals that nearly three-quarters of media executives (71 percent) are concerned about how to most effectively deliver audience through DMS channels. C-level executives (73 percent) and finance executives (72 percent) are slightly more worried about this than their senior management and marketing counterparts (both 69 percent).

"In Australia, digitaladvertising is still rapidly changing, with the latest IAB/PwC Online Advertising Expenditure Report (OAER) noting that it generated $1.15 billion during the March quarter, a five percent increase year on year. Staying in touch with this growth, or more importantly being ahead of these changes, is something that marketers globally are challenging themselves with every day. Reaching growing digital audiences in the right environment for brands is something I think is on every executive’s agenda." commented Cameron Swan, Managing Director at Active International Australia.

Furthermore, 88 percent of respondents note that their technology focus this year will be on expanding their DMS offerings, and over half (52 percent) say their firm will measurably increase investments in programmatic technology in the second half of 2015.

"The proliferation of digital, mobile and social media channels has dramatically changed how consumers access media. This presents a great opportunity for marketers," said Jim Porçarelli, Active International’s Chief Strategy Officer. "What’s clear from our research, however, is that media executives across departments and title levels are united in their concern around their ability to predictably deliver audience to advertisers through new advertising channels. As a result, the consensus is that improving DMS media inventory and pricing models is a top priority for the industry."

When asked about their top priorities for 2015, respondents rank reinforcing advertising value by emphasizing content (58 percent) above developing new DMS inventory models (42 percent). But when broken out by survey demographic, C-level and finance executives (49 percent) are far more concerned about developing DMS inventory than their marketing and senior management counterparts (35 percent). Marketing and senior management executives (65 percent) place more weight on reinforcing advertising value than C-level and finance executives (51 percent).

"The ability to promote audience engagement and leverage quality content has long been the cornerstone of media companies’ growth capabilities," adds Porçarelli. "But the paradigm shift in the marketplace toward DMS channels has significantly disrupted the status quo, and it is clear that the industry is racing to catch up to the new digitally savvy consumer. The good news is that media companies are actively investing to catch up. In the short-term, however, there will likely remain uncertainty among advertisers on how to value the various new DMS offerings. As a corporate trade provider, we work to help advertisers minimize those uncertainties by offering a financial solution that enables them to stretch their advertising budgets and improve ROI."

Additional survey findings include:

  • Nearly eight out of 10 media executives (79 percent) believe that M&A activity will increase in the second half of 2015.
  • Half of respondents (50 percent) say that media company acquisitions will be driven by the desire to improve multi-channel inventory options and the quality of data and analytics for clients.
  • Seventy-one percent of executives say that pressure on profit margins will increase over the next 12 months. Sixty-six percent say that their company felt pressure on profit margins increase over the last 12 months.

The report, Operating in Today’s Media Marketplace, is available for download at .

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