Market Forces Shaping the Future Media Mix

Findings from the PRIMIR study entitled “Media Mix and the Impact on Print.”

2. Economic conditions that began eroding in late 2007 unfolded into a global recession by late 2008. Recessionary conditions are expected to continue throughout 2009 and potentially linger into the first portion of 2010. Economic pressures on marketing executives are driving efforts to capture media and marketing communications efficiencies in every channel, with greater analytical efforts to determine effectiveness and return on investment.

3. Rapid and far-reaching expansion of digital technologies by media and consuming audiences are creating Internetdependent lifestyles that are reshaping content consumption practices and creating new content delivery opportunities. Examples include the digital conversion of television broadcasts, the expanded coverage of digital outdoor signs, increasing household penetration of digital video recorders, steady growth in household broadband access and online activities ranging from viewing videos to handling personal finances. Internet-dependency will grow as continuous expansion of Wi-Fi connectivity makes Internet access more ubiquitous. Concurrently, traditional media, especially printed media, are aggressively trying to build online audiences and ad revenues to offset continuous declines in their off-line audiences.

4. Notable within the context of digital media expansion is the mushrooming adoption rates for Internet-enabled mobile devices in particular. This trend is expected to gain momentum, especially as recession pressures ease, driving a new wave of convergence across electronic devices that generate new behaviors for overall media consumption. Devices in the future will likely represent a hybrid combination of features from laptops, netbooks, mp3 players, GPS navigators, video recorders and ‘smart’ phones.

5. A critical shift toward consumer control over media consumption and message delivery accompanies these digital innovations. As Internet-enabled devices converge in the coming years, a sizable and ever-increasing proportion of consumers will exert much greater control over when, where, what and how media is consumed.

6. The ultimate by-product of all these market forces is the continual fragmentation of audiences. It will be increasingly difficult to cost-effectively transmit marketing communications that reach a critical mass of target consumers.

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