In the 80s and the 90s, oil and gas was the main industry that everyone wanted to be part of. It was then that companies like Shell and Caltex were constantly in the list of best employers and most profitable. Later on, the term Peak Oil was coined.
The term peak was used within the oil and gas industry because it means that the production would have reached a point of diminishing returns. Simply put, it refers to the fact that the drilling for oil has already reached its peak. Very soon, there will no longer be any left and that would be a problem for the companies. Where would they be by then?
The same situation is with media. Analysts have already predicted that the media that is around now would have reached its maximum capacity and soon be on the downward trend. This includes data collected via:
- media ownership
- ownership of media devices
- time spent on certain media
- consumer ad exposure
The main issue about media today is that it is becoming to ubiquitous. At the same time, media consumption is changing at break-neck speed. This simply means that brands will now have to work harder in order to get into the consumers’ mindset. Digital media has become the mainstream in most industries. So, what is in store for the future of media?
Where media consumption and ownership was once a thing of the west, the eastern markets have emerged to become more powerful. Peak media has already reached the developed economies. In the United States, it is already happening. The average person in the US spends 7 hours sleeping and 12 hours in media and tech consumption. In saying tech consumption it refers to the person using some form of technology for daily activities.
The tech adopters meanwhile in Asia is led by China (by virtue of its large population) with 59% ready to buy a new tech device. This is followed by Malaysia which has 49%, a same percentage with Indonesia. Emerging markets like Vietnam and the Philippines are coming close too.
The United States boasts of mobile connectivity of 103% and in contrast, Southeast Asia alone reports a 141% connectivity, which is almost half of that in the continent. This means that mobile penetrations has reached it maturing stage in the US while in Asia, is fast becoming mainstream media.
Times spent on media
From the previous data, it suggests that the rise of mobile devices means people are consuming media differently and it is most apparent in the Asian region. Smartphones and tablets have become the main media for users in countries like China, Japan, South Korea and India. In fact, the daily time spent with media among these countries have risen to very significant levels.
The user in China spends an average of 6 hours on media daily and this is still a far cry from the US which is about 12 hours. There is still a large population of people in India and Japan who are accessing traditional media like television and they are doing so over any other media. However, this is fast changing where traditional media is losing its share with the rise of the younger generation.
Digital Media most used
Digital is now the most used medium. For comparison sake, users in the US spend an average of 5 hours and 50 minutes on digital media, 4 hours on television and about 1 and a half hours on radio daily. In terms of print media, users spend an average of 25 minutes. Over in Asia, print media is still very popular.
What does this mean then? Although digital media in Asia is moving very vastly, marketers in Japan, South Korea and India are still not pushing for it all the way because they are still preserving their traditional markets.
What does this mean?
There is no doubt that digital media is the big thing now. In fact, it has become so mainstream, it is beginning to stale. In fact, the daily media and tech consumption will not grow very much in the next 5 years. According to the statistics, it would only grow by about 20 minutes. This is because it has reached its saturation point. Digital media will continue to be in the limelight and will continue to grow among the developed markets.
But growth has been so fast, it will start to slow down. All the companies are competing for the same group of attention from the human beings and this is a finite number. Since they spend an average of 6 hours per day, there is so much to go around the YouTube, the Google and the Facebooks. This means:
- Consolidation is the order of the day
- Customers are looking for more convenience as they look to share stories on digital media
- since peak media is now happening in developed economies, the emerging markets will soon be the focus. This is translated to a potential of 4 billion people ready to come online
- Modern TV networks is taking over video distribution. We are talking about Netflix and in Asia, iFlix
- Pay TV is declining, too fast
- YouTube is now the new cable TV and we are talking about the decline of networks like Astro
Like it or not, the changes that are coming are imminent. Whether you are at peak media or getting there, you need to ride the wave. Among the changes that are coming:
- video marketing might be the way forward, but it is NOT the only way forward
- Disruptive technology is
- self-driving cars are expected to take the world by storm but not as aggressively as many would think
- Virtual Reality has been around for years and will continue to be. Augmented Reality might be closer to realization
- Social Stories are here to stay and will experience huge growth in the near future
- Media will still be very much controlled by the large distributors
- but large distributors will definitely need large media
- digital video ads will be more innovative than ever and this will be the trend from here on
- consumer’s attention will be the center of attraction. If you can get 30 seconds of their time, it is like you have an hour of their attention on TV
- all the tools in digital media would work and we are talking about banner ads, subscriptions, e-commerce as long as you know how to deploy them