In its latest report, "The Media Landscape," WPP’s GroupM digs into some of the biggest topics in media today – challenges, opportunities, trends and more.
Campaign US asked GroupM’s Global President of Business Intelligence, Brian Wieser, to share his key takeaways from the thorough publication.
See below for his insights on the concentration among media owners, the ways in which different kinds of media owners are likely to evolve and the role of media agencies now and into the future.
- MEDIA FRAGMENTATION: While it is true that a small number of companies account for the vast majority of digital advertising spending in each country (i.e. Google and Facebook in most countries outside of China, Baidu, Alibaba and Tencent inside of China), from the vantage point of large advertisers, spending is much more distributed both within digital and across all media.
- DIGITAL MEDIA GIANTS: With the digital media giants capturing the bulk of the industry’s growth and driving much of the change we see within the industry, it is not necessarily a fixed position given threats of regulation, emerging forms of competition and the choices these companies will make to alter their own business profiles.
- TV/FILM STUDIO AND NETWORK OWNERS: Streaming services are driving the strategic and financial choices that traditional video-centric companies are making. Any of the major studio owners can adapt their business for a future centered around this business model, but not all of them will be willing or able to do so.
- TELCOS AND CABLE OPERATORS: Convergence used to be a buzzword, but now it is a reality for many companies. Facilities-based companies (cable operators and telcos) have invested heavily in TV networks and other ad supported media in the US and Canada, while we see investments in digital properties in other countries around the world. There are cultural differences between facilities-based companies and media companies which must be overcome to make these businesses successful
- NON-AD SUPPORTED COMPANIES. Many of the companies who are most impacting advertising – such as Netflix, but also including Amazon – either have no advertising or do not depend on it. To the extent they make choices that don’t consider what the impact is on advertising, and force those companies who do depend on advertising to change, advertisers interests may be impacted.
- MEDIA AGENCIES. With fragmentation and complexity likely to be permanent features of the industry, media agencies will maintain their relevance into the future because of the knowledge they possess and the best practices they are continuously developing at a much greater scale than any one marketer can possess on their own.