The survey of 7,000 consumers from ten countries conducted as part of the "Generation Hashtag ascendant: Think native digital first" study shows that half of all media consumers already favor content that is designed and offered exclusively digitally - and preferably via mobile devices. However, most media companies still need to adapt better to the wishes and needs of these digital natives. "Whether media companies benefit from this new wave of demand depends on how they can satisfy changing customer needs," explains Imeyen Ebong, Partner at Bain & Company and Head of the Technology, Media, Telecommunications practice group in Germany.
The regional and age-related differences are large:
- The hashtag generation includes up to 47% of respondents from the industrialized nations of the USA, the UK, France, Sweden and Germany. In the growth countries of Russia, China, India, Brazil and South Africa, the figure is 37%.
- In Germany, only 38% of the 2183 respondents are digital natives. This is significantly less than in other industrialized nations and only slightly more than in the growth regions.
- The 15 to 25-year-olds dominate. Almost one in three consume music and print media primarily in digital formats. The 55-plus generation only accounts for six and eleven percent respectively. In the case of services such as real estate information, 32% of over 55s already use purely digital offerings.
- The acceptance of paying for digital content is particularly high in industrialized nations. Here, between 24% and 32% use a credit card for music, videos and online games. The willingness to pay is particularly high among Germans, at up to 37%. They justify this with better access to content and more convenient usage options.
- Data protection is an alarming trend for providers. Fewer and fewer consumers in industrialized nations are disclosing personal information. Their share has fallen from 34% in 2013 to 24% recently. The trend in Germany is even more dramatic. Here, the willingness to disclose personal data rose to 37% in 2014, only to plummet to 27% in 2015.
Earning money with digital content
The biggest challenge for media companies remains earning money with the elaborately produced digital content. Bain expert Ebong advises greater experimentation: "Those who have more valuable offerings and develop new payment structures are well equipped to compete for the hashtag generation."
According to Bain & Company, content providers should follow five guidelines:
1. completely redesign digital content. Media groups can no longer simply adapt the products of the past to the Internet age. Successful content is influenced, if not determined, by end users.
2. secure the distribution channels. The formula for success, according to which good content always sells, no longer applies. Too many Internet offerings are fighting for the attention of consumers. Success only comes to those who address their precisely defined target group in the right channel at the right time with truly desirable content.
3. internalize the new rules of advertising and marketing. The development of individual customer profiles and the strict measurement of the return on investment have replaced the previous definition of reach and rough customer segmentation. Advertising forms that can hardly be distinguished from editorial texts are becoming the new drivers for direct marketing and classic brand campaigns.
4. individualize and optimally evaluate consumer data. Knowing customers and their preferred buying environment is more important than ever. Media groups must create incentives for potential buyers to provide them with their data. Trusted brands of large media companies in particular are likely to benefit from the increased global demands on data security.
5. growing with the stars of the digital world. The takeover of a start-up requires a particularly sensitive approach. How can the value of this beacon of hope be measured? How closely should the freedom-loving founders be integrated? And how can the demanding young talent be retained?
Bain partner Ebong emphasizes: "No matter how complex and challenging the future becomes: Media groups must adapt to the concept of 'digital native first'."