50 / Interbrand
MEDIA The THREAT OF THE UNKNOWN The media industry continues to undergo dramatic change. More nontraditional players are entering the space, while established companies are struggling to adapt their business models and brands to keep up with the rapidly changing times. Increased consumption of content on the go, the continued use and impact of social media, and the ever-expanding role of customer participation will force brands to rethink how they go to market as well as redefine the meaning of customer experience. Brands are no longer built by marketing departments alone, but driven by the dynamics that have reshaped the media landscape. Explosive growth of smartphones, iPads, netbooks and other on-the-go devices has fundamentally altered the way that customers consume information. On-the-go content consumption will only increase due to the growth of streaming videos, video-conferencing and multimedia web events across mobile platforms. The mobile space and the explosion of apps offer brands unprecedented opportunities to reach and interact with customers on an
ongoing basis. Brands that embrace these opportunities will drive customer interest and adoption. To capitalize on all the opportunities, brands must begin to use social media as more than just an outreach platform. Having a Twitter feed, Facebook account or hosting a blog has become par for the course. While a presence on these outlets can have a positive impact on a brand, most companies are not using these powerful tools strategically. More importantly, companies must become smarter about how they measure the impact of their social media efforts on their brand and business. As social media spend continues to increase and dollars shift from other channels, it is paramount for brands to fully commercialize the channel – especially since less than a quarter of all companies measure the ROI of their interactive efforts. Today, social media is largely used as a communication channel, but successful brands will monetize the channel to drive business success in a measurable way. Most importantly, though, the notion of customer experience has been redefined. The idea of creating a dialogue with customers is
nothing new, but few companies are actually embracing customer participation in the brand-building process, and have instead tried to control it. Brands need to rethink the way they treat customers and interact with them. Customer service is no longer just about solving a problem that is controlled by the company. Rather, it happens all the time in peer-to-peer conversations. Brands need to find ways to tap into these conversations to listen and learn, but then also act on the information they gather, allowing customers to shape the brands in ways that are most meaningful for them. New forms of communication and interaction will continue to drive the shifting media landscape, but it is the continued threat of the unknown that will put even more pressure on brands in this space. More innovative offerings and products are likely to emerge and redefine the space. Media companies will need to stay flexible and nimble to ensure their own long-term survival and success. – Cassidy Morgan, Executive Director of Strategy and Analytics, Interbrand New York