Accelerating digital media adoption
Riding the new wave of digital growth
Key findings from our Digital Media Attractiveness Index
Media and entertainment companies have the opportunity to catch a new wave of growth as emerging markets embrace digital media.
Understanding the potential of digital growth in emerging markets
Emerging markets are ripe for digital media investment. By 2016, China will have more than 500 million wireless broadband connections; India will have more than 300 million.1 Cheap smartphones and the rollout of 3G and 4G broadband infrastructure are rapidly coming together to democratize online access.
Together, these factors are the foundations for accelerated digital media adoption – condensed rates of technology adoption and digital media consumption. It took Twitter three years to reach 50 million users globally; Weibo, a Chinese microblogging website, did it in 14 months.6 Facebook's first four years in India netted it 50 million users, the same amount of time it took to hit that milestone in the rest of the world.7
The foundations for accelerated digital media adoption
“Emerging markets are ripe for digital media investment. However, understanding what markets to focus on, as well as how and when to enter them is crucial to succeed.” - John Nendick, EY Global Media & Entertainment Leader
1 “Mobile broadband connections and revenues forecast: 2012–17,” Ovum, August 2012.
2 “Emerging Opportunities — To win in developing markets: Be agile and be smart,” The Nielsen Company, May 2013.
3 “Smartphone growth continues, buoyed by big emerging markets,” Total Telecom Plus, 29 May 2014, via Factiva, © 2014 Terrapinn Holdings Limited.
4 “Mobile broadband connections and revenues forecast: 2012–17,” Ovum, August 2012; “Fixed broadband forecast: 2011–16,” Ovum, March 2012.
5 “The growing role of emerging markets in shaping global demand,” ICEF Monitor website, http://monitor.icef.com/2014/03/the-role-of-emergingmarkets-in-shaping-global-demand, accessed 4 December 2014.
6 “Google Plus vs Facebook Infographics,” Visual.ly website, http://visual.ly/google-plus-vs-facebook-infographics, accessed 20 May 2014; “A Twitter to Invest In,” Forbes, 14 March 2011, via Factiva, © 2011 Forbes Inc.
7 “Reaching 50 Million Users,” Visual.ly website, http://visual.ly/reaching-50-million-users, accessed 20 May 2014; “Facebook user base soars to 50 mn in India,” Press Trust of India, 25 July 2014, via Factiva, © 2012 The Press Trust.
Viewing digital market potential through the lens of benefits vs. costs
Our research found that markets group into one of four distinct benefit vs. cost profiles. By viewing digital market potential through the lens, M&E companies can fine-tune their growth strategy, identifying markets that fit their risk vs. reward appetite and optimizing their investment capital across markets.
Digital market potential through the lens of benefits vs. costs
“New and meaningful investments in all markets will be critical to the long-term growth potential, independence and success of global media and entertainment companies.” - Tom Connolly, EY Global Media & Entertainment Transaction Advisory Services Leader
To find out more about DiMAx Interactive and to organize a facilitated session with one of our professionals, please contact:
Global M&E Knowledge Leader
Global M&E Lead Analyst