By Premjeet Sodhi
Digital emergence has impacted all dimensions of the content ecosystem — publishing, distribution and consumption. The erstwhile model of a ‘few publishers serving a mass of content consumers through limited and owned distribution channels’ is fading away.
On the supply side, digital has democratised the power to create and share content. On the one hand, it has enabled millions to share user generated content; on the other, it has provided avenues for established publishers to target niche segments with specialist content suited to their preferences, driving the exponential growth of the OTT model. As content distribution moves from broadcast to on-demand (push to pull), digital as a channel of distribution has enabled publishers to target specific consumer groups without spillovers to the mass audiences. There is no limit now to the nature of content available.
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Content for all
For the consumer, the digital explosion has led to freedom of choice. It has broken the shackles of place, time, device and choice of content. Thus, in a way, there has been democratisation, as any consumer can choose to consume any content, but only as long as the consumer has the paying power. When you look at this from the vantage point of a consumer at the bottom of the pyramid, the access to low-cost devices and low data cost has enabled this content democratisation.
However, the more significant trend is that this has further fragmented audiences at the top end of the pyramid. Due to low monetisation of exclusive content, the investment behind building niche content was limited; and despite the ability to pay, there was not enough differentiated content for the premium consumer. But, as digital allows publishers to garner niche audiences using the ‘paid’ model, we are seeing more of such content being produced.
There is, hence, a clear polarisation of content consumers, and that is only increasing every day. There is UGC/old/ re-purposed/delayed and more available content to everybody across the pyramid, and then there is niche content targeted at the affluent or specialist segments, which is available only on subscription.
Advertiser access
There are two distinct business models that are emerging for the publishers — first is the free/low-cost content targeted at masses where monetisation is through advertising, and the second is premium content targeted at niche/affluent subscribed audiences, with minimal or no advertising.
The high-value consumers are choosing the ‘paid content-low advertising’ model, and hence becoming inaccessible to advertisers. This is further enhanced by ad-avoidance technologies available in digital. So, an already elusive consumer is now becoming inaccessible. The increase in content options at the bottom of the pyramid is making it tougher to reach the masses through any single content, and hence increasing the cost of reaching these consumers.
In the near future, advertising to masses on the free platforms and targeting niche audiences in paid environments will both coexist; advertisers will evolve as the content ecosystem shifts in response to consumer preferences and their ability to pay.
The content available has grown, consumers have grown, time spent on content has increased, but so have the challenges for advertisers. Data-driven marketing, where technology enables advertisers to identify and collate audiences of interest to access them across platforms and communicate with them, is the way forward. But, this is easier said than done. Advertisers have to cross the hurdles of technology investment/adoption, the barriers of digital walled gardens, the government regulations around usage of consumer data, and the lack of knowledge of marketing practices in this limitless world.
The author is senior VP, Mindshare Fulcrum
