SYDNEY: Growth in the Australian media and entertainment space will depend on brands’ ability to foster trust among consumers, according to PwC, with ‘trust assets’ key to overcoming present concerns.
This is according to the professional services firm’s 2018 Australian Entertainment & Media Outlook report, which expects overall spending to rise at a compound annual growth rate of 3% over the next five years. The report is based on an analysis of consumer and ad spend across 12 segments.
Certain key areas will outperform the market, with subscription video on demand (SVOD) and podcasting notable overachievers. The core of growth appears to be digitally-driven, with the only segments to reduce spend being traditional formats – newspapers, free-to-air TV, magazines, and filmed entertainment.
Despite trends in media, the deficit of trust between brands and consumers is worrisome, said Megan Brownlow, PwC Australia’s Entertainment & Media Industry Leader.
“Numerous breaches of trust by corporates in Australia and globally over the last year have soured relationships with consumers. Companies that get the consumer trust piece right will take it to the bank and boost investor and regulator confidence,” she said.
The company has identified four “trust drivers”, or questions through which a business can judge its strength on these measures:
- Advocacy – “are you acting in my best interests?”
- Consistency – “have you proved credible before?”
- Transparency – “do I really understand what you’re doing?”
- Success – “do you have what it takes to help me achieve my goals?”
Meanwhile, one medium that is renowned for its ability to engender both trust and engagement is the podcast, which PwC recognises as a medium enjoying incredible growth.
“Podcasting is fast becoming a consumer favourite, propelling growth in the radio sector,” said Brownlow. “It’s forecast to more than double revenue over the next five years, growing at an impressive CAGR of 85.9%.”
Sourced from PwC; additional content by WARC staff