Telecom and Media Firms See Future as More Mobile, Less Social
Last week, I highlighted reports from Facebook and eMarketer that indicated a slowing in social media revenue, especially when compared to the growth of the mobile market. The annual Media and Telecommunication Industry Business Outlook Survey from KMPG sheds more light on the highest growth revenue areas between now and 2015. The KMPG findings indicate the future is all about the transition to digital and mobile.
The KMPG study surveys media and telecom executives about which sectors they believe will provide the biggest revenue opportunities in the next 1 to 3 years. Last year, industry executives were bullish about social media and online advertising. Now, these same execs believe the “sales of applications and content over smartphones, tablets and other mobile devices” hold the most promise from a business growth potential. The shift to mobile has been underway for some time but now that enough consumers are engaging with devices ranging from smartphones to tablets, at least 67% of media and telecom firms say they’ll have higher revenue in the next year as a result of the products and services they’ll roll out to mobile consumers. Paul Wissmann, KPMG’s National Sector Leader for Media and Telecommunications, says the industry is in the midst of ‘dramatic transformational changes.’
At the same time, execs acknowledge revenue pressures and say the new competition means that they face pricing pressures. So while there is growth opportunity, they expect to meet increased demand for products and services with the same or lower headcount. The answer to increased need for efficiency will be found in more technology.
If anything, this report points to continued turmoil in the media and telecom industries as disintermediation continues. Marketers and media companies have little choice but to keep their bases covered by reaching out to target audiences through a variety of formats.[Source: Social Media Platforms Giving Way to Digital and Mobile. KMPG.com/us. 11 Sept. 2012. Web. 17 Sept. 2012]
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