Telecoms 2020: digital content and advertising

Date: January 23, 2010
Pages: 42
US$ 2,495.00
Publisher: Ovum
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

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Telecoms 2020: digital content and advertising
By 2020, most of consumer content and applications will be delivered over IP/web-based platforms. This means the coming decade will bring considerably more disruption and significant change to the digital content and advertising landscape. Players with strong brands, significant content and software assets and skills, and strong consumer relationships will succeed. By 2020, telcos that have successfully developed into SMART players will have built a range of digital content subscription services. Equally as important, they will have established sophisticated and valuable databases of consumer information, which can be mined by advertisers in a more integrated and targeted way than today. Search and discovery will be key to enhancing consumer experiences, and interaction and personalisation will be much more embedded.
Executive summary
In a nutshell
Ovum view
Key messages
Telco media convergence is a continuing theme
Content verticals of various types will make their mark
More specialist devices are on the way
Brace yourself for the consumer of the future
Search and discovery take centre stage
New user interface technology impacts applications and the device
Fully immersive environments are still a long way off
Expanding content ‘currencies’ and business models
Not everything is in the cloud
Ad networks dominate the Internet
Ad inventory loses value to ad metrics and CRM assets
Consumer moderation of the ad message
Building online trust becomes critical
Digital content and advertising in 2020 – the broad view
Industry overview
Ubiquitous access, digital content on tap
A complex, crowded content ecosystem
The device landscape has changed its contours
Major shift of traffic from websites to applications
Advertising industry has been through dramatic changes
On-demand audiences bigger than linear audiences
Market development – core scenario
Recommendations for operators
SMART operators must build a rock solid content foundation
Fine-tune support for a demanding, contradictory consumer base
Aim for a finely balanced business model with multiple revenue streams
Telcos must focus on permission marketing
Set course for most trusted telecoms brand
Think device ecosystems that extend across platforms
Telcos need to develop applications and exploit RIA platforms
SMART players own content or strong content partnerships
Industry structure and player positioning
How it will look by 2020: the content ecosystem
An increasingly crowded, competitive content value chain
Telco media convergence accelerates
Owners of music rights have taken the lion’s share of the cake
Pay-TV operators dominate Internet TV
Some content providers move more aggressively into mobile – to become ‘virtual mobile operators’
Application stores peak and then consolidation kicks in
Close up on telco positioning in the content ecosystem
Brace yourself for major change
A fork in the road: smart enabler or SMART player?
Becoming a content and media and powerhouse: the SMART player path
Driving upstream revenues, honing downstream content: the smart enabler route
How it will look by 2020: the digital advertising ecosystem
The digital advertising value chain is in a period of disruption
Search market more fragmented
Ad networks and exchanges dominate the Internet
The content and advertising consumer of the future
The world of 2020
Transparency means consumers are increasingly savvy and demanding
Generation Y and Z grow up and set the agenda
BRIC and emerging market consumers assume more influence on the shape of services
Compelling content services and anti-piracy measures combine to reduce piracy
Digital lives become complex and confusing for many people
But some digital adventurers will create their own content portals
Privacy and security take on a new meaning
Attention management: a 2020 solution to consumer distrust
Beware a widening digital content divide
Content and applications
The world of 2020
Search and discovery will be paramount
Greater personalisation and a new generation of personalised devices
Interactivity becomes an intrinsic part of the user experience/interface
Prepare for a new wave of interactivity
Cloud services
The next chapter in the device side of the 2020 content story
Closing the content/applications and the device/user interface gap: enter specialist devices
Smartphones become more general purpose and take on the laptop
Prepare for a revolution in the user interface for digital content
Digital advertising
The world of 2020
A revolution in advertising services and value
Ad metrics bring complete transparency to consumer touch points
Advertising becomes highly viral: consumers moderate the brand message
Engagement is paramount, behavioural targeting the norm
Advertising firmly embedded in content and applications
Digital content and advertising revenues
The world of 2020
A range of ‘currencies’ come into play, along with complex finely-tuned business models
Free services are pervasive but part of a wider business model
Digital advertising dominates global ad revenues
Advertising spend has shifted further online
Mobile advertising grows but revenues are still modest
Mobile inventory finally moves beyond SMS


Table 1: Market development – core scenario


Figure 1: Digital content value chain: the old guard and challengers
Figure 2: Current telco positioning and revenue flows in the content ecosystem
Figure 3: Telco positioning as a SMART player
Figure 4: Telco positioning as a smart enabler
Figure 5: Digital advertising value chain: the old guard and challengers
Figure 6: The changing face of the consumer
Figure 7: The interactive world of future TV
Figure 8: Core content/application clusters and user requirements
Figure 9: Digital content currencies in 2020
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