Dove Direct Print and Marketing Blog, “Digital Media and Personal Data”

Welcome to the Dove Direct Print and Marketing Blog. Today's post, "Digital Media and Personal Data" highlights three insights regarding advertising, subscription services, and social media across key demographics gleaned from the 12th edition of Deloitte LLP Digital Media Trends Survey. Streaming video subscriptions are continuing to rise, and as a result, subscription-based Pay-TV value is falling short in terms of consumer expectation. The survey identifies mobile consumption behavior driven by a collection of demographic groups, ranging in age from 14 to 51, that are combined to form a group called MilleXZials.

The MilleXZials consist of Generation X (ages 35 to 51), Generation Z (ages 14-20), and Millennials (ages 21 - 34). The survey points to the overwhelming types of content consumption taking place online, which in turn is reverberating with consumers concern regarding the safety of their personal data. The respondent consumer base for the survey totaled 2,088 consumers.

Video and Streaming On the Rise

While streaming has come full circle, it had crossed the great Pay-TV subscription model in 2017. In the US, 55% of all households subscribe to paid streaming video services, well over the 50% threshold. 2017 marks the first instance in which streaming rose above 50%. The percentage of US households that bought a paid streaming video service grew an unprecedented 450 percent. That percentage growth rose from a mere 10% in 2009 to 55% in 2017.

In fact, with over 200 SVOD choices, the survey states that today's US consumers, on average, subscribe to at least three on-demand streaming services. Those subscriptions add up to $2.1 billion spent monthly on streaming services, and that number continues to grow. If you're wondering how many hours were spent watching video content during a weekly average of 38 hours watching video, 15 of those hours or 39% were streamed.

US consumers also find high value in original content provided by streaming services. Deloitte's digital media trends survey found the following results:

• 73%–allows me to watch content when I want
• 67%–allows me to watch content without commercials
• 62%–allows me to watch content where ever I want
• 49%–value the quality of the original content offered
• 49%–allows me to watch content on multiple devices

Moreover, that same research indicates that consumers are subscribing to streaming services to the tune of 54% for the primary reason of accessing original content. In addition, paid streaming video subscription services outpaced free subscription services by 15% with paid services coming in at 45% and free coming in at 30%.

Pay TV Share Declines

The report also provided insight into the declining percentage and the numbers per demographic group that have cut the cord for Pay-TV. While Pay-TV held steady at 75% penetration for decades, it fell to 63% in 2017. During the last 12 months, the demographic groups that were cutting their Pay-TV and opting for streaming services were as follows:

• Gen Z–31%
• Millennials–22%
• Gen X– 30%
• Baby boomers–25%
• Matures–25%
• Total–27%

The take away from Pay-TV declining numbers would suggest that 1) all demographic groups are in search of quality content; 2) these groups are in agreement when accessing content that does not contain commercials, and 3) all demographic groups prefer content that is accessible on any device at any time and anywhere.

We contend that this survey data while limited to pay-TV versus subscription-based streaming models represents a glimpse for brands and marketers to consider for their marketing and branding strategies.

This survey also represents a look into human behavior in the age of instant digital access. Therefore marketers and brands should take notice that omni–channel marketing is the way of the future. Creating a seamless, personalized experience that places the customer as the focal point stands a better chance of connecting on an engagement level.

Concern for Personal Data Protection

Data control is now the buzz word of the day, especially for consumers. 2017 was the recipient of significant, visible data breaches in the United States. The European Union is already taking steps regarding the governance of personal data, and as a result, US consumer awareness regarding personal data concerns are on the rise.

The report also revealed that 73% of all US consumers expressed concern about the possibility of identity theft when sharing their personal data online. This determination should serve as a wake-up call for all marketers and brands. Why? The 2017 report uncovered a 10 point drop in consumers who would agree to share their personal data in exchange for personalized advertising. The slide went from 37% down to 27%.

Currently, it is a common practice for advertisers to reward consumers with something of value in exchange for gaining personal information and this is especially true in the online world. As consumers grow wary of sharing their personal data, this behavioral trait represents a two-edged sword. Lack of consumer confidence in sharing personal information stunts growth opportunities for marketers and brands in their efforts for personalized, targeted marketing.

If organizations are unable to bolster consumer confidence regarding personal data protection, the demographic information marketers need to create targeted marketing for each group effectively will be next to impossible to achieve.

Personalized targeted marketing is a necessary component to reach any consumer these days. The question becomes, what value proposition will be acceptable to various demographic groups provided that their personal data is protected? We already see those voice assistants such as Alexa and Siri are listening to everything that is happening in a particular household. Not only is Alexa listening, but employees of the voice assistant parent companies are also listening. In a sense, George Orwell's prediction of Big Brother is upon us. The invasion of privacy is now a real challenge for any marketer, brand or offering that requires the collection of consumer data.

The Net-Net

Therefore, consumers are not only in the driver's seat, but they are dictating what they will and will not except from any brand. Henceforth, marketers and brands will need to improve data protection and how their digital offerings provide a deeper sense of value in exchange for access to the consumer's personal data. Additionally, streaming video subscriptions are just the tip of the iceberg. That said, it would appear that marketing to a growing subscription-based consumer requires content that is entertaining, engaging, truthful, and secure while providing unique brand value.

Let's have a conversation about PUR binding, direct mail marketing strategies, printing, transactional documents, variable digital printing, brand equity and unified marketing collateral during our next Open House. We invite you to join us on Thursday, April 25, 2019, for an hour or two, anytime between 9:30 am to 4:30 pm. Let us show you how to improve your document processes to optimize your workflow, reduce your costs, and maximize your organization's printing, letter shop, and mailing capabilities. Dove Direct has an official USPS certified bureau located within our offices that will save you time and money. Moreover, if you bring us your files, we will create a demo file for you. For more information, call Carla Eubanks at 404-629-0122 or email Carla at This email address is being protected from spambots. You need JavaScript enabled to view it..

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