Fireside Chat, Panel
May We Have Your Attention, Please: How Data Is Transforming the Consumer Experience
- The radio business is currently under-monetized, with expectations of significant upside driven by a shift from selling based on ratings to selling based on ROI and attribution; advertisers will increasingly demand guaranteed returns and the ability to buy specific consumer profiles, such as weekend Pampers buyers or car owners of four years, alongside real-time triggers like weather-based ice cream promotions.
- Outdoor and billboard advertising are predicted to gain importance as media fragments, leveraging mass reach and shopper marketing impacts right before consumers reach stores; new digital billboards are expected to become interactive, and the industry anticipates a future where the ability to identify which 50% of advertising does not work will fundamentally alter the landscape.
- The "connected home" trend has reversed toward "out of home" consumption as users connect without wires, supported by data showing the average American spends 30% more time in their car today than 10 years ago; this shift positions "out of home" media to capture attention during commute times, complementing traditional "beacon of the tribe" radio functions.
- Video game engagement is expected to rival any other media form, with fans described as the most committed audience, evidenced by BlizzCon tickets selling out in five seconds and a specialized environment fostering creativity being essential for success; investment costs vary widely, ranging from modest mobile games to billions for long-term projects like World of Warcraft, while Skylanders toys achieved $1 billion in revenue within their first year.
- New product launches include the Guitar Hero release scheduled for the fall, featuring interactive GHTV video streaming, cross-platform availability on iPhone and Android, and massive outdoor advertising campaigns; the experience aims to satisfy the "inner rock star" fantasy using live video of festivals and will utilize dynamic analytics to adjust the game experience as players engage.
- Data and technology are central to future strategies, with $4 billion invested in Expedia technology and a focus on using machine learning to manage immense data volumes; the iHeartRadio app is viewed as a tool to identify listeners rather than replace traditional radios, currently capturing about 4% of listening time but allowing profiling of the remaining two-thirds; combining app data with radio habits now identifies a third of the consumer base, enabling early music trend prediction through "thumbs up/down" tracking.
- Privacy expectations differ between companies, with one operator admitting they do not protect player anonymity as vigilantly as claimed by others, while simultaneously using analytics to understand player profiles and make games more satisfying; conversely, the ability to identify a user once allows for tracking behavior across platforms and inferring profiles for similar users, a capability expected to expand as the industry moves toward quantifiable value partnerships.
- Market dynamics in travel are described as cyclic, operating on leverage periods of approximately seven years, with an expectation that the business will recover even during unfavorable leverage cycles; successful individuals are defined by their readiness to jump on future opportunities as they appear rather than attempting to predict them, acknowledging that fundamentals like radio's role as a "best friend" remain constant despite technological shifts.