Can Digital Discovery Live Up to its Potential?

David Card, VP Research

Key questions

How are consumers finding entertainment and content today? Which types of media customers use digital discovery? And how? How can media companies best use digital and social discovery?

Traditional discovery tools still dominate

Question asks: How do you find out about different entertainment options (e.g. movies, TV shows, music, fun websites)? (Select all that apply)

% of online consumers
Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

And 1:1 recommendations rule

% of online consumers
Question asks: How do you make entertainment-related recommendations to others? (Select all that apply)

Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

Media consumer segments

TV FANS PRINT FANS RADIO FANS

35% of consumers 2/3 45+ years old Less likely to pay for online video Least likely to have smartphone, tablet, eReader Most likely to have DVR

14% of consumers 59% male, older Most likely to pay for e-Books, yet only average e-Book reader ownership Most likely to have iPad, overall early adopters Use stores for discovery

25% of consumers 58% male Fairly average use of other media Online local news More likely to pay for downloads than streamed music More likely to have smartphone

Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

Fans use digital discovery a little more

Question asks: How do you find out about different entertainment options (e.g. movies, TV shows, music, fun websites)? (Select all that apply)

% of segment
Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

Radio, print fans convert to paid content

Question asks: Which of the following product categories have you purchased online in the last 3 months? (Choose all that apply)

% of segment
Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

The future: Introducing the Social Explorer

Use social networks to find content 17% of all consumers Young (40% are 18-34) Skew slightly female Heavier users of all forms of entertainment discovery and recommendation A third use 3 or more social network sites 36% influence friends across a variety of categories

THE SOCIAL EXPLORER

Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

Social Explorers spread the word

% of segment
Question asks: How do you make entertainment-related recommendations to others? (Select all that apply)

Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

And they also help pay the bills

Question asks: Which of the following product categories have you purchased online in the last 3 months? (Choose all that apply)

% of segment
Source: GigaOM Pro U.S. consumer survey, 3/12 N = 1,165

A tale of 3 social readers: WaPo

All promotion but even related WaPo links dont drive off-site No advertising

The Guardian

Leads with editorial curation Rich media ads Promotion of other Guardian Facebook pages

The Daily

Editorial and social curation options Enables writer following Ads and download the paid app

Key takeaways

Traditional discovery means dominate dont bet the farm on digital discovery All campaigns/promotions must be integrated Radio and print fans more digitally adventurous, and more likely to convert Identify and cultivate your Social Explorers Social strategies: Use Facebook for free while you can Exploit the startups Drive em home!