VSS, a leading PE firm that invests in media, communication & information industries released the next 5 year forecast of the communications industry. It has interesting trends on where consumers are expected to spend more time and therefore engage with marketers' brands. This has a direct impact on the kinds of media, investments & marketing programs that are expected to grow during the coming five years.
What's expected to grow and shrink?
Here are some of the segments and sub segments of the communications industry which are forecast to grow over the next five years and those that are forecast to shrink over the next five years
"VSS reported that direct marketing benefited from the same trends as branded entertainment as marketers increasingly opted to reach their target consumer with one-to-one messaging as opposed to one-to-many. Digital technology has enabled marketers to perfect their techniques in targeting customers. While direct mail and telesales spending declined due their reliance on such stressed industries as automobiles and financial services, direct marketing still registered a 3.2% increase in 2008 to $106.52 billion, and is forecast to achieve a 5.6 % CAGR during 2008-2013. E-mail marketing performed even better, and continues to expand at double-digit rates because it offers a low-cost alternative to direct mail and other marketing strategies"
What is Growing? | |
Internet Media | Word-of-Mouth Marketing |
Professional Information | Subscription Television |
Business Information | Mobile Advertising and Content |
Education | Videogames |
Direct Marketing | Business-to-Business e-Media |
Event Marketing | Tradeshows |
Public Relations | Digital Out-of-Home |
e-Books |
|
What is Shrinking? | |
Newspapers | Yellow Pages |
Consumer Magazines | Business to Business Magazines |
Broadcast Television | Home Video |
Radio | Recorded Music |
Traditional Out of Home | Traditional Consumer Books |