There are other options besides moving to a paid model. Half of those surveyed were interested in receiving personalized advertising messages. But 73% said current advertising didn’t match their personal interests and preferences.
That disconnect represents an opportunity, Mann said. “In the world of a personalized experience, where a consumer can dictate the schedule of what they consume, advertisements need to keep up. Trying to sell products that are irrelevant feels intrusive.”
Younger people, who use personal devices like the mobile phone over communal ones like the TV, are more receptive to personalized ads than older consumers, according to the survey results.
Media companies can take that into account as they strengthen data about their consumers and use their viewing habits to segment them and deliver appropriate ad experiences, Mann said.
Besides personalization, the industry can maximize opportunities to show “less invasive, more entertaining” ads, Mann said, like Red Bull’s forays into the content arena.
Media companies should consider all of these different options when designing new business models. Because consumers expect personalized experiences, some may prefer to pay for content, while others may want something else, like a Red Bull-like content experience, Mann said.
“We are already moving from a very small number of business models targeted at a very small number of segments, which doesn’t create maximum value for either party,” he said, “to a scenario where you offer much richer, more granular options for how they consume media that extracts the maximum amount of revenue from each audience member.”