Predictive Analytics Is the Next Frontier for Media Company Growth
AI is reinventing the way media companies can analyze their business, from precise forecasts to finding new business opportunities to optimizing yield. In all of these cases, data is required to deliver these new insights. Media companies with access to good data gain the ability to see around corners, get ahead of their competition and anticipate audience behavior and advertiser demand.
Consider these examples of how predictive analytics can transform media company strategy:
- Accurate audience prediction to help sell inventory
- Advertiser demand forecasting to help price inventory
- Competitive analysis to time content releases optimally
- Campaign analytics that help optimize delivery and performance
- Predictive yield analytics to drive investment more effectively
The move to predictive analytics is critical for growth. With increased competition from every angle, media companies need to take advantage of these new innovations to move faster and make more informed strategic decisions. However, the foundation of great analytics is access to the right data and technology, which requires media companies to prioritize elements of their business that might not be as obvious as audience growth or content development – but are just as important for future growth.
Data, A Foundational Driver Of Success
As the advertising ecosystem becomes increasingly automated, media companies have more complexity and more data to contend with than any time in the past. Rather than offering an opportunity, this shift is seen as a burden by many media company leaders. PWC found that 57% of media company CEOs believe that their company won’t be viable in the next few years, significantly more than across other industries surveyed. And, the study found that 46% said one of their most significant challenges was accessing and monetizing data.
This pessimism needs to change if media companies are going to succeed and it needs to start with data. Data has become one of the most valuable assets within a media company portfolio, but not enough media executives are prioritizing it. Equally as valuable as content, audience and capital, data is emerging as the critical lever that unlocks growth for media companies. But old data, or data sitting neglected is not going to provide value. Media companies must prioritize data to tap into its power. This means ensuring that the right data is collected, and that it is housed in a way that is accessible as usable.