ANALYTICS FOR THE BROADCAST INDUSTRY. By Farzad Minooei, MBA, PhD November 2018

Transcription

1 ANALYTICS FOR THE BROADCAST INDUSTRY By Farzad Minooei, MBA, PhD November 2018

2 What is Business Analytics? Business Analytics (BA) Business Intelligence (BI) Data Driven Management Data Mining Artificial Intelligence

3 It is all about DECISION MAKING

4 How do managers make decisions? Tradition: We ve always done it this way Intuition Gut feeling Rules of thumb As the restaurant owner, I schedule twice the number of waiters and cooks on holidays

5 Complexity: The nature of real world problems More uncertainty More ambiguity More interconnectedness More elements

6 Business analytics definition Business analytics is the scientific process of transforming data into insight for making better decisions. (Definition by INFORMS)

7 What is new? Data Revolution Huge amounts of data Enhanced capability in data storage Advanced data analysis techniques and algorithms

8 Challenges of broadcast industry in digital age Shifting viewing habits Content model and consumers Fragmented viewing and prominence Rising content budgets New advertising models

9 Increasing expectations from media agencies Better understanding of the audiences Better targeting Less expenditure More detailed reports Help make better strategic business decisions Quantitative Marketing Qualitative Marketing

10 From audience perspective Reference: IBM Analytics 2015

11 Broadcast Media Analytics

12 Consumers as individuals Traditional Structured Data ERP and CRM Systems Marketing Data 3-Party Audience / Market Research Non-Traditional Data Consumption via STB, VOD, IPTV, DVR Online Purchases & Interactions Public Data Non-Traditional Un-structured Data Social Media Audio/Video Textual/Reviews /Chat/ SMS Correspondence

13 Analytics across multiple business functions Reference: IBM Analytics 2015

14 How analytics is changing the game? 360º consumer profiling Know audience characteristics /preferences Microsegmentation Segment mapping Improve targeted advertising

15 How analytics is changing the game? Engagement and churn analytics Identify consumption drivers Reduce churn Calculate lifetime value

16 How analytics is changing the game? Consumer targeting Improve reach to target segments Increase campaign conversion Enable personalization

17 How analytics is changing the game? Audience forecasting Predict outcomes such as sales, views, Optimize the media mix Predict behavior

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19 Entravision Entravision: a diversified media company targeting US Latinos Luminar (2012): the first "big data" analytics with the goal of connecting marketers with U.S. Latino consumers Four main factors influenced this decision: Become a data-driven organization Hispanic consumers are under represented Synergistic opportunity New revenue stream

20 Entravision Luminar Insights App Customer Decision Engine Real Time Cloud Insights

21 FOX Networks Group FOX Networks Group: 300+ entertainment, sports, factual and movie channels in 45 languages across Latin America, Europe, Asia and Africa FOX and Facebook partnership (2016) Pilot: OUTCAST Facebook Live and Brandwatch Analytics Add insight depth

22 FOX Networks Group Key results Dissecting the viewership Analyzing Sentiment and Language Strengthening Brand Association

23 Data Analytics of Changes in Consumer Behavior and Opinion of a TV Broadcaster 2014 Winter Olympic Games broadcasting in Norway The transition of broadcasting rights from NRK to TV2 Resulted in massive discussions Research Questions: 1. How did consumer behavior of the TV2 network change as a result of broadcasting the Olympic Winter Games of 2014? 2. How was consumer opinion of the TV2 network affected during the Olympic Winter Games of 2014? 3. How did consumer opinion towards TV2 and NRK differ during the Olympic Winter Games of 2014?

24 Data Analytics of Changes in Consumer Behavior and Opinion of a TV Broadcaster

25 Data Analytics of Changes in Consumer Behavior and Opinion of a TV Broadcaster

26 Data Analytics of Changes in Consumer Behavior and Opinion of a TV Broadcaster

27 Data Analytics of Changes in Consumer Behavior and Opinion of a TV Broadcaster

28 Data Analytics of Changes in Consumer Behavior and Opinion of a TV Broadcaster

29 Implications TV2 should continue hosting the Olympics Locating re-runs to popular time-slots is counter-effective and should be avoided TV2 should optimize its social engagement capabilities to turn opportunities into growth TV2 has to stop airing commercials at important moments in a program, or very early in the programs.

30 Conclusion Think about the way you make decision Be aware of new business models Consumers as individuals Opportunities provided by Business Analytics Microsegmentation Increase in engagement Better targeting Forecasting and optimization

31 References Brandwatch (2018). How New Technologies and Social Intelligence are Revolutionizing the Media Industry, brandwatch.com. EY (2013). Future of Television, ey.com. Ferguson, R. B. (2014). Luminar Insights: A Strategic Use of Analytics, Sloan Review, Hennig, A., Åmodt, A. S., Hernes, H., Nygårdsmoen, H. M., Larsen, P. A., Mukkamala, R. R., Flesch, B., Hussain A., Vatrapu, R. (2016). Big Social Data Analytics of Changes in Consumer Behavior and Opinion of a TV Broadcaster. IBM Corporation (2015). IBM Audience Insight for Broadcast/Cable Networks. Lugmayr, A. (2011). Current Issues in Broadcasting from a Market Perspective. OFCOM (2018). Public Service Broadcasting in the Digital Age.

32 Thank You.