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Digital Media Consumption Behavior and Trends

3 minutes, 25 seconds read

With the relentless treadmill of disruption, the potential of media and entertainment companies to understand their customer’s digital consumption behaviour today is greater than at any time in history. 

Among the digital devices, mobile devices have taken over as the preferred medium of consuming content online. The smartphone market has seen unprecedented growth in the last 5 years. Smartphone devices across the globe grew at a CAGR of 17% as compared to 9.5% growth in all mobile devices. Smartphones crossed 2 billion marks in 2014 and are expected to reach 4.6 billion by 2019. 

This led to an increase in the number of devices capable of supporting digital media in tandem. Billions of screens and increasing internet access speed provided consumers with an option to access the media content of their choice anytime, anywhere.

Consumers are shifting their preferences towards digital media consumption as compared to traditional forms of media such as TV, print press, and radio. People are spending more time on digital forms of media rather than traditional mediums. This increase is mainly coming by cannibalizing traditional advertising mediums.

The increasing popularity of digital media has provided for a paradigm shift in global advertising spends.  Marketers who are seeking to monetize content and capture growth are following the changing trend and increasingly allocating their budget to digital mediums. Spending on digital media as a percentage of total advertising spend has increased from 21% in 2010 to 28% in 2015 and is further expected to reach 36% by 2020.

Gen Z’s digital media consumption trends

Generation Z represents 1.8 billion people or 24% of the world population. Having an invigoratingly different attitude, Gen Z has a tremendous effect on the overall perception and digital media consumption. 

They prove to be more entrepreneurial; growing up with search engines they like to discover content for themselves. They also like to be involved in the process, contribute to the solution and be more absorbed in experiences. 

Though a wide range of digital consumption, the Gen Z capture insights from an array of sources. Translating these resources into viable products, services and business models will go a long way in defining the leaders of today and the leaders of tomorrow

Billion screens into digital consumption powerhouse

With a population of more than 1.3 billion and around 570 million internet subscribers, India has the world’s second-highest number of internet users after China; growing at a rate of 13% annually. India to overtake the US on time spent on digital videos. The global streaming platforms are looking to capitalize on the country’s fast-growing digital content consumption. The impressive scale of the market and a liberal foreign investment environment are strategically appealing to investors.  

Media consumption billion screens

India is among the top five markets in the world based on the number of users for online and mobile gaming; with more than 90% of millennials preferring smartphones over gaming PCs and other devices. Besides, India consumes the highest data per user in the world. In 2019, adults in India, on an average spend 29.9% of their total daily media time on digital. In a recent report, the Telecom Regulatory Authority of India estimated the digital consumption of data to be around 7.69 gigabytes per month.


Leap through these Digital Challenges

India offers global investors enormous opportunities for growth. However, there also are several persistent challenges to consider before making the leap. Increasing use of digital media has accelerated video consumption, but it also has increased the piracy threat. In fact, growing piracy is likely to restrict the full monetization of content. As well as large-scale acceptance of subscription video on demand in India.

Digital advertising, a top-30 focus area of the industry, has lost as much as US$8 billion in revenues. Half of the loss incurs from “nonhuman traffic” — fake advertising impressions; that are neither generated by genuine advertisers nor received by actual consumers. The other half derives from a variety of factors such as ad-blocking and content infringements, like the sharing of passwords.

We provide innovative solutions for growth, customer engagement and streamline business processes. 

Want to make the maximum of your brand? 

Reach out to us at hello@mantralabsglobal.com

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Retention playbook for Insurance firms in the backdrop of financial crises

4 minutes read

Belonging to one of the oldest industries in the world, Insurance companies have weathered multiple calamities over the years and have proven themselves to be resilient entities that can truly stand the test of time. Today, however, the industry faces some of its toughest trials yet. Technology has fundamentally changed what it means to be an insurer and the cumulative effects of the pandemic coupled with a weak global economic output have impacted the industry in ways both good and bad.

Chart, line chart

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Source: Deloitte Services LP Economic Analysis

For instance, the U.S market recorded a sharp dip in GDP in the wake of the pandemic and it was expected that the economy would bounce back bringing with it a resurgent demand for all products (including insurance) across the board. It must be noted that the outlook toward insurance products changed as a result of the pandemic. Life insurance products were no longer an afterthought, although profitability in this segment declined over the years. Property-and-Casualty (P&C) insurance, especially motor insurance, continued to be a strong driver, while health insurance proved to be the fastest-growing segment with robust demand from different geographies

Simultaneously, the insurance industry finds itself on the cusp of an industry-wide shift as technology is starting to play a greater role in core operations. In particular, technologies such as AI, AR, and VR are being deployed extensively to retain customers amidst this technological and economic upheaval.

Double down on digital

For insurance firms, IT budgets were almost exclusively dedicated to maintaining legacy systems, but with the rise of InsurTech, it is imperative that firms start dedicating more of their budgets towards developing advanced capabilities such as predictive analytics, AI-driven offerings, etc. Insurance has long been an industry that makes extensive use of complex statistical and mathematical models to guide pricing and product development strategies. By incorporating the latest technological advances with the rich data they have accumulated over the years, insurance firms are poised to emerge stronger and more competitive than ever.

Using AI to curate a bespoke customer experience

Insurance has always been a low-margin affair and success in the business is primarily a function of selling the right products to the right people and reducing churn as much as possible. This is particularly important as customer retention is normally conceived as an afterthought in most industries, as evidenced in the following chart.

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        Source: econconusltancy.com

AI-powered tools (even with narrow capabilities) can do wonders for the insurance industry at large. When architected in the right manner, they can be used to automate a bulk of the standardized and automated processes that insurance companies have. AI can be used to automate and accelerate claims, assess homeowner policies via drones, and facilitate richer customer experiences through sophisticated chatbots. Such advances have a domino effect of increasing CSAT scores, boosting retention rates, reducing CACs, and ultimately improving profitability by as much as 95%.

Crafting immersive products through AR/VR

Customer retention is largely a function of how good a product is, and how effective it is in solving the customers’ pain points. In the face of increasing commodification, insurance companies that go the extra mile to make the buying process more immersive and engaging can gain a definite edge over competitors.

Globally, companies are flocking to implement AR/VR into their customer engagement strategies as it allows them to better several aspects of the customer journey in one fell swoop. Relationship building, product visualization, and highly personalized products are some of the benefits that AR/VR confers to its wielders.  

By honoring the customer sentiments of today and applying a slick AR/VR-powered veneer over its existing product layer, insurance companies can cater to a younger audience (Gen Z) by educating them about insurance products and tailoring digital delivery experiences. This could pay off in the long run by building a large customer base that could be retained and served for a much longer period.

The way forward

The Insurance industry is undergoing a shift of tectonic proportions as an older generation makes way for a new and younger one that has little to no perceptions about the industry. By investing in next-generation technologies such as AR/VR, firms can build new products to capture this new market and catapult themselves to leadership positions simply by way of keeping up with the times.

We have already seen how AR is a potential game-changer for the insurance industry. It is only a matter of time before it becomes commonplace.

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