As online media content, whether it be music, gaming or video, is becoming more mainstream, it does lead to question if it will overtake traditional packaged media. According to the consulting firm Strategy Analytics, there will be quite some time before that happens.
MediaPost reports that purchased online videos are currently about one-tenth of the sales compared to traditional video like Blu-Ray and DVDs. In fact, digital was estimated to bring in $3.5 billion by the end of 2011. Experts theorize that consumers find value in digital purchases; however, they put greater value on packaged media.
Packaged media brought in globally about $42 billion in 2010; however, it is projected to decline over the years. The research company Futuresource estimates that by 2014, the revenues will fall to $33 billion. Even at that point, digital sales are not expected to overpass it.
How is this applicable to advertisers? In a sense, it shows that traditional media is not dead. Consumers are making room for digital but still value traditional. Keeping tabs on how people consume media can help determine the most effective media mix possible for a campaign.
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