Lines Among Content Creators, Distributors and Brands Have Blurred for Consumers [INSIGHT]

Edelman revealed the results from its ninth annual entertainment study, which found that when it comes to creating entertaining content, consumers equally trust content creators, distributors and brands (72 percent trust traditional cable networks; 73 percent trust traditional broadcast networks; 74 percent trust online video streaming platforms; 75 percent trust companies whose products they buy).

“The blurring perception of entertainment companies combined with the adoption of big data and predictive technologies is providing a unique opportunity for brands – giving them full license to create content and build relations with consumers,” said Gail Becker, president, strategic partnerships and global integrations, Edelman. “This perfect storm creates a powerful trend we call ‘networked entertainment’.”

Entertainment Networked: Algorithms, Brands and Connections

Algorithms: Big Data is King

The technology behind predictive recommendations, or recommendations based on consumers’ habits or data, help deliver entertainment people want. The majority – three-fifths (60 percent) of respondents – indicate they are “very” or “somewhat likely” to provide personal information in order to secure more tailored recommendations online.

While there are some reservations (five percent of people are “not comfortable at all” with the idea of predictive recommendations), most consumers find value in predictive recommendations, with 80 percent of respondents agreeing they enhance their viewing experience. Consumers also agree predictive recommendations help them navigate and prioritize the overwhelming amount of entertainment content at their fingertips (69 percent) and provide wider exposure to a variety of content (74 percent).

“With more entertainment options available than ever before, consumers are looking for help in navigating the cluttered landscape, and they’re willing to give up their personal information to have curated entertainment content,” said Jon Hargreaves, global vice chair, Technology Sector, London Technology, Edelman. “In return, this data provides an opportunity for brands not only to learn more about their audience, but also use those insights to drive tailored content and build even stronger relationships.”

Brands: Permission to Engage

When it comes to what consumers want to see from brands. The study identified four key drivers to compelling content – content that is: 1) informative/teaches consumers something new (87 percent), 2) connected/part of a video series (78 percent), 3) authentic/fits naturally with the company sponsoring it (76 percent) and 4) validates/includes a personal story (74 percent).

Trusted relationships with brands also play into consumers’ viewing and spending habits. Eighty five percent indicated they are likely to view branded content that is created by a company they trust. Sixty five percent said that when spending money on entertainment knowing if a trusted company/brand created the entertainment content was integral to their purchasing decisions, only slightly lower than a recommendation from a “real life” friend or family member (70 percent).

“Branded content is a powerful way to build networks between consumers and drive sharing,” said Jarrod Moses, founder, president and CEO of United Entertainment Group. “If done correctly, brands will reap the rewards from providing consumers with content they value.”

Connections: Drive Results

This year’s study also found that compelling entertaining content drives business results. If content is “good” or “engaging,” 37 percent said they would pay attention to future content from the company; 34 percent said they have recommended a company to a friend, family member or colleague and nearly a third said they would choose to buy the company’s products or services.

Additional Data Points

•     Online Streaming Platforms Most Top of Mind: For the first time, two of the top five entertainment companies listed by consumers were online streaming platform companies. This is a dramatic shift from just five years ago, when all 10 of the top companies cited were traditional networks and studios.
•     Multitasking Brings Some Opportunities in: 93 percent of consumer simultaneously use another device when watching entertainment content. While 85 percent of multi-device users said they are likely to multi-task doing something unrelated to the entertainment they are watching, 79 percent said they’re likely to search/google for content related to what they are watching.
•     Predictive Recommendations Most Helpful for Video Streaming Platforms : Across streaming platforms, consumers see predictive recommendations as most beneficial to help identify new content for TV (45 percent) and movies (41 percent), followed by music (37 percent) and social media (29 percent).