{"id":51,"date":"2019-03-22T10:40:06","date_gmt":"2019-03-22T09:40:06","guid":{"rendered":"https:\/\/annualreport.palmapictures.es\/annualreport2018\/?page_id=51"},"modified":"2019-06-06T12:46:57","modified_gmt":"2019-06-06T10:46:57","slug":"market-environment","status":"publish","type":"page","link":"https:\/\/annualreport.palmapictures.es\/annualreport2018\/who-we-are\/market-environment\/","title":{"rendered":"Market Environment"},"content":{"rendered":"[vc_row][vc_column width=”1\/3″][\/vc_column][vc_column width=”2\/3″][vc_column_text]\n

Market Environment<\/h1>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1554889368212{margin-bottom: 0px !important;}”][vc_column width=”1\/3″][vc_column_text el_class=”inside-page-menu”]Contents<\/p>\n

Broader but growing: Ad Spend 2018<\/a><\/p>\n

Programming Arms Race<\/a><\/p>\n

Diveristy in Film<\/a><\/p>\n

Sustainable Shoots<\/a>[\/vc_column_text][\/vc_column][vc_column width=”2\/3″ css=”.vc_custom_1554889401775{margin-bottom: 0px !important;}”][vc_column_text el_class=”intro-txt” css=”.vc_custom_1559656339803{margin-bottom: 10px !important;}”]\n

What matters to consumers?<\/h4>\n

As service providers, we are the final step in realising a production. Therefore, it\u2019s our job to be one step ahead of industry trends to fully understand the needs and creative ambitions of our clients before they reach our stage in the production process.<\/strong><\/p>\n

2018 was a year of single use plastics, GDPR concerns, the announcement of BritBox<\/i>, increased diversity in films, app monopolies and advances in artificial intelligence. Social media and technology have continued to influence new trends in consumer culture, which in turn has forced businesses to focus on awareness and accessibility when targeting their markets.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/3″][vc_column_text el_class=”quote”]\u201cIt is our place to attempt to understand how consumers are reacting to these market developments\u201d[\/vc_column_text][\/vc_column][vc_column width=”2\/3″][vc_column_text el_class=”intro-txt”]Recent studies (across film, TV, commercials and stills) show that consumers are driven by ultra-convenience, diversity of choice and a personalised experience.<\/p>\n

As the \u2018Golden Age of Television\u2019 continues with more demand for content and subsequent investment than ever before, the streaming options for consumers are endless. Despite economic challenges, advertising expenditure also experienced another year of growth fulfilling the financial expectations made in 2016 by advertising expenditure forecaster, Zenith,<\/i> and encouraging an optimistic upturn for the production business.<\/p>\n

This report reflects on the trends that have appeared over the past year as the film, tv, advertising and stills industries continue to evolve and adapt to the ever-changing landscape of digital innovation.[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”adspend”][vc_column][vc_separator][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/3″][vc_column_text css=”.vc_custom_1559656381312{margin-bottom: 20px !important;}”]\n

Broader but growing: Ad spend 2018<\/h2>\n[\/vc_column_text][\/vc_column][vc_column width=”2\/3″][vc_single_image image=”191″ img_size=”full”][vc_column_text]On a global scale, consumption of visual content is greater than ever before across a range of channels, platforms and devices. IPA Touchpoint findings from this year revealed that British people are consuming on average 8 hours and 11 minutes of all media (television, radio, social networking\/messaging, internet, cinema and more) per day, with 3% increase year-on-year <\/b>and 17% increase from 2005. <\/b><\/p>\n

The advances in smart phones and social media have made advertising more ingrained in modern visual media and thus the avenues of brand-consumer contact have diversified to an unprecedented degree. This has been a contributing factor to a continuous increase in advertising expenditure as production of content creation shifts in part from television to social media.<\/p>\n

Zenith <\/i>\u2019s report of global advertising expenditure over the last decade (shown below) demonstrates how the steady growth since 2011 has experienced mild fluctuations across the international markets with minimal anomalies.[\/vc_column_text][vc_column_text]\n

Global Ad Spend Growth Worldwide<\/h3>\n[\/vc_column_text][vc_column_text]
<\/canvas><\/div>[\/vc_column_text][vc_column_text css=”.vc_custom_1554882153740{margin-top: 0px !important;}”]Source: Zenith @ statista.com<\/small>[\/vc_column_text][vc_column_text]Another area of consistency is the ranking of the top four markets for ad spend; US, China, Japan and UK, which have remained the same for three years in a row. (Zenith ROI Agency<\/i>\u2019s forecast report: \u2018Global Intelligence: Data & Insights for the new age of communication\u2019)<\/p>\n

Whilst spending in Europe remained on a positive trajectory during 2018, at the other end of the spectrum, adspend in MENA (The Middle East and North Africa) was -4.9 % in 2016 and by Q3 of 2018 this figure had fallen to -5.5%. Forecasts from 2017 to 2020 predict that Eastern Europe and Central Asia will experience the highest rate of expansion.<\/p>\n

Despite the general increase in spending, budgets have remained low, spreading more widely and thinly across TVC, stills and social media. Looking forward, Zenith\u2019s 2018-2021 projections suggest international growth of 4-5%<\/b> at the \u201cpace it has held since 2011\u201d despite a potential minor decrease in 2020 directly correlating with the percentage drop in predicted global GDP. Ultimately, the advertising industry has adapted to the diversification of viewing platforms and is benefitting from technological advances.[\/vc_column_text][\/vc_column][\/vc_row][vc_row el_id=”arms”][vc_column][vc_separator][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/3″][vc_column_text css=”.vc_custom_1559656450912{margin-bottom: 20px !important;}”]\n

New competitors join the programming arms race<\/h2>\n[\/vc_column_text][\/vc_column][vc_column width=”2\/3″][vc_single_image image=”188″ img_size=”full”][vc_column_text]Over the past two years, our trends reports have addressed the growth and proliferation of SVoDs (Subscription-based-Video-on-Demand) with commissions on the rise and traditional broadcasters striving to challenge online competitors with higher and higher budgets. This year, we continue to evaluate the competition between streaming services as the industry diversifies and delivers more content than ever before. The overwhelming success of Netflix and Amazon Prime has not only demonstrated the increasing popularity of online viewing but also the potential profitability of this service, prompting other major media companies to join the race to the top.<\/p>\n

As a business, we have first-hand experience of the dramatic increase in volume of longform projects from the UK and US market to cater to this recent demand for more TV series and films; we regularly work with Netflix, Amazon Prime, HBO, BBC, BBC America, ITV Studios, MGM among others.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/3″][vc_column_text]\n

Pieces of the Streaming Pie<\/h3>\n[\/vc_column_text][vc_column_text]
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