Streaming Services Need A More Personal Marketing Approach To Succeed In Next Era

As the streaming wars evolve into their next knock-down-drag-out stage, where subscription services are brawling for ever-smaller slices of market share, media companies could learn a lot from a new report on what consumers want from their marketing relationships.

The study by Econsultancy and relationship-marketing platform Cheetah Digital surveyed 5,400 consumers in six Western countries about how they want to communicated with, and what they expect from the companies they do business with.

Little surprise after half a decade of data transgressions, but privacy was tops among concerns for subscribers, along with such related issues as corporate care with the personal data that is shared with a company.

Some traditional relationship builders – such as contests, rewards, and loyalty programs – are also just fine. And forget such newer connection methods as social-media ads; email remains the preferred communication method, especially when it brings valuable information alongside the marketing messages.

On the flip side, consumers don’t like “creepy” tactics such as location-based ads, cookie-based retargeting, and serving up ads that thematically match previous conversations near smart devices.

Consumer discomfort comes amid increasing awareness of such problematic surveillance marketing, and moves by both Apple and Alphabet to stop use of cookies and third-party data in mobile advertising.

Most of all, the study suggests the paths to consumer hearts and minds are fracturing and multiplying, making the process of staying connected more complicated than ever.

For streaming services, that’s bad news as a glut of competitors, rising inflation and gas prices, a lingering pandemic, and a European war all seem likely to push consumers to take another look at their subscription budget.e-streaming-companies-vulnerable-to-suddenly-skittish-consumers

“The path to purchase today looks more like a bowl of spaghetti, with technologies providing infinite routes to closing the sale,” according to the 2022 Digital Consumer Trends Index from Cheetah and Econsultancy. “What used to be a simple game of persuasion, which marketers had nearly mastered, has morphed into the age of consumer empowerment where control, choice and convenience rule the day. Marketers need to pivot energies from trying to persuade, to a model that tries more to support a customer.” 

Plenty of packaged goods and other consumer-facing companies are reviewing how best to connect and engage with customers, especially given the growing headwinds for many. Streaming services may have even more need to do so, given the perception that pricey entertainment options are a discretionary expense that’s one of the first things to get trimmed.

Accordingly, the study suggests that newer marketing channels such as social-media ads, banner ads and SMS text messages trail far behind good old email in terms of consumer acceptance, by as much as 108 percent, the 82-page report said. Half of those surveyed said they’d purchased something directly from an email newsletter in the previous year.

Given the broader concerns about privacy, it’s no surprise that consumers are arming themselves with a variety of tools to fend off prying eyes. Use of incognito browsers is up 50 percent, ad-blocking software rose 37 percent and password generators and managers have grown 31 and 40 percent respectively.

Companies can still find plenty of consumers willing to trade their data for a better, more personalized experience. But that trade comes with much higher expectations of corporate stewardship too, including how the brand uses the data subsequently for other purposes.

“Brands can no longer get away with lumping customers into segments, but rather must treat them as individuals,” said Cheetah Digital VP Content Tim Glomb in a release. “This requires developing authentic relationships, offering real value exchange, and interpreting the right customer signals at the right time in the right channel.”

The payoff for taking care of data while creating a better, more personalized experience is significant loyalty, at a time when brands need it more than ever. For companies providing an individualized approach, align on values, and respectful treatment of personal data, the report says loyalty metrics are “spiking across the board.”

Consumer expectations for personalized product recommendations are up 56 percent, according to the study, making more important than ever those preview newsletters tracking the upcoming shows most likely to resonate with a given customer.

Contests, sweepstakes and exclusive access and content remain significant ways to connect, useful for streaming services with inside access to the stars and content that fans want.

“How brands respond will impact their bottom line in both the short and long term,” Glomb said.

The index is based on interviews with 5,404 consumers in the United States, United Kingdom, Ireland, France, Spain, Japan, and Australia, further broken down by age, gender, and household income.

Cheetah provides software tools to brands such as Starbucks, Hilton, Levi’s, Williams-Sonoma, and Neiman Marcus for cross-platform marketing strategies that use data, messaging and loyalty strategies.

The organizations plan to release additional findings, and a U.S.-focused report later this spring. Cheetah and Econsultancy will host a webinar on the report  next week.