New opportunities with hybrid business models
Brands need to unburden young parents
Due to the introduction of a curfew and restrictions on visits to the home, media consumption will increase in the coming period. Investing in media can therefore be interesting because of a higher campaign reach. Furthermore, the success of the online edition of De Vrienden van Amstel Live shows that hybrid business models can offer a bright future for various sectors.
Curfew good news for media companies
Prime Minister Rutte announced during the press conference last Wednesday the curfew. This is to prevent a third corona wave. This measure might seem extreme at first sight, but it probably has a fair amount of support among the Dutch population. There is a growing dissatisfaction among the Dutch about the governmental measures. No less than 44% still find them too limited. In large cities, where people live in close proximity to each other and are more likely to be affected by coronal infections, the majority even thinks so (54%). This in spite of the more sunny reports a few weeks ago.
The curfew forces us to spend more time indoors. Visiting the pub, the theatre or the gym is out of the question for the time being. This will probably mean a considerable increase in our media consumption. We also saw this clearly in the monitor during the first corona wave and lockdown. At the end of March no less than 56% of the Dutch people watched more streaming tv than before the corona crisis. When we seemed to have forgotten corona in the summer, this percentage dropped to around 33%. Now streaming behavior is on the rise again: 44% of the Dutch people streams more. We saw the same pattern with social media, linear tv, radio and news channels. Of course this does not apply to outdoor media: by further limiting the number of movements, the reach of these will rather decrease.
Gijs de Beus, strategist at Friends & Foes: "During the first corona wave, many brands reacted by stalling. Nowadays we know that a lot of consumption 'continues' and that media consumption is therefore even increasing. And when media consumption increases, for brands this means that the reach of campaigns increases. Investing in media is therefore extra effective and efficient in the coming period. No better time to bring your brand more intensively to the attention. Especially when you consider that this increases your chances of coming out of the crisis stronger as a brand.
Hybrid events: a new business model?
The Vrienden van Amstel Live concert is a good example of our increasing and changing media consumption. The digital edition of this concert was visited by 1.7 million people and became a huge success. This is not only due to the fact that it is impossible to organise and attend events nowadays. Many Dutch people also have a strong need for positive initiatives (one third of the population) and many young people are looking for ways to entertain themselves (one third of the age group). Moreover, we are becoming increasingly familiar with these new media forms and paying for content. For event and festival organizers, this may prove to be an interesting business model after the crisis. Hybrid events, where visitors can choose to be physically present or to follow the event via a paid live stream, can provide additional income. Where a concert hall or festival site sells out, the number of online visitors is in principle infinite. Moreover, organisers can generate extra income or attract sponsors by also making space for advertising.
Rob Revet, brand strategist at FNDMNTL and member of the expert panel: "Hybrid business models are here to stay and can significantly expand the market for many entrepreneurs. After all, penetration can increase by opening up an extra channel. It's a cold comfort, though: entrepreneurs will only really benefit from this when the lockdown is eased."
Brands: help young parents unburden themselves
Many figures in the monitor show that most Dutch people find the lockdown increasingly difficult. For young parents in particular, sitting at home and working from home prove to be a major challenge. From a survey by the FNV The Monitor also shows that parents would like to be given coronary leave. Also insights from the Consumer Behaviour Monitor give an indication that parents are interested in corona leave. More than half of the 18 to 34 year olds have difficulties with the continuous care of their children. Over 40% of this group has problems with not being able to go to work. Among Dutch people aged 35 and older, these percentages are much lower, namely 29% and 26%.
Mandy Merks, Insights Consultant at Validators and member of the expert panel: "For brands that focus on (young) parents and families, this offers the ultimate opportunity to add value. For example, offering family planners or educational games for the kids."
Media companies can also respond to the need to unburden parents by offering education for children via television. One such initiative of the BBCThe BBC, which has started broadcasting lessons for children during the day, has received much praise in England.
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This article also appeared on Marketing Tribune.