The State of the Media Industry: A Dive into Hyper-Personalization and AI

Alan Wolk was the keynote speaker at Boostr’s inaugural client event, and what a great way to kick it off! Wolk's speech on the "State of the Industry" gave the crowd an overview of a media landscape under a radical transformation. In this article, we'll explore the key takeaways. 

Volk talked about the impact of Artificial Intelligence (AI), the changing dynamics of user preferences, and the rise of hyper-personalization. You can watch the entire presentation here.

The Transformation of Television

According to Volk, television is undergoing a marked change. Wolk discusses the increasing use of AI for tagging and enriching digitized film with contextual metadata. This makes content more discoverable and engaging for viewers. He states that the industry is also moving towards openness, with lower barriers to entry. He predicts a future where self-serve ad creation becomes the norm. Why is this significant? Because it would allow even non-technical users to create television commercials.

A Harris poll reveals a consumer preference for ad-supported content over subscription models, especially as the price gap widens. This is important knowledge for content creators, and it's a warning not to prioritize subscriptions over ad revenue.

The Podcast Boom and the Power of Curation

According to Volk, the audio space is booming. Podcasts, in particular, are extremely popular. Wolk emphasizes the growing importance of recommendations and curation to help navigate an almost limitless audio library. With so much content out there, users will need better recommendation algorithms to find podcasts that align with their interests.

The Algorithmic Revolution in Digital Media

Evolving algorithms have reshaped digital media. Wolk acknowledges this growing sophistication but also states that user tracking is becoming increasingly complex. The deprecation of third-party cookies and the rise of IPv6 have destroyed the traditional means of tracking user behavior. This indicates a shift towards contextual cues. The focus will shift to understanding where content is being consumed.

LinkedIn's Rise and the Power of Contextual Influence

Social media is constantly changing. Wolk highlights LinkedIn's recent surge in popularity and states that influencer marketing is exploding, with a massive $16 billion spent last year. This points towards the growing power of contextual influence, where brands target their recommendations based on a user's profile and online behavior (rather than follower counts.)

Cloud Gaming and Personalized Experiences

Wolk also describes a huge shift in the gaming industry due to cloud-based gaming. Cloud-based gaming is the norm now, because online gaming eliminates the need for expensive hardware. However, gamers are no longer satisfied with a one-size-fits-all approach. Wolk talks about the growing demand for personalization. This is where generative AI will play a transformative role. Games will adapt to your skill level and preferences, which creates a unique experience.

Key Takeaways: A More Interconnected Media Ecosystem

Wolk stated that the entire media ecosystem is increasingly interconnected, with data flowing between different platforms. This paves the way for a new level of personalization. Because it’s fueled by AI and sophisticated algorithms, hyper-personalization equals higher engagement levels. However, this also leads to higher consumer expectations. Audiences will demand tailored content.

The future of media also involves a shift towards more conversational interfaces. For example, you could interact with your favorite shows or games using natural language for a more intuitive experience. Wolk stresses the importance of emotional responses as a measurement and engagement tool. Understanding why users watch or engage is crucial for creators who want to stay on top.

What You Can Do to Adapt

Wolk concludes his talk by offering advice for navigating the new normal in media. He discusses the importance of well-tagged content. This means that you enrich your content with relevant metadata to make it easier for users to find. Additionally, letting user reactions be your guide is crucial. You should pay attention to how audiences engage with your content. Then, use that data to refine your approach. You must understand the new metrics around emotion and engagement to create a better user experience.

The media industry is in a transformative era. As AI, personalization, and interconnectedness take center stage, Wolk's insights offer a valuable roadmap for navigating this new frontier.

‍