"Principle reality is that consumer has the control" Gowthaman Ragothaman

In his keynote address at ad:tech 2015, Gowthaman Ragothaman, COO Mindshare Asia Pacific, spoke about the trends shaping the media industry

e4m by Ankur Singh
Updated: Mar 20, 2015 8:36 AM
"Principle reality is that consumer has the control" Gowthaman Ragothaman

With mounting data and multiplying technology, there is a lot of chaos in the market today. The ecosystem has exploded across all possible mediums. In this keynote address at ad:tech 2015, being held in New Delhi, Gowthaman Ragothaman, Chief Operating Officer of Mindshare Asia Pacific, spoke about the trends shaping the media industry in this context.

“In some sense, we are reaching a stage where we know the chaos, and we also know what to do with it in a broad form. I have structured it into three things—as layers, devices, and consumers,” he stated.

“If you look at a company like Google, which has got a $60 billion revenue, it is on the back of consumers’ willingness to pay, not really paying, but “willing to pay”. The consumer surplus is what’s really driving the ecosystem. This surplus is approximately $500 billion. What is happening is the tremendous value exchange. We can expect a business of a $1 trillion built on the back of this consumer surplus.

“The principle reality is that it is the consumer that moves out from one garden to another, i.e, the control is with the consumer,” he said.

According to him, our acceptance to be a part of an ecosystem is sending out massive data for brands to build its strategies on. “The reality is that the data that is flowing in the market today is 9 times that of what was there 10 years back. Fragmentation of market, developing algorithms, and consumers’ cry for efficiency are the biggest challenges we face today.”

“Traditional TV distributed on non-TV devices will continue to dominate because digital video news will continue to be as it is for some time. Today, we have a very deeply inefficient commercial model. But we have huge opportunity to build on native advertising in the print medium,” he said.

Summarizing his address, he said, “Going forward, large part of the population will begin believing that mobile is internet. More than 60 per cent of e-commerce in India is through mobile. It is going to be a big play when it comes to managing the focal point. The trend is much more optimistic than before. The only barrier to growth is logistics. If that is fixed, we have big ray of hope for the future. So, in essence, in the next 5 years, whoever turns 20 would not have read a newspaper, would not have bought a CD, and would not have read any encyclopedia as a book. All media will have an IP, and be connected to the social stream. Hence, any communication must be very broad, persistent, and distinctive. We have to cross the hurdles of relevance and engagement.”

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