Observations from Digital 2011 (SECC, Glasgow, March 30th – 31st 2011)

Observations from Digital 2011 (SECC, Glasgow, March 30th – 31st 2011)
http://www.digitalconnections.org.uk/

Digital 2011, held last week in Glasgow, was a national event designed to extend the connections and opportunities in Scotland’s digital and creative sectors. It was the first annual event from partners Interactive Scotland, AmbITion Scotland and the Scottish Centre for Enabling Technology.  This year, the theme was ‘Monetising Content’. This well attended, free event provided a comprehensive, yet varied programme of workshops, showcases, collaboration brokering, and networking. Participants were drawn from a diversity of origins including SMEs, micro-organisations and individuals from across the digital and creative industries.

During the main seminar sessions there were a range of key themes, both familiar and emergent, which crosscut the debates and appeared worthy of further thought:

•   The challenges of establishing new robust business models:

This was broadly related by speakers to structural changes in the technological landscape with processes of convergence taking place as well as fragmentation & proliferation. Some key examples mentioned by speakers included:

• Within the games industry a predicted move away from large development teams and high levels of specialisation to networks of freelancers (as mentioned by Nicholas       Lovell, former investment banker and web entrepreneur, who helps games developers become publishers. He is the author of How to Publish a Game and blogs about the business of games at www.gamesbrief.com);

• Advertising revenues migrating to online has led to a rapid fall in classified advertising though newspapers as per research from Enders Analysis (presented by Douglas McCabe who runs the media practice at Enders, the UK's leading independent TMT research house. Douglas is an opinion leader on print and online media, reports on media substitution, and consults on commercial strategies for the internet age);

• Content distribution also now led by online (Nicholas Lovell);

• Complex issue of regulation for example for use of social media for advertising purposes (highlighted by Andrew Girdwood, a committed digital marketing pioneer, is responsible for the development of Big Mouth Media’s search marketing strategies for major clients). 

•   Transformation to digital by traditional media organisations:

This digital revolution has necessitated major transition within large and more traditional media organisations as outlined by:

• Bobby Hain, STV's Director of Channels, who discussed STV’s rebranding from 2006. This coincided with the move to new studios at Pacific Quay in Glasgow and the more recent launching of localised news services, an HD channel and a growing range of new digital services;

• Tim Collins, Commercial Director at DC Thompson, who focused on how DC Thompson have monetised IP through consumer products, promotional alliances, digital and brand management. 

Both referred to the challenges of managing and integrating content as well as weaving digital through everything they do.

There was further discussion of the ‘battle for the living room’ (Andrew Girdwood) and a key message across the presentations was the resilience of television with even those subscribing to PVRs still viewing TV in a linear way. According to research from Enders, TV viewing actually increasing (Douglas McCabe).

•   Lessons for the future:

The speakers touched on a range of lessons, examples and opportunities generated from their experience of working in the digital economy:

• Possible revenues to be generated from virtual goods as a potential business model in the gaming sector and beyond (Nicholas Lovell);

• The importance of maintaining a customer / consumer focus rather than be led by technology (Tim Collins);

• Within advertising capitalising in moving from content to audience focus in online targeting (Andrew Girdwood);

• Building strategic partnerships (Ed Whiting – discussed how WeDidThis, a recently launched arts-led social enterprise which aims to procure arts funding by rewarding funders of the arts with a personalised gift, is exploring partnerships with existing organisations to generate growth and Bobby Hain from STV who explained how critical partnerships with external organisations have been in the transition to digital of STV);

• Boosting visibility – essential in an environment where 10% of apps generated 80% of downloads in the mobile market (Ralf-Gordon Jahns – co-founder of Research2 Guidance who has a track record of more than 15 years in the telecom and media industry and has published various market studies dealing with current topics, including “Mobile TV”, “Mobile Content” and “Fixed Mobile Convergence”);

• Targeting niche platforms – the continued dominance of Smartphone was dicussed, but also advised was targeting emerging platforms (in car, TV, tablets) and therefore capitalising on a first mover advantage (Ralf-Gordon Jahns). In the words of several of the speakers the leaders are likely to get stronger, but there opportunities for growth in niche areas;

• Targeting emerging sectors – for example health (Ralf-Gordon Jahns);

• Engaging with social media – to generate social data (normally expensive to procure) for targeted advertising (Andrew Girdwood).