Forces of change in the operating environment
Changes in consumer behaviour, the fragmentation of the advertising market, intensifying competition and technological development have changed media consumption and marketing at a very rapid rate. Alma Media faces different forces of change in the company's operating environment.
Economic trends in operating countries
- The Finnish economy is growing but the advertising market remains subdued.
- Eastern Central Europe is continuing to see strong economic growth.
- The population is ageing and becoming concentrated in growth centres.
- Mobile devices are the primary means of media consumption for most users.
- Social media has changed media consumption to a signiἀcant degree.
- The level of preparedness to pay for digital content is still low, but it will become higher as the supply increases.
- Global technology giants are expanding their business through the convergence of industries.
- The Finnish media market is becoming polarised due to the investments required by the digital transformation.
Technology and data
- Using data and analytics in the various areas of business operations is increasingly essential.
- Rapid changes in the technological operating environment require in-vestments in competence. The competition for skilled employees is intense.
Marketing marketing and advertising
- Marketing automation is increasing, with a large proportion of marketing investments being directed into technology investments.
- The programmatic buying of advertising is increasing.
- The areas of strong growth in digital advertising are search engine, social media, mobile and video advertising as well as content marketing.
- The significance of regulation is increasing in the media sector due to factors such as data protection (GDPR, ePrivacy) and copyright.
- Regulatory reforms concerning data protection and the processing of personal information will give consumers increased rights over their information and impose greater obligations on companies with respect to data protection and security.