Change drivers 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 expected to see slower growth in 2019 and 2020. The domestic advertising market and Finnish GDP growth have differentiated.
  • Market growth is expected to level off but continue at a good rate in Alma Media’s operating countries in Eastern Central Europe.
  • The population is ageing and becoming concentrated in growth centres.

Media consumption

  • Mobile devices are the primary means of media consumption for most users.
  • Social media has changed media consumption to a significant degree.
  • The level of preparedness to pay for digital content has grown and will strengthen further as supply increases.
  • The demand for print media decreases as the older generations accustomed to consume print media diminish.

Competition

  • 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

  • Leveraging data, analytics, and machine learning plays a key role in improving offering for advertisers and enriching end user services.
  • The variety of mobile, smart and wearable devices is growing. Content and services are consumed on multiple different platforms, with voice use increasing.
  • The usage of data and process automation offer possibilities to increase efficiency, for example such as content discovery and generation. 
  • Rapid changes in the technological operating environment require in-vestments in competence. The competition for skilled employees is intense.

Marketing and advertising

  • Marketing automation, including programmatic buying increases. At the same time, investments in marketing technology reduce media purchases.
  • The importance of data, its ownership and the ability to utilize it have of major importance.
  • Social media, search engine, mobile and video advertising as well as content marketing are the fastest growing forms of digital advertising.

Regulation

  • 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.