Deloitte 2023 Digital Media Trends Report: Immersed and connected

KUALA LUMPUR, 14 June 2023 - People are increasingly seeking connection, immersion, and value from their digital media activities. Deloitte’s 2023 Digital Media Trends Report cited half of Gen Zs and Millennials surveyed to consider online experiences as meaningful replacements for in-person experiences while almost half reported spending more time socialising with others in social media than in the physical world.

With video streaming, social media, music, and gaming becoming increasingly interconnected and interdependent, users can forge bonds with people across the world, helping them feel part of something larger than themselves. For many, these digital “places” are a very real part of their lives that can support their social and emotional needs. Malaysia’s online community of 26.8 million active social media users, representing 79% of the total population, presents exciting opportunities for marketers. The budget shifts are very real, with digital advertising spend growing by 22% to claim an impressive 68% share of total advertising spend¹.

Gen Zs and Millennials find meaning and connection online

Younger generations like Gen Zs and Millennials gravitate towards more interactive and social experiences - places and spaces where they can escape into other worlds, find community, share what and who inspires them, co-create adventures, and bring their friends along for the ride. Beyond entertainment, they play video games and watch user generated content (UGC) for social connection and a sense of immersion. From competitions and grand adventures to music, shopping, and personalised content - the diversity of content and blend of experiences offered by video games and UGC can increase engagement and usage, while the ability to interact and share with others builds greater connections. In early 2022, McDonald’s partnered with JulynnLau, a gaming influencer in Singapore, well known for on stream mukbang (eating broadcast). The McDonald’s Chicken McCrispy Twitch live stream sparked a flurry of conversations on #The SpicyDebate that resonated with foodies in the gaming community, generating three times more revenue than the previous quarter and eventually becoming the most viewed stream in Singapore.²

Creators on social media foster engagement and trust

Creators and influencers can establish and build trust, grow communities, and drive awareness and excitement for brands, products, and content. These trends may have big implications for the future of advertising. About 50% of consumers say UGC videos help them discover new products or services, with the same portion saying they are more likely to trust a brand whose product has been reviewed by a trusted online creator. These sentiments are especially strong for Gen Zs and Millennials, highlighting the importance of brand-creator partnerships. Beyond selling and shopping, social media can be central to stoke interest in new brands or products and drive entertainment behaviours, as evidenced by a Malaysian social media celebrity chef and TikTok sensation, Khairulaming, who sold out 10,000 cans of Sambal Nyet Berapi on the Shopee platform in just 3 minutes during Ramadan this year.

Consumers prioritise value amid economic uncertainty

With a plethora of choices, people are dividing their digital entertainment options more evenly based on the kinds of value they offer. With frustrations around mounting costs cutting across all generations, consumers are reevaluating what they’re getting for their time and money and adjusting accordingly. The report reflects a growing pressure on video streaming providers as consumers are opting for cheaper ad-supported tiers, leading to slower subscription growth. Citing current economic conditions, nearly half of consumers reported making a change to their entertainment subscriptions such as cancelling a service to save money, switching to a free, ad-supported version, or opting for bundling services. Subsidising fees with advertisements could help acquire and retain more cost-sensitive subscribers, but it changes the economics of video streaming - if subscription fees decrease, revenues increasingly depend more on successful advertising. Additionally, half of GenZs and Millennials prefer user-generated video feeds to video streaming services because they’re convenient, free to watch, cover topics they’re interested in, and offer consistently fresh content.

Navigating digital media’s interdependent landscape

Inevitably, digital media will continue to become more interconnected and interdependent. Beyond being trusted sources of information, digital media will continue to serve consumers’ emotional, social, and informational needs. Industry players will need to understand how audiences move across different channels and develop the right strategies to optimise and add value in their offerings. The digital and physical world are becoming equally real and meaningful for many, highlighting the need for industry players to adapt to this new online-to-offline reality, and vice versa.

Source:
1. WeAreSocial Digital Report 2023, GWI, data.ai
2. Campaign Asia: Twitch’s top performing APAC campaignsQ1 2022

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