A handful of digital platforms have become the Discovery Oligopoly, controlling each stage of the consumer journey. Understanding how it works and how it will behave in the next year can be a kick-start for your organisation in 2017.
The Discovery Oligopoly uses discovery algorithms and sponsored content deals to pick winners, forcing everyone who wants to reach a user to buy their way to prominence. Organizations such as Facebook, Apple and Google offers preferred content, search optimization, curated results, paid promotion, sponsored ads and exclusive paid content for corporates accounts in order to reach their exact target. In addition, major platforms dictate increasingly strict discovery requirements for media creators during each platform shift: from SEO to First- Party publishing to BOT applications.
In terms of mobile, mobile web traffic for the top 50 sites increasingly exceeds direct app traffic, and is now almost three times greater. While the costs of maintenance and development of an app keeps increasing, Discovery challenges are also making new apps largely uneconomical. Even when a consumer discovers and downloads an app, they are highly unlikely to repeatedly use it.
Overall, discovery dominance translates into revenue – Google and Facebook are expected to command 73% of each additional digital ad dollar over the next three years. First-party publishing initiatives will strengthen digital platforms as a source of content discovery. On the contrary, nurturing fan culture and developing communities are some of the few ways for media companies to overcome the Discovery Oligopoly’s user control.
Osmii provides resource support to technology vendors operating in the digital retail sector. Our dynamic search methodology and deep understanding of the sectors our clients operate in, allows us to find exceptional talents on behalf of our clients which are strategic to the success of their business. Our Principal Consultant Simon Gregory focuses on the Retail Technology Space, helping pre-IPO VC backed vendors across APAC and EMEA with technical and senior hires. To learn more about what we do please contact Simon via firstname.lastname@example.org and visit our website: www.osmii.com