JEGI: Media Execs Optimistic About Economy, Acquisition Activity


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Given the spate of acquisitions and venture capital activity the last few months, it’s natural that media executives are still feeling fairly buoyant about the direction of the economy. A survey of about 500 media execs by The Jordan, Edmiston Group, Inc. with Econsultancy found that it’s not just AOL (NYSE: AOL) and Google (NSDQ: GOOG) who plan to do more acquisitions. Roughly half say they plan to make a purchase in the next year or two, with 81 percent of executives from the largest corporations (those with over $250 million in revenue) expecting to make an acquisition in that time.

The report also looks at how three particular areas of the media business are expected to drive growth (or not, in some cases).

For example, data and analytics are seen as a fairly essential part of most of the businesses in the survey. The problem is that “taking advantage of such opportunities means evolving their business models, adopting a new set of technologies, and/or acquiring talent that is often difficult to find,” the report concludes.

There are also problems with two other “key areas,” such as devices and platforms, and social media. On the device front, figuring out how to make money from content on mobile devices is still a struggle for publishers. But that’s where they are nevertheless making their big bets for growth over the next 3- to 5 years. Lastly, although social media marketing is part of practically every company in the survey, it was listed last in importance as a revenue driver. While it should become meaningful to the bottom lines of media companies in the next few years, right now, social media is regarded as “a disruptor, without a clear path to a significant revenue stream.” Release (PDF)

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