Australia will lead the world in the 5G race, AI will be adopted at a rapid rate for better customer experience, and smart speakers will be the fastest growing consumer device of the year
Radio looks set to remain Australia’s most trusted form of media, with media buyers increasingly targeting the medium, according to Deloitte’s latest TMT predictions.
Deloitte also predicts Australia will lead the world in the 5G race, AI will be adopted at a rapid rate for better customer experience, and smart speakers will be the fastest growing consumer device of the year.
Deloitte’s TMT Predictions is an annual report produced by Deloitte Global, which reveals what the consulting giant believes to be the major Technology, Media and Telecommunications (TMT) trends globally over the next one to five years.
According to the report, radio has been underappreciated as an effective advertising channel in today’s digital marketing landscape, given the number of people tuning in nationally has continued to trend upwards, with record ratings throughout 2017. Changes in consumer trust and the media regulatory landscape are anticipated to bode well for radio broadcasters in 2019. The demonstrated distrust domestic (and global) consumers are increasingly showing towards online marketing channels is expected to enhance the appeal of commercial radio broadcasters from an advertiser’s perspective.
Deloitte predicts global radio revenue will reach $US40 billion in 2019, a small but steady one per cent increase from 2018. Nearly three billion people worldwide listen to radio every week, with adults listening to an average of 90 minutes a day. Australians spent an average of 125 minutes daily listening to radio in 2018, well above the global figure, and this is expected to remain the same for 2019.
“We predict radio will become an increasingly appreciated advertising medium in Australia in 2019. The 25-39 year old age group spends more than 65 percent of their commercial audio consumption time on radio, making it the perfect platform to target this group,” partner at Deloitte Digital, Leora Nevezie, said.
“This is particularly relevant as the Australian industry is trialling more effective ROI measurement tools for radio, similar to those used in the US and other markets. With more Australians listening to music via ad-free subscriptions through Spotify and Apple Music, radio broadcasters are likely to benefit from more ad spend.
“Radio is also the most trusted form of media, according to Roy Morgan’s MEDIA Net Trust Survey. This highlights the credibility of the platform in the public’s eye, and is an important consideration for companies when planning advertising campaigns.”
According to the report, Australian organisations have been experimenting with artificial intelligence (AI) in back and front office, and are now beginning to scale across their organisations. Because AI is now being embedded into products and platforms, and enabled as-a-service by cloud providers, Australian companies can now overcome the shortage of AI subject matter experts within businesses, and begin to realise the benefits promised by AI.
In Australia, AI is predicted to be the lynchpin to excellent customer service and streamlining business operations in 2019. But to really succeed, companies must develop both data and application governance frameworks to ensure AI programs are transparent, robust and operate ethically.
Deloitte also expects to see the smart speaker market continue to grow in Australia in 2019 before slowing down as it approaches the adoption rates of other English-speaking countries.
However, concerns among Australian consumers over privacy may create a barrier to achieving the rates of growth seen for voice-activated devices in other parts of the world.
If the major manufacturers can continue to improve the experience offered by these devices including the functionality, the AI that powers them, and ultimately the usefulness, then they will be able to justify the bench space they occupy in consumers’ homes and can become an important part of consumers’ daily lives.
If new use cases do not emerge quickly enough to engage consumers we may well see growth start to taper off after 2019 as the novelty begins to wear thin.
Deloitte forecasts 25 network operators will launch 5G services globally in 2019, a figure expected to double in 2020. The high data speeds and low latency 5G provides could spur the next evolution of health care, smart transport, manufacturing and nearly every industry that relies on connectivity.
Deloitte predicts 1 million 5G fixed wireless access devices will be installed around the world in 2019, with Australia predicted to install 10,000 devices by year’s end.
The report also found continued TV viewership rates for both free-to-air and pay TV stations thanks to Australia’s love for sports betting, while eSports is predicted to continue its stride towards becoming a mainstream form of entertainment in 2019.
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