Credit: Immo Wegmann via Unsplash
Economic pressure and rising technology costs are reshaping media business models, according to new analysis from consumer data firm Circana.
The group’s Future of Media report points to tightening household budgets, supply chain disruption and higher operating costs as forces already affecting advertiser spend and platform strategy, with brands under pressure to adjust quickly as consumer behaviour shifts.
Circana also warns that the growing use of AI and cloud-based systems is driving up energy costs for data centres and media companies, with potential flow-on effects for ad tech, including real-time bidding, audience modelling and programmatic efficiency.
Circana APAC head of media analytics and insights Alistair Leathwood said media companies were being forced to rethink how they operate.
“The media industry is being reshaped from the ground up by two forces: the economy and technology,” Leathwood said.
“Rising costs, shifting consumer behaviour and the acceleration of AI are pushing businesses to change at speed.”
Subscription fatigue is also weighing on platforms, with high cancellation rates increasing pressure to fund original content.
Circana notes that this has accelerated the growth of ad-supported tiers, particularly where advertising is targeted and relevant.
Leathwood said companies that invest in technology and adapt their revenue models would be better placed to manage volatility.
“This is about building resilience and finding new opportunities in a fast-changing market,” he said.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.