Q1 2023 insights into Digital Media.

Alec Dafferner, Partner at GP Bullhound, said: “In this quarterly report, we have highlighted several key trends driving the sector: generative AI usage in personalised user experiences is rising steadily, influencer marketing continues to thrive as a distinctive method for brands to reach customers, and increasing audience demand for real-time streaming is pushing social media and TV streaming platforms to further capitalise on this opportunity. The GP Bullhound diversified Digital Media indices had a phenomenal quarter, rising by c.30% compared to Q4 2022. The best performers were Diversified Content, rising by almost 40%.”

Generative AI in personalisation

• Customised content is critical for businesses to connect with customers and brands are actively testing generative AI in their business strategies.
• Generative AI, such as OpenAI’s successful launch of ChatGPT, has unlocked new potential for personalised user experiences, which lead to higher customer engagement, satisfaction, and conversion.
• Over 75% of consumers believe personalisation is critical to brand consideration, 78% would be more inclined to repurchase, and firms skilled at personalisation generate 40% more revenue than competitors (McKinsey).

Growing importance of influencer marketing

• c.64% of marketers plan to increase spending on influencer marketing in 2023, pushing this market to over $17bn.
• Partnerships between brands and micro-influencers are increasing to reach highly targeted audiences; these influencers see the highest engagement rate across social media platforms and create 91% of engagement posts.
• Beauty remains one of the most active: Cerave’s #MoisturizeLikeADerm campaign with dermatologist Dr Daniel Sugai on TikTok gained 446 million video views and Estée Lauder’s #AdvancedNightRepair campaign with macro-influencers and lifestyle influencers saw a 28% MoM increase in video views.

Increasing adoption of live streaming

• The global live streaming market was valued at $1.2bn in 2022 and is likely to reach $6.6bn in 2030 at a CAGR of 23.4%, driven by growing demand from audiences and the technology readiness to provide high-quality live streaming.
• Streaming platforms like Netflix, YouTube, Amazon Video, and HBO Max are expanded their use to other events, such as music concerts and comedy shows.
• Livestream commerce is also on the rise with the anticipation of more shopping features built into social media platforms like Facebook, Instagram, TikTok, and YouTube.

Enquiries
For enquiries, please contact Alec Dafferner, Partner, at alec.dafferner@gpbullhound.com

About GP Bullhound
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999 in London and Menlo Park, the firm today has 13 offices spanning Europe, the US and Asia. For more information, please visit www.gpbullhound.com.