In today’s media and entertainment (M&E) landscape, personalization has evolved from a competitive advantage to a fundamental expectation. With rapid shifts in media consumption, digital channel preferences, and technological innovation, M&E companies should continuously adapt to meet consumer demands and the evolving competitive landscape. According to Deloitte Digital’s 2024 personalization research, over 92% of M&E companies surveyed planned to invest more in personalization initiatives. This article explores Deloitte Digital’s research on how consumer expectations have advanced personalization strategies in a way that reshapes the M&E industry, backed by data and real-world examples.
The changing personalization landscape
Personalization in M&E isn’t just about basic demographic segmentation or curated content. Consumers now expect brands to understand their unique preferences and deliver tailored experiences across all touchpoints. Our research also found 75% of M&E consumers surveyed feel that personalization frequently or very frequently increases their satisfaction with a brand. This opportunity underscores the need for M&E companies to consider investing more in order to stay top of mind for consumers in a competitive market.
Amplified affinity for personalization
M&E consumers exhibit stronger preferences for personalized experiences compared to other industries. For instance, 50% of M&E consumers surveyed consider personalized customer experiences very or extremely important, a +13.3% lead over other industries. This expectation spans the entire purchase consideration cycle, with our data showing a +15.6% lead in demand for personalization based on channel preferences and an +18.1% lead in personalized content recommendations versus other consumers.
When M&E consumers feel their experiences are tailored to their preferences, they may be more likely to engage with the brand. Specifically, our data shows a 5-10% increase in the likelihood of taking positive actions, such as making purchases or recommending the brand to others. This responsiveness highlights the important role of personalization in driving consumer behavior and fostering loyalty, with over 50% of M&E companies indicating improved customer loyalty or lifetime value (LTV) from personalization.
In response to these consumer expectations, M&E companies are developing deep understanding of customer preferences and implementing grounded personalization strategies. For example, 88% of M&E companies surveyed are confident in their ability to deliver resonant experiences, leading to higher conversion rates and increased revenue. Netflix, for example, asks users about their viewing habits and device preferences during sign-up in an effort to personalize the user experience at the first point of customer conversion. Netflix also uses email/push notifications to prompt users about new shows they may like based on past viewing preferences.¹ These collective personalization efforts can help brands like Netflix enhance user engagement, drive sales, and foster customer loyalty and retention by delivering tailored experiences.
Intentional, seamless omnichannel experience
M&E consumers in our research are significantly more engaged with digital channels for personalized marketing than consumers in other industries. They show a strong preference for personalized content recommendations—40% of M&E consumers versus 22.1% of other consumers. While email remains the preferred method for receiving personalized marketing, social media also plays a crucial role, with data showing a +16.5% leading preference for personalized communications through these platforms versus other consumers.
Digital and social media channels significantly influence M&E consumers’ purchase decisions. Our research shows a +26.3% lead in the influence of digital advertising and a +14.2% lead in the influence of brand social media posts versus other brands. Additionally, M&E consumers surveyed are 15.1% more likely to purchase products or services through social media.
M&E companies are leading the way in omnichannel capabilities, with 60% reporting complete omnichannel integration. This comprehensive approach can enable brands to deliver a seamless and consistent experience across all touchpoints. Universal Studios, for example, uses data from park experiences, mobile apps, and Peacock viewership to tailor experiences and help create a cohesive experience for guests.²
Data and technology investment for offer-driven personalization
M&E consumers are highly focused on offer-driven personalization, including loyalty programs, special discounts, and personalized content offers. Our research shows that special discount offers influence 91.5% of M&E consumers’ purchase decisions, and personalized recommendations based on purchase history see a +17% lead in preference versus other consumers.
M&E companies leverage robust data and advanced analytics to create meaningful interactions. A significant 60% of M&E companies, compared to 46% of companies across all other industries, indicate they are excellent at extensively collecting accurate user data (e.g., implicit/explicit data, access level, user ID, event data) to create a 360-degree view of customers. To derive insights from this data, 98% of M&E companies indicate they are planning to invest in or currently have capabilities around analytics, testing and measurement. Prime Video, for example, uses advanced data collection and analysis to provide personalized content recommendations to users in an effort to help create a faster and more seamless discovery journey for users.
Investment in data science and clean rooms
Half of the M&E companies surveyed are focusing their investments on data science platforms and data clean rooms—18% more than other industries. These investments are important for developing sophisticated personalization techniques and helping ensure data integrity and security. Spotify’s investment in data science allows for personalized playlist recommendations that evolve with individual preferences, helping enhance the music experience in real time and driving increased listens per user.³
AI-driven personalization
M&E companies are at the forefront of AI-driven personalization, with only 19% reporting gaps in achieving GenAI strategies. While HBO Max is already leveraging GenAI capabilities to generate captions for Max’s unscripted shows, they are also experimenting with using GenAI to help existing recommendation algorithms pick up additional social or emotional context from scenes within programs to make more dynamic and personalized titles for users.⁴
Looking ahead
As M&E companies strive to meet evolving consumer expectations and the competitive landscape, they face challenges such as shifting consumer perceptions, budget constraints, and resource limitations. However, by investing in strategically selected advanced data, analytics, and personalization capabilities, brands can deliver autonomous and dynamic experiences that meet consumers' ever-evolving expectations. By meeting customers how they want to be met, brands can help drive core business outcomes such as higher LTV and marketing ROI.
Reach out to our team to learn more about how to cultivate your personalization vision and help stay ahead in the competitive M&E landscape.
Visit the Deloitte Digital personalization content hub to explore more personalization insights.
Get in touch
Managing Director
Telecommunications, Media, and Entertainment
Customer & Data Leader
Deloitte Consulting LLP
Managing Director
Telecommunications, Media, and Entertainment
Performance Leader
Deloitte Consulting LLP
Thank you to Deloitte Consulting LLP team members Kristin Thomas and Brittany Tin for their contributions to this article.
Endnotes
This report highlights results from Deloitte Digital’s 2024 survey of 500 business executives who are responsible for personalizing the customer experience at US business-to-consumer companies, plus 1,000 adult consumers who had interacted with a brand online or through an app in recent months. Unless otherwise noted, the statistics and insights highlighted in this article are based on that research survey.
