Tantan Xie Luminar Case
Luminar: Leveraging Big Data Using Corporate Entrepreneurship
Background:
US Broadcasting Industry:
The US media industry was the second largest market around world at $255.1 billion and was forecast to grow at a compound annual growth rate of 2.3 percent till 2017. Within the media industry, broadcasting and TV was the largest category with a market of $142.6 billion. The industry players were competing mainly with one another for viewership to drive advertising revenue which was the primary source of profits. The traditional advertising driven business model started to shift due to a few trends. First of all, there were more ways for broadcasting advertisers to reach customers. The progressive consumerization of technologies such as social media tools had contributed to this trend. Secondly, new technology products made it possible for users to skip advertising. Thirdly, the content creation was getting localized and the audience was fragmenting. Fourthly, more television advertising was purchased through consolidated conglomerates which had various resources with better insights about their target audiences. Lastly, the switch from analogue to digital TV broadcasting not only led to multicasting with more channels but also made the industry more favorable for new entrants. In general, the technologies were putting so much pressures on the traditional business of this industry.
Latinos in the US:
There were also unique factors for this largest minority group in US. Firstly, the Latinos were growing at 8 times the rate of the non-Latino population and contributed to nearly 17% of US total population. Other than that, the per capita income of US Latinos were higher than any of the BRIC and households and was growing at a faster rate than the number of total households in US. Thirdly, Latinos were on the path of “acculturation” and they were leading dual lives. However, the Latinos formed only 6% of the total marketing pie as an audience and there did exist a
Background:
US Broadcasting Industry:
The US media industry was the second largest market around world at $255.1 billion and was forecast to grow at a compound annual growth rate of 2.3 percent till 2017. Within the media industry, broadcasting and TV was the largest category with a market of $142.6 billion. The industry players were competing mainly with one another for viewership to drive advertising revenue which was the primary source of profits. The traditional advertising driven business model started to shift due to a few trends. First of all, there were more ways for broadcasting advertisers to reach customers. The progressive consumerization of technologies such as social media tools had contributed to this trend. Secondly, new technology products made it possible for users to skip advertising. Thirdly, the content creation was getting localized and the audience was fragmenting. Fourthly, more television advertising was purchased through consolidated conglomerates which had various resources with better insights about their target audiences. Lastly, the switch from analogue to digital TV broadcasting not only led to multicasting with more channels but also made the industry more favorable for new entrants. In general, the technologies were putting so much pressures on the traditional business of this industry.
Latinos in the US:
There were also unique factors for this largest minority group in US. Firstly, the Latinos were growing at 8 times the rate of the non-Latino population and contributed to nearly 17% of US total population. Other than that, the per capita income of US Latinos were higher than any of the BRIC and households and was growing at a faster rate than the number of total households in US. Thirdly, Latinos were on the path of “acculturation” and they were leading dual lives. However, the Latinos formed only 6% of the total marketing pie as an audience and there did exist a