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Author's profile photo Catherine LYNCH

Simplicity Pays for Media Companies

What makes a brand Simple?


Answer:  Remarkably clear and unexpectedly fresh experiences


“Simpler brands garner greater customer loyalty, foster innovation among employees and, in the long run, increase revenue” says Siegel & Gale.

For the past 5 years, Siegel & Gale have been surveying over 10 000 consumers worldwide and publishing a Brand Simplicity Index. Its findings are very insightful:


According to the Siegel & Gale 2014 Brand Simplicity Index:


  • People are willing to pay more for a simpler experience (3.1 % for media industry globally)
  • Brands embracing  simplicity outperform other brands on global stock markets by 170%
  • 70% of consumers are more likely to recommend a brand because it provides simpler experiences and communications
  • The top rated brand in the Simplicity Index is German ‘no frills’ retailer Aldi, the lowest ratings are #89 Ryan Air (low cost airline) and #90 AXA (insurance)
  • In the USA, Netflix is #5 on Brand Index, Amazon is #10 and Instagram is #53
  • Digital Disrupters such as Uber, Nest and Aereo are challenging established brands with simple and clearly articulated business models


What does Simplicity mean for media companies?


Three media companies feature in the top 10 of the global Index, namely #2 Google, #5 Netflix and #10 Amazon.  Google is perceived to inspire trust by consumers, Netflix has a fixed price with access to everything and Amazon still delivers enough simplicity to keep it in the top 10. Among the digital disrupters who are instrumental in changing consumer expectations, of note is Aereo, a competitor to incumbent cable companies which gave viewers affordable access to broadcast television on mobile devices (now in Chapter 11 since Nov 2014). Aereo was perceived to have a simple pricing policy and a simple service compared to more established cable providers.


View this video for the findings of the 2013 Brand Simplicity Index for 2013.


Consumers expect a real-time, contextual experience: the days of 1 to many email blasts are over as demonstrated by this SAP hybris video.  A good example of a retail/content provider which has simplified the consumer online experience is SAP customer Kalahari (the ‘Amazon’ of South Africa).



As media companies selling content are morphing into retail companies, they need to reimagine consumer experiences, remove friction and make transactions simpler with easy to grasp pricing. #SimplicityPays


To learn more about SAP solutions for the media industry, check out our Solution Explorer and visit us at #SAPPHIRENOW May 5-7 in Orlando, Florida.

Follow us on @SAPIndustries #Media


Visit us on SAP.COM and on SlideShare.

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