The ‘attention equation’: Winning the right battles for consumer attention is based on the following research methodologies: — McKinsey Consumer Attention Survey . The survey gathered representative data from 7,000 consumers across the United States (3,000 participants) and international markets (Brazil, Germany, India, Japan, Saudi Arabia, and the United Kingdom). — Best-in-class syndicated data . To assess total revenue and consumption across mediums, we aggregated high-quality data from Ampere Analysis, Edison International, EMARKETER, Kagan on S&P Capital IQ Pro, MAGNA, Newzoo International, Omdia, Parrot Analytics, PQ Media, Sensor Tower, TIBCO Statistica, and Variety . — Regression model . The model used survey inputs to predict real-world monetization. — Advanced data science techniques and K-means clustering . These tools allowed the identification of key customer segments. — Expert interviews . We interviewed industry executives and researchers to calibrate findings and add operational and academic nuance. Detailed consumer segmentation methodology To identify detailed consumer segments, we performed the following steps: — Conduct and analyze a survey of 3,000 US consumers . A robust representative survey captured attitudinal, behavioral, and demographic data, from consumption habits to advertising effectiveness across mediums (such as podcasts, streaming, and social media) and within media types (such as specific channels, streamers, and apps) from 3,000 US consumers. — Identify customer segments, attitudes, and behavioral data . We used several techniques to identify seven customer segments driven by 15 attitudes and augmented by behavioral data: • leveraging K-means clustering for advanced attitudinal segmentation to identify the attitudes that differentiated consumers the most (15 of 40) • augmenting the attitudinal clustering with data on select behaviors to capture nuances in consumer activities (such as adding a view of the forms of media that would be most missed if they were removed from consumers’ lives) • analyzing the distinct customer segments to show clear behavioral differences and divergent media consumption patterns — Map ‘attention equation scores’ against each segment, identifying the most and least valuable from an attention lens . Across and within media arenas, we mapped each customer segment by its commercial and attention quotients to highlight the relative value and provide a powerful tool for identifying medium-specific opportunity areas. — Assess international markets against segmentation . This allowed us to understand the degree to which international geographies converge and diverge from US segmentation. Appendix 25 The ‘attention equation’: Winning the right battles for consumer attention