A Digital Economy and the New Media Landscape: Key Contemporary Shifts
The new media landscape currently experienced in the global environment has led to friction between various actors including entertainment corporations, institutional publishers, copyright holders, computer programmers, scholars, content producers and institutional publishers who are increasingly finding themselves in a type of culture war in regard to dissemination and access to information. In essence, the new media economy has subsequently created a new relationship between various audiences, business organizations and the institutions. Subsequently, it has turned citizens into consumers. This part analyzes the new business models which businesses are employing for effective marketing and business operations alongside the new media platforms in this digital age.
Traditionally, the technological impulsion for convergence was focused at combining various media platforms including the telephone, the computer, and the television for marketing communications. Nonetheless, the novel digital media economy occurred as a consequence of industrial convergence of carriage and content which is essentially the direct interchange of companies that were production oriented with technological manufacturers, distribution outlets, alongside other industries in various sectors including hospitality, entertainment, and service (Shatz, 1997). As noted by Macnamara(2010), there has been an increasing widening of the media content and internet sources which has subsequently caused a fragmentation of the audience. Accordingly, the political authority for the majority of media has gone low. Owing to these, the author postulates the necessity for media businesses to identify and incorporate novel business models that are sustainable.
In accordance to Felix et al (2016), the digital economy is swiftly developing on a global perspective. This digital economy according to the author has been the key factor in driving competitiveness, innovation and growth for large, medium and small businesses including those in the media industry. Accordingly, organizations that have failed to take advantage of the opportunities created by the new digital economy are at an economic disadvantage while organizations that have fully exploited the opportunities have been able to improve their competitive edges. This therefore, implies that the key determinant for the sustainability, growth and future of business depends on how well the particular businesses adopt digital technologies in their business models.
Among the new digital trends including mobile technological services, cloud computing, social media and smart grids are significantly transforming media business environment, roles of business managers, boundaries of enterprises and have reshaped the nature of work. These trends have apparently facilitated technological innovation while at the same time spurring innovation on business strategies, models, access to international market, knowledge transfer, and business networking.
The world has gone through some kind of digital transformation where everything including tools, equipments, and customers are connected. Consequently, the connected world has created a digital imperative for business entities which in order to succeed must transform themselves through technology or they are destroyed by their competitors. Many companies including those in the media have now incorporated the use of the internet, email and other forms of enterprise software in internal and external communications, storage of information, marketing and other kinds of operations. There is also the use of advanced digital technologies including analytics and social media.
Social media sites including Twitter, Facebook and Pinterest have emeged to become the new platforms for advertising and marketing. Apparently, these platforms are consistently increasing in importance, relevance and validity through where customers request and are accorded customer service. A report prepared by Nielsen finds that more than half of U.S consumers utilize the platform of social in reporting their satisfaction or dissatisfaction, complaints, and asking questions regarding the company and its offerings. In addition, the report also established that a third of social media users have a preference of “social care” to the phone (D'Andrea et al, 2012).
Despite the concept of social care being relatively new, it has effectively provided a multi-channel support in solving the challenges for B2C and B2B both small and large. In addition, the platform has provided opportunities particularly in terms of increasing customer loyalty and sales. In the current perspective, the expectations of customer services is being renewed on a yearly basis and majority of consumers are now geared and aligned to businesses that have the capability of providing them with a seamless experience such as the likes of Face Book and Twitter. A part from having a social media presence, there is need for companies to endeavour being a social media star.
According to Chen et al (2012), mobile devices have the potential of increasing the operation efficiency and productivities of business organizations. The study also noted that mobile software has being the second popular in demand for development and research. On his part, emarketer (2012) projected mobile analytics as being one of the latest technologies that had the potential of disrupting the business intelligence market environment. Similarly, the market for mobile advertising has escalated at a significant pace than ever before. According to the prediction done by IBM (2012), there would be a surge translating to more than $ 10.8 billion of mobile advertising in 2016. Apparently, the specialized field of mobile marketing has created niche areas for professional growth since more applications for mobile operating are being created on a consistent basis.
Recent developments in geo-positioning and mobile communication technologies have stirred marketers to find new ways of reaching consumers on the basis of their location. Consequently, mobile advertising that are location targeted have come to involve the design and provision of advertisement messages to subscribers with mobile phones based on their geographical locations. The uses of mobile phone technology have enabled marketers to deliver customized advertisements according to consumer’s preferences, time of the day, and geographical location. Considering the portability of mobile devices, advertising that is location targeted has appeared to harbor immense benefits to marketers (Yang et al, 2013).
A number of business organizations are occasionally using applications that include browser cookies where existing or potential customers are tracked using their cell phones as they navigate through various websites. As the users move out of the sites, the services or products which they had viewed are then shown to them in another website. This implies that businesses are utilizing the user’s purchase history alongside browsing session in delivering customized items as per the user’s needs and preferences. In addition, brands that are technology savvy have mastered the art of personalizing their offerings as they classify, collect and utilize large volumes of data in regard to their consumer’s behaviors. Furthermore, these companies also provide compelling offers to consumers with smartphones to influence them into buying particular products or services (Lane et al, 2010).
This analysis showcases that business organizations are now facing a digital imperative, embrace the use of digital technology or find themselves obsolete. In order to create an effective digital platform in their operations, companies need to establish an effective strategy with a cross organizational authority and encourage employees to share the vision. The premises of digital technology has not only facilitated automation of processes, but have also opened new routes of doing businesses as well as interaction with customers.