Assessment 1 : Jacqueline Green

Digital media convergence

 in relation to Advertising and New Media

Figure 1. Applications, which feature many advertisements found on an iPhone 

Jacqueline Green

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The recent trend of digital media convergence is having a huge impact in relation to advertising and New Media. It is changing the ways in which audiences or potential customers are being communicated with in a marketing perspective and it brings a rise to technological convergence such as smart phones.  A form of interactive advertising is being portrayed, and it is defined by “the immediately iterative process, by which customer needs and desires are uncovered, met, modified, and satisfied by the providing firm” (Calder et al1998, pg 23). The introduction of the Smart Phone is the epitome of digital media convergence in relation to new media and thus has allowed the access to online social participatory media such as Facebook, as well as search engines and applications. Jenkins states media convergence as “the flow of content across multiple media platforms, the cooperation between multiple media industries, and the migratory behaviour of media audiences” (Jenkins, 2006).

Figure 2. Google, the search advertising giant
www.google.com

Digital media convergence has made advertising an industry, and has created a culture of change as digital distribution platforms have converged. Online advertising expenditure now frequently “exceeds outdoor, cinema and magazine advertising expenditure” (Spurgeon’s, 2008). The largest segment of online advertising includes search engines. Google for example is a search engine that has become the advertising power house as it sells short text advertising that people are looking up or search for on the Internet (Dwyer, 2010). Consumers are effectively looking up their own advertisements. Within social networking, Google has tied together targeted advertising and audiovisual material in the form of search based advertising. Spurgeon argues that the new media based on ICT is in fact now a crucially important influence in the consumer culture as well as the public-sphere (Spurgeon, 2008). Search engine advertising can be tailored. The ‘search power house’ or Google, tailors adverts on the search page to modify the advertisements based on users searches and clicks. This shortens the consumer to advertisers gap making it “radically narrow” (Spurgeon,2008). Advertising companies have jumped on board to search advertising as there is minimal risk and it creates a win-win-win atmosphere. The user gets a relevant outcome for their search and for a low cost, the advertiser gets a lead and the service provider such as Google. obtains the revenue. 77% of Google’s income came from advertising services. Google is an example of a market where advertiser confidence has increased in regards to Internet advertising (Spurgeons, 2008).

 As previously the smart phone which includes an abundance of many media forms all in a handheld device is an example of digital media convergence and in specific , technological convergence (Jenkins, 2006).The iPhone features the Internet, as well as many applications, which creates many advertising opportunities. Within the Safari application on the iPhone, the easily accessible internet includes Google's' search engine as the home page. The idea of web 2.0 travels with us constantly. “The rising popularity of social networking sites and social networking soft-ware, allowing multi-tasking of interaction is now a favoured destination of choice for audiences, especially in younger cohorts” (Dwyer, 2010). As a result of digital media convergence, Internet accessed now by millions of people on a daily basis has become the advertising centre, and the new media such as the iPhone allows people to access Internet whenever and wherever. 

Figure 3. Internet Access on a mobile smart phone

 “With the arrival of 3G technology, the mobile phone – at least from a marketing perspective – works increasingly as a kind of mobile ‘portal’ to connect consumers with the mobile Internet, and thus, by extension, advertisers and content providers more directly with consumers”  (Sinclair et al, 2009). The iPhone features other social media such as Facebook and Youtube.  Youtube has recently launched the iPhone application with advertisements.  Youtube statistics show that traffic from mobile devices tripled in 2011 and everyday 100 million people share, comment or commit to social action. This is a prime example of digital media convergence. Advertising agencies have identified this inter-linked web 2.0 community and have taken advantage of the prospects of promotion (Youtube, 2011). The application also provides more search and sharing features including easy sharing through social networks such as Facebook, Google and Twitter.

Figure 4. New Media and Digital media convergence examples

New Media merely uses old media in new ways. In-game advertising is a form of media convergence utilising new media and exploiting the niche market to advertise. The user is at times sub-consciously viewing advertisements and exposed to promotional material. In-game advertising, also known as Advergaming draws and connects to the user, which differs from television advertisements. Advergaming can be played over and over again for hours. It combines the playing of video games with advertisement and promotion. An example includes the advertisements for Barack Obama as well as Fanta featured within the multi-player mode of Guitar Hero. “As electronic games have become an intergrained part of consumers recreational life, advertisers have focused their attention on using online game related advertising tactics” (Stafford 2005).

As technology improves and new media is created such as Video games that are versatile; advertising agencies jump to this shift due to digital media convergence and effectively target potential customers.

Figure 5. Fanta as an example of advergaming in Guitar Hero

Media creation, distribution and consumption have been brought together through the digitalisation of media and the rise of new media. The methods of advertising have changed and will still be ever adapting. Search engine’s generate some of the largest revenue, as well as advertising within new media such as the iPhone or Gaming devices. Digital media convergence is prosperous to advertising and new media. 

Citations

Caldler, Bezjian-avery, 1998, New Media Interactive Advertising vs.Traditional Advertising, Journal of advertising research, vol. 1, no.1, pp. 23

Dwyer, T, 2010. Media Convergence. 1st ed. New York: Open University Press

Jenkins H, 2006, Convergence Culture, New York University Press

Sinclair, John and Wilken, Rowan, 2009, Waiting for the kiss of life: mobile media and advertising, Convergence: the journal of research into new media, vol 15 no 5 pp 427 - 445 

Spurgeon C, 2008, Advertising and New Media, Oxon, Routledge, pp 24-45.

Stafford, M, 2005. Advertising, Promotion, and New Media. 1st ed. New York: M.E Sharp.

Youtube. 2011. Youtube Statistics. [ONLINE] Available at: http://www.youtube.com/t/press_statistics. [Accessed 29 August 12].

Digital Media Convergence, Advertising and New Media: Advertising in the age of Social Media. By Jacob Harrison - 40734145

Digital Media Convergence, Advertising and New Media: Advertising in the age of Social Media. By Jacob Harrison - 40734145

Figure 1: Using internal data, Facebook intern Paul Butler created this representation of the global Facebook population and their connections. Notice the 'dark regions', namely Russia and China. <http://www.cnet.com.au/facebook-as-a-world-map-339308021.htm>

We are interacting with each other in new and unforeseen ways online. One of the most popular ways to socialise, communicate and express ourselves online is through social media such as Facebook and Twitter. The affect of digital media convergence on society is both profound and ongoing, but above all is a complex interrelationship between technology, societal and economic factors (Dwyer, 2010: 8). Perhaps one of the most significant forces driving digital media convergence is monetary; the field of advertising being a key component in its procurement. In this essay I will discuss how traditional advertising techniques are being adapted to the social media environment with mixed success.

Social Media offers a new platform to not only gain access to hard to reach markets, but due to its interactive nature provides advertisers and companies with the opportunity to directly engage and develop relationships with 'consumer-users'. New ways of interactive advertising are being developed, as Laurel Papworth (2011) explains regarding the Junior Master Chef forum page that her company, The Community Crew, administer. Consumer-users often volunteer valuable personal data allowing companies to generate 'qualified leads' – the company can identify the consumer's specific wants or needs and is better placed to address them.

However, there are also pitfalls for advertisers and companies in this interactive and dynamic space. If companies choose to enter the realm of social media, they must be prepared for negative and public reaction to their products and performance. Companies can no longer risk ignoring their social media engagement, as their image can be hijacked by negative parties. Take for instance the Twitter scandal that was publicised regarding the 2010 BP oil rig disaster, as examined by Mia C. Long's article in Social Media: Usage and Impact (2011).

Interactive advertising in social media can generate a positive outcome for business, advertiser and the consumer. Laurel Papworth is CEO of Community Crew; a company that manages administration of companies' social media sites and online communities. She spoke at the Screen Australia Digital Ignition Clinic in November 2011 on story community, building influence online and monetising social networks. One of the sites her company administers is the Junior Master Chef forum page; she describes a particularly effective example of the convergence of new media and advertising '

'With Junior Master Chef, we get about 16 000 comments during an ad break. We have to manage that and manage the conversations, we write reports, and one of the reports we wrote showed that the members were talking about “How did the kid's cut vegetables without cutting themselves? They're children!”. And by reporting that back channel ten found a company that makes special utensils for kids, … and the next thing I know they are being spotlight sponsors of the show and of the forum... and the community go “Oh! That's who it is!” and then they tweet it and they Facebook it and they link to the company and they all answer each others questions, so its not advertising to them, its useful information.' (Papworth, 2011. 54:43 timecode. <http://screenaustralia.richmedia-server.com/sound/MultiPlatformStory/ScreenAustralia_MultiPlatformStory_LaurelPapworth.mp3>)

This is a prime example of the possibilities of old media advertising practices applied to the new world of social media. The convergence of advertising practices and I.T. skills delivered an opportunity for a fast and effective response to consumer desires that did not exist until the widespread establishment of digital technology in homes and the take up of digital technology and social media by conventional media. This new ability for business to engage directly in traditional media and online create a deeper connection with consumers, and as businesses engage on a personal level in the consumers life this helps to maintain a bond with the business rather than merely address a transient need. (Sheehan et al, 2009).The combination of skills sets along with the integrated online content and traditional television platform presents a mutually beneficial outcome for business, advertisers and consumers.

Although there are many advantages for business and advertisers in direct interaction with consumers through social media, there are considerable risks for companies reputations. When businesses fail to properly engage with social media and maintain the integrity of their online presence, other parties may take advantage of this over site. In 2010 the BP oil spill in the Gulf of Mexico was an environmental disaster and public relations nightmare for BP (<http://www.guardian.co.uk/environment/2010/jun/29/bp-oil-spill-timeline-deepwater-horizon>).The slow response to the environmental impacts, the consistent failure of their effort to stop the oil, and their reluctance to provide compensation to the affected population had seen the companies share price and reputation fall dramaticly. There was widespread global outrage due to all these factors, but it was made considerably worse by there lack of engagement with the media.

Culture-jammers took advantage of this failure to respond to public outcry, creating a false twitter account named 'BPGlobalPr'. This was a parody account, but it had many more followers than the official BP account and many believed that this was in fact the official BP account, causing further condemnation of the company (Long, 2011. 156pp). In addition to the official accounts lack of numbers and the poor quality of information released, BP also neglected to respond to this false account. It was only after Twitter requested that it be made clear that it was a fake account, according to Twitters own impersonation policy, that the account made a change to it's profile picture indicating it was a fake..

The failure to engage appropriately with social media allowed a terrible crisis to become all the worse for the company. The failure of BP to respond appropriately to social media shows how important it has become for businesses to be vigilant and active in it's relations with online communities, as Long explains '… companies must be aware of what is occurring on social networking sites, even if they are not fully engaged with the sites themselves.' (Long, 2011. 157pp). It is no longer possible to simply ignore social media; the negative exposure to vast communities of consumers makes it imperative to be proactive in their management of their online presence.

The rise of the corporate population on social media in recent years has been prodigious. A company may seek to engage the consumer in an interactive relationship, however poor judgement in managing social media initiatives can expose them to a very public depreciation of the brand image. There are risks for the consumer also; with issues of privacy, data mining and ownership of personal data still to be addressed by government and industry regulations. Of particular concern is the transparency of whom has access to consumer data, and future ownership concerns if a company merges or is taken over by another company, and what will happen to the consumer data they have acquired.

Although there are potential problems relating to issues of data mining and privacy with this new form of advertising, it could be argued that by volunteering personal information consumers will receive advertisements more geared to them personally and less 'clutter'.There are great opportunities for companies and advertisers to find new profits and for consumers to get advertising content that is personalised and more relevant to the user. At this early stage, in an online environment that moves much faster than regulation and policy generation, the future of social media, it's relationship with traditional advertising practices and consumers remains promising, but uncertain.

Bibliography

Butler, P. 2010. Facebook As A World Map. Cnet, Australia, viewed 23 August 2012. <http://www.cnet.com.au/facebook-as-a-world-map-339308021.htm>

Dwyer, T. (2010) Media Convergence, McGraw Hill, Berkshire.

Story Community: Laurel Papworth: Screen Australia Digital Ignition Clinic, 2011, Podcast, Screen Australia, 29 November, accessed 24 August 2012. <http://screenaustralia.richmedia-server.com/sound/MultiPlatformStory/ScreenAustralia_MultiPlatformStory_LaurelPapworth.mp3>

Sheehan, K. and Morrison, D. (2009) Beyond convergence: Confluence culture and the role of the advertising agency in a changing world.2 March 2009 acessed 27 August 2012. <http://firstmonday.org/htbin/cgiwrap/bin/ojs/index.php/fm/article/view/2239/2121>

Guardian research. (2010) BP Oil Spill Timeline. guardian.co.uk, 22 July 2010. accessed 30 August 2012.<http://www.guardian.co.uk/environment/2010/jun/29/bp-oil-spill-timeline-deepwater-horizon>

Al-Deen, N. Long, M. Guo, M, et al.. 2011., Social Media: Usage and Impact. [online]. Rowman & Littlefield Publishing Group, Inc.. Available from:<http://lib.myilibrary.com?ID=332048> accessed 23 August 2012.