Advertising and New Media

Discuss the phenomenon of digital media convergence in relation to one of the following: Advertising & New Media

 

New media technologies have radically multiplied spaces and opportunities for the production, distribution and consumption of all media content. New media entails a sweep of digital communication technologies that are networked and incorporate multimedia effects. In an increasingly pluralised digital era there is expansive responsibility on advertisers to attract consumers, whose options on media entertainment have expanded so dramatically. Effectively we’ve seen an explosion in advertising that harnesses and exploits the digital media environment. The new strategies developed by advertising companies to reach consumers in such a digital era demonstrate a paradigm shift of power from the advertiser to the consumer. Evidence of such power shifts and approaches to advertising in new media are evident when exploring “Search Based Advertising” (Croteau 2006) and theories such as the “Madison and Vine” theory.  To discuss the phenomenon of digital convergence in relation to advertising, specific case studies will be explored.

According to Battelle (Spurgeon 2005), in less than a decade search engines such as Google and Yahoo! have become central to new media advertising.  Search based advertising is now exceeding the success of television and radio commercials due to its mobility, flexibility and variety. Battelle asserted that “Search Based Advertising” (Spurgeon 2005) is paramount to the rapid confluence of digital media and marketing.

As a result, such advertising has led to a fluctuation of power from large mass media corporations to individualised small advertisers. The term “Long tail”, coined by Anderson (2004) expressed that small online advertisers are essentially liable for the success of this advertising. It essentially places the power in the hands of the consumer to seek and discover. For the main part of the 20^th century, selling space and time to advertisers was the primary way for mass media corporations to create profits. However, as evident in the “Long Tail” theory (Anderson 2004), due to the convergence of digital media, it has become evident that “the addition of new media to the media mix is an important factor that shifts the balance of power away from the agencies to small advertisers and consumers” (Spurgeon 2005).

 

Furthermore, in this new media context, audiences are more nomadic. Within the media industry there is more talk of consumer sovereignty; consumers determine what gets sold in the marketplace. Yet again, we see this shift of power from large advertising corporations to the individual consumer.  As “digital natives” (Sheehan 2009), consumers decide where, how and what they consume. As such, advertisers have recognised that they need to establish stimulating connections between consumers through the use of new media-as oppose to old media in which the attention of consumers was largely “taken for granted”(Croteau 2006). In response to this, there has been an apparent rise of viral marketing campaigns, otherwise referred to as “The viral revolution” (Sheehan 2009). Media companies have been launching viral advertising campaigns online with the intention that consumers will propel it through their own social networks, therefore giving it the kind of exposure that would be extremely expensive to buy through old media channels. There are numerous examples of such ‘viral campaigns’ (Spurgeon 2005) which have effectively connected with consumers.
The epitome of social media success is evident in the ‘Old Spice’ advertisement. The success of the ‘Old Spice’ advertisement speaks to the power of new media when done well. Since its release in 2010 it has essentially become the “viral media template” (Khamis 2012). The success of this advertisement can be largely attested to the growing hunger for video entertainment in collaboration with advertising.

Additionally, branded content is one way advertising has developed in conversational media. “Many advertisers are looking for new ways to reach out to distracted, distrustful and disinterested consumers” (Spurgeon 2005). Donaton used the phrase; “Madison and Vine” (Spurgeon 2005) to describe branded content. Madison refers to the geographical apex of international advertising and Vine refers to Hollywood (Vine St). The Madison and Vine theory refers to the intersection of Hollywood content and Madison content. This convergence has strategically inspired ideas to provide content that delivers a marketing message which is so seductively packaged that consumers will not only mind that it’s an advertisement but will also incorporate it into their own individualised media flows. Once again, the power falls into the hands of the consumers as opposed to the advertising company.  

One of the earliest examples of contemporary branded content can be seen in the “BMW: The Hire” advertisements. They were a campaign of 8 short films which were distributed online with the aim to simply try and connect to “young, affluent new media users.” (Spurgeon 2005). The success was phenomenal. Modelling the convergence of media and film, the BMW advertisements effectively demonstrated advertising companies reaching out and connecting with consumers-whom of which remain in control. This blurring of commerce and art can also be recognised within the music industry. In his analysis, Spurgeon (2005) incorporated the example of a Sting song which featured him travelling in an S-Type Jaguar. Once Jaguar agreed to the music video, both parties (Jaguar and Sting) experienced enormous success as a result. The phenomenon of digital media convergence has generated the growing need for media personalities to spread their talent widely through advertising.

Old media was once the reign of advertising possibilities whereby large financial organisations held the power to manipulate consumers during prime time on television and radio shows. However as a result of gradual digital convergence, there has been an explicit shift of power from advertising companies to consumers.
The digitalisation of media has called for advertising companies to recognise that they must reach out and connect to consumers. Prime examples of successful communication are recognised through the use of search based advertising in association with ‘viral campaigns’. Branded content, specifically the ‘Madision and Vine’ (Spurgeon 2005) theory also demonstrate the way in which advertising companies connect with consumers through new media.  According to Sheehan, those agencies which recognise and embrace the cultural and technological changes of society will be the agencies that lead the various innovations designed to play a central part in digital media convergence (2009).

 

 

 

 

 Bridget McKinn
42912954

 

References

Journals:

Bardoel, J. and D'Haenens, L. (2008) Public Service Broadcasting in Converging Media Modalities: Practices and Reflections from the Netherlands . The International Journal of Research into New Media Technologies , 14 pp.24-27. doi:10.1177/1354856508091086

 

Croteau, D. and Hoynes, W. (2006) Corporate Media and the Public Interest. The Business of Media, pp.155-189.

Sheehan, K. and Morrison, D. (2009) Confluence culture and the role of the advertising agency in a changing world. Beyond Convergence, 14 (3), pp.5-7.

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

Images:

http://www.google.com.au/imgres?q=Anderson+%22long+tail%22+theory&um=1&hl=en&sa=N&biw=1525&bih=718&tbm=isch&tbnid=uXOhQWYQ7h-

http://www.google.com.au/imgres?q=MADISON+AND+VINE+ST&um=1&hl=en&sa=N&biMadison-Vine-Scott-Donaton/dp/0071436847&imgurl=http://ecx.images-

http://www.google.com.au/imgres?q=facebook+logo&um=1&hl=en&biw=1525&bih=718&tbm=isch&tbnid=zJxMgbsojbq3jM:&imgrefurl=http://feedgrowth.com/idea-categories/social

Videos:

http://www.youtube.com/watch?v=owGykVbfgUE

http://www.youtube.com/watch?v=FgOOU0z_Pik

Other:

Khamis, S. (2012) Lecture: Advertising and New Media. Available at: http://ilearn.mq.edu.au/blocks/echo360_echocenter/echocenter_frame.php?id=9559