Friday, August 31, 2012

Convergence's effect on Advertising and New Media

            The result of a paradigm shift caused by the digitization in our culture has resulted in an increase pressure towards the advertising agencies to adapt. As the availability of different mediums create a distracted and fragmented consumer, traditional media approaches are unable to successfully compete with new media. The most effective way to understand the term is through the discussion of its definition and its relationship to confluence. As a dynamic term, convergence has a complex definition that can expand with time. As Dwyer points out on his essay, "convergence is the process whereby new technologies are accommodated by existing media and communication industries and cultures" (Dwyer 2010 , p. 22). Closely related to the term is the expression: confluence culture. According to Sheehan and Morrison, confluence culture in media industries "is the situation where traditional methods of work adapt to embrace the new reality of interactive content" (Sheenan and Morrison, 2009). Within this paper we will discuss the impact convergence has had on advertisement by noting the changes and tactics it created followed by a case study on the company Apple.
           Convergence has created four major changes that create a confluence culture: it has changed the locus of control, lowered the cost of production/distribution, changed the way media is produced/consumed and changed the traditional packaging strategy. Through digitization, convergence has given more power to smaller audiences/advertisers (Spurgeon 2008, p. 30). This change in control relates to Jenkins' idea of participatory culture where "content producers and consumers are no longer occupying separate and unique roles" (Sheenan and Morrison, 2009). Users are now generating content that was once exclusively developed by advertising agencies and no longer exclusively relying on companies to gather information. This shift in control is caused by the creation of lower costs of production and distribution by new media technologies. Through the expansion of available delivery channels and an empowered consumer new media is able to reduce these costs (Jenkins 2006, p. 10). Smaller advertisers can then promote their products at a fraction of the cost and be seen in similar mediums as other advertisers. Consumption is also affected by convergence by making it a collective process. As individuals spend less time using traditional media and more time online, audiences become fragmented (Sheenan and Morrison, 2009) and are expected to work together in order to understand content. Thus, consumers are expected to interact, seek and make connections among dispersed content (Jenkins 2006, p. 15) which challenges advertisers. The challenge comes from being unable to reach a target audience and the increase of pull technology to avoid advertisements. These elements combined displace the traditional packaging strategy of TV commercials.
           There are four tactics that emerge from a confluence culture: multi-platform experience, consumer integration, brand community building, and market segmentation. In order to combat fragmentation, a multi-platform experience allows consumers to access a full spectrum of content no matter where they are. This is done through the reengineering of traditional media corporations with integrated online outlets that bring together audiovisual material and advertising (Sheenan and Morrison, 2009). Strengthening this process, consumer integration establishes dialogue by making the consumer interact with the brand. Examples of consumer integration are: user generated content and bricolage (the remixing, reconstructing, reusing and repurposing of content) (Sheenan and Morrison, 2009).  These strategies help companies develop credibility in audiences that increasingly rely on peer reviews (Sheenan and Morrison, 2009). They also help advertisers fill the content gap generated by the demand of more content with less resources. As a response to consumer fragmentation, companies have had to segment audiences in order to identify similar behavior. This behavior outs a group of people who react uniformly to marketing stimuli (Griffith 2006). The last tactic produced is brand community building. This tactic allows consumers to relate  and establish networks around core brand activities that stimulate interaction (Springer 2007).
           Apple's tactics are examples of a company going through confluence culture. Their Worldwide Developers Conferences and Youtube channel exemplify their multi-platform customer experience. Through Apple's website, developers can watch session videos, check the conference schedule and download developing resources .

The general public can also access the conference by watching it online on Youtube. Thus the event generates dialogue within consumers which helps create a brand community as well as consumer integration and a multi-platform experience. Through their Youtube channel Apple has combined traditional packaging strategies for commercials with new media. On their channel, viewers can access current and past television commercials, which increases the exposure and gives an easy forum for videos to go viral.


In fact, Youtube helped Apple repurpose user generated content for one of their advertising campaigns. Apple's iPod Touch commercial was based on a Youtube user's video, which was made up of iPod Touch video clips found on Apple's official site. The video was such a success that representatives of Apple asked the user to create a professional video for them. Comparing the original video with the official commercial  shows how much influence the user had on the company. This example shows how  companies and users can use bricolage to repurpose content for commercial purposes. Another example of bricolage was seen in this year's conference through this video. By showing how their iOS applications have affected people around the world, Apple showed how their developing software can be used to create bricolage (since many applications are developed by independent developers). Another way Apple has created confluence is by creating brand communities through their user groups and unboxing experiences. According to Apple's website their user groups offer Apple product users a forum to meet other customers and get their questions answered. The user groups are international and meet online or in person. The following website shows user groups located in Australia: http://www.appleusers.org/mug-listings/ . By giving the management responsibilities to the members apples creates a community that requires little upkeep. In contrast, the unboxing experience created by Apple is a conscious investment that requires continued expenditure in order to maintain customer expectations. The unboxing experience has created a community within customers that can be viewed through youtube. As seen by this video , many aficionados record their unboxing experience which help reveal the extent of their culture.
As seen through Apple's confluence culture, convergence has affected advertisement by crating challenges that force companies to develop tactics in order to reach a distracted and fragmented consumer.


References:

Apple, accessed 19 Aug 2012, <http://www.apple.com/au/usergroups/>.

Dwyer, T. (2010) Media Convergence, McGraw Hill, Berksire, pp 1-23

Griffith, D. (2010). Understanding multi-level institutional convergence effects on international market segments and global marketing strategy. Available: http://www.sciencedirect.com/science/article/pii/S1090951609000224. Last accessed 20 Aug 2012.

Hilderbrand, L. (2007) 'Youtube: Where Cultural Memory and Copyright
Converge', Film Quarterly, Vol 61, pp 48-57

Jenkins, H. (2006) Convergence Culture, New York, New YorkUniversity Press, pp 1-24.

SANG M. LEE, DAVID L. OLSON, and SILVANA TRIMI . (2010). The impact of convergence on organizational innovation . Available: http://libra.msra.cn/Publication/35636096/the-impact-of-convergence-on-organizational-innovation. Last accessed 20 Aug 2010.

Sheehan, Kim and Morrison, Deborah (2009) Beyond convergence: Confluence culture and the role of the advertising agency in a changing world in  First Monday vol 14 no 3 - http://firstmonday.org/htbin/cgiwrap/bin/ojs/index.php/fm/article/view/2239/2121

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

Springer, P. (2007). How digital media got closer. Available: http://connection.ebscohost.com/c/articles/25903528/how-digital-advertising-got-closer. Last accessed 19 Aug 2012.


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