Digital Media Convergence

  Media convergence refers to the “process whereby new technologies are accommodated by existing media and communication industries and cultures” [Dwyer, T. (2010) Media Convergence, McGraw Hill, Berksire, pp 1-23]. This form of convergence has changed both the media and advertising landscapes especially, particularly through the digitalisation of content. Companies can now target their markets not only through the traditional means of television, radio and print advertisements, but online as well. These changing practices have greatly influenced the way advertisers communicate with consumers. Furthermore, unlike traditional forms of media and advertising, consumers also have the tools to distribute digital content.

  The popular understanding of new media identifies it with “the use of a computer for distribution and exhibition rather than production” [Manovich, Lev (2001) The Language of New Media, MIT Press, Cambridge, Massachusetts, pp. 19-61] One of the major consequences of digital media convergence was the impact it had on content distribution. Due to internet connectivity and infrastructure of new digital media, large companies were no longer the only ones who were able to afford large scale distribution. This is largely because of the identical methods of distribution (online), regardless of content. One of the most popular distribution methods for both new media and advertising companies is through the online video website YouTube. YouTube is unique in that anyone can upload content, be it original or previously seen material. In recent years, large media companies such as Viacom have taken advantage of YouTube’s popularity by hosting their own branded channels [Hilderbrand, L. (2007) 'Youtube: Where Cultural Memory and Copyright Converge', Film Quarterly, Vol 61, pp 48-57] on which viewers can view materials for free, and create consumer awareness of their product. This combination of television and online media is just one example of trends in digital media convergence. Moreover, advertisers can now pay to have their content shown prior to chosen clips on YouTube. In the age of TiVo and DVR, when viewers can pre-record a television program and skip past the commercials, the use of online advertising has become increasingly valuable. Another impact of digital media convergence as it relates to advertising and new media is the participatory nature of online media. Unlike traditional forms such as television and print media, oneline strategies are not one-directional, allowing consumers to communicate on a different level with both advertisers and new media companies. 

  Due to the segregation of online markets, search engines remain the most popular online tool for advertisers reaching their consumers. Yahoo! was one of the earliest new media companies to turn profitable when, in 1998, it reported an $18 million profit [Dwyer, T. (2010) Media Convergence, McGraw Hill, Berksire, pp 1-23]. Both Yahoo! And Google provide a range of services and aim to help users find almost anything on the internet. As digital distribution has converged, television advertising, which had for so long been a reliable means for the advertiser to communicate with their audience, has come under increasing pressure due to the popularity of online advertising. Google, for example, is such an effective tool for advertisers simply because they sell short text space on highly targeted topics that people are reading about or searching on the internet [Dwyer, T. (2010) Media Convergence, McGraw Hill, Berksire, pp 1-23]. One major media conglomerate to take advantage of the power of search engines was News Corporation, whose billion dollar alliance with Google made the popular search engine the official and exclusive provider of keyword targeted advertising for New’s Fox Interactive Media Group, which manages News Corporation’s growing portfolio of online websites. A similar relationship between Google and DoubleClick advertising helped bring targeted text and video advertising straight to the consumers who are the most likely to be interested in the advertised goods and services. In another example of the impact of digital media convergence, companies such as Google have been working on developing partnerships with mobile carriers as they see the future of advertising on small, handheld screens. 

  Interest in branded entertainment has intensified recently, particularly online. BMW are just one case in point, having launched a series of short films targeted at niche markets. These films can be found on both the BMW website and YouTube, as well as several other video streaming sites. One of these films, 'The Hostage', is shown below [http://www.youtube.com/watch?v=Dcmn32s6ZSQ].

For the series of films, BMW hired the top creative producers from Hollywood and used the internet as their main form of distribution. As a result of this advertising strategy, they were able to reach a highly desirable target market that were all new media users, and saw an almost immediate spike in sales.

Media convergence refers to the “process whereby new technologies are accommodated by existing media and communication industries and cultures” [Dwyer, T. (2010) Media Convergence, McGraw Hill, Berksire, pp 1-23]. The popular understanding of new media identifies it with “the use of a computer for distribution and exhibition rather than production” [Manovich, Lev (2001) The Language of New Media, MIT Press, Cambridge, Massachusetts, pp. 19-61]. Digital media convergence has had an impact not only on new media, but advertising as well. The way advertisers reach their target market has been revolutionized through the development of online tools such as social media, search engines and video streaming services such as YouTube. Due to these technological advancements, mass media strategies such as television have come under increased pressure as they are no longer seen as the most effective form of distribution. Media convergence has allowed users increased access to information from a wide variety of sources, changing the landscape for both new media and advertising.