New media virtual_lecture


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Introduction to new media in marketing, advertising and public relations

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New media virtual_lecture

  1. 1. Virtual LectureNew Media in Marketing, Advertising and PR: The background Robin Croft, Bedfordshire Business School University of Bedfordshire Revised February 2011
  2. 2. OutlineThis virtual lecture What are the new media? Why are they important? What are they like?
  3. 3. New media…new waysNew ways of communicating Blogging, instant messaging, virtual worlds, MMS SMS and email are SO last year!New ways of socialising For example through social networks such as Facebook, Bebo, Myspace Or virtual online communities such as Second LifeNew ways of finding knowledge For example Blogs for unbiased views or ordinary people, Wikipedia for pooled expertise, Google searches, checking prices through Amazon and eBayNew ways of entertainment For example watching and sharing videos on Youtube, listening to your own customised radio channel (streaming radio)New ways of doing business E-commerce: consumers are used to buying, now they are getting into selling through eBay and Amazon Financial transactions Business start-ups: low start-up costs, no market research, no strategy… just small ideasOf all of these, having fun… A new generation which doesn’t take itself seriously
  4. 4. The new mediaSocial software In order of importance, Facebook, Myspace, Bebo sharing Pictures (Flickr), music (LastFM, Spotify), video (Youtube)New money Virtual money being earned and spent on simulations such as Second Life Alternative digital payment methods like PayPal Using mobile devices as payment tools in developing markets where there is little access to banks or creditTagging and streaming Using technology to keep track of what we see, to share pages with friends, to get notifications as pages are updatedWikis Not just Wikipedia, but any site that enables users to adapt and contributeLight devices The mobile phone, PDA, MP3 player, handheld PC – they are all digital devices and increasingly are carrying out more than one function
  5. 5. Why are NM important?Some numbers Youtube sold to Google for $1.65 billion Myspace sold to News Corporation for $580 million Skype sold to Ebay for $2.6 billion Google worth over $40 billion Bebo sold to AOL for $850 million – Bebo was just 3 years oldLimitless growth? 235 million Google searches per day China has360 million internet users, but this is still only about a quarter of the country, which has 703 million mobile phone users Kenya has 3.4 million internet users, but 17.5 million mobile phone usersProviding information is also gathering data (clickstream)Consumer research insights The whole promise of direct marketing – the real value of informationThe user base… see next page
  6. 6. New media, new markets Extensive 350 million FaceBook users worldwide (including 19 million in UK alone), 11 million in France and 4.3 million in Germany. Total of 108 million active users in Europe Qzone in China has 376 million users. Facebook has only 1.4 million in the country 125 million MySpace users worldwide, but still level with FaceBook in US 45 million Bebo users worldwide 7.3 million UK Myspace users, 110 m worldwide Young, fun-loving Typically under 24, communicating differently, bored by TV and mass media Intelligent, sceptical Typically degree-level, distrusting of companies, brands, politicians, media Affluent, global Settling down later, more disposable income, hedonistic New young, large middle class in China, India, Pakistan and other places Very attractive target market – but how to reach them? Mobile, wireless In mature markets users don’t want to be tied to the PC, but need to stay in touch In developing economies there is often no cable-based comms infrastructure or reliable electrical supply Geeky, and geeks are now coolTribal Users defining themselves by their music and tastes, and by membership of virtual communities – young people especially through music
  7. 7. Multimedia Sourcesclick here to view a BBC Newsnight piece showing how in Kenya the mobile phoneis used to access the internet, to send cash, to keep business moving...The music business is going virtual and digital: click here for link BBC report on howdigital is changing everythingMusic and everything on the move: click here to watch a BBC report ondevelopments in multimedia
  8. 8. New ways to stay in touchAdvertising ineffectiveness Rising costs of media and production Declining audiences, fragmented Sceptical consumers(Old) media clutter Fragmented media, multiple channels, ambient advertisingInternet information overload Both the number of pages available and the amount on each – where do we start and who do we trust? Memory and fatigue problems. Hence tagging systems such as BluedotFast changing environment Largely driven by broadband – there is so much more we can do now, but it is users and audiences customising the technology, not companies. Hence need for RSSMedia environment has its own dynamic Unpredictable because user-drivenThe future is here already… High speed broadband, still getting better in UK, penetration increasing in all major markets Mobile broadband GPS and Bluetooth technologies embedded in social networks, alerting us when friends are nearby
  9. 9. New media convergencePower of hand-held devices Enabling more applications such as computing, internet, telephony, music, video, GPS Devices get smaller, more portable, more efficientCost of mobile devices Based on reducing manufacturing/component costs and increasing market sizesGlobal potential, emerging markets Portability and lifestyles I want it now, I want to be in touch, I want to be in controlElectricity and infrastructures Solar chargers in developing countries more dependable than electricityCulture Importance of family/community/tribe Voice and conversation valued in a digital ageCustomisation New generation wants their own individuality on mass-market technology User-driven, content-richConnectivity Need for 24/7 connectivity Whatever, whenever
  10. 10. Multimedia sourcesClick here to watch BBC report on new technology: consumer adoption is morerapid than everConnectivity is the future, according to Microsoft. Click here to watch 3 separateBBC news articles from the Consumer Electronics Show and to hear what Bill GatesbelievesNew battleground is the digital living room: click here for BBC article and links to 3broadcastsClick here to watch BBC broadcast about mobile internetClick here for text article from BBC about enhanced mobile internetNicknamed New Youtube, a new web-based service promises video on demand, viabroadband not broadcast. Click here to watch BBC item on thisClick here to listen to Guardian correspondent talking about the new Apple iPhone
  11. 11. Economic drivers of NMPower of hardware Increasing incrementally, in PCs, PDAs, handhelds, mobiles (Moores Law) Devices can get smaller and more energy-efficientBroadband Power and speed increasing in most markets Mobile broadband suits developing markets – cheap, reliable, quick, flexible Availability of broadband means that users start doing new things with the technology – a major driver of Web 2.0 applications. It’s not just that the platforms are available, it is that we now have the bandwidth to make possible (for example) streaming video and Voip which previously was out of the questionCost reduction Hardware costs halving each year Connection to broadband – price reductions, price warsBigger audiences www now 10 times bigger than 1998 And in emerging markets there are often 4 times more mobile devices
  12. 12. Key features of new mediaCommunities Open to all – also called Me Media Closed – our group, our tribeCollective intelligence Building ideas and consensus on Blogs Collective/collaborative knowledge of WikisFree, open source The original principles of the internet, no proprietary tools Collective intelligence improves the tools Often the new users are kids who can’t/won’t pay out for new software tools No entry barriers based on costDemocratic New Web 2.0 applications mean users can produce creative applications in minutes – no special IT skills needed Blogging is becoming an important part of political protest SMS has been used to mobilise large anti-government and anti-war protestsProviding platforms and tools Blank canvases for users to express themselves on Range of tools to customise applications
  13. 13. New media contentRich Pictures, sounds, movies New open source software enables us to edit and digitise our personal media and then share it on the web Tools provided with new digital devices (cameras, mobiles, PCs, MP3 players) to make uploading and downloading easyUser-generated Two-way connectivity Customising the space Often looks chaotic – but that is the authenticityMore of everything More information to more people in more ways – this is Google’s unofficial vision statementBlogs not splogs Software used by companies crudely to infiltrate blogs with brand messages (spam + blog = splog) Counter-software developed to identify and delete splogs There are 200 million blogs worldwide – with about 50 million active
  14. 14. What’s new in new media?Connectivity staying in touch 24/7 Watching/listening where you want on the device of your choiceTagging finding your stuff in a cluttered media environmentSocialising With your tribe Just hanging out in cyberspaceFun, cool, authentic Users can spot the commercial messagesEnglish is just another language Only 30% of Wikipedia pages are in English Other languages part of democratisation Young users customise language anyway – slang and new forms such as txtngFilters Interactivity – don’t show me this ever again – this is spamStreams Update me as your pages update through RSS streamsFreedom to express yourself within limits, don’t hurt anyone Away from control of parents, teachers, authorities
  15. 15. Business development in NMSmall ideas Creativity grows incrementally, not in a linear fashion Paradox of creativity, moving forward quickly but cautiouslyNo strategy no planning no market research Ideas tested in real time Flexible and pragmatic responseAccidents Chance meetings in Sillicon Valley coffee housesNurturing and seeding Trialling the ideas with small groups Ideas spreading out naturallySmall start-up costs Lowering costs of hardware and connectivity Small entry and exit barriersTipping Points (Malcolm Gladwell) Point at which adoption gains its own momentum When we all want to be a part of that piece of action Maybe this creates ‘first mover advantage?’
  16. 16. Multimedia sourcesClick here to listen to how Hewlett-Packard sees theblurring of boundaries between home and workCisco believes that broadband access is revolutionisingthe creative process and putting the power into thehands of users: click here for their podcast on thesubjectLaunching a new media product is often about reachingonline opinion leaders. Here expert Idil Cakim talksabout the process
  17. 17. Tools of new media – how is it done?Enabling technologies Web 2.0 applications easy to use by complete novices Giving scope to the imagination and creativity of users Emphasis away from corporate web developers to users themselves Companies provide the platforms and the tools – users do the creative developmentPragmatism Providers are watching, listening, learning Real-time research Facilitating more of what is popular, dropping facilities that are not usedUnderstanding the space – what are people able to do with the platform and tools? the ecosystem – how everything relates to everything else
  18. 18. NM: before and afterOld New The Internet Web 2.0 E-commerce Socialising Searching Interactivity Seeking out Web authoring Connectivity (2- Audiences way) Email Citizens’ media Control Reach Rich content Policies, norms
  19. 19. Language of new mediaDemocratising Experiences, culture, creativity Finding (fragmented) communities of like-minded peopleOpen media landscape Not dominated by companies, systems or technologies No boundaries, no barriersLeaning back, leaning forward Inviting audiences to become participantsWisdom of the crowds Collective intelligence drives knowledge Trusting friends and communities more than companies, brands, governments Sharing good experiences, feeling better about negative ones through ranting
  20. 20. New media: Web 2.0What is Web 2.0? Wide ranging article on newmedia here in GuardianClick here for video interviews with ‘webrevolutionaries’, part of Guardian feature
  21. 21. New Media: enhanced search enginesWeb 2.0 is freedom: what about censorship insearching? Articles from Guardian, click here and hereClick here for first of two BBC World Service radioprogrammes about GoogleClick here for second of two BBC World Service articlesabout GoogleExamples
  22. 22. New Media: online classifieds and auctions Click here to listen to Guardian interview with Craig Newmark, founder of Craigslist Examples good example of enhanced web presence working with interactive TV
  23. 23. New Media: social networking sitesClick here to listen to Guardian interview with thefounders of Bebo (before they sold to AOL)Examples
  24. 24. New media: tagging and streamingClick here to listen to Guardian interview withJoshua Schachter of on taggingWhat is an RSS feed? Do I need one? GuardianInterview here with Dick Costolo of Feed BurnerExamples
  25. 25. New media: file sharingClick here to listen to Guardian interview with Flickrfounders, Caterina Fake and Stewart Butterfield.Flickr is now part of Yahoo (2005). It was originallydesigned as part of an online multi-user game. Ithosts 4 billion user-generated pictures.Examples:
  26. 26. New media: digital downloadsClick here for Guardian article on Last.fmExamples now subscription, legal, download an online ‘radio station’ which you customise to your own tastes another online, customisable music channel
  27. 27. New media: blogsClick here for Guardian article on Digg, sharing bloggingexperiencesClick here for Guardian interview with David L Sifry, founder ofTechnorati (blog search engine)Better ways of writing? Guardian interview with Sam Schillace here1999, the beginning of blogs: click here for interview with EvanWilliams in GuardianBlogging and blocking splogs: interview with Matt Mullenweg herein GuardianMore about splogging in Guardian, click hereExamples: search the 55 million blogs worldwide
  28. 28. New media: collective intelligenceClick here to listen to Guardian interview with TariqKrim, founder of NetvibesClick here to listen to Guardian interview withWikipedia’s Jimmy WalesSpam problems make Wikipedia an internet blackhole? Click here for Guardian articleExamples: (a non-profit organisation)
  29. 29. New media: VoipVoice over the internet protocolExamples:
  30. 30. Conclusion: it’s all new…TechnologiesAudiencesPlatformsCulturesLanguageWays of thinkingBusiness models