Realising The Digital Opportunity

01/07/09

By Colin White, UK CEO at Oxygen8 Communications

The media market is in transition. Traditional revenues are in decline, whilst new digital platforms, although expected to deliver significant revenues in the long term, are yet to fill the gap.

Today few, if any, organisations have developed an integrated cross-media strategy that is delivering quantifiable value. Instead, ill fated attempts at digital strategies are in direct competition with traditional print or television revenues, undermining the overall offer and disenfranchising the customer.

It is hard to justify a major overhaul of internal processes and investment in new media when the revenue stream isn't clear....

... However, there are very real opportunities today to incrementally increase revenue by cross-selling and driving new traffic to support new advertising streams without incurring major business risk, argues Colin White, UK CEO, Oxygen8 Communications.

Mixed Message

Increasing audience fragmentation and declining advertising revenues from traditional media are creating increasing pressure on media companies. Whilst there has been an explosion in demand for digital media, especially video and IPTV, as yet few companies understand this shift in consumer behaviour nor are they attaining the expected financial rewards.

In a bid to maximise new media, too many companies are pitting their own traditional print, radio and TV products against associated web sites, cannibalising both audience and revenue as a result. The lack of strategic thinking combined with inept processes further jeopardise the long term revenue stream.

This digital marketplace is undoubtedly the future. Media companies need to become attuned to selling new media advertising, from mobile to 3G and IPTV, in a way that complements, not undermines, traditional products and reflects the expectations of the consumer.

This shift in approach requires not only an investment in technology, resources and understanding but also a significant corporate restructuring to deliver an integrated cross-media... continued on page two >

 

 

Advertisement

Advertisement