Week 4

Case study: Convergence

The concept of 'convergence' "is considered as a mixture of device, network, service convergence and radio" (Ojanpera, 2006). Device convergence nowadays has made mobile devices more useful; it is not only used as a phone anymore, but also as a portable computer. According to Ojanpera (2006) convergence has become bigger and it is a mega trend that shapes the whole communication method, which gives new opportunities for developing new services.

A very good example that illustrates today’s convergence device is the smart phone. Why do we love it so much? Since it is portable and convenient, which makes it easier for consumers to communicate through different devices, however consumers nowadays want more out of the products they purchase, not only that, but also high quality when it comes to technology. The face-to-face event has slowly faded away; owing to consumers utilize devices and network as a communication tool, which has become a mega trend. Alam  & Prasad (2007) pointed out the way people converge with each other through the Internet, has opened doors for people all over the world to expose their talents on global basis. This new technology provides end-users to successfully contribute with their own ideas. The video-clip below explains how individuals communicate online.

Technology will always improve. When there is a new invention on the market, which is better than the previous one, users will adapt the new invention easily. This is also a motivation factor for producers of the inventions, which always keep technology updated in order to satisfy the needs and wants on the market. When it comes to communication technology Flew (2008) mentioned briefly that convergent media is the combination of computing information technology, communications networks and media content. As shown in the figure below, it is referred to as the 3 C’s. This is the definition of new media, which can also be referred to as digital media due to the different forms of media content involved such as text, video, audio, sound, images and pictures which are all in digital formats, which is shared through networks such as broadband and ‘microwave transmission systems’ (Flew, 2008).

Fagerjord, (2009) explains how convergence has combined different business sectors such as telephone wires, television, computer industry and the telephone industry. Services has converged as well as technological devices provided by these industries. The interesting view is how convergence has been taken advantage of in the marketing and advertising profession and embedded in the promotional techniques used by the companies.


A good example of how advertisers and marketers use new media as a communication tool is YouTube. In less then a year, YouTube became a new media phenomenon (Fagerjord, 2009). Fagerjord (2009) explains that this website is not only used by private users but also businesses as they advertise themselves cost-effectively. The YouTube library is used by millions of people, which have now become one of the best examples of new media that can be described as convergence. Businesses nowadays use this platform to expose their message, which can gain a great number of views, with a small effort and a low budget. This type of communication tool is called “viral marketing”.  The process is clearly presented in the video below.

Online social networks have developed into an important factor of sharing information and influencing the public with the promotion of new services and products (Subramani & Rajagopalan, 2003). Furthermore, viral marketing is an excellent tactic to take advantage of in order to spread word- of- mouth. The goal is to stimulate trial to the product as well as adoption (Subramani & Rajagopalan).

"Great products + weak branding = weak sales" (Briggs, 2009)

The company 'BlendTech' produces high quality blenders, but their problem was lack of awareness on the market, which resulted in weak sales. According to Briggs (2009) the company chose to take action and produced a low-budget video called "Will It Blend?". The video created high awareness among YouTube viewers and after five days, the video had over six million views (Briggs, 2009). This is a example of how effective convergence in media is, and how is can be used by marketers and advertisers to create a 'buzz' around a brand, without using traditional advertising channels such as TV, radio and billboards, which can be highly expensive. As a result of the awareness, sales increased by 700% (Briggs, 2009). Briggs (2009), illustrates this in a timeline, which is presented below. This timeline presents the process, which was made by the company. in addition to this, the timeline exhibits the results after BlendTech utilized YouTube as an advertising channel.

In conclusion, Flew (2008) explains how convergent of services, products and activities online has created "a pool of social knowledge", where individuals communicate with each other and create new knowledge through networked databases. The BlenTech- example, illustrates the power of new media and how convergence has opened several pathways for small businesses to compete with major brands on the market. in addition to this, businesses can obtain high market shares and effective results by utilizing other channels, which is created by convergence. The video below presents BlendTech's low-budget video, which became a viral success in five days.

References

Ojanpera, T. (2006). Convergence Transforms Internet. Wireless Personal Communications 37, 167-185. DOI: 10.1007/s11277-006-9072-3

Alam, M., & Prasad, R,N. (2007). Convergence Transforms Digital Home: Techno-Economic Impact. Wireless Pers Commun 44, 75-93. DOI: 10.1007/s11277-007-9380-2

Flew, T. (2008). New Media: An Introduction (3rd Ed). Melbourne: Oxford University Press.

Fagerjord, Anders. After Convergence: YouTube and Remix Culture. International Handbook of Internet Research. Matthew Allen, Jeremy Hunsinger, and Lisbeth Klastrup, eds. Berlin: Springer, forthcoming.

Subramani, R, M., & Rajagopalan, B. (2003). Knowledge- Sharing and Influence in Online Social Networks via Viral Marketing. Communications of the ACM, 46 (12).

Briggs, C. (2009). BlendTech Will It Blend? Viral Video Case Study. SocialLens Incorporated, 1-8.