Digital media have made quantum leaps (go back »)

September 17 2008, 3:05 AM

Bharatbook.com added a new report which forecasts growth in advertising from digital media for the next ten years.
 
The incumbent telcos have largely failed to use triple or quadruple play effectively as a mechanism to propel themselves into the new market of digital media.
 
From a marketing perspective this was not exactly a forgone conclusion, but perhaps from a vertically-integrated business position (especially with hindsight) it was.  Nevertheless the incumbents at least had a chance to show that they could jump the S-curve from the old telecoms market into a new digital media market.
 
Telcos are great engineers but they are weak in marketing and media creativity. This is simply because the underlying vertically-integrated business models upon which their organisations are built do not stimulate innovation. Such organisations have to aim their products and services at mass market averages; they are not specialists in any of them. This leads to mediocre products. In the hyper-innovative and competitive Internet environment these mediocre offerings don’t stand a chance.
 
Rather than utilising its unique mix of telco commodity (audio, video, data) around the emerging Internet business models, and using them to build new products, the telcos simply bundled the lot together, offering them at a marginal discount, and hoped for the best.
 
With telco commodity prices dropping by the hour, there was no real incentive for users to take that discount as prices would drop anyway. Individual products could be obtained more cheaply by shopping around and building one’s own triple play model. There was also a reluctance to sign long-term triple play contracts – not a very attractive proposition in this volatile environment.
 
What the telcos failed to do was create truly integrated products and to sell applications based on them, rather than simply bundling together the various building blocks. In the end, triple play was just another attempt to keep their vertically-integrated telco models running, rather than being a serious effort to build something better for their customers.
 
Of all the triple play markets, Hong Kong might arguably have been the most successful. But there, also, the telco business culture has failed to match the one needed for the digital media.
 
This realisation has assisted the incumbent telco PCCW to make the decision to try and interest others in their triple play business, in the hope that this will attract companies with a better view on what business models are required to operate within the digital economy.
 
Private equity companies are eager to step into this particular breach and restructure businesses to make it more attractive for those companies to participate in the process.
 
Bharatbook.com included a new report “Global Digital Media - Advertising and Marketing” which offers a wealth of information and analyses on the worldwide advertising and marketing sector in relation to Digital Media developments. It includes information and statistics on the worldwide advertising industry with a focus on online advertising developments. The report provides an overview of the key Internet Media players and their activities and a case study on the industry leader, Google. It includes an overview of marketing strategies such as permission and location based marketing. Information at a regional level is also provided for the Americas, Europe, Middle East, Africa and Asia Pacific.
 
About Bharatbook.com:
Bharat Book Bureau facilitates companies to take the lead of their industry with best practice business strategies and intelligence, through a unique combination of published reports, databases, country reports, company profiles and customized research services. Bharat Book Bureau provides strategic information tools to the executives, business analysts, and knowledge managers that will help them to probe into and support critical, timely business decisions and strategies.
 
For further information kindly visit: http://www.bharatbook.com/detail.asp?id=75126
 
 
 

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