New Media - A Business Perspective

“I hear YouTube, Twitter and Facebook are merging to form a super-social media site - YouTwitFace"

− Conan O'Brien, The Tonight Show

The above quote, though trivialized, probably brings out best the one prime characteristic of the media industry today – CONVERGENCE within the industry and this is what makes it most relevant for businesses today. 

To better understand significance of social media as a channel of business, we first need to recognize the true nature and capabilities of 20^th century’s most significant contribution to the world of communication. Social media can be defined as the manifestation of the traditional and contemporary forms of media onto newer forms of communication technology such as the wireless mobile devices, computer-based interactive consumer programs, and of course, the Internet. What makes social media so popular and talked about is its ability to impart an interactive dimension to the otherwise one-way approach of the conventional forms of media. New media cuts across an assortment of demographic groups of varied customer profiles. This has helped revolutionize marketing and advertising strategies for businesses the world over. Companies are today working on ways to reach out and involve the ‘customer’ in different ways and build customer loyalty. Also, social media is not just restricted to B2C businesses, its benefits are effectively applied to B2B businesses as well.   

   

Brian Solis, one of the prominent thought leaders in New Media has, in his blog, discussed results of the annual study conducted by the Centre for Market Research at the University of Massachusetts Dartmouth on the adoption and practice of social media by the Inc. 500, a list of fastest growing private companies in the US.  This study revealed that companies who did not use social media whatsoever who were 43% in 2007 plunged to 9% in 2009. The study also found that most companies have realised the importance of customer engagement and interaction, and reported the incorporation of at least one social media tool in their business practices. Such is the power of penetration of new media, the world where the user is both a marketer and a consumer. 

The New media industry shares an intimate relationship with many market segments including broadcast media, interactive computer-based program design and development and business verticals of marketing, advertising, public relations and customer support. It is in this ambit that sites like Facebook, YouTube and Twitter are booming. These websites serve as a link between the firm and their end users, and hence have a substantial influence on the user’s experience with the company and its offering. 

With more and more people becoming media-savvy and companies striving hard to gain ‘mind space’ and ‘media space’, online platforms will only become more powerful as channels to build brands and online presence.  As Seth Godin puts it, “Marketing is no longer about the stuff that you make, but about the stories you tell.” New Media, if used right, can help your business and brand become a ‘BEST-SELLER’.