New Media: Your Guide to Success in the Internet Economy

The Internet has often been referred to as a disruptive technology. Disruptive technology, sometimes referred to
as disruptive innovation, refers to an innovation or technology that successfully disrupts the market and changes lifestyles in ways that few, if any, predicted or anticipated. The Internet, coupled with new innovations that the near-ubiquitous adoption and usage of the Internet facilitated, has completely and unalterably disrupted business as usual for nearly every type of commerce. New media, as the Internet, social media, and related digital technologies are commonly called, has redefined personal and business communication, marketing, advertising, sales processes, banking, photography, interaction with friends and family, journalism, and a host of other activities and processes in just a few short years.

Emergence of the Internet

The Internet, originally developed for the purpose of networking together military and scientific computers, is a relatively new technology. The World Wide Web project was created in 1989 by Tim Berners-Lee [1]. Estimates are that Internet usage grew 100 percent per year or more throughout the 1990s [2].

Evolution of the Internet

The Internet has evolved to be more widely adopted, more universally accepted, and more socially significant than probably anyone could have imagined. Current estimates indicate that as many as 1.5 billion people worldwide are now using the Internet - fully one fourth of the world population [3]. This number continues to grow each year.

Local search has emerged as one of the hottest trends in online usage. (Phone books are so 1990s!) More consumers than ever use an online database like Google to find local businesses. Google's mobile service, for instance, allows a user to send a text message to Google and instantly receive a list of businesses matching the requested keyword. The results are more up to date than any printed phone book every could be, are conveniently ordered beginning with the closest to the user's location, and include active, "click-able" phone numbers and map links. Considering the level of service that Google provides (at no charge to their users) it is easy to see why many people would rather rely on local search than an outdated phone book.

More people each year turn to the Internet for their information needs. Maintaining a phone book listing or newspaper advertisement for your business may (or may not) continue to be an effective advertising solution for your business. However, two things are guaranteed as the Internet economy continues to rapidly expand. The first certainty is that phone book listings and print newspaper advertisements will continue to decline in both overall effectiveness and cost effectiveness. The second certainty is that local search, company websites, and social media will continue to increase in both overall effectiveness and cost effectiveness.

These twin trends are guaranteed. Your business or organization absolutely needs to maintain an effective online presence in order to compete in an Internet economy.

Social Media

One of the more surprising things to emerge from the widespread adoption of the Internet is the prevalence and popularity of social media. Blogs, photo sharing (Flickr), video sharing (YouTube), social media sites (Facebook), and microblogging (Twitter) have become increasingly significant tools for communication between friends, co-workers, and family members.

Significantly for businesses, social media has become increasingly important in consumer purchasing decisions - whether for good or bad. Consumers increasingly rely on product reviews and customer comments to decide which product or service to purchase. Businesses and organizations that are in tune with this trend are actively maintaining an online presence for both proactive and reactive public relations.

Ignoring social media can be a dangerous mistake. Consider the 2009 Domino's Pizza case where two bored employees created a "mock" video of themselves preparing food orders complete with bodily fluids. The pair posted the video on YouTube where it soon went viral and was viewed more than one million times within a few short days. Domino's management was quickly aware of the situation but thought that the best course of action would be to ignore the video. Big mistake. Within a few days the video had become so widely viewed and discussed that 5 of the top 12 Google search results for "Domino's" were about the prank video. Domino's was eventually able to track the offending pair through social media comments and has sued for damage to the corporate brand [4]. As this story illustrates companies who ignore social media do so at their own peril.

Social media can also powerfully propel a company or organization forward by turning their brand into a household name almost overnight. mtvU launched the Darfur Digital Activist Contest in the hopes of bringing technology and activism together to help stop the genocide in Darfur. The result was Darfur is Dying, an online, viral video game that promotes awareness of the plight of the 2.5 million displaced Sudanese refugees by allowing players to temporarily assume the role and perspective of a displaced Darfurian [5]. Darfur is Dying is a positive example of using social media to promote awareness.

Social media is changing the way people communicate, make purchasing decisions, and obtain information about businesses, organizations, and causes. Businesses and organizations that hope to gain and maintain attention must maintain an active presence online and in social media.

Business at the Speed of Light

The rapidly increasing pace of change in the modern world is well documented. However, many businesses and organizations are simply not adapting to the societal shifts already well underway. Life, including commerce, now happens at the speed of light. Does your business also operate at the speed of light?

Businesses and organizations that fail to adopt new media for communications, public relations, marketing, and customer relations doom themselves to obsolescence sooner rather than later. It is simply impossible to effectively compete in the 21st century using 20th century methodology.

The Internet has indeed proven to be a disruptive technology. One of the fascinating dynamics of the Internet economy is the "leveling of the playing field." The solo entrepreneur launching a business from an Internet cafe has exactly the same opportunity as a multi-national corporation with a multi-billion dollar budget. This is anything but business as usual; this is business in the Internet economy.

Every business or organization needs a website to communicate with their customers or constituents. There has never been a more cost effective way to communicate a message to consumers. The fact that websites lend themselves perfectly to multi-media only further expands the opportunities. Text, photographs, podcasts, and video can all be integrated in one online portal, easily linked from various social media sites, to powerfully and effectively communicate a message and a brand. All of this can be accomplished for less than one display ad or phone book ad!

Every organization also needs to maintain a consistent and effective social media presence - both to pro-actively engage consumers and to respond to complaints or concerns in real time. Waiting until a crisis has become viral to respond is too little too late. Internet consumers trust peer reviews and comments. It is critical that organizations monitor and participate in the conversation to promote and protect brand value.

The Internet is indeed a disruptive technology that has changed the rules of business in the 21st century. The good news is that every disruptive change creates opportunities for those willing to embrace the change and adapt the way they do business.

What is your business or organization doing to guarantee its success in the Internet economy?

SOURCESWorld

1. Wide Web Consortium (W3C) - Accessed on 28 June 2009
2. The Size and Growth Rate of the Internet by K. G. Coffman & A. M. Odlyzko, AT&T Labs, Revised version, October 2, 1998 - Accessed on 28 June 2009
3. Internet World Stats - Accessed on 28 June 2009
4. Video Prank at Domino's Taints Brand, Stephanie Clifford, NY Times, Published 15 April 2009 - Accessed on 28 June 2009
5. Darfur is Dying - Accessed on 28 June 2009