The radical innovation created by the Internet is challenging the traditional mass media. A possible outcome in this confrontation is that we are seeing the last breath of newspaper, television, and radio. Or maybe the Internet is going to become a powerful ally which will launch them to new commercial heights.
Innovation is a dangerous concept that has the ability to create but also destroy a business. Essentially, innovation is the introduction of a new product, service or process applied in the commercial sphere. The practice of innovation is highly unpredictable and involves more than one single element to be produced. Generally, a good innovation solves a market problem, reflecting on the competitor inefficiency to identify the emergent customer’s need and later produce a solution that adequately resolves that issue.
Therefore, in the innovation game is very important how fast the company can move collaborating with others, at the point to anticipate and control events by launching a new offering to the market. It is fundamental that companies understand the power of innovation, otherwise not taking it into consideration can have lamentable consequences. For instance, the successful new product or service that a competitor introduces to the market can generate the shifting of consumer preferences and making obsolete the slow and less adaptive firms.
In the case of mass media communication, MTV is commonly used as an example of how newcomers exploited the potential of an emerging market in the 1980s, meanwhile, the traditional TV corporations were unable to develop a similar business proposal. With the formation of the Internet, MTV soon discovered that their public was shifting to new platforms and after three decades of dominance in the music video industry it toned down it is programming significantly to another type of content.
Radical or incremental?
Firms that are confronting Innovation for the first time might consider the process too complex to manage. In this initial approach, companies can innovate in a minor degree from what already exists, adding small features for a product having years in the market. Incremental innovation is happening by small bits that are not really threatening the core business of established firms.
On the other hand, organizations can dare to do innovation substantially different from what exists, threatening not only a couple of old companies but the whole industry as well. Radical innovation requires many pieces, which at the beginning didn’t have a relationship among them, to connect creating synergy.
Nokia, the biggest brand on the mobile phone a decade ago, could not anticipate the assembly of pieces that were assembled around their business. The combination of an alternative community of developers capable to produce attractive applications, the interaction with a much more intuitive graphic interface and the expansion of the screen were put together in one device as the iPhone changed the landscape of the telecommunications and sealed the faith of the former Finnish giant.
Today traditional mass media are facing similar challenges with the wide adoption of the Internet. People can read a political German blog for free, watch a Korean soap opera or bet on their favourite football Mexican team without using any of the old forms of mass media, such as radio, TV or newspaper. Amazingly, all can be done by small device fitting in our hands, in which the user is not attached to boundaries and can be located in any part of the world. Those new actions performed by active users are going beyond the technological limitations of newspapers, radio stations, and television channels.
Innovation to expand media core business
In that sense, technological innovation also has the power to destroy the current business model of mass media, based on advertising, which is diminishing the revenues and in most of the cases generating the closing of many traditional mass media outlets. In this regard, media companies not adapting fast enough (meaning innovating) to the competitive circumstances are sadly condemn to disappear.
Newspaper have partially understood the situation and making the transition to a digital platform on the Internet and implementing new features to conquer the elusive advertising market. Take the case of the Irish newspaper “The Independent”. The best-read tabloid in the island developed a platform called StoryPlus, which consist of providing all the elements for an advertiser to create their own media content.
That’s an incremental innovation strategy allowing the business to expand their operations.
Hence, the newspaper, accounting for their own resources, such as reporters, photographers, and designers, offers to produce articles on the interest of advertisers. Thus, a tour operator can sponsor an article about the best Mediterranean destinations or a financial institution publish the problems created by an unsustainable mortgage. In the so-called collaborative economy, where participants share resources to the benefit of the other, StoryPlus can be named the Uber for mass media.
At Krealandia, we are developing innovative solutions that facilitate the transition from traditional mass media to digital, helping to design, sell and deliver new digital products for media companies and their advertisers. Our main differentiation is that we offer white label digital marketing products that you can deliver under your brand.
In this way, our clients can manage to navigate through the new mass media world dominated by the stream of innovation happening mainly on the Internet. Krealandia offers to our customers acquiring the ability to create new business for themselves and using in their favour the action of innovation. That’s our main motive: innovating the mass media business for their success.