In Order To Understand How The Media Economy Has Changed

1801 WordsJan 11, 20178 Pages
In order to understand how the media economy has changed with the emergence of digital media, I believe we should first define what the media economy is. We can use Albarran’s definition which explains it as the study of how media firms and industries function across different levels of activity in tandem with other forces through the use of theories, concepts, and principles drawn from macroeconomic and microeconomic perspectives. There are two main factors that have force the media economy to evolve: the definition of a household and the incredibly quick evolution of technology in the last two decades. First of all, we should acknowledge that the concept of a household has evolved from the traditional nuclear family to include single…show more content…
It’s a global trend to see advertising dollars shifting from traditional media to digital outlets like pre-roll videos, pay-per-click ads, blogging, and other countless emerging technologies. As we can see, it’s not only the intellectual part of media economy that has suffered from or taken advantage of the advances in technology but also the infrastructure of these entities. Technology is advancing at such a rapid pace that most devices are either obsolete or limited in just a few months. This, of course, means that media firms need to be constantly investing in keeping up with the market and the current trends in technology. All these new technologies and outlets have created another big problem for marketers and media companies themselves: an extreme audience fragmentation. However, this could be an incredible asset if used correctly. Most media firms and marketers now employ more time and resources to determine who their audience really is -this creates a new job market for researchers and strategists- and therefore tailor a message that would appeal to them. In other words, when we previously place a commercial on a broadcast network waiting to hit everyone, now we need to be more careful and when, where, how to place our message to hit the correct target audience and increase their return on investment. One remarkable achievement of digital
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