New media: debunking the myths

Abstract

Purpose

This article describes emerging trends in the usage of new media – internet, mobile broadband, e‐commerce, internet‐enabled entertainment, social networking and others – and outlines implications for commercial companies seeking to communicate more effectively with their customers and media companies seeking to develop new business models. The article includes the findings from a proprietary survey of new media usage among 2,100 US households.

Design/methodology/approach

In this article, the author leverages the findings from a proprietary survey of new media usage conducted by L.E.K. Consulting. The author then draws strategic implications for both commercial users of new media and media companies themselves.

Findings

Key findings from the survey are: new media are not only for the young. In fact, internet users in the 50‐64 age demographic spend more time online than the those in the 18‐24 age group. Traditional demographic segmentation based on age and income level does not work well to describe new media usage – instead membership in specific technology segments (e.g. “iPhone Nation”) – provides a better framework to describe target segments. New media usage has expanded to include all income levels, with almost half of the heaviest new media users reporting incomes below $25,000. Games have become a much more broad‐based activity, with almost everyone engaging in some kind of new media gaming activity.

Originality/value

The key message of this article is that usage of new media have become ubiquitous across all categories of customers. The author provides a range of specific recommendations to help companies embrace this change, identify new untapped opportunities and unlock new value for customers and shareholders.

Citation

Jackson, S.E. (2010), "New media: debunking the myths", Journal of Business Strategy, Vol. 31 No. 1, pp. 56-58. https://doi.org/10.1108/02756661011012787