Media Convergence Model for Emerging Economies

This paper examines the role of Internet advertising in generating marketing and advertising innovations for the emerging economies, and suggests a theoretical model which imparts learning for all advertising professionals, in developing markets. The research is exploratory in nature and utilises the grounded theory to suggest the Media Convergence Model identifying Internet as the central point where all traditional media are converging. In-depth study of published research and data, industry trends and the advertising expenditure declarations, by listed companies belonging to various Indian sectors, has been conducted for the purpose of data collection. The Media Convergence Model identifies that the Indian media space is heading for complete convergence with the ability to leverage content on multiple platforms. Overall advertising expenditure's declaration of major Indian sectors reveals that verticals which are highest advertising spenders in a given year are also the highest advertisers on the new medium, Internet. The Media Convergence Model would create newer revenue streams, strengthen advertising revenue models (by generating less dependency on traditional distribution streams) and create demand for new content. Since emerging markets face growth in the penetration of Internet, marketing professionals can leverage the proposed model for generating higher returns on advertising investments. The Model offers valuable insights to advertisers and offers them a reason to look beyond traditional media. The identified patterns of Internet advertising in India would help the advertising industry , from other emerging economies, to leverage Internet and the media convergence phenomenon towards the growth of their business. This makes the paper useful for practitioners from advertising fraternity as well as for the academic researchers exploring advertising trends in the developing economies.