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Branding and Internet Marketing in the Age of Digital Media
Much has been said about the importance of brand management in an increasingly fragmented media marketplace and the tremendous impact of the Internet on traditional media (McDowell & Batten, 1999; Chan-Olmsted & Kim, 2001; Lin & Jeffres, 2001; Owen, 1999). In essence, the exponential growth of the Internet and the continuous development of its broadband distribution systems have changed the rules of competition in many media industries that were already being transformed by the arrival of more competitors, such as multi-channel video programmers, and the introduction of new technologies, such as digital television. The emerging digital media era sets the stage for a focus on "strategy" for both the traditional media incumbents and the new media entrants. For example, for an existing media firm to expand its business into other areas of services, it needs to first assess whether its current brand has acquired the value to fortify and benefit the new business line. A strong media brand may not only fight off attacks from the new entrants but also present opportunities for market expansions. By the same token, the growing popularity of the Internet, with its potential for interactivity and personalization, means that the traditional one-way mass media incumbents would have to employ innovative business strategies to stay competitive. Therefore, the trends toward brand management and using the Internet as a marketing communication channel are likely to continue as we migrate to the world of digital media. But what are the fundamental drivers of branding in this time of change and how has the Internet affected the existing market communications strategies for the media firms? Readers may find some insightful suggestions from two recent books on branding and Internet marketing. Timothy M. Todreas's Value Creation and Branding in Television's Digital Age puts forth the notion that a media firm's position in the supply chain i s the key to its
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