Converging media is impacting on communications with customers. Bartley O'Connoroutlines the opportunities on offer for businesses

The world of advertising is changing. Though the entire world now appears to revolve around an iPod, the real impact of convergence is only now becoming apparent for businesses.

As consumers increasingly take control of how they engage with providers of products and services, the trend is moving towards more interactive experiences, using emerging platforms such as social networks, blogs and other content sharing fora.

Whether positive or negative, these developments can and will influence companies' business strategies and how they engage their target markets.

While obituaries for traditional TV, radio and newspaper advertising remain premature, there is no question that emerging platforms present positive opportunities for advertisers to establish a more one-to-one relationship with consumers across the advertising and content landscape.

Research carried out by PricewaterhouseCoopers suggests that consumers in the 18-24 age bracket expect advertising in the wireless, online and gaming environments to be much more sophisticated and relevant to their lives.

They are increasingly seeking free content and experiences. They are open to giving up more information about themselves as long as they can see tailored advertising, promotions and information which is aligned with their preferences and interests. However, it has to be relevant, quality content and advertising.

This is more difficult a task than it appears, given the downside risk involved, but it is currently the focus of a number of companies, including some Irish players.

The traditional advertising model is primarily based upon reach and frequency - getting the message out to as many customers as possible, as often as possible.

While raising awareness is fundamental to attracting customers, there are two issues with this broadcast approach.

Firstly, the message is being broadcast to consumers that may not be interested in the product, and may never actually generate revenue.

Secondly, it is extremely difficult to quantify the return on the advertising spend, the so-called "bang for the buck", be it in terms of direct sales or even more intangibly, brand equity.

As a result, a third factor, engagement, is now being seen as an equally, if not more important criterion for determining the return on advertising spend.

What was once purely a one-way broadcast to generic consumers is now moving towards a dynamic, ongoing, two-way conversation with engaged consumers.

This is something which is being referred to as lifestyle advertising, as it is connecting with the lifestyle and interests of the individual consumer.

Major advertisers are beginning to shift larger percentages of their media investment to experiential, digital and social media to capture the benefits and gain new insights from them.

Examples of this are plentiful and the most successful ones are, as often, done in such a simple manner that the engaged consumer does not realise they are actually interacting with a commercial entity.

This is not to suggest they are in any way being mislead or deceived. On the contrary, they are engaging because they feel they are getting something - free content, information, gossip, their opinion aired, exclusive offers, etc.

While television and radio shows have attempted to engage the audience in two-way communication for years via letters and the telephone, it is really only since the arrival of SMS texting and digital television with its "push the red button now" type interactivity, that the explosion in audience interaction has occurred.

Other examples of utilising new platforms include Nike's "Joga", a community for soccer players to meet, share soccer experiences and enjoy photos and videos from around the world.

Adidas also have initiatives aimed at encouraging athletes to engage and contribute information relating to their personal challenges.

Closer to home, on a related sports theme, is Powerade's "Never Give Up" campaign, which chronicles the progress of a first-time triathlete and provides advice and inspiration to those aspiring to get fit.

The aim in all cases is to attract and engage potential customers with something that is relevant to them, not to sell them something directly.

By making the connection and building a two-way relationship with them, the loyalty and brand association is strengthened which will ultimately lead to future revenues.

Similarly, Dove's "Campaign for Real Beauty", a multi-media, cross-platform advertising endeavour, aspired not to directly pitch the company's beauty products, but rather to influence an important conversation about a pressing women's issue.

One component of this initiative was a short digital film called Dove Evolution, which shows, in fast-forward, the makeup and touch-up techniques that turn an ordinary woman into a gorgeous billboard model.

Ending with the tagline "No wonder our perception of beauty is distorted", the video piece encourages viewers to share it among their friends while directing them to the campaign website.

Once at the website, the audience is invited to participate in a discussion about how popular culture influences young girls' perceptions of beauty.

The site also directs viewers to a clear path to action through the Dove Self-Esteem Fund, a non-profit effort to promote self-esteem programmes for young girls worldwide.

In less than 30 days, Dove Evolution generated more than 2.3 million views on YouTube. Due to this massive, viral sharing, the 75-second video received widespread news coverage and became a feature story on broadcast television, appearing on popular daytime and primetime talk shows.

The social interaction and viral distribution enabled by YouTube delivered more than three times more traffic to the Dove website than the SuperBowl ad Unilever placed to launch the campaign initially.

This is an example of what is possible by thinking outside the traditional advertising model, and in this case even including a corporate social responsibility element.

Technology and internet developments are creating not merely an opportunity but, increasingly, a consumer expectation of more sophisticated interactions among consumers, advertisers and content providers.

This more elaborate engagement offers the potential of greater reward for those who listen to their customers and fully leverage the opportunities presented by emerging platforms.

Bartley O'Connor is an Associate Director in PricewaterhouseCoopers' Strategy Advisory Services Group.