Digital Convergence : Digital Fragmentation

Back in the late-1990’s I firmly believed that the computer chip was going to converge with every other device on the planet. Author Kevin Kelly http://www.kk.org/biography wrote about this in his book “New Rules for the New Economy”. He talked about a world when computer chips are so cheap to manufacturer that they’ll be as plentiful as jelly beans, appearing almost everywhere. Indeed, just in the last few years we’ve seen ever smaller devices getting all kinds of new functionality: functions driven by tiny micro-chips. Think about: iPod Nano, GameBoy, Motorola Razr, palmOne Treo 650. These gadgets and other super slick devices are now multi-function powerhouses rippling with MP3 players, MPEG4 video players, digital cameras, phones, GPS, Bluetooth wireless functionality, and more.

I got to visit Tokyo a little more than a year ago. During that week I witnessed throngs of ordinary Japanese citizens gazing into their cell phones: watching television, instant messaging, checking email, sending email, taking pictures, swapping pictures, playing games, and (yawn) talking on the phone. I asked one Japanese colleague what all she did with her mobile phone and found out she ordered a lot of catalogue merchandise using her phone…not by calling, but electronically. Many of the phones were 3G (broadband) and enabled with smart card technology to allow secure transactions up to your pre-loaded account limit, seamlessly off the phone. While there I was told of new “intelligent chip” technology being piloted to allow coupons and interactive offers to be instantly downloaded to cell phones from point of sale signs.

Imagine walking up in the subway to a large display sign for your favorite coffee spot, and “ping” hearing the sound of a new $1.00 off coupon hitting your cell phone.

You stop by your favorite coffee spot later that day to redeem your coupon “pling” at the register. Or you forget to stop by and get an email in a week reminding you that your coupon will expire later that week. Or you get an extension offer because you’re a MVC (Most Valued Customer)…you get the picture. The possibilities for marketing are endless.

It’s clear what is happening. Yes, the micro-chip converged with everything, but more importantly the functionality that people desire is converging with everything. My cell phone, laptop, iPod and PlayStation are becoming my TV. My laptop, cell phone, iPod and PDA play music. I talk to friends through my Instant Messenger on my laptop --- it’s now a phone. Digital pictures are shared everywhere. My TV is under my control from my DVR (I watch what I want, when I want). Everything connects to the Internet.

The inevitable and un-ending march of all content toward digitization ensures this trend will only continue. This is a critical piece of the puzzle, and it’s only the first chapter.

Marketers must realize that this is the new way the world works:

• More consumers will be mobile, multi-tasking, elusive and opt-in only


• Consumers will control what, when and how they watch, listen and order


• Devices will continue to evolve and proliferate.

Believe me, this is not a time to coast on what you knew even five years ago. The media landscape is now an evolving primordial soup, bubbling with new content, devices and transmission and evaluation methods. Audiences have fragmented and time-shifted themselves to the point of no return. Case in point: Television programming chiefs have recognized that for the first time in 2005, more 15-24 year olds were on the Internet than watched Television. I’m sure they were not doing the same thing on the Internet either. Some were likely gaming, others email, others on websites, instant messaging or all of the above. Let the games begin.