Impact of new technologies on the perceived value of services in the communication sector

Abstract

During the last decade, the communication companies sector, considering as such both media and advertising agencies, has greatly changed professional practices. The value of the services offered to advertisers and users is being compromised. This research studies the incidence of technology in the changes in the sector’s competitive structure, using Aragón (Spain) as a case study. Through methodological triangulation, we analyze data from the main national and international reports, the impressions of professionals, advertisers and users. In the present study, we propose a contextual framework for strategic decision-makers. It not only describes the current situation, but also allows for a glimpse at trends. Functions that, traditionally, were taken on board by publicity agencies have been internalized, both in the advertising companies and in the media, given the ease of implementation offered by the new communication channels. Now, both conventional media and new digital advertising media reach advertisers directly, eliminating what is perceived as intermediation without added value. In a technological context in which the costs of information and transactions have been greatly reduced, it is time for each economic agent to reflect on his real contribution in the value chain. With our research, we have put forward some key factors that allow assistance for those who should take that kind of decisions, whether media or agencies, in order to understand their customers’ decision-making processes.