The journey of business model innovation in media agencies: towards a three-stage process model

Abstract

Digital entrants have changed the competitive landscape for advertisers and media. Over the past decade, media agencies have grown more rapidly than the media market as a whole, securing a larger share of the value generated in the advertising industry. We develop a process model describing how these agencies have altered their business models over a decade. We discuss three separate stages in this innovation process, labelled business model innovation awareness, business model exploration, and business model exploitation. We find and document how different building blocks of the business model are a focal point of innovation in each stage of the business model innovation process. Our findings offer a way for the media industry to understand the transformation of media agencies.

Media Innovation Strategies for Sustaining Competitive Advantage: Evidence from Music Download Stores in Iran

“…As mentioned above, innovation helps companies to gain a sustainable competitive advantage [40][41][42]. However, it also represents a survival factor for companies in many sectors-and even more sharply in the media industry [43][44][45]. Because of the role it plays, innovation is an ubiquitous concept that has attracted the attention of academic researchers in many different fields, and particularly in the field of business studies [46].…”

A modified Delphi method to elicit and compare perceptions of industry trends

“…While much research on business models pays attention to start-ups and their creation of new business models, a much smaller part focuses on incumbent firms, with already existing ones. The situation of incumbent firms is unique, as they unlike start-ups, are in a position where they have to balance the exploration of new business models with the exploitation of existing ones [1 , 3 , 4 , 5] . A common way of organizing such exploration is to establish a dedicated innovation team, department or unit within the organization, with the tasks of monitoring environmental trends and generating new ideas .…”

Mission or margin? Using dynamic capabilities to manage tensions in social purpose organisations’ business model innovation

“…Khanagha et al (2014) identify that tensions arise when organisations attempt to replace an existing business model with a fundamentally different one, which alters the dominant logics of the firm. Developing a fine grained understanding of the tensions arising from SPOs engaging in BMI to embed networked based business models and how these tensions can be managed (Wirtz & Daiser, 2018;Jensen & Sund, 2017) is important to comprehend how SPO network members can collectively enhance their future competitiveness (Pache & Santos, 2010) and improve their capability to create and capture value (Casadesus-Masanell & Ricart, 8 2010). To manage the process of BMI, a staged approach can be taken (Frankenberger et al 2013).…”

“…However, existing research fails to clearly delineate the stages of BMI (Frankenberger et al, 2013) where Verstraete et al (2017) identify that context specific factors such as the industry, sector or organisation size may influence both the stages of BMI and challenges encountered at each stage. Through a synthesis of BMI literature we suggest that the SPO BMI process, with the aim of developing more networked based business models, may comprise of three stages: initiation stage (Frankenberger et al, 2013), exploration, and exploitation stage (Sosna et al, 2010;Bogers et al, 2015;Jensen & Sund, 2017).…”

“…Within an SPO network context where social and economic missions need to be achieved at both an individual and group level, a staged approach to BMI may need to be pursued. However, there is a lack of understanding on the actual stages of BMI (Frankenberger et al 2013;Verstraete et al, 2017), particularly within a SPO context, and how social and economic tensions are managed at each stage (Wirtz & Daiser, 2018;Jensen and Sund, 2017).…”