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Digital Transformation in Advertising: Innovative Business Models

Student: Tigran Akhinyan

Supervisor: Tatiana Yakushkina

Faculty: Graduate School of Business

Educational Programme: Business Informatics (Bachelor)

Year of Graduation: 2020

The active development of e-commerce and online advertising has led to great changes in marketing in general, and consequently, in the ways to attract an audience and increase sales. Whereas previously the focus of marketers was on the product, now it has shifted to the buyers themselves. The audience has become much more demanding than it used to be. It has become difficult to surprise them because of the huge amount of advertising that users see every day: on social networks, while watching movies, listening to music, searching for information. Following the emergence of new technologies such as big data, cloud computing and artificial intelligence, usual business models have also begun to change. The very way of doing business is changing: in order to keep up with the market development, it is necessary to follow the trends of business model transformation. Due to the digital transformation, an enterprise develops in accordance with a new focus based on customer experience and new ways of working. The possibilities of the Internet make it possible to define as an electronic trading platform practically every Internet resource, with the help of which purchase and sale transactions are made. Digital technology, combined with integrated information, enables companies to create global synergies while maintaining the ability to be sensitive to local changes. Everything began to change: relationships with customers, the value they receive from purchasing products, the sources of customer data and the ways in which this information is communicated. We can use new channels of promotion, organizations use new financial patterns and ways of paying for goods. All this leads to the fact that usual forms of business organization are modernized or new ones are created. The purpose of this work is to study the features, issues and problems of the digital transformation of business models, to conclude which business modeling technique is most applicable to companies working in the field of advertising and to analyze the innovative business model in the market. For this, the author has the following tasks: to study the impact of digitalization on the economy and on the construction of business models, describe the methods and technologies for building business models, highlighting the most convenient for this work, analyze the changes in the modern advertising market, highlight innovative models that have appeared on market and determine what their innovativeness consists of. Definitions of basic terms characterizing the phenomena that will be considered in the work will also be made. In the practical part of the work, a business model of one of the companies existing in the advertising market will be built, the business model of which can be distinguished as innovative. The development path will be analyzed and a business model and upper levels of the organization’s processes built. During the analysis, it will be clarified why this business model is ahead of competitors and what advantages it provides.

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