Rich Media Report: Australian Market Growth, Issues, and Cost Analysis

This report provides an analysis of the rich media landscape, focusing on the Australian market. It examines the growth trends from 2015 to 2019, highlighting a decline in growth rates. The report then delves into the challenges faced by businesses, particularly small companies, including difficulties in measuring ROI, handling negative customer reviews, and the time-consuming nature of implementation. It also addresses user issues related to computer literacy and e-commerce. Furthermore, the report compares the cost of rich media with other media sources, indicating that rich media is the most expensive due to its use of advanced technology and market research requirements. Finally, the report identifies major issues that companies face when implementing rich media, such as capital and talent shortages, and the need for a digital culture within the organization. The report uses figures and references to support its analysis.

Running head: RICH MEDIA
Rich Media
Name of the Student
Name of the University
Author’s Note

1RICH MEDIA
Answer to Question 1
2014 2015 2016 2017 2018 2019 2020
0
5
10
15
20
25
20
17
13 12
10
Growth Rate (%)
Growth Rate (%)
Figure 1: Growth of Rich Media with Growth Forecast
(Source: adnews.com.au 2017)
The above graph shows the growth rate of rich media in Australia. From the above graph,
it can be seen that there was a growth of 20% in the year 2015. However, from the year 2015, the
Australian rich media industry started witnessing de-growth. In the year 2016, the rich media
industry witnesses 17% growth that was 3% less than that of 2015. Further decrease in growth
can be seen in the year 2017, as the growth rate was 13%. Looking at the growing competition in
rich media industry all over the world, it has been forecasted that decreased rate of growth in rich
media of Australia will be continued until the year 2019. It has been forecasted that the growth
rate in 2018 and 2019 of the rich media market of Australia will be 12% and 10% respectively.

2RICH MEDIA
Answer to Question 2
There are many negative effects of rich media o small businesses. After the adoption of
rich media for businesses, it is necessary for the companies to measure its effectiveness.
However, it is difficult for the small companies to measure the return in investment (ROI) of rich
media. With the help of rich media, the customers are able to give their reviews. Thus, it is
difficult for the small organizations to handle negative customer reviews. In addition, it is highly
time consuming for the small companies to implement the strategies of rich media. Most
importantly, small companies have to bear large amount of expenses that harms their businesses
in a large way (Laudon and Laudon 2013).
Answer to Question 3
People face many issues at the time of using rich media. Rich media is highly
computerized and gadget based. People who are cannot use computers and gadgets are not able
to use this media. Performance issue is another major issue faced by people. People face many
issues while developing and delivering advertisements with the help of rich media. Another
major issue is e-commerce (Daras, Manolopoulou and Axenopoulos 2012). It can be seen that
there are many people who are not use-to-use e-commerce for various purposes. These kinds of
people will not be beneficial from different kinds of rich media activities. These are the major
issues.

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Answer to Question 4
48.6
21.6
3.1
10.3
2.9 7.5
5.2
0.8
% of Total Expenses
Rich Media
Free to Air TV
Subscription TV
Newspaper
Magazines
Radio
Outdoor
Cinema
Figure 1: Price Difference
(Source: trilogyam.com.au 2017)
From the above table, it can be seen that the portion of expenses incurred for rich media
is the highest among all other media sources in Australia. Thus, it can be observed that rich
media is the most expensive. The major reason is the use of latest technology in rich media.
Business organizations have to incur huge amount of cost in the adoption of advanced
technology. In addition, companies need to conduct market research while adopting rich media
to understand the market, audience and their behaviors. This process includes huge amount of
costs. For these reasons, rich media is more expensive than any other media.
Answer to Question 5
At the time of implementing rich media, companies have to face some major issues.
Sometimes companies face problems in necessary capital for implementing rich media. They

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have to take term loans to arrange capital. The next problem is related to talent issue. Companies
require technically literate skillful employees to carry on the operations of rich media. Due to
lack of these types of employees, companies face major issues. It is required for the companies to
develop a digital culture in the organizations for the implementation of rich media. Lack of this
type of culture may affect the implementation of rich media in the companies (Shin et al. 2014).
These are the main issues faced by companies while implementing rich media.

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References
Adnews.com.au. (2017). Digital ad spend to overtake TV in 2017, studies find - AdNews.
[online] Available at: http://www.adnews.com.au/news/digital-ad-spend-to-overtake-tv-in-2017-
studies-find [Accessed 27 Oct. 2017].
Daras, P., Manolopoulou, S. and Axenopoulos, A., 2012. Search and retrieval of rich media
objects supporting multiple multimodal queries. IEEE Transactions on Multimedia, 14(3),
pp.734-746.
Laudon, K.C. and Laudon, J.P., 2013. Management Information Systems 13e.
Shin, B.J., Griffin, G.C., Tunney, J.T., Rundell, T.B., Dean, R.I. and Chun, R.Y.T., Visible
Measures Corp., 2014. Method and system for internet video and rich media behavioral
measurement. U.S. Patent 8,745,647.
Trilogyam.com.au. (2017). Digital ad spend in Australia grows to take almost 50% of all
advertising dollars in 2016. [online] Available at: https://www.trilogyam.com.au/blog/digital-ad-
spend-in-australia-grows-to-take-almost-50.html [Accessed 27 Oct. 2017].