Cameron Hulett, senior vice president of publisher solutions at Acceleration, argues that the future of publishing doesn’t have to end at paid content.
There has been a veritable influx of blog posts and articles of late that have pitched paid content as the ‘future of the publishing industry’. In many cases, this type of monetisation has been positioned by bloggers and media alike as the only way to save this struggling space.
As a case in point, Editors Weblog reported a couple of months ago that Journalism Online - a start up from the US - has put together an iTunes inspired model to collect micropayments for online content. This was created as an answer to “the urgent need for a comprehensive, immediate plan to address the downward spiral in the business of publishing”. Similarly, but using a different model, the Fair Syndication Consortium has been created to provide ad revenue share for publishers when content is reused across multiple sites.
But it’s not just those on the peripheral edge of publishing pursuing such models. The Financial Times (FT) is one of the handful of major mainstream press that have gone down the subscription route, and is the most notable example. They allow users to read 30 articles for free before starting to charge, though this threshold is gradually being moved down to ten articles. The FT is the only newspaper that is currently watching its revenues grow, most likely because of its very specific business audience that will pay for extremely valuable and timely information. The Guardian is also considering charging for content at the moment, with MediaGuardian.co.uk pegged as one of the first sites to be trialled.
In recent months, the saddening state of the magazine and newspaper industry has been alarming. During the first quarter of 2009, the advertising revenues of newspapers declined, on average, by 30 percent. And in the last six months of 2008 (the most recent period for which we have reliable data), subscriptions fell by 7 per cent. Though magazine circulations are not declining as rapidly as those of newspapers, the number of ad pages placed in consumer publications also fell by 26 percent from January to March of this year.
Unfortunately, this means that all around the world, newspapers are folding. Sun-Times Media, the owner of 58 newspapers including the Chicago Sun-Times, declared bankruptcy at the end of March. The Star Tribune Holdings Corporation, the Journal Register Company, and Philadelphia Newspapers are all also broke. The Seattle Post-Intelligencer now exists only on the web. The Rocky Mountain News, Colorado's oldest newspaper, is gone. The business magazine Portfolio, upon whose launch Condé Nast lavished more than $100 million, is no more.
Based upon the case studies and statistics above, it would seem that paid for digital content is in fact the last stand publishers can make. Or is it?
Well, paid content is certainly one approach and it may help alleviate loses, but there are some operational inefficiencies that online publishers should address before they take that step. The smart move is to ensure that the following key points are well covered to streamline, improve and inevitably contribute to monetisation of a publisher’s business:
Increase the speed and accuracy of manual tasks by utilising workflow tools and outsourced services
Department growth, new disciplines, patchworks of processes all lead to workflow frustrations and limitations that many publishers see as unfortunate necessities in the digital publishing era. This couldn’t be further from the truth. There is revenue and time-savings to be found by optimising your workflows.
Drive new traffic to your content with efficient marketing campaigns
The Internet has flooded the world with information sources, and in doing so, fragmented your audience base. Advertising dollars follow, and as soon as you catch up, a new threat emerges. What do you do? Find and hold your share of voice by implementing a content extension programme that will enable you to better leverage existing content while also creating new opportunities. Implement a content extension programme that will enable you to better leverage existing content while also creating new opportunities (e.g. via a super-network).
Ensure sales has access to accurate inventory visibility which increases yields, as well as ensuring optimal price by categorizing your sales inventory correctly
The digital publishing arena is a crowded space with near daily developments. Publishers are battling to stay abreast of the ceaseless advances in business (ad-networks and sales houses) and technology (behavioural targeting and ad exchanges) while keeping up with digital powerhouses such as Google and Microsoft. Despite experiments with site structure, new technologies and multi-channel sales, controlling inventory is getting harder, CPMs are declining and audiences fragmented.
Utilise training and an ongoing knowledge retention plan to maximise efficiency, save time and provide new insight
New platforms, advertising models, competitors, and best-practices – the digital marketing industry changes at an unprecedented rate. How do you keep up with the evolution while keeping your business running? With knowledge and training solutions designed to accelerate your knowledge curve.
Create unified reports and encourage intelligent data
Just 15 years ago, a ‘multimedia marketing campaign’ could involve just three, easily manageable mediums. Today, things are far more complex with data coming from numerous sources such as display ads, email, rich media, web analytics, mobile, and paid search. Tear down the silos and filter the findings to make informed decisions. This will allow you to find and retain your share of voice by offering content in formats your audience wants.
Migrate your ad server or data
Technologies change so rapidly that businesses all too often find themselves having to change vendors, upgrade systems or consolidate solutions. This requires system migration that can be technically complex and an intricate change management exercise but will provide consistent best practice, confidence in your systems and an easier way to view your data.
These universal tactics are steps that publishers of all sizes should try before turning to paid content as a last resort, as they will make a big different to unnecessary spend. Future predictions surrounding paid content – such as the Kindle as a mass reader and aggregation of content – are all strategically important for the industry. But returning to basics, making the most of what you already have is not only cost-effective but actually gives you more options through which to make your business a success.
