Internet advertising business model
I like a good newspaper- how much will they change to stay alive?
Today, I have to follow my news stories as the columns wind their way round the huge ads.
Since half my paper is now adverts- why isn’t the paper half-price? They are getting money for the ads after all.
I’m not in the newspaper business, but I have been watching them for years. Newspapers are suffering because the environment has changed. It used to be that newspapers were competing with TV and radio, which by their nature couldn’t go as in-depth to the news. Now there are many more news outlets, including specialty shows on TV and online news sources. Most newspapers have had a hard time adjusting to this new ecosystem.
Newspapers also have spent too much time thinking of themselves as selling “newspapers”. Even in the old days, the cost of the newspaper wasn’t enough to cover the cost of producing and printing the news. The real money came from advertising.
Newspapers also think of themselves as selling news. Since you can get in-depth news for free on the Internet, this is a losing business model.
Newspapers need to think of themselves as the intersection between advertisers and readers, each of whom have different needs. Advertisers want to pinpoint the people who are likely to buy. Readers want to be a part of a community. More and more they want to interact with the news. They want to tailor the news they receive, control how they receive it, discuss it with the reporters and other readers, and perhaps influence the direction of future reporting. The organizations that can facilitate this for both their customers (whether they print a newspaper or not) are the ones that will thrive.
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