Costs, value and streams

Costs, value,
streams

Entrepreneurship

Monday, 12 March 2012

What I’ll cover:

The role of costs
Finding value
Engagement


Why did Wired
give away its photos?

Where are the costs?

Speed and depth again.


Analogue costs

10-20%

(corporate machinery)


Digital costs

80%

(your new networks)


Analogue costs

Editorial - 10-25%
Ad sales
Production (layout, ink and paper)
Marketing
Distribution


Digital costs - web

Editorial - 80% (Telegraph)
Ad sales - ad networks? (e.g. Google
AdSense, Addiply, etc.)
Production = CMS
Marketing =
Distribution = SEO and SMO

“Having their photos run on
someone else’s website costs
Wired exactly zero — and they’ll get
some small but real financial benefit
out of it.”

Source
http://www.niemanlab.org/2011/11/wired-releases-images-via-creative-
commons-but-reopens-a-debate-on-what-noncommercial-means

Costs - mobile and tablet

Editorial - 80% (Telegraph)
Ad sales - do you control platform?
Production = HTML5, CMS, bespoke
Marketing = iTunes
Distribution = sales, SEO and SMO
(30% cut and data goes to Apple)

Barriers to entry

Competition drives pricing down
Print costs become weakness
Apps = false security of ‘closed
garden’. (Partial barrier)


Case study: Al Jazeera

Case study: Birmingham Mail

Case study: Guardian API

Where is the value?

Speed and depth again.


“When hunting and gathering were
the main sources of food, few had
the luxury to be particular about its
quality. But farming carried such an
abundance that a greater variety of
processing became feasible ... We
started thinking about vitamin
content.”

Source
Philip Meyer,


What does media sell?

Content?
Copies?
Ad space?
Audiences?
Identity?
Community?

Cutting out the middleman

The Telegraph’s wooden coathangers
NME’s tickets and merchandise
Marie Claire’s in-app purchases
Trinity Mirror’s PR services
FT’s app services
Lauren Luke’s merchandise

Magazines: Marie Claire
“Marie Claire's Beauty Genius app offers how-to videos shot
with leading make-up artists and shows readers how to apply
fashionable looks ... The app, which is filmed in IPC's studios,
sells at £1.19. Further in-app videos, such as "Flawless Face
Fixers", are offered at 59p each to keep the revenue stream
flowing. "Having your mobile phone by the mirror with your
make-up bag, and watching a video that you can stop and start
when trying to get that look, it makes sense really – rather than
watching on a PC"

http://www.independent.co.uk/news/media/online/horse-amp-hound-hotter-than-the-
sun-2261211.html

Engagement

Changing economics of supply and demand


“Repeat monthly users consume
more content, making them more
valuable to our business and
marketers” -
Coates Bateman, Forbes

http://www.forbes.com/sites/lewisdvorkin/2012/01/17/inside-forbes-how-our-94
year-old-brand-engages-and-finds-success-in-a-social-world/

From SEO to SMO

Search engine results (SERPs)
increasingly shaped by social networks
‘Banner blind’; compete on metrics:
bounce rate, dwell time, interactions
Traffic and engagement from SM


The Post noticed, for instance, that
photo galleries — without sound — get
better play during the day (with
workplace usage), while video
supplements to stories get more used
in the evening. Twitter is best at
multiplying traffic on big breaking
stories, while Facebook referrals will
relay the trend stories better.

http://newsonomics.com/the-newsonomics-of-the-washington-posts-reader-dashboard-1-0/


The future?

APIs and linked data
RBI’s platform-neutral content (XML-
driven)


Guest Q&A:
Martin Moore
Media Standards Trust
.


Further reading.

Delicious.com/paulb/cityent
Delicious.com/paulb/enterprise
Delicious.com/paulb/BM


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