• Online content: Established print brands go online, favoured by readers• Composed in LINEAR matterEconomic value: Reuse of already written material from the newspaper, in some cases selling articles through pay walls (NYT)• User: Constant delivery, approach through interest
Who of you iswilling to pay for online news content?
• Distribution through Social Network sharing Economic value: Personalized advertisement through friends: authentic, suitable and free
Interaction through reaction on news stories: Media Watch Blogs anddirect commentingFiltered comments: BBC ‘Have your say’Unfiltered comments: The Guardian, news commenting
Economic value: Costumer interaction heightens inclusiveness Regular users, more website hits: more attractive for advertisers
• Hyperreader: Gives and receives• Engaging and contributing, ‘active’ readersSource: Alexander Hay
Economic value: Consumer as unpaid photographer/ journalist for newspaper, often not paid when published.• Platforms: Twitter, Flickr (Picture service by Yahoo)Example: London Subway Bombing
Economic risk: Replacing of established news brands with independentnews communities such as ‘The real news’ and blogs.Danger: No Journalist code of Ethics, no quality and accuracy guaranty
Can have very unique appearance, in contrast to linear traditional mediaExample: Reddit Future for established News brands?
What financial models for Online News can you think of?
Online Advertising Facts• The internet is source number 2 for news after television• In 2010 Online Advertising was more successful than newspaper advertising• It grew 13.9% between 2009 and 2010 and reached a total of $25.8 BillionBenefits:• Ad can be published immediately• Ads are not geographically bound• Ads can be customized to the article‘s content
Online Advertising Types • Banners • Advertorials • Wallpaper • Floating ad • Pop Up • Expanding • In - Text Ads • Video Ads
Newspaper styleHas to state that it‘san advertorial
How it works:• CPM - Cost Per Mille• CPC - Cost Per Click• CPA - Cost per Action
• For certain parts of the website – to support an article – e.g. sponsored posts• Through Donations
FeelGet your onlinenewspaper via email Have your news personalized
• Users are not willing to pay• Content available for free New Payment options should be considered
Paid Content Options• Micro Payment – Pay small amounts per article (2 cents)• Paywall – Restricted Website - pay for the access
• New technologies have changed: - the reader-reporter relationship - the way news services achieve their revenue•What to do now: - watch your users - adapt to financial models for online media Keep the users attracted with updated, interactive content!
Publications:• Cohen, Elisia L.: Online Journalism as Market-Driven Journalism. In: Journal of Broadcasting & Electronic Media, 2002.• Chyi, Hsiang Iris: Online Newspapers in the U.S. – Perceptions of Markets, Products, Revenue, and Competition. In: JMM Editorial, Vol. 2, No. 2, 2000.• Hay, Alexander: Hypernews, Hyperreaders and Beyond. In: Journal of Electronic Publishing. Vol. 13, No. 3, 2010. Online access: http://quod.lib.umich.edu/j/jep/3336451.0013.302?rgn=main;view=fulltext Last revised 15.09.11• Kapica, Jack: Op-Ed. Exposing advertorials posing as online news sites. In: The Digital Journal 30.09.09• Picard, Robert G.: Changing Business Models of Online Content Services- their implications for Multimedia and other content producers. In: JMM Editorial, Vol. 2, No. 2, 2000.• Digital sources:• http://digitaljournal.com/article/275047 Last revised 15.09.11• Wessels, Jan: The future of digital content – Free or paid? Online access: http://www.itas.fzk.de/eng/e-society/preprints/ecommerce/wessels.pdf Last revised 15.09.11