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The New News business


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The New News business

  1. 1. ‘Online and Mobile Media’ Week 8 Presentation by Kristina Kraft and Sara HankiewiczHow to make money with online news?
  2. 2. 1. Relationship Online Content and User Economic influence• • Distribution• • Evaluation• • Content Production2. Relationship Online Content and Investors• Revenue Models• • Online Advertising• • Subscription• • Sponsorship• • Paid ContentConclusionSources
  3. 3. • 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
  4. 4. Who of you iswilling to pay for online news content?
  5. 5. • Distribution through Social Network sharing Economic value: Personalized advertisement through friends: authentic, suitable and free
  6. 6. Interaction through reaction on news stories: Media Watch Blogs anddirect commentingFiltered comments: BBC ‘Have your say’Unfiltered comments: The Guardian, news commenting
  7. 7. Economic value: Costumer interaction heightens inclusiveness Regular users, more website hits: more attractive for advertisers
  8. 8. • Hyperreader: Gives and receives• Engaging and contributing, ‘active’ readersSource: Alexander Hay
  9. 9. 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
  10. 10. 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
  11. 11. Can have very unique appearance, in contrast to linear traditional mediaExample: Reddit Future for established News brands?
  12. 12. What financial models for Online News can you think of?
  13. 13. Revenue Models for Online Newspapers• Online Advertising• Subscription• Sponsorship• Paid Content
  14. 14. Is the Online Advertising Model successful?
  15. 15. 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
  16. 16. Online Advertising Types • Banners • Advertorials • Wallpaper • Floating ad • Pop Up • Expanding • In - Text Ads • Video Ads
  17. 17. • Static• Pre-Roll• Post-Roll• Overlay
  18. 18. Newspaper styleHas to state that it‘san advertorial
  19. 19. How it works:• CPM - Cost Per Mille• CPC - Cost Per Click• CPA - Cost per Action
  20. 20. • For certain parts of the website – to support an article – e.g. sponsored posts• Through Donations
  21. 21. FeelGet your onlinenewspaper via email Have your news personalized
  22. 22. • Users are not willing to pay• Content available for free New Payment options should be considered
  23. 23. Paid Content Options• Micro Payment – Pay small amounts per article (2 cents)• Paywall – Restricted Website - pay for the access
  24. 24. • 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!
  25. 25. 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:;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:• Last revised 15.09.11• Wessels, Jan: The future of digital content – Free or paid? Online access: Last revised 15.09.11