The Business of News

Barry AdamsPierce Communications@badams

Newspapers

News as a business

Journalists make up a small % of a news organisation

Other big departments:Marketing & AdvertisingPrint & DistributionClassifieds

What is a newspaper’s business model?

A newspaper’s business model is…

Informing the public? XSelling papers? XSelling advertising? √Selling classifieds? √

Measurement of success

Circulation– Not because the sale of papers makes a lot

of money (it doesn’t)– But because circulation = audience– And a bigger audience means:

• more advertising money• a stronger classifieds market position

In the online world, circulation is replaced by unique visitors

But this is not an equal measurement because…

The classifieds market has been taken over by specialised sites

And advertising alone doesn’t cover the costs

Newspapers in the 21st century

Newspapers don’t have a replacement business model (yet)– Paywalls don’t work– Paid apps are barely off the ground– Circulation is dropping steadily– Advertising revenue is plummeting

What will happen

• In 10-15 years half of all print newspapers will have disappeared

• News will be the purview of a select few organisations who have successfully monetised it

• Basic news will be free, but ‘advanced’ news will have a price tag

In the meantime…

Papers will cling to old business models and desperately hang on to their fading glory

Costs will be cut, newsfloors will become emptier, papers will publish more fluff

Online, Unique visitors and Pageviews will be the currency of choice

How can you profit?

Give a newspaper what it wants:– Content you pay them for to get published– Traffic to their websites

• Partnerships for content that is too dear for them to produce themselves

– Monetisation opportunities• Buy content• Buy links• Buy/sponsor news sections

Ideas

• Build an app for a newspaper• Sell your SEO services cheap in

return for links• Become their online marketing

partner• …?