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‘Online and Mobile Media’ Week 8
 Presentation by Kristina Kraft and Sara Hankiewicz




How to make money with online news?
1. Relationship Online Content and User
     Economic influence
•    • Distribution
•    • Evaluation
•    • Content Production

2. Relationship Online Content and Investors
•    Revenue Models
•    • Online Advertising
•    • Subscription
•    • Sponsorship
•    • Paid Content

Conclusion
Sources
•   Online content: Established print
    brands go online, favoured by readers
•   Composed in LINEAR matter

Economic 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 is
willing 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 and
direct commenting

Filtered 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’ readers




Source: 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 independent
news 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 media
Example: Reddit




                                                         Future for
                                                         established News
                                                         brands?
What financial models for Online News
          can you think of?
Revenue Models for Online
           Newspapers

•   Online Advertising
•   Subscription
•   Sponsorship
•   Paid Content
Is the Online Advertising Model successful?
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 Billion
Benefits:
• 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
•   Static
•   Pre-Roll
•   Post-Roll
•   Overlay
Newspaper style
Has to state that it‘s
an 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
Feel

Get your online
newspaper 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

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The New News business

  • 1. ‘Online and Mobile Media’ Week 8 Presentation by Kristina Kraft and Sara Hankiewicz How to make money with online news?
  • 2. 1. Relationship Online Content and User Economic influence • • Distribution • • Evaluation • • Content Production 2. Relationship Online Content and Investors • Revenue Models • • Online Advertising • • Subscription • • Sponsorship • • Paid Content Conclusion Sources
  • 3. Online content: Established print brands go online, favoured by readers • Composed in LINEAR matter Economic 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. Who of you is willing to pay for online news content?
  • 5. Distribution through Social Network sharing Economic value: Personalized advertisement through friends: authentic, suitable and free
  • 6. Interaction through reaction on news stories: Media Watch Blogs and direct commenting Filtered comments: BBC ‘Have your say’ Unfiltered comments: The Guardian, news commenting
  • 7. Economic value: Costumer interaction heightens inclusiveness  Regular users, more website hits: more attractive for advertisers
  • 8. • Hyperreader: Gives and receives • Engaging and contributing, ‘active’ readers Source: Alexander Hay
  • 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. Economic risk: Replacing of established news brands with independent news communities such as ‘The real news’ and blogs. Danger: No Journalist code of Ethics, no quality and accuracy guaranty
  • 11. Can have very unique appearance, in contrast to linear traditional media Example: Reddit Future for established News brands?
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  • 14. What financial models for Online News can you think of?
  • 15. Revenue Models for Online Newspapers • Online Advertising • Subscription • Sponsorship • Paid Content
  • 16. Is the Online Advertising Model successful?
  • 17. 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 Billion Benefits: • Ad can be published immediately • Ads are not geographically bound • Ads can be customized to the article‘s content
  • 18. Online Advertising Types • Banners • Advertorials • Wallpaper • Floating ad • Pop Up • Expanding • In - Text Ads • Video Ads
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  • 22. Static • Pre-Roll • Post-Roll • Overlay
  • 23. Newspaper style Has to state that it‘s an advertorial
  • 24. How it works: • CPM - Cost Per Mille • CPC - Cost Per Click • CPA - Cost per Action
  • 25. • For certain parts of the website – to support an article – e.g. sponsored posts • Through Donations
  • 26. Feel Get your online newspaper via email Have your news personalized
  • 27. • Users are not willing to pay • Content available for free New Payment options should be considered
  • 28. Paid Content Options • Micro Payment – Pay small amounts per article (2 cents) • Paywall – Restricted Website - pay for the access
  • 29. • 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!
  • 30. 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