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Hyperlocal 101: Part One, 10 hyperlocal business models

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A short presentation giving ten examples of different hyperlocal business models being used by start-ups and traditional media (mostly from the UK). Please feel free to add other examples as this list is by no means exhaustive.

Publié dans : Technologie, Business

Hyperlocal 101: Part One, 10 hyperlocal business models

  1. 1. Hyperlocal 101 Part One: Business Models Damian Radcliffe, 20th July 2013 Twitter: @damianradcliffe Web: damianradcliffe.com Image via: http://nikolasschiller.com/gis/3D_buildings_nadir.jpg
  2. 2. Funding – and sustainability - is perhaps hyperlocal media’s biggest challenge. But new models are emerging alongside existing ones… Traditional media and start ups are all experimenting... These slides include examples of 10 business models we’ve seen emerge in the past couple of years. There are many more.
  3. 3. 1. Franchising Localpeople, part owned by the Daily Mail and General Trust plc. offers franchising opportunities as they look to expand their network beyond their current portfolio of 160 sites. Their website states that over 750,000 people visit localpeople sites each month, generating over 2 million pageviews. • Potential franchisee’s are promised three days initial training, as well as operator manual, and on-going support from both HQ and the wider franchisee community. • Franchises will offer exclusivity within a clearly defined local area. DMGT say that typically each territory will cover a population of 20,000 – 80,000 inhabitants. • The cost of this is initial investment was originally £6995+VAT, (it is now £3995+VAT). Their website claims: • “You could earn an income of over £5000 per month.” Source: http://franchise.localpeople.co.uk/ Examples of new sites built using the Localpeople template: www.leamingtonspapeople.co.uk / www.glossoppeople.co.uk / www.wirralpeople.co.uk
  4. 4. 2. Advertising only models • Postcode Gazette was an ad-funded start-up, which launched a pilot in Sheffield in 2011. • Although it still has a Facebook page, the Twitter and Website links no longer work – suggesting the model – which sought to deliver “hyperlocal news on a national scale” to mobile devices produced by thousands of publishers responsible for small areas. “As a rough rule of thumb, we are thinking in terms of one local publisher for every 5,000 people. Rather than one person to cover a town, or a handful to cover a city, we're aiming for 50 or 100. The challenge for us is making sure we have enough skilled people working with us.” Source: http://bit.ly/lF1aUt
  5. 5. Other advertising models • A more successful venture is the NeighbourNet network which launched in West London in 2000. It runs 9 sites including ChiswickW4.com. ChiswickW4.com receives over 180,000 visits each month (Google Analytics) and 60,000 unique users. Total site membership of the site is 21,041 (Dec 2012). Of these over 15,950 receive our weekly e-mail newsletter. Membership is free. http://bit.ly/115TzNi The site is funded by advertising. “ We try to ensure that this doesn't limit your enjoyment of the site. You can help keep the site free and the amount of advertising restricted by always telling our sponsors that you saw their ad with us. Nearly all of our advertisers are smaller independent local businesses.” http://bit.ly/tBvz69
  6. 6. 3. Trusts & Foundations “The Detail aims to help put investigative journalism at the core of the news industry in Northern Ireland. It aims not to challenge existing news outlets, broadcast or newspaper, but to supplement them.” • The site has an editor and four full-time journalists as well as a dedicated video editor. Sources: http://bit.ly/ha6OV7 and http://bit.ly/eTWOTQ The Detail - an investigative journalism portal for Northern Ireland launched in 2011. It received 2 years of funding, £790k, from Atlantic Philanthropies (£640k) and Screen NI (£150k). The site notes: “We have no intention of diluting the increasingly difficult newspaper sector and do not sell advertising. Instead we have published investigations in partnership with longer- established newsrooms.”
  7. 7. The now defunct Journalism Foundation funded a couple of hyperlocal projects during 2012, as well as a free online toolkit for people who want to learn how to build a local website. Support included the Brixton Blog and their print edition, the Brixton Bugle. In April, The Journalism Foundation distributed 50,000 copies of a special print edition of local news website Pits n Pots to houses in Stoke- on-Trent. Journalism.co.uk reported this doubled their web traffic: http://bit.ly/Is8l5G The Carnegie Trust funded a £50,000 competition - Neighbourhood News - to improve local news reporting. Five winners (from 77 applications) received £10,000 funding in return for participating in an external evaluation of their new local news project. http://www.carnegieuktrust.org.uk/c hanging-lives/neighbourhood-news
  8. 8. 4. Partnerships • DMGT’s Northcliffe Media, home to 113 regional newspapers, forged a joint partnership with Trinity Mirror's Regionals sales house, AMRA, to create a commercial proposition that encompasses more than 260 titles, including nine of the 10 biggest regional paid- for titles in the UK. Steve Auckland, group managing director of Northcliffe Media, said: “While our teams will miss the Mediaforce team, we are really excited at the prospect of gaining advertising revenue through this new arrangement." While Brand Republic commented on the significance of the move: “ The new sales partnership represents a significant move for regional newspapers, paving the way for economies of scale as well as the opportunity to offer a more comprehensive regional sell to the market.” Source: http://bit.ly/qhIZ1V
  9. 9. 5. Daily Deals and Vouchers STV previoudly launched a venture offering discount deals to registered users in Glasgow and Edinburgh. The Daily Deals service saw the broadcaster's classified team work with local businesses to source offers which are sent to readers via email alerts. Source: http://bit.ly/oIOsPw Johnston Press and vouchers company Nimble Commerce announced a new online vouchers business a couple of years ago. (Johnston also diversified further still by introducing a business directory, called Find It). Caerphilly Observer offers a range of advertising opportunities as well as Groupon Deals on its website.
  10. 10. 6. Property “Sensing an opportunity, the property big guns are moving in. Rightmove, the biggest UK property portal, has been testing Rightmove Places … The site aims to help househunters to gain a warts-and-all feel for an area beyond the property listings on the main part of the site.” Susan Emmett, The Times, February 18th 2011 Ray Duff on the HU12.net website described it as: “… a cross between a review website and a social network. Users can post information and photos about a place, and write about their opinions of services in an area i.e. character and personality, neighbourliness, restaurants and eating, etc. Source: http://bit.ly/gSr8Vg Earlier in 2011 Rightmove reported they had 10m visitors a month, although ‘places’ is still in beta (according to their main site logo, but not their FAQ which notes that the new website went live on October 19th 2011). Visit it here: http://www.rightmoveplaces.co.uk/
  11. 11. 7. Training & Consultancy Training MONTV is an online website providing “Local Television for Monmouthshire” in Wales. After securing an initial grant from the local council the group moved into media training, delivering the City & Guilds Level 3 Diploma in Media Techniques to students. Their trainer is the only paid member of staff. The team now also provide hosting services for other IPTV services too. Social Media consultancy Oakland Local, provides services such as training or Web development to local businesses, community organisations and other online news publishers.
  12. 12. 8. Crowdfunding Before Kickstarter, there was Spot Us Launched in November 2008, aimed to pioneer “community funded reporting” by getting freelance journalists to pitch specific news stories, explaining online why the topic deserves further investigation. If members of the public agree, they can make a donation — sometimes just $10 or $20 — to pay the journalist to produce a more detailed story. Their website lists contributors (whose donations are tax deductible) as well as “Almost Funded Stories” and “Unfunded Stories”. They then partner with news organisations, by licensing content to them. By November 2011 it had produced over 225 projects (“some are single stories some are 6 months of covering a specific topic some are 6 months of a big investigation”) working with 110 different publishing partners. In November 2011, it was also announced that Spot.Us was acquired by American Public Media.
  13. 13. 9. Local paywalls Very little discussion of this in the UK, but plenty in North America…. Following a "metered model" experiment, Canada's largest newspaper publisher in 2011 announced plans to erect paywalls at its 38 daily and community newspapers. Postmedia began testing this model in May 2011 on the websites of the Montreal Gazette and the Victoria Times-Colonist. Postmedia Network will allow online readers access to a certain number of free articles before prompting them to pay for more. Source: http://bit.ly/uIEPKB and http://bit.ly/suu6X8 “A decade ago we started to give it away on the Web ... everybody in the newspaper business is looking in the rearview mirror and saying, what the heck did we do?” “Newspapers are going to need this going forward … It’s only a matter of time.” Postmedia’s CEO Paul Godfrey via: http://bit.ly/tbe7g7 But in March 2011 an internet survey by The Canadian Media Research Consortium of 1,682 Canadian adults, showed audiences were overwhelmingly opposed to fees for content. 92% of those who get news online said they would find another free site if their favourite news sites started charging for content.
  14. 14. 10. Hybrid models The London SE1 Website has multiple income streams. These include Google Ad Words through to Classifieds, a monthly printed “What’s On” Guide and affiliate relationships with local businesses in the SE1 area. It has been successfully operating since 1998. http://www.london- se1.co.uk
  15. 15. This list isn’t exhaustive. If you have other examples, please add them in the comments or send me a tweet! About the Author: @damianradcliffe Damian Radcliffe is a Doctoral Student and an Honorary Research Fellow at Cardiff School of Journalism, Media and Cultural Studies. He has written about hyperlocal media for a number of organisations and media outlets including: Ofcom, the BBC College of Journalism, Networked Neighbourhoods, journalism.co.uk and the Democratic Society. In 2012 NESTA published his landscape report - “Here and Now” – the first comprehensive review of the UK’s hyperlocal scene. Links to Damian’s extensive hyperlocal writing and research can be found via his personal website: www.damianradcliffe.com/hyperlocal