Report indicates profits for online news publications

ZURICH: A report by The Interactive Publishing GmbH consultancy provides good news for the online news services still standing after the dotcom bloodbath.


IP Zurich Report: "Interactive Publishing Industry Europe 2003 - 2005" by The Interactive Publishing GmbH consultancy, analyses the comments of 20 industry "thought leaders" who gathered for two days of meetings in Zurich, Switzerland, in mid-January.

The findings include

- A business model will emerge for online news operations that works, and makes money.

- The industry will fairly quickly begin to tap its revenue potential. (Sites are current tapping only 20-30 per cent of their revenue opportunities, the group estimated.)

- Media-company top management ranks will see a swift change, with traditionalists replaced by executives who understand how the Internet fits into the big picture.

- Advertising will remain the dominant online revenue source, with paid content supplementary.

- Most pure paid-content models on the Web will be shown to be failures.

There was a strong belief that news-media companies are about to see a wave of new executive appointments. Many existing media-company top executives remain mired in offline-media-first thinking, but this group felt that these people are on their way out in the next two to three years -- replaced by individuals from the online generation, who have spent their media-industry careers working in the Internet era.

"No more page impressions!" That's one of the stronger messages sent by the Zurich online leaders in the area of advertising. While the ad industry wants and needs improved metrics to assess online performance, news website leaders say that other ad-sales techniques make more sense in the long run.

Fattal, from the Israeli newspaper Ha'aretz, reported success in selling fixed ad spots by position and time posted on the home page -- advertisers pay a fixed sum regardless of how many ad impressions are served. Models that are closer to newspaper or television ad metrics -- where branding reach is of higher importance that specific ad-clickthrough numbers -- may be in order.

Online publishers need to become more adept at selling themselves to the ad community. They need to lobby and create awareness about the numbers they are getting to their site. They need to increase revenues by developing the market and also to increase the share that content providers take, as opposed to, for example, the portals.

Online publishers also need to educate advertisers about the damaging effects of pop-ups and other intrusive ad spots.

Further the leaders believe that advertising revenues will grow substantially, but at the same time the emphasis on free content will be reduced. The group felt that multiple revenue streams will be critical for future success. A combination of generating new revenue streams and getting better at cost control should create "profitability across the online publishing industry" in the next two to three years.

Publishers also need to tackle problems relating to online news content. These include the fact that it is too general and aimed at a mass audience; it lacks entertainment value; very often it is redundant to what's published in print or broadcast.

The leaders also stressed the need for a more integrated media strategy at news companies -- at all levels, from editorial to advertising, to marketing, to production, to technology.

They particularly emphasised the need for integrated sales departments, and think that there will be progress in the area of print sales people selling online placements as part of cross-media advertising deals. Within this two- to three-year time frame, advertisers will begin to get the message that "online and paper together reach a much more interesting critical mass than paper alone."

Latest Reads
Zee Kannada to launch a first-of-its-kind horror thriller fiction show – Aatmabandhana

Zee Kannada, every Kannadiga household’s hub of entertainment, further strengthens its fiction band with innovative content post the successful launch of Paaru.

Television TV Channels Regional
Diljit Dosanjh’s ‘Pagal’ & ‘Putt Jatt Da’ rakes in over Five Million Hits on Gaana each

Punjabi sensation Diljit Dosanjh’s newly released tracks ‘Pagal’ & ‘Putt Jatt Da’ have smashed charts on India’s largest music streaming app – GAANA with over five million hits within less than a month.

Television TV Channels Music and Youth
How Hindi news channels perform on counting day

News viewership is event-driven – either scheduled or unscheduled. Elections are certainly the most important of all special or scheduled events.

Television TV Channels Viewership
Khelo India Youth Games, Maharashtra 2019 is Bigger and Better!

Building on the roaring success of the inaugural edition of the Khelo India School Games, Ministry of Youth Affairs and Sports along with Star Sports kick started the countdown to Khelo India Youth Games, Maharashtra 2019 with an appeal to encourage India to play more- with the evocative ‘#...

Television TV Channels Sports
IndianOil to fuel Tata Open Maharashtra

Organisers of Tata Open Maharashtra today announced Indian Oil Corporation Ltd. coming on board as a valued partner for the 2nd edition of Tata Open Maharashtra to be played at the Mhalunge Balewadi Stadium, Pune.

Television TV Channels News Broadcasting
Times Internet announces elevation of Puneet Gupt as its COO

India’s leading digital products company, Times Internet announced the elevation of Puneet Gupt as the COO of Times Internet,with immediate effect.

Television TV Channels People

BARC India bagged the “Most Innovative Company in Service – Medium Enterprise Category” at the CII Industrial Innovations 2018 awards.

Television TV Channels Viewership
Zee Kannada to have exclusive content for HD channel

If there’s any broadcaster known to be a pioneer it’s the Zee Network. With a wide reach in the regional part of India, Zee already has leadership positions in Bangla, Marathi and Bhojpuri markets as per BARC data week 48. Now it wants to buck up in the Kannada market with the newly launched HD...

Television TV Channels Regional
Sony Marathi new player in BARC data week 48

BARC data for week 48 shows that in the Bengali space, Zee Bangla and Star Jalsha continued to be in the first and second positions. No changes were observed in Bhojpuri, Kannada, Malayalam and Tamil segment. In the Telugu space, Star Maa retained its first position. Sony Marathi emerged as the new...

Television TV Channels Viewership

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories