1. Competition is infinite

There are no barriers to entry now - anyone can publish online - so for traditional publishers competition is now infinite. Whilst digital channels have lower distribution cost, the bar is raised on content quality - so that will keep costs high for traditional publishers to be able to maintain an edge. Real time publishing is an expensive game.

2. New channels; new content & business model

Many consumers consider the internet to be free by definition, and resist paying for content. This is definitely the case for news, although there are exceptions for specialist paid content.  However, on mobile channels there is an expectation for content to cost money.  The Guardian has been pleasantly surprised by the 200k downloads of its mobile app at £2.39 when the news is free on the web; at 1000 sales a day there is little chance of a slow down. E-readers also create an expectation of paying for content.

3. Engagement will beat reach

The abundance of online advertising inventory has pushed CPMs inexorably down. Publishers can’t compete with portals or social networking sites on sheer reach, but they do have the ability to engage an audience, and advise advertisers on how best to communicate their message. Switching the emphasis from reach to engagement is the key.

4. Customer publishing: new revenue stream

Stevie Spring defined a publishers’ core competence as creating compelling content which draws an audience. Future have seen great success with their contract publishing operation, which they see as lending their competence to clients. May well be a useful new revenue stream for publishers.

5. Involve reader in content

There’s much talk of curating content rather than creating it; involving readers in the debate and editing their contributions to make a coherent story. When the new Observer was launched, a reader panel provided feedback by 5pm the same day - invaluable intelligence for the ed team.

6. Not all products are brands

Many publishers delude themselves that their product is a brand. Only those with a strong heritage and a deep relationship with their readers can successfully stretch their content and trusted relationships into new channels and formats.

7. Next generation is screen-based

The next generation is used to consuming content on screens, and is happy with access rather than ownership; while their elders prefer a more tangible media product. The new generation will cherry pick and build their own content; they are less likely to want a publisher to prepackage it for them. Publishers will need to maximise their profits from the older generation who still want print, in order to invest in the new media channels.

So while no-one underestimates the challenges, there are clear opportunities in customer publishing, in shifting advertiser focus to engagement and expanding “paid-for” channels such as mobile and e-readers. If you’d like to continue the discussion, please comment below, or join the Specialist Media Network on Linked In. To hear the perspective of other publishers on future challenges, put 25 May 2010 in your diary, and join the debate at the Specialist Media Show.

About the author: Carolyn Morgan runs Penmaen Media, a consultancy creating practical digital media and marketing strategies, with particular expertise with media owners.  If you’d like to discuss your digital publishing strategy, please contact us for an informal chat.

1. Barter

Does your advertiser provide services that are valuable to your business?  Or do they have access to products that you have to buy?  By switching your own purchases to an ad client you can perhaps defray the capital investment in a marketing campaign for your client and improve their ROI.

2. Risk-sharing on audience size or quality

Where the prospective audience for a media brand is unknown, perhaps for a launch or around a specific time period, advertisers may be reluctant to pay a fixed sum for their campaign.  Consider a sliding scale that reduces their costs if the volume or quality of the audience delivered misses expectations.  Take care to ensure that the lowest level agreed doesn’t fall below your minimum yield.

3. Revenue share on business delivered

This feels like the riskiest option - you need confidence in the advertiser’s creative, and also their ability to convert enquiries to new business.  But if they will collaborate on the creative content of the campaign, then this may be worth considering.  At one extreme, this is the old reader offer model, with editorial control over how the product is presented.  As a media owner, you need to feel confident that the product or service offered is perfectly targeted for your audience.

4. Content provision

Some clients may have access to experts, celebrities or other relevant content that is of value to your readers.  As with the barter option, this is a way to defray the upfront cost of the campaign for your advertiser.   If the content has real marketing value then this could mean wins on both sides.

5. Referrals and cross-marketing

By definition, your advertisers are chasing a similar audience to your media brand.  They often communicate with their customers through print or electronic means.  Including a print or online subscription promotion or a ticket offer to your event could be highly valuable to you, at minimal cost to your ad client.  Alternatively, you could offer to promote an advertiser’s services to your other advertisers or commercial contacts in return for a commission or a committed marketing campaign in your media brand.

I’d be interested to hear about innovative commercial partnerships struck by other media owners.  Please comment below, or join the discussion on the Specialist Media Network to swap tips with other specialist media owners.  This topic will be on the agenda for the conference at the Specialist Media Show - find out more and book your place online.

Carolyn Morgan’s consultancy, Penmaen Media, creates practical digital media and marketing strategies, and has particular expertise with media owners.  If you’d like to discuss how to develop creative commercial partnerships for your media brand, please contact us for an initial chat.

1. Sign up the big names

The movers and shakers in an industry can attract others who want to learn from them.  They are also often those who have the biggest personal networks.  Investing time in courting the big names and then publicising their involvement is worthwhile.  If you can encourage them to provide quotes, speak at events or even just contribute to discussions then the ripples will spread.

2. Drip in useful content

Original articles on hot topics can start a discussion going.  Even links to well-written third party articles are valued.  Top tips, useful checklists, case studies, pro-forma RFPs all provide a reason for members to sign up, and check in regularly.  You need a mechanism to alert members when new stuff is posted.

3. Create live events

Online chat is great, but human contact is far better.  Live events cement relationships built on-line, and establish new contacts that can be followed up virtually.  An interesting speaker and a lively Q&A fast-forwards the debate, and it’s easier to understand the emotion behind a contributor’s comments.  Shared experience, insight and laughter help the group to bond.  Events can also be the catalyst for further online discussion, and a canny network organiser will make sure the content of the event and the ensuing debate is publicised to those who couldn’t attend the live version.

4. Add moderation

A good live debate needs stimulus and facilitation, bringing in people with interesting points of view as the discussion develops.  Online discussions between professionals also benefit from moderation, so try to enlist some enthusiastic experts to guide the discussion and keep the plates spinning.

5. Use surveys

In most communities, only 10% will post online contributions at length, but a higher proportion will complete surveys and rate or rank ideas, and all will read the results avidly.  Surveys are a great way to take the temperature of a group, and build a greater sense of belonging.

I’d be interested to hear your experiences of building online professional networks.  Please comment below, or join the Specialist Media Network on Linked-in and add to the discussion there.

Carolyn Morgan’s consultancy, Penmaen Media, creates practical digital media and marketing strategies, and has particular expertise in all branches of media: print, events and digital.  If you’d like to discuss how we could help you invigorate your professional network, please contact us.

1. Pay to gain

The notable successes in paid-for content arise when the user can see a financial gain for themeselves or their business - such as Racing Post or the FT. (read the full story on Racing Post on the Media Pioneers group on Linked-in) Property and investment sites also do well. Consumers will also pay for less tangible gains: subhub’s clients see strong take up in health and self-improvement topics.  So it’s health and happiness as well as wealth that can persuade the reader to pay for content.

2. Pay to own (and keep)

Downloads seem more tangible than a pass to view on-screen. Buying music through itunes means you get to keep the music. Econsultancy’s reports are downloadable PDFs, and there’s a secure feeling in having them on your harddrive. Magazine iphone apps created by pixel-mags allow the reader to download the issue so they can view it when they are offline - plus they get the archive to browse.

3. Pay for expert content

Expert content goes beyond niche information - it’s stuff you can trust. One online publisher has had great success in charging for wine tasting notes from a well-known expert, while there is plenty of free information elsewhere. Another can charge yachties a premium for indepth reviews of port facilities, again where there are free sources, but with less credibility. Econsultancy’s best practice SEO guide from a known expert, Dave Chaffey, has greater perceived value than anonymous tips.

4. Pay for data/ intelligence

More in the b2b world, once information is exclusive and hard to replicate, it moves into the realms of data, which is worth paying for.  I’ve mentioned before WGSN, which turns worldwide observations on fashion trends into an essential tool for retail buyers.  Brad Insight, through its traditional directory business, now has a powerful database of agency and media contacts.  In the consumer world, Birdguides sells email and text alerts of rare sightings, invaluable for enthuasiasts.

5. Pay for convenience

Even content that is freely available can be repackaged and charged for if it saves consumers time and money, or makes it portable. The Guardian is free online, but its app has sold 70,000 copies at £2.39. Getabstract.com provides professionally written summaries of over 5000 business books, saving busy execs time in reading.

I’d be interested to hear your own experiences of what makes people pay for online content.  Comment on this blog or join in the discussion on the Specialist Media Network. I’m taking part in a panel discussing this topic at Publishing Expo at Olympia on 25 Feb - do drop in if you can.

Carolyn Morgan runs Penmaen Media, who create practical digital media and marketing strategies, and have particular expertise with media businesses.  She is also content director of the Specialist Media Show, taking place at Exec Peterborough on 25 May 2010, where online content will be one of the hotly discussed topics.  If you are a specialist media owner, it should be a valuable day, with inspiring speakers, opportunities to swap ideas and tips with your peers, and discover new suppliers and services.

The Media Pioneers awards have just been launched by the organisers of the Specialist Media Show, to recognise and celebrate entrepreneurial thinking among independent and specialist media owners. Here are the stories of the first five award winners: I hope they inspire you. Get the updates on the latest award winners on the Specialist Media Network on Linked-in; they’ll also be published here and on the Specialist Media Show website. At the show the finalists will be judged.

1. Athletics weekly sets the pace on iphone

A small independent publisher of a magazine for elite runners pioneered an iphone app, charging subscribers £1.19 a week for unlimited access to current and past issues. www.athletics-weekly.com

2. Cricket World reaches 1 million enthusiasts worldwide

Grantham-based publisher Cricket World has grown over the last 3 years to reach 1.1m users, driven by its live TV webcasts, audio commentaries, breaking news and interviews for cricket fans worldwide. Users can interact by email, photos and live chat. They now have their own studios for advertisers to create video content. www.cricketworld.com

3. Brits launch French ex-pat newspaper

Nicki Wade and team launched multi-section “broadloid”  The French Paper from her idyllic french countryside home. It offers ex-pats insight to culture, lifestyle and procedures in France. Quality journalism has resulted in beating budgeted copy sales.

4. My Hobbystore supplies hobby and craft enthusiasts worldwide

MyHobbystore publish modelling, woodworking and craft magazines, and have now moved into becoming online retailers and organising events. The products hobbyists need are hard to find, so myhobbystore set up an ecommerce business with many suppliers. Magazines create the interest and drive readers to the online store. Revenues are up 75% yoy, with overseas business growing.

5. Racing Post signs up 15% of web users to online subs

Racing Post has put its premium content behind a paywall, and now has over 10,000 active subscribers; representing 15% of their committed (daily visitors) customers. Target for 2010 is to double this number. They have left 90% of their content outside the wall to drive traffic.

Why have these independents succeeded where large companies get bogged down? Partly because in specialist markets they are close to their customers and can spot trends quickly. Also they are small and agile enough to grab an opportunity. New online tools now make it easier for small publishers to test new approaches.

If these stories inspire you, then join the Specialist Media Network on linked-in and watch out for more on the Media Pioneers. And put the date of the Specialist Media Show - 25 May 2010 - in your diary, and come to meet some of these pioneers face to face and learn from their experiences.

Carolyn Morgan is Content Director for the Specialist Media Show. She also runs Penmaen Media, which creates practical digital media and marketing strategies, and has a particular expertise with media businesses. Please contact Penmaen Media to discuss how we can help you pioneer new revenues for your media business.

1. Bundle online sub with print

This is the simple approach, adopted by Economist and also Construction News.  It rewards existing print subs, but doesn’t allow new readers to pick and mix the online content and tools.

2. All you can eat digital sub

Some print publishers, such as Economist, offer this as an alternative, at a slight discount to the full subs rate ($95 vs £102 - presumably Economist readers can do currency in their heads…).  It’s also being tested by Paid Content, the digital media service owned by the Guardian, which doesn’t have a print product.  They are looking at annual rates of £129 to £249 for unrestricted access to archive as well as current articles.  Some publishers are using iphone apps to make it easier to charge: Music Week is offering 30 days access for £9.99, although some content will be free.  Interesting how the basis is shifting to timed subs with universal access rather than per-issue charging.

3. Free news and paid-for research/ tools/ directories

This hybrid model is favoured by Emap and Reed, with forums and news outside the paywall, and higher value reports, analysis and tools inside.  The free news drives traffic, and then the premium products need to be vigorously promoted.  Inside the pay-wall, the targeted audience means that advertising can be sold at a premium.

4. Metered access

This is the famous FT model, and as they now claim to be making more revenue from readers than advertisers, it seems to be working for them.  The New York Times has also decided to adopt this approach - allowing readers to view a number of articles for free, but paying once they reach a certain limit.  Again, the paying customers are no doubt of value to select advertisers.

5. Free content and make money elsewhere

Some business publishers who are confident in their ability to sell event tickets, training places, magazine subscriptions, directory listings and special reports, are still sticking to the free content model.  Econsultancy have built a very successful business around a core of quality free content.  Haymarket’s brandrepublic takes a similar approach.  If your competitors are adopting this model, you need to think very carefully before you go for a full paywall; this is the dilemma faced by New Media Age, which competes with both of these businesses.

So there are a number of different approaches to paid content; it will be interesting to see which pay off…If you have other examples or experiences to share, please comment below, or join the discussions on the Specialist Media Network on Linked-in.

Carolyn Morgan’s consultancy business, Penmaen Media, creates practical digital media and marketing strategies, and has particular expertise with media businesses.  If you’d like an initial chat about how you can develop your paid content business model, please contact us.

1. Identify the experts

You already have experts and gurus on your editorial team - product reviewers or columnists with an existing offline or online fan base. But you may also have amateur experts among your readers whose contributions are equally valued. And some of your longstanding advertisers could be opinion-formers in their own field - particularly so in b2b markets. Start to build a list of advocates and gurus that are associated with your brand.

2. Provide directories to draw in more

Creating online profiles or free directories for readers/ members and also for advertisers/suppliers is a good way to cast the net wider, and identify people with an interesting point of view. These days most “experts”  link up all their online content so it is easy to follow up what else they have written and work out who to add to your list.

3. Help them build content around their profile

For all your in-house experts, readers and advertisers, make it easy for them to add content to their profile or listing on your site, also so that “fans” can check out everything they have contributed. This could be photos, articles, comments, reviews or even video. Pick out the best contributions regularly and promote them on-site.

4. Encourage them to add this to their social media activity

Make it simple for people to link the content they have created on your site to their own social media activity - on linked-in, facebook, twitter or whatever is their favourite platform. Be sure there is a link back to your own site so that people in their own personal networks can easily go back to see the original content - and then discover your media brand!

5. Treat them well so they stay loyal

Many media owners worry if they make their ed team stars then they will leave and set up independently. You may lose a few, but if you treat them well and help them fuel their personal brand, you will keep the majority. Reader experts respond well to status and privileges, such as being invited to be long-term product testers, or meeting the editorial team. Advertiser experts appreciate the PR benefit of building relationships with prospective customers through their specific expertise.

I’d be interested in your experiences of building content around the key people in your target market: do comment below, or join the Specialist Media Network on Linked-in to contribute to discussions on this topic, and others, with other media owners.

Carolyn Morgan’s business consultancy, Penmaen Media, creates practical digital media and marketing strategies, and has particular expertise in the media sector.  If you’d like to discuss how you can build a content strategy around the key people in your market, then please contact us for an initial conversation.

1. Tune up your media sales

After two tough years, 2010 should see an upturn in marketing budgets. I’m currently launching a b2b show in the specialist media sector, and have been pleasantly surprised by the number of businesses that are keen to exploit new marketing opportunities. Just as you are thinking about your own fitness in January, now is the time to check that your media sales team are at the top of their game and ready to sell multi-media solutions to current and future clients. More details on the 5 essentials for media sales teams in an earlier post.

2. Work your content assets hard

Any established media owner has significant content - whether product reviews, how-tos, profiles and interviews - that can be repackaged into different formats - print, mobile, web - and sold to a new audience, or as a special or compilation for existing customers. Consider yourself lax if a piece of content only has one life. Don’t forget too that online content works as marketing for your brand - see my tips on why content is marketing.

3. Build relationships with your best customers

If you don’t have a database, find reasons to build one from your current readers and visitors. If you already have a database and are communicating regularly, find a way to package up a subscription to your best content. Here’s some tips on new subs techniques that are helping print publishers. If you already have a base of subscribers, see if you can take the relationship further to turn them into valued, loyal members. See this post on creating profitable communities from media brands.

4. Experiment with new media channels

Who knows right now whether iphone or Android apps will proliferate, how many people will read digital editions, and whether the Nook, Sprint, Tablet or Kindle will light the fire for magazine content. I think the Spectator has the right strategy - they are experimenting with iphone apps, Kindle and digital editions, and also charging a subs rate for their online content. They don’t know which of these channels will fly, but they will find out faster by experimenting.

5. Create live events for your audience

With all this focus on personal screens, and typing as a means of communication, there’s still I believe a place for real life human face to face interaction - you know, that old-fashioned skill of talking to people and watching their reaction to what you say. Many media owners already include events, conferences and networking in their portfolio. If you haven’t yet, read these tips on turning your media brand into a meeting place and remind yourself of the special value of live events.

I’d be interested to hear about your own priorities for 2010 - feel free to comment below, or join the Specialist Media Network on linked in to discuss your ideas with other media owners.

Carolyn Morgan’s consultancy, Penmaen Media, creates practical digital media and marketing strategies, and has particular expertise in media businesses.  If you’d like to refresh your 2010 priorities, please contact us for an initial discussion.

1. Clear and distinct proposition

Who is your audience?  Why are they attractive to your advertisers? What does the media proposition do for them? Why are they engaged?  How can the media proposition help advertisers achieve their marketing and business objectives? Why are you unique, and exactly how are you differentiated from the competition? You need to be clear on all these questions and equip your media sales team with snappy answers.  If your media business serves up a compelling and unique proposition that engages a highly attractive audience and offers opportunities for advertisers to grow their business then all your media sales team will have to do is put it in front of them and take the orders!  If they can’t explain why your media proposition is different from the competition they will have an uphill struggle no matter how good their sales skills…

2. Flexible ratecard and negotiating limits

Make sure you have a wide range of “stuff” for your media sales team to use to create bespoke packages for your advertisers that will help deliver their objectives.  This could include sponsorships, airtime, advertorials, competitions, listings, display, list rental, e-newsletters, events and more.  Be clear about how each item is priced, and what room for negotiation or package creation the media sales team have at their disposal.

3. High quality sales materials

Clients need time to reflect on the proposition, and work out whether to meet and whether to give you their hard-earned marketing budget.  Emails, PDFS, websites, leave-behinds, presentations, all need to be carefully crafted to sell when you’re not there.  Success is more about showing clear benefits, providing case studies and testimonials and making it easy to price up a marketing package, than it is about flashy design or expensive production values.  Give your media sales team the ammunition to get the orders.

4. Excellent sales database plus “hot leads” system

A high quality database will help your media sales team target their efforts, and manage their personal contacts.  Encouraging editorial, marketing and general management to pass on “hot leads” pays huge dividends (see #5 below).

5. Support from entire team

Ad revenue is not simply the responsibility of the media sales team.  Editors, marketeers and publishers not only have access to great leads, they are often the best sales people as they are great at explaining the media proposition and the audience in detail.  If the whole team are engaged in helping the media sales team succeed, that is when a media property really starts to fly!

I’m interested in your experiences of what makes for success in media sales - do comment here or join the Specialist Media Network on Linked-in to swap ideas and tips with other media owners.

Carolyn Morgan’s consultancy, Penmaen Media, creates practical digital media and marketing strategies, and has particular expertise with media businesses.  If you’d like to give your media sales team a real boost for the new year, please contact us to discuss how we can help.

1. Paid online content

No surprises that paid content is the hottest of hot topics: in 2009 many media owners were testing the waters on paid online content - or perhaps just talking about it!  I posted some tips on how to build an online paid content strategy which proved popular, as did a similar set of ideas for reinventing online content for publishers.  More recently there has been a good deal of debate - and various surveys - on whether subscriptions or micropayments are the way forward - I think it all depends on the type of content.  Some publishers - such as the Racing Post and Spectator - are actually trying paid content for real - more info on their approaches in this article on examples of paid online content.  I’m sure this debate will continue well into 2010…

2. Subscriptions

As advertising dwindled and newstand sales grew even tougher, the previously neglected sector of subscriptions generated more interest.  I documented some successful subscription strategies after talking to a few publishers.  I also looked ahead to how subscriptions may develop in future.  The recent survey by Wessenden, CDS and InPublishing showed how publishers are instigating a quiet digital revolution in subscriptions.  I believe many of the traditional disciplines of print subscriptions will become increasingly relevant as publishers attempt to develop online subs.

3. Building communities

Good media content always creates a community of interest, and the cleverest media owners encourage that community of like-minded people to share information and connect with each other.  I explored the commercial potential of this in a post on turning a media brand into a meeting place. Another popular article looked at the qualities required to create a community that is valuable enough to its members to charge an entrance fee: read more here on creating profitable communities from media brands.  Many media owners have been toying with creating members clubs or associations; here are some ideas on how to invite your best customers into a club.

4. What not to do!

In 2009 running a traditional media business seemed a bit like negotiating a minefield, with readers and advertisers rapidly shifting to new media platforms, while  media owners had to weigh up which opportunities were worth the investment of time and money.  No wonder there were plenty of people interested in avoiding pitfalls for magazine websites, or checking out whether their business was displaying the warning signs for publishers….

5. New commercial opportunities

With online display ad rates tumbling, media owners have been avidly seeking out new commercial opportunities. Many are considering adding video and audio content, aiming to use video to grow ad yields.  Others are finding new ways to package their online audience; here are some popular tips on how publishers can grow online ad revenues.  Many print publishers are expanding into events; which means learning new commercial skills; there was plenty of interest in an article on creating events sponsorship packages.

I hope this list of hot topics and links gives you plenty to think about over the Christmas and New Year break, and provides some direction for your 2010 strategy.

Carolyn Morgan

Penmaen Media creates practical digital media and marketing strategies, and has particular expertise with media businesses.  If you would like some guidance on your 2010 strategy, please contact us for an intial discussion.