Fascinating interview with Rob Grimshaw FT.com publisher on paidcontent.org
Here's an extract that brings home the realities of online advertising
"If you're aiming to make $50 million a year from your online advertising business, which is not massive, you're going to need 833 million page impressions per month at CPMs of $5 a time. If they drop to a dollar, you need 4.1 billion!"
Basic point is that online publishing operations are unsustainable in its current form. They need additional revenue streams.
2 options:- charging for content and monetizing customer relationship through direct sales of goods and services
News Corp are leading the way on pursuing both these options. Rupert has very pointedly and publicity stated that his organisation will start charging for content. And his newspapers in UK have formed a new department to drive up ARPU (average revenue per user).
Interesting times but its great to see newspapers so actively pursuing growth strategies.
Sent from my handheld