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We live and work in exciting times - revolutionary times. Technology continues to recast the media industry.

The extraordinary advance of affordable personal digital technology and the stellar rise of social networks are both distrupting and transforming the media market making this a unique moment to be involved in the convergence sectors we focus on.

This is also our place to ruminate and comment on the world as we see it, we hope you enjoy and please join in.

Wednesday, 13 May 2009

Why online don't add up

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

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