Tag Archive for 'eReaders'

As a first “supersized” post for this blog, I had been thinking for some time about a topology of optimal digital strategies geared to different forms of content. Then a couple of weeks ago I read a great post on Rory Brown’s excellent blog which pre-empted some of my thinking. I agree with his thesis as far as it goes, but want to push it further in two ways; first, to include magazine publishing as well as newspaper and specialist publishers. And second, to consider the impact that eReaders will have on different categories of the print publishing industry. This post recognises six categories:-

1. National (general) newspapers
2. Local newspapers
3. Specialist information providers
4. Consumer magazines (general)
5. Consumer magazines (specialist)
6. Trade magazines

Ideally I’d like to broaden the thinking to include broadcast media – TV and radio – but that will need some more time to clarify some emerging themes.

1. National (general) newspapers

Prognosis: This is a commoditised space and there is only one way the sector is going as a whole. Plenty of renowned brands with distinguished histories, but an out-dated consumer proposition in this age of instant and multi-media news coverage, and an out-dated business model given the free availability of online news and the migration of classified advertising to specialist online directories.

Web strategy: Don’t bother with paywalls. Take-up will be confined to a narrow band of loyal older readers so little growth potential either. Put all your content online (but don’t shout about this) and maximise traffic. Monetize via online advertising and lead generation. By now you know if you’re going to be one of the few winners from this approach (eg The Guardian), and if not then continue to slim down your business to stay alive. In BCG terms you’re a cow that’s steadily mutating into a dog.

eReader strategy: Not a big subscription opportunity. You should participate, if only to protect revenues from readers who would rather migrate from print editions. There may also be an advertising-driven eReader future for some titles.

2. Local newspapers

Prognosis: Whilst suffering the same pressures as nationals in terms of consumer proposition and (even more markedly) business model, locals’ content is less commoditised. Those titles which retain deep roots with their communities should survive. But they may also need deep pockets to see them through a difficult few years ahead…

Web strategy:  The web should supplement your print title through participation (both for readers and advertisers), and needs to keep the brand alive for a younger generation. But you don’t want to accelerate a decline of print copy sales, so hold back full content for print only. I don’t see paywalls generating anything more than a trickle of revenue.

eReader strategy: This could be transformative. Locals have failed to develop significant subscription volumes, but by making it really easy to subscribe, with a high-volume low-price model, and with few (if any) direct competitors, eReaders could turn this around. And the interactivity offered by eReaders could win back classified advertisers.

3. Specialist information providers

Prognosis: Niche players in both B2B and B2C areas can flourish if they look after the quality of their content and out-market competitors. And there are plenty of ancillary revenue opportunities to supplement a tiered subscription model. The speed of migration from print to online will vary markedly according to a) data-intensity of service, b) importance of real-time, and c) reader engagement. Many information services of course are already online-only, but there will be a continuing place for special reports, events etc.

Web strategy: Paywall access to your full/premium content. But, depending on how tightly defined your market is, you’ll need to have a lot of free optimised content to draw traffic and to have an effective means of moving customers up the value pyramid. Registration and stickiness will often be more important than SEO, particularly in B2B niches.

eReader strategy: Data services are better-suited to web-access, but where mobility and/or design matters more, readership will migrate from print as eReader ownership widens.

4. Consumer magazines (general titles)

Prognosis: Magazines have been somewhat protected from the web because they are more experiential with design and portability being critical components of success. They also don’t rely on classified advertising, with brand-conscious display advertisers (65-70% of revenues) being wary of embracing the web. However, they take up a diminishing proportion of media-time which tracks age. So they need to become more compelling to the young in order to secure their long-term survival.

Web strategy: You should be using the web to supplement your print product and to drive reader-engagement. Luxury brands will slowly engage with the web, but accept the advertising limitations in proportion to how upmarket you are.

eReader strategy: It will take a while, but ultimately eReaders will revolutionise this space, once devices can sufficiently mimic the “iodt” experience and as uptake reaches different demographic groups. All advertisers will then fully embrace the possibilities that digital offers their brands. As I have argued in a recent article in InPublishing (not yet posted online), I predict this revolution will begin in earnest in H2 2012.

5. Consumer magazines (specialist)

Also largely protected from the web, specialist titles have more compelling reasons to be active online too, as niche communities are keener to interact and engage. There are also specialist lead-generation and e-commerce opportunities in every niche, be it mountain bikers or board gamers. Some content should be restricted to subscribers only, and you also want to force registration as far as possible too, as your survival requires a tightly defined readership. The eReader revolution will be as fundamental as for general magazine titles, and with even more opportunities taking advantage of interactive advertising.

6. Trade magazines

Prognosis:  Trade titles have obviously suffered badly from the recession, and being completely dependent upon advertising makes them doubly vulnerable.  But there will be places for titles in every sector, so those who weather today’s storm will be well-placed. It’s all about owning your community through excellent content both online and offline.

Web strategy: Trade magazines are all about lead-generation, and B2B advertisers have embraced the web. You shouldn’t be differentiating at all between print and web, with content freely available. Usually tight registration-controlled access and stickiness will trump SEO considerations, and be creative in how you can serve up leads for advertisers.

eReader strategy: Mobility is a less important consideration for trade magazines than for B2C, but eReaders will substitute for print magazines which will be a bonus in terms of cost and value-added for advertisers.