New media has radically reshaped the media landscape, and generating revenue online has been nothing more than a mirage until very recently.
New media has radically reshaped the media landscape, and generating revenue online has been nothing more than a mirage until very recently.
This was the subject of discussion at the Emerging Media Business Models session of the Highway Africa conference held at Rhodes University in Grahamstown last week.
Ory Okolloh, co-founder and Executive Director of Ushahidi – an open-source project where users ‘crowdsource’ crisis information and distribute it via cellphones – chaired the session, which included panellists from the US, Kenya and Uganda.
Matthew Buckland, CEO of internet consultancy Creative Spark, suggested that despite today’s high consumer demand for online content, the average publication is only making 10 to 20% of its revenue online.
“Advertising in online publishing is crude,” he said, adding that “it’s not innovative enough.” Buckland gave the example of banner advertising, which hasn’t changed in years.
“Online media is struggling to get attention. The online world is a busy place,” said Buckland. He explains that Google and other aggregators make it difficult for online publications to secure an audience so consumers go directly to the aggregators to get links to news.
This means the news sites themselves struggle to gain loyal readers. Salim Amin, chairman of Camerapix, The
Mohamed Amin Foundation as well as A24 media, said one of the benefits of the internet is its flexibility, especially when it comes to advertising strategies and production.
What media institutions need to do is use these to their advantage. “You have to have unique and good content to appeal to people,” he said.
Adam Clayton Powell III, a professor at the University of Southern California, presented several emerging media business models, including geo-related revenue, where advertisers cater towards the user depending on their location.
For advertisers looking to invest in digital media, this would be a good way to make sure that the information that reaches the consumer is relevant.
“Advertisers know your location, so it’s a good tool.” This is especially true of mobile technology, where advertisers can pinpoint your exact location and make suggestions, such as where the nearest coffee shop is. For a country like Kenya, this could be the answer.
Charles Onyango-Obbo works in Nairobi, where he is Nation Media Group’s Executive Editor for the Africa and Digital Media Division.
Onyango-Obbo feels there is a major shift taking place in the country, with more people accessing online content via cellphones than computers.
“If we are to survive in our primary market, we need to invest in digital media.” The idea of paid content, another possible business model, has been much discussed in recent years, but Buckland was sceptical about this approach.
He proposed, instead, a system like DSTV, where consumers pay a fee for multiple outlets. He exemplified this with Google, who are busy looking into pay-walls where consumers can pay a fee to gain access to a variety of publications.
“It mirrors online consumer behaviour. We consume multiple online publications at once,” said Buckland. Buckland also argued that devices like the iPad will have a monumental effect on the way audiences consume media.
“The tablet computer is an amazing thing for the print world. This is going to be the start of a paradigm shift. They are opening up a whole sphere of leisure computing,” he said.
Traditionally, computers have been associated with business but with tablet computers, people will increasingly use their computers for relaxation. “It’s good news for magazines and newspapers,” said Buckland.
