Costs, value and streams

Costs, value, streams

Entrepreneurship

Monday, 12 March 2012

The role of costsFinding valueEngagement

What I’ll cover:


Why did Wired give away its photos?


Where are the costs?

Speed and depth again.


(corporate machinery)

Analogue costs

10-20%


(your new networks)

Digital costs

80%


Editorial - 10-25%Ad salesProduction (layout, ink and paper)MarketingDistribution

Analogue costs


Editorial - 80% (Telegraph)Ad sales - ad networks? (e.g. Google AdSense, Addiply, etc.)Production = CMSMarketing =Distribution = SEO and SMO

Digital costs - web


“Having their photos run on someone else’s website costs Wired exactly zero — and they’ll get some small but real financial benefit out of it.”

Sourcehttp://www.niemanlab.org/2011/11/wired-releases-images-via-creative-commons-but-reopens-a-debate-on-what-noncommercial-means


http://www.niemanlab.org/2011/11/wired-releases-images-via-creative-commons-but-reopens-a-debate-on-what-noncommercial-means/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NiemanJournalismLab+%28Nieman+Journalism+Lab%29




Editorial - 80% (Telegraph)Ad sales - do you control platform?Production = HTML5, CMS, bespokeMarketing = iTunesDistribution = sales, SEO and SMO(30% cut and data goes to Apple)

Costs - mobile and tablet


Competition drives pricing downPrint costs become weaknessApps = false security of ‘closed garden’. (Partial barrier)

Barriers to entry




Case study: Al JazeeraMonday, 12 March 2012

Case study: Birmingham MailMonday, 12 March 2012

Case study: Guardian APIMonday, 12 March 2012


Where is the value?

Speed and depth again.


“When hunting and gathering were the main sources of food, few had the luxury to be particular about its quality. But farming carried such an abundance that a greater variety of processing became feasible ... We started thinking about vitamin content.”

SourcePhilip Meyer,




Content?Copies?Ad space?Audiences?Identity?Community?

What does media sell?



The Telegraph’s wooden coathangersNME’s tickets and merchandiseMarie Claire’s in-app purchasesTrinity Mirror’s PR servicesFT’s app servicesLauren Luke’s merchandise

Cutting out the middleman



Magazines: Marie Claire“Marie Claire's Beauty Genius app offers how-to videos shot with leading make-up artists and shows readers how to apply fashionable looks ... The app, which is filmed in IPC's studios, sells at £1.19. Further in-app videos, such as "Flawless Face Fixers", are offered at 59p each to keep the revenue stream flowing. "Having your mobile phone by the mirror with your make-up bag, and watching a video that you can stop and start when trying to get that look, it makes sense really – rather than watching on a PC"

http://www.independent.co.uk/news/media/online/horse-amp-hound-hotter-than-the-sun-2261211.htmlMonday, 12 March 2012

http://www.independent.co.uk/news/media/online/horse-amp-hound-hotter-than-the-sun-2261211.html






Engagement

Changing economics of supply and demand


“Repeat monthly users consume more content, making them more valuable to our business and marketers” -

Coates Bateman, Forbes

http://www.forbes.com/sites/lewisdvorkin/2012/01/17/inside-forbes-how-our-94-year-old-brand-engages-and-finds-success-in-a-social-world/









Search engine results (SERPs) increasingly shaped by social networks‘Banner blind’; compete on metrics: bounce rate, dwell time, interactionsTraffic and engagement from SM

From SEO to SMO


The Post noticed, for instance, that photo galleries — without sound — get better play during the day (with workplace usage), while video supplements to stories get more used in the evening. Twitter is best at multiplying traffic on big breaking stories, while Facebook referrals will relay the trend stories better.

http://newsonomics.com/the-newsonomics-of-the-washington-posts-reader-dashboard-1-0/




APIs and linked dataRBI’s platform-neutral content (XML-driven)

The future?


Guest Q&A: Martin Moore

Media Standards Trust.


Delicious.com/paulb/cityentDelicious.com/paulb/enterpriseDelicious.com/paulb/BM

Further reading.


Costs, value and streams

Education

costs mobile

print costs

role of costs

analogue costs editorial

app videos

digital costs web editorial

ad sales production

source http