The business model of media organizations
For many years traditional media, newspapers, magazines, television and radio stations, as well as modern online news sites, have been producing content with sole aim to attract the general public. Whatever the format of content, the listeners, viewers and readers all desire to monitor the news and be informed on news, through specific disciplines and sections.
In addition to being established as a reliable source of information, the media evolved very quickly to key information provider around products and services. The provision of information soon turned out to be a means of promotion; as a result, advertising is the largest – and in some cases unique- source of revenue.
So, as it was natural, this business model has been copied from the online media, primarily through the use of display banners, but also through other digital advertising practices.
However, the effectiveness of a business model does not remain constant over time, and the successful model of media organizations is no exception here.
What are the reasons that have put its effectiveness under intense questioning?
A key reason is the major shift in how consumers get informed. Αs demonstrated by the study of eMarketer thus, nowadays nearly 50% of the public selects the Internet and smartphones as their basic media sources.
At the same time, the exponential growth of available information sources, the simultaneous use of multiple devices and the inevitable reduction of content consumption, has led to a significant change in how readers interact with advertising.
Finally, the considerable reduction of the adverting revenue for the news organizations has led to important losses of historical companies and makes even more urgent the need to revise the commercial model, forming a new different role of media in the relationship between business and consumers.
The new business model of media Businesses, taking into account the new data, recognize the value of Content Marketing and convert themselves into media organizations. Through corporate blogs, newsletters, as well as social networks, companies must inform and accompany their potential clients on the path that will lead them to buy.
Since the business goals and practices for achieving them are changing gradually, media organizations are called upon to review themselves so that they would be able to provide what all business customers now ask for: Create new leads (lead generation)
Therefore, it’s time for media organizations to adapt their business model, leaving behind the hunt for impressions and move forward, targeting an identified audience with integrated demographic data and attitude.
How Inbound Marketing can help in this?
Inbound Marketing can help and enhance a great deal, because when applied to media, Inbound Marketing is at its natural environment.
First of all, media organizations produce plenty of content. Content production which most of the times is perhaps the most important obstacle in the business world as far as the Inbound Marketing methodology is concerned, for media organizations is not an issue, is what they know to do best of all.