How Much Does Budget Matter in Digital Media Publishing?

in Content Marketing

This is more of a question than an answer but I thought I’d throw it out there anyway.

We all know that traditional media companies are struggling to make online content pay. They can attract audiences but generating enough advertising revenue to cover the cost of the endeavour has proven difficult (and in some cases impossible).

The problem would seem to be two-fold: low advertising returns and large cost bases. If this is the case, then it would seem to suggest that digital media publishing should lean towards lower cost models that do not rely (solely) on advertising revenues to succeed.

Just the kind of thing that businesses can do.

Businesses who make digital content the focus of their marketing strategies, generate revenues from the increase in product or service sales their content helps deliver. Volume of traffic is less relevant therefore than quality of traffic – meaning smaller niches are viable.

Similarly, with the focus less on traffic volume, there may be less need for the sheer volume of content that ad-funded sites require and potentially less marketing spend involved in promoting that content too.

This would suggest that businesses are, in some ways, better suited to producing digital media content than ‘pure-play’ media businesses are.

What do you think?

{ 1 comment }

Luis Maimoni 08.05.09 at 9:44 pm

I think you’re exactly right: business can leverage content generation in ways that traditional media companies cannot. They sell something other than media.

While there is a lot to be said for businesses paying people to create content for them, there is a downside: more and more of what content consumers will get will be some sort of advertorial.

There’s gotta be a happy medium some place!

Comments on this entry are closed.

Previous post: Content: The Meat in Your Social Media Sandwich

Next post: What Does Building 43 Do for Rackspace?