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?