News Publishers' Business Model for Digital Success
The high-volume, low-dollar, high-complexity nature of digital programs makes it the most labor-intensive medium in the advertising industry. - "Understanding the Economics of Digital Compared to Traditional Advertising and Media Services," American Association of Advertising Agencies, 2009
The importance of competing in the digital media agency space has become even more pronounced with the recent explosion in tablets and e-readers.
- Tablet and ebook ownership has nearly doubled since the holidays.
- B2B C-suite executives are using their tablets to research business purchases online.
- Mobile browsers spend more per purchase—50% more than smartphone visitors and 20% more than desktop and laptop visitors.
- Pew Research Center, January 2012 (via HubSpot)
Journal Register Company, and now Digital First Media, has been pushing their Digital First strategy for a while now, and other newspapers are following their lead.
As Mike Fogel of Hearst Newspapers had mentioned, the strength that traditional news publishers possess is their sales people: the friendly neighborhood newspaper rep who knows the customer's business.
Traditionally, newspapers have sold advertisements based on the products they have to offer—in other words, an internally focused sales process. The consultative sales approach focuses on the client, the advertiser, and his or her business needs. If the client wants to introduce a new product, highlight a grand opening, improve brand recognition, or reach a certain demographic, then newspaper sales people can construct a campaign including a host of publishing elements to achieve success for the advertiser. - "Million Dollar Strategies for Newspaper Companies," WAN-IFRA, June 2010
For Digital First Media and Hearst Newspapers, focusing on strong core competencies of sales and local relationships and aligning with a proven interactive delivery partner is the business model that works.
Affinity Express provides digital services to publishers that benefit their customers, and that can be offered with quality as great and at prices as affordable as they would get anywhere else. Partnering with Affinity Express is the perfect answer, because we have trained and nurtured our employees to become subject matter experts in services newspapers provide and want to provide their customers. At the same time, we learn from each client and constantly work on improving our services, including the technology we use to deliver them.