Full Sale Ahead: Give Marketers What They Want
When the economy improves and marketing dollars come back, will your organization be positioned to take advantage? The drop in marketing dollars over the past few years has hidden deeper changes in what marketers will want to buy from publishers when the budgets return.
Marketers are looking for different things. Here are three questions to see if your organization is keeping up:
Question #1: Are you Web-first, but interactive-second?
"Web-first" can be a very good thing, but can also imply that a publisher will continue delivering content with the same business model as ever. This familiar formula is to create quality content, use it to attract eyeballs and sell advertising based on the number of eyeballs attracted. The only change is that instead of delivering the content in print, it is delivered "Web-first."
But this approach misses opportunity because the Web is more than just a different transmission media. Its dynamics are different because eyeballs and advertising on the Web are becoming a commodity.
A recent study by Bain and Co. documented how the ever-increasing number of websites offering advertising was turning the banner ad into a commodity. The study documented the number of ad impressions offered to advertisers in 2005 to be just over 200,000 million. By 2008, that number had grown to about 900,000 million. In those same three years, the average CPM (cost per thousand) of an online banner ad dropped by half. Ouch!
If you think this commoditization by over supply is over, think again. According to website monitoring solution Pingdom, in 2008, there were about 160 million registered websites worldwide; by December 2010, 255 million.
Think about your niche. Online, you are not just competing against other magazines. There are Web "pure plays," blogs, and even the websites of your own advertisers—some of which are offering premium content.