In search of the hybrid form of happiness
At a trend conference on pricing in the media market organized by the Media Institute, a number of interesting, innovative solutions were presented. Guest commentary by Josefa Haas, Director of the Media Institute.
The media industry is actually accustomed to maintaining diverse business relationships. In the past, however, it tended to call the shots: it determined how high the bill would be for readers and advertisers. Now that the range of offerings and customer expectations are multiplying, it is struggling to present flexible combinations in the market. There are no magic formulas in this new media reality. What’s needed are customized hybrid solutions.
In times of crisis, preachers are in high demand. Those who, as consultants, sell guaranteed formulas for success or, as vendors in the marketplace, offer the latest craze, have the loudest voices. Those who handle values and achievements with care, who don’t jump on every bandwagon, and who are careful to keep their finances in order, on the other hand, speak softly. Since the loud ones drown out the quiet ones, only one message is heard: Everything on the internet is free. Those who offer valuable content generate sufficient revenue through advertising. And if they also achieve a high level of recognition, they can earn a little extra on speaking stages and other platforms. However, only a few people truly find happiness with this formula. It works only under very specific conditions. Those who don’t meet these conditions must find their own formula for happiness.
So the old recipes no longer work, and the new “cures” don’t live up to their promises. That means: back to square one. Analyze the starting point without sentimentality. Learn from the mistakes and success stories of others. And look within: What are my strengths? How can I present myself confidently in the information market? And for what can I charge a fair price?
At the recent trend conference on pricing in the media market organized by the Media Institute, a number of interesting, customized solutions were presented. In Germany, 34 newspaper publishers have joined forces and market their 150 online titles through a company they own. As a result, they are now able to reach over ten million unique users each month. As OMS Managing Director Georg Hesse explained, their video offerings are designed so that the advertising, films, and technical solutions are all coordinated. This bundling of resources pays off for everyone involved.
In the Swiss advertising market, the Neue Luzerner Zeitung will introduce a new pricing structure effective January 1, 2010. Otto Meier, a media marketing consultant, presented the concept: In the future, advertising rates will be divided into three categories: Top-line, Baseline, and Profitline. Prices for major clients are subject to negotiation. Axel Springer’s offerings in Germany have been given a clear structure in a different way: Rates are lower depending on the time frame in which the ads are booked. Those who book their advertising a full year in advance benefit the most financially.
Differentiated Pricing
In the consumer market, only a few newspapers and magazines have so far offered differentiated and transparent pricing structures. Today, anyone who pays for an expensive newspaper subscription—and can access the same content for free online at the same time—feels they’re getting a raw deal. In effect, they are paying only for paper, printing, and distribution. Does this mean the content isn’t worth anything to them? This puts a serious strain on the relationship with loyal, paying readers. As a result, combined offers are becoming increasingly common: subscribers receive online access to content that is exclusively available to them. Only a portion of the content is available for free online. *Der Beobachter* is consistently pursuing this approach: As Managing Director Roland Wahrenberger reports, the magazine is successfully attracting new subscribers through its online presence. Subscriptions to online newsstands that provide access to various titles are also a possibility. This is a solution that Newspaperdirect now offers with over 1,000 international titles.
What are print readers paying for?
«We can’t compete by keeping prices low,» noted media economist Robert Picard. Online users behave differently than print readers. They are “promiscuous,” reading barely one article per site. But what is the service that print readers pay for? Not for the news itself, but for the editorial work of selection, research, and curation into a single presentation. The entire package is the product, not a single text. When traditional media providers move online, they must therefore be aware of what they’re bringing to market and where, so that they can finance their editorial efforts in the long term. Picard’s advice, therefore, is this: Every publisher must decide what works best for their products. However, they must not lose control over customer data, advertising, and pricing—and, above all, they must guide users to their most valuable offerings.
“More and more, cheaper and cheaper, or free” is a formula that works for only a few providers. For the vast majority of medium-sized and smaller players, therefore, the same rule applies as before: develop unique qualities that allow them to meet the specific needs of their audience and advertisers. The combination of traditional media formats with fair online offerings results in a multitude of unique hybrid formulas for success.
In times of crisis, preachers are in high demand. Those who, as consultants, sell guaranteed formulas for success or, as vendors in the marketplace, offer the latest craze, have the loudest voices. Those who handle values and achievements with care, who don’t jump on every bandwagon, and who are careful to keep their finances in order, on the other hand, speak softly. Since the loud ones drown out the quiet ones, only one message is heard: Everything on the internet is free. Those who offer valuable content generate sufficient revenue through advertising. And if they also achieve a high level of recognition, they can earn a little extra on speaking stages and other platforms. However, only a few people truly find happiness with this formula. It works only under very specific conditions. Those who don’t meet these conditions must find their own formula for happiness.
So the old recipes no longer work, and the new “cures” don’t live up to their promises. That means: back to square one. Analyze the starting point without sentimentality. Learn from the mistakes and success stories of others. And look within: What are my strengths? How can I present myself confidently in the information market? And for what can I charge a fair price?
At the recent trend conference on pricing in the media market organized by the Media Institute, a number of interesting, customized solutions were presented. In Germany, 34 newspaper publishers have joined forces and market their 150 online titles through a company they own. As a result, they are now able to reach over ten million unique users each month. As OMS Managing Director Georg Hesse explained, their video offerings are designed so that the advertising, films, and technical solutions are all coordinated. This bundling of resources pays off for everyone involved.
In the Swiss advertising market, the Neue Luzerner Zeitung will introduce a new pricing structure effective January 1, 2010. Otto Meier, a media marketing consultant, presented the concept: In the future, advertising rates will be divided into three categories: Top-line, Baseline, and Profitline. Prices for major clients are subject to negotiation. Axel Springer’s offerings in Germany have been given a clear structure in a different way: Rates are lower depending on the time frame in which the ads are booked. Those who book their advertising a full year in advance benefit the most financially.
Differentiated Pricing
In the consumer market, only a few newspapers and magazines have so far offered differentiated and transparent pricing structures. Today, anyone who pays for an expensive newspaper subscription—and can access the same content for free online at the same time—feels they’re getting a raw deal. In effect, they are paying only for paper, printing, and distribution. Does this mean the content isn’t worth anything to them? This puts a serious strain on the relationship with loyal, paying readers. As a result, combined offers are becoming increasingly common: subscribers receive online access to content that is exclusively available to them. Only a portion of the content is available for free online. *Der Beobachter* is consistently pursuing this approach: As Managing Director Roland Wahrenberger reports, the magazine is successfully attracting new subscribers through its online presence. Subscriptions to online newsstands that provide access to various titles are also a possibility. This is a solution that Newspaperdirect now offers with over 1,000 international titles.
What are print readers paying for?
«We can’t compete by keeping prices low,» noted media economist Robert Picard. Online users behave differently than print readers. They are “promiscuous,” reading barely one article per site. But what is the service that print readers pay for? Not for the news itself, but for the editorial work of selection, research, and curation into a single presentation. The entire package is the product, not a single text. When traditional media providers move online, they must therefore be aware of what they’re bringing to market and where, so that they can finance their editorial efforts in the long term. Picard’s advice, therefore, is this: Every publisher must decide what works best for their products. However, they must not lose control over customer data, advertising, and pricing—and, above all, they must guide users to their most valuable offerings.
“More and more, cheaper and cheaper, or free” is a formula that works for only a few providers. For the vast majority of medium-sized and smaller players, therefore, the same rule applies as before: develop unique qualities that allow them to meet the specific needs of their audience and advertisers. The combination of traditional media formats with fair online offerings results in a multitude of unique hybrid formulas for success.
