Oct 19 2010
Framing Questions: Week 8
It’s interesting to consider that although new forms of journalism are quickly exploding (online news sources, social media, citizen and participatory journalism, etc.), there is still a void in the form of a successful advertising revenue model, according to The State of the News Media report. During my time as a journalism undergraduate student, my classmates and I often mulled over the ways in which “new” news sources would be able to sustain themselves, especially when considering online papers that can be accessed without a subscription. The general consensus was that advertising is more than sufficient for generating a substantial amount of ad revenue. It’s alarmed to face the reality that newspapers, including online, experienced a 26% drop in ad revenue in 2009. If online ads are not proving to be a successful business strategy, is there a way that advertising executives could enhance the current model in a way that would bring it more success? Is the problem simply that we are still in the midst of a transitional phase, and users still have not adapted to be receptive to online ads? If 79% of online news consumers say they rarely, if ever, click on an online ad, surely there must be a more efficient strategy for targeting specific audiences? Or perhaps there is an alternative means of salvaging the news industry through news media. Paywalls and paid subscriptions for online publications are often met with hostility from users who are accustomed to infinite online access. But as the report says, maybe a potential solution would be a hybrid of old and new models? When considering the new models of sites like Pandora and LinkedIn users still have the option of visiting the site for free, but loyal users won’t have a problem with paying a slight fee to have access to a wider range of features, or even to obtain unlimited access. Are models such as this, where users can opt-in to pay for premium services, the key to keeping journalism afloat?