It is not difficult to see the challenging environment of digital media in which we live today. Layoffs, companies are less, goes all digital printing company … and the list goes on. Inevitably, the conversation focused on between the leaders of the digital media what the business model to survive and to stimulate sustainable growth.
The advertising is coming back into fashion by using more CPM and physical improvements in sales?
If digital media companies to hear strong words from the investors, board members or Rupert Murdoch responsible for the content?
I spent most of my career, digital (from 90s), with certain brands of the Premier’s Media (WSJ work, Time Magazine, United Media, NYTimes, Better Homes and Gardens, Ladies Home Journal, etc.) on these business models, content and operational challenges. I also had a large sale of digital business for Rodale Interactive (MensHealth.com, RunnersWorld.com, Prevention.com, SouthBeachDiet.com, etc.) and sources of capital, co-founder and started my own company s digital “is based on a digital hybrid business model supported. I mean, I thought it would be helpful if my list of articles that examine the Manager, its performance in the digital business model, strategies must be shared.
Before going through my list is to point out that I have a prejudice against a unique business model. I have seen many iterations of digital activities and participated in focus groups and conferences on digital business models. net, over time, the pendulum in both directions (large advertising market and a poor advertising market) and to compete sustainably, to media companies, strategies and operational efficiency, to identify allowed for delivery and flexibility of the business model, taking into account market conditions and macroeconomics.
Thinkers staff teams with Smart left – and right brain – you will soon discover that the secret ingredient is probably not for a successful media companies that the secret ingredient that will drive your business. You need to work together creative thinkers and experts quantitative challenge each other to interpret the data and testing new ideas and execution. Success is achieved through the synthesis of many variables … an art and a science.
Incentivise performance fairly and in real dollars – I do not think the sellers are the only ones who are motivated by financial incentives. That is, I’m can be a fan of a quantitative (number of good quality too) Quarterly Incentive Plan, the financially compensated for effective thinking and successful implementation. Please, no trace of financial incentives. If your team to offer a big problem to have and to not use anything to discourage the motivation. In fact, use it to better ways to give more money to find the artists an even better performance.
Building a team culture of innovation – This term is not unique to digital business models, but really important and unfortunately often overlooked. digital groups that operate as independent teams with clear goals and objectives of the generally good results. Restriction of company policy, promote the transparency and authenticity great things for a positive work experience and general reasoning. If intelligent people working well together, cross-training is going on and the development is unique to the continuous improvement. One point here – quickly get rid of bad attitudes, even if they perform well. These people can ruin a team and become a cancer.
Weekly / Fortnightly team meetings and quantitative goals – I’m always amazed at his meeting with a group of people, the limited exposure to the metric of the digital enterprise. With limited staff, each resource must be clear how their contributions affect the acquisition, retention and overall parameters of the business model. The indicators should not only given a report to the person who would be a big financial mistake. I offer monthly or bimonthly meetings with key cross-functional teams to digital historical parameters for discussion, to understand trends, to develop test plans, strategic and test ways to improve the settings.
Test Test Test – As I mentioned in # 1, which is successful probably be different in your market with your customers. Many digital and direct marketing success is efficient, the search will be attributed by means of a strategy and tactics to determine the effectiveness test, review results, the necessary adjustments and tests a little more.
Research and Know Your Customer, Today – Another interesting point that me, as media companies know their customers “think wants, needs, and their relationship frustrated with their brands because they do some research several years ago. Do you understand your Customers need a continuous effort, particularly in relation to your proposed acquisition and retention. This does not mean that I propose that a Madison Avenue agency every six months to make the search. There are economical ways (especially for digital companies) to step with their current and future customers will / must adhere. You’ll probably find that the customers appreciate, if you meet them and we are happy to tell you exactly what they want. After an updated statistical data on the Details of your audience is in determining the overall strategy that the business model, operations and tactics are important.
Customer Segmentation – Once the necessary data for research and crunching you can determine that you have different types of customers and a business model may not be the best way to success. For example, heavy (usually loyal) users of your products or services, people can be tested for alternative economic models. This is appropriate, and yes, it only includes toolsets good content and the actual cost of the dollar. Talk to your customers first and validate (quantity), if your business model, hypothetical sense.
Beware of hasty decisions Replacement Value can be expensive – if you have to put up a wall paid for your belief that your clients have such a deep relationship with your brand and content and they pay plan – I warn you. Today there are many consumers who are willing to migrate to (free) for a brand, if, instead of the brand (I feel) the content of equality and equity of the brand and model shop. There are different types of content that can fight here … General News, Health, etc.
The opportunity cost equation – This is a fundamental concept of Business (choose the best route financially) for the critical moment in the assessment of a business model as a whole. It can also be dictated strongly by the kind of content, the public users and its commercial attractiveness to advertisers. For example, if you have a website, a large customer base and traffic to the content has crafts, advertising model may be attractive given the size of the audience. But what types of advertisers for real dollars compared to pay what audience? Probably not very lucrative way. In this example, the site manager might want to look closer to the hearing the craft of love and Identify tools and content services, they are willing to pay for micro-payments. On the contrary, a leading health website destination with the user and the large amount of traffic likely a good number of pharmaceutical companies willing to stand before this audience CPM healthy have to pay.
Make your high switching costs – During the evaluation of business concepts to the investment one of the variables I like to see is the high cost of conversion. It is a measure of the cost or impact must suffer from a client to leave a relationship and the transition to a competitor. An example is if you were abroad, so that migrate to a backup provider to another provider who is abroad, $ 1 per month less. Since it is a “pain” to return all your data is stored on the existing local businesses, you can simply leave the relationship now in place and pay the higher costs per month. This concept should be evaluated in good health in the provision of a comprehensive strategy and a web-based business model. The concept is to use your brand and content of know-how to customize the end-user experience on your site, if you capture and storage of personal consumption data. These consumers will think hard (high switching costs) if your competitor offers a similar service for the money a little less.
Heavy with fee free to go — The smell test – it is important to remember the obvious variable in determining business models. As media companies struggle to survive and grow if consumers. Management expenses for the family for most consumers is a challenge, if household income decreases. The decision for the new premium services and online games, when families struggle to pay their children school supplies to – the decisions are to be paid obviously. Consumers are free to use on the Internet, and there must be a very convincing concept for them to open their wallets. Do not exempt from the fee – you will fail. Be strategic and make sure you first do research, analysis and testing. Finally, make sure it goes to test the smell. It is a simple test common sense .. Is this a strategy or the price seems right?
No, this is an iPhone (or Android or Palm, Nokia or Blackberry, etc.) App not always the right answer – there are cases where applications smartphone perfectly logical and generates have great brands, content distribution and revenue growth in media companies or entrepreneurs. Nevertheless, I invite you to the layers of the onion before you jump in a smartphone application to invest, because there are too many challenges facing Peel. First check the data that is compatible with applications bridge girders. Ultimately, there are few success stories and many others do not.
In summary, I am a big fan of hybrid business models for the digital economy. The success is based on an analysis, a good strategy / execution, and ongoing studies and refinement based. Can be found in my experience, the sauce secret key to a successful enterprise digital channels, the size that allows you to translate a large number of users and traffic patterns in multi-Based Enterprise enhance quantitative analysis on the data.
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