“There is a desperate need for innovation in publishing,” said Larry Marion, CEO and Editorial Director of Triangle Publishing Services Co yesterday in my multimedia journalism class. A writer and editor with over 30 years of experience in publishing, Marion gave a guest lecture about the new business models in journalism.
Having worked at BusinessWeek, Forbes and Software Magazine, among other places, Marion was passionate to give us the insider view of the publishing business. Publishing is facing a secular decline, he told us, and the present economic models cannot sustain the industry.
“What is the most important role of journalism?” Marion asked each of us before he began his presentation. Informing the public, breaking news, providing local information and unearthing social injustices were some of the answers we gave. Marion wrote all of them on the blackboard, turned around with his hand pointing up and down the list, and said, “If you don’t make money, nothing else matters.”
Though the Internet ranks third after newspapers and TV in advertising share, Marion expects to see a crossover two years from now. Online, vendors see a clear Return On Investment (ROI) as opposed to the obscure data provided by print and broadcasting. The potential for pay-for-performance advertising on the Web is beyond the capabilities of traditional media. Online, analyses of target markets provide tempting ROI statistics about specific marketing initiatives. “You show me your numbers, and if they are good enough, I will buy an ad,” Marion said.
Yet, the typical newspaper makes only 10 percent of its revenues through online advertising. How can we make this business model sustainable?
Micropayments, Marion said, are one way to look at the future of online newspapers. Readers see the beginning of an article for free and decide whether they want to keep reading. If they click on the “Read More” button, they make a payment of, say, five cents. Individually, it is a small enough sum that won’t fundamentally change the readers’ behavior. In totality, it is a big enough sum that will pay staff.
Micropayments introduce us to one business model that might prove viable in the newspaper industry. Standing at the threshold of the new media era, eventually we will have to choose a sustainable economic solution because, as Marion said, “As a journalist, I want to see that my work has value.”
Photo credit: dichohecho