Ad Age editor: “Respect the paid model”
In light of the recent advertising downturn, Ad Age’s editor Jonah Bloom suggests a shift back to the paid model as a means of moving forward in today’s market.
Bloom predicts an “incredibly tough” 2009, with newspapers and magazines continuing to struggle and the possibility of more consolidation, foreign investment and even closures, particularly in the US.
However, Bloom said: “One of the most interesting things that could happen this year, particularly with online, is a shift back to the paid model.”
The industry has seen mass migration to “free” in recent years, according to Bloom, which he complains isn’t actually free – “Free doesn’t mean free, it means ad supported”.
Bloom thinks this has caused a “drop-off” in advertisers who are willing to place their commercial content on sites next to entertainment or information content.
He predicts that “what we will see is more media owners, who know there is still a demand for their information, monetising that demand by charging”.
Bloom said: “I hope 2009 will be the year that media owners have the courage to realise they have to start charging.
“We talk alot with newspapers and magazines about their failures, first of all in not getting on the web quickly enough and then to take a print-based approach even though it’s clearly a different medium. It has a different ability to connect with consumers and therefore needs to be used differently.
“However, what we don’t talk about is how many newspapers and magazines essentially decided, a long time ago, to give away more and more free content.
“You only have to look at consumer magazines and how much they’ve reduced their subscription charges, thinking they will get alot of advertising because of their extended audiences,” he continued.
According to Bloom, another failing is giving away too much content; instead of diversifying their business base, companies have become heavily dependent on advertising.
Bloom forecasts that these mistakes will cost the industry in 2009.
However, he hopes that it will mean “a shift away from such dependency on advertising”.
Ad Age: adage.com