Media companies are failing to exploit the potential of the internet to the extent that less than 30% of revenue options are being tapped. That is according to a gathering of top online executives that took place in Zurich recently.
Twenty representatives from some of Europe’s prominent web publications met last month at the IP Masters, a roundtable event organised by Interactive Publishing GmbH. Among those present were online directors from Le Monde, The Guardian, La Stampa and Der Spiegel.
The report of the proceedings entitled Interactive Publishing Europe 2003-2005 shows that internet publishers are aware of the challenges ahead and in the next few years will better meet advertisers needs. In particular, they will offer more targeted products and recommend changes at management level that ensure full backing for integrated media strategies.
It is argued that the ever-expanding user base and improvements in the technical infrastructure should be encouraging the publishing industry to reach out to the internet population. However, the problems being encountered by traditional sectors have been a distraction and are stifling the development of online ventures. As a consequence, experts are of the opinion that only 20-30% of the revenue potential for their companies has been realised in the online environment.
“The general outlook of the leading publishers is surprisingly optimistic,” said Interactive Publishing founder Norbert Specker. “The next two to three years will bring online publishers much closer to what they think is their ideal business model. This change will be many times faster than the changes we have seen in the last two to three years – and it will be effected on structurally much deeper level.”
Building An Online Strategy Arguments over the respective merits of free and paid-for content appear to have resulted in a loss of focus and it was the consensus of the assembled delegates that the advertising industry is underestimating the brand building value of publicity on online publishing sites. It was agreed that the industry needs to develop standards, measurements and products to enable better targeting for advertisers and that the successful players will have invested in this area and co-operated at home and on the international stage.
One of the criticisms of online content was that it is too general and wrongly aimed at a mass market audience. There are also reservations over the quality and credibility of what is available. The report also lamented the fact that offline content is often replicated online, a move which only serves to diminish the importance of the net.
The conclusion drawn from the talks in Zurich was that there is scope for both paid-for content and advertising as revenue sources and better integration between print and online offers the most potential and sustainable benefits to both publishers and advertisers alike.
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