Media and Publishing
Media companies have been in the process of digital transformation for more than 20 years. The following applies to all of them: subscription figures for print media are continuously shrinking, and the resulting losses can often only be offset by annual price increases. In the long term, only digital products will be able to generate the lion's share of revenue. We support publishers with their digital game plan.
Current challenges for publishers and how we help solve them
Although digital products such as paywalls or ePapers are gaining in popularity, they cannot (yet) fully compensate for the losses in the print sector, particularly in the advertising market.
Target group-specific content combats high cancellation rates for membership subscriptions: Membership subscriptions, i.e. access to special articles on publishers’ news websites, has become the industry standard. There is hardly a publisher left that has not introduced the paywall concept and offers such subscriptions. The cancellation rates for these subscriptions are immense. Publishers who are able to retain half of the readers they gain can count themselves lucky. Cancellation rates of 80 percent and more are unfortunately not uncommon.
Publishers who know the paywall subscription target group well and can identify these users’ needs and pain points are able to create relevant content. On the one hand, this leads to more subscriptions and, above all, to a lower cancellation rate. Cancellation rates can be reduced up to a third. Together with the market research institute SINUS, we have developed so-called media personas. They are exemplary for the media usage types in the distribution area and are therefore an ideal tool for target group-specific product development and marketing.
Transparency and measures for printing and logistics costs: Rising paper and energy prices make printing newspapers more expensive than ever, and publishers grow more and more concerned about the delivery of printed newspapers. If the number of subscriptions decreases and the overall delivery area remains unchanged, the distance traveled per subscription increases, and therefore the delivery costs per item rise. Furthermore, finding reliable delivery staff to set off in the middle of the night in all weathers to fill letterboxes with newspapers is becoming more difficult, as well.
We start by compiling a database for our publishing customers in order to calculate the contribution margin of a subscription per delivery district. This makes it clear which districts are particularly critical in terms of delivery. In addition, we develop measures to reduce the cost impact in these districts.
Compensating for collapsing advertising revenue: Even before the COVID-19 pandemic, the share of advertising revenue in total revenue had fallen from over 60 percent to 40 percent. Since the pandemic started, the share has now sunken to just over 25 percent. Although sales revenue has increased in the same period, it has only risen by 14 percent and can only partially compensate for the loss. Together with our publishing clients, we develop cross-media advertising concepts that boost advertising revenue. This also includes cross-media training for employees in advertising sales.
Digital Business Topics
We take a close look at your current strategy and make recommendations for action.
Get to know your (potential) customers and their needs.
Find out how you can be found online and how you can show users the way.
We create your digital game plan with reliable figures and measures tailored to your goals and needs
Current trends
Use of AI tools: AI tools are finding their way into both the production and distribution of news. In production, correction and editing tasks (e.g. of submitted press and police reports) in particular can be taken over by AI tools, freeing up more time for research and dialogue. Artificial intelligence also makes an important contribution to distribution. For example, it can be used to individualize paywall offers. Readers who have often been stopped bya paywall will then receive a different offer than occasional users.
Constructive and positive news: Publishers may be struggling with news fatigue, especially among young people, but there is hope. According to the Reuters Digital News Report, 58% are interested in positive news. And close behind is “news that proposes solutions instead of just pointing out problems”. This shows the potential of constructive journalism, which points out solutions instead of problems, and can also appeal to target groups that are far removed from the news. So far, we have seen few traditional news Organizations that consistently implement the constructive reporting approach. The change from silent observer to active participant in the discussion is difficult for many, but seems to be worthwhile in order to remain interesting and relevant for readers.
Podcasts: Publishers first started experimenting with podcasts five or six years ago. Most of them yielded limited success despite the large amounts of effort that went into it. However, the time now seems to be right for podcasts when it comes to transport of information. They have become a relevant information channel for a broad public. It is true that general news, politics and current events are somewhat less popular topics than science, business or health. Nevertheless, this development shows that there are large target groups, especially of a younger audience, who are interested in in-depth content.
Overarching organizational structures: For decades, publishing houses have optimized the processes surrounding their primary product, the printed newspaper. Coordination between departments was hardly necessary. In the digital world, however, it is precisely these coordination and cross-departmental tasks that are necessary: that starts with product design and doesn’t end with winning back subscribers.
Our projects
Learn more about what we do with and for our partners, how we develop strategies that help them reach their goals, and how we support their digital journey.
Our solutions
Our Digital Game Plan is a customized service that supports companies in the development and implementation of their digital strategy. We offer a comprehensive strategy based on solid data and concrete measures.
Data-driven decisions: Through comprehensive audits and analyses, we collect the relevant information that is crucial to your company’s strategy.
Structured planning: With our Digital Game Plan, we bring your measures and projects into a manageable and easy-to-implement structure.
Creating momentum: We prioritize the measures and take care of quick wins first, which are easy to implement and deliver immediate results to boost engagement and enthusiasm within your company. The Digital Game Plan contains a wealth of valuable information and tools, including meaningful figures on customer and sales potential, a prioritized list of measures for short and long-term effects, comprehensive data-based personas, individual customer journeys, structured marketing and media planning as well as an investment and budget plan.
