This is the second post in a short series I’m going to write about the business model for online news before I go back to my usual divisive blathering about how to avoid bureaucracy and feed trolls. The starting point, the givens in the equation, are listed here. Suggest what I should tackle next using the Skribit widget in the sidebar of my blog.
“Elephant Mud Frolic” by Intrepidation on Flickr.
If you read the post I wrote last week about building better business directories on news Web sites, you’ll notice a few things about the approach I’m taking to talking about the business model(s) for making money in online news:
- I’m not offering up some massive overhaul to the entire system of paid journalism at the moment, like taking newspapers non-profit, but there’s a lot to be said for that model, depending on how you feel about PBS or the BBC.
- What I’m making an attempt to focus on are incremental changes; ideally, these should be moves that can be put into action at your site quickly and effectively, without major staffing or organization overhauls, even though that might not be the worst idea.
- There are plenty of ideas floating around the Web that qualify as “little things” you can do to grow revenue on a news site, but I think somewhere in between the smallest things (like adding Google AdSense or other targeted text-link ads to all your ad positions) and the largest things (complete re-organization of the news industry), there’s a market for ideas that revolve around some of the medium-sized steps you can take to open new revenue streams that have little, if anything, to do with your print product.
For example, how about starting an ad network for local blogs?
It’s a simple equation: Local bloggers have content; the local news organization has advertisers. Keep it simple: Sell banner ad positions on the network as an upsell when an advertiser buys a spot on your news site. “For $5 a month more, we can put your ad on a network of 25 local blogs with X average page views per month.” Split the revenue with the bloggers 50/50 or come up with a formula based on page views.
Also, add a page featuring the latest headlines from the blog network to your news site. For bonus points, keep an eye on that page and feature links to posts on relevant local blogs on article pages on a regular basis. For super extra bonus points, throw up a Ning network for the local bloggers to give them a place to talk with each other directly.
So again, as with the business directory plan, you’ll find that running an ad network for local blogs involves the news and advertising sides of your organization actually communicating from time to time as you add new blogs to the network and award monthly revenue shares.
I’ve seen examples of local blog networks maintained by news organizations, and I’ve seen examples of advertising networks for higher traffic blogs, but has anyone tried what I’m pitching here?