“The Transformation Of News”


In these rapidly changing times it is essential for business’s to keep up to date with the latest innovations and technologies. This phenomenon has been very apparent in the print media sector by which we mean newspapers, web news and magazines.

Native Advertisement

NYTimes-native-ads

These are paid advertisements whereby the company wants to gain attention to their product by providing content in the form of an article. The opportunity of this renewed business model presented itself due to the rise of internet. The reach of customers has greatly increased and social networks as well as social media became much more important. To make this a successful part of the business model marketers have to continually come up with well written articles containing valuable content that fits the product, but also the customers’ demand and the media outlets that are used.

Pay-Per-Article 

blendle-526x313

This model focusses on a group of customers that wants to read and pay for quality journalism but only the articles that they are interested in. An example of a start-up with a pay-per-article business model is Blendle. A key aspect here is gathering a data by which they gain information about their customers. With that, they can recommend articles that fit their interests leading to a higher amount of sold articles and, therefore, higher revenues. Also well executed is their use of social interaction. ‘Observational learning’ by providing information about other users through the ‘most popular articles today’ section and opinions and recommendations for ‘word of mouth’ attraction. Lastly, the large content on Blendle is a key driver for customer satisfaction and, therefore, their success.

Comparison

Both models are very different in nature, which is most evident when looking at who actually pays for the content. In the instance of native advertising, the content is by definition sponsored by a third party which, in many cases, allows for free content to the end consumer. On the contrary, the pay-per-article model asks the end consumers themselves to pay for the news they are interested in.

Moral Dilemma

Here, native advertisement certainly gets the most attention. While it can be a profitable business model, the line between news and advertisement is fading. Readers might feel deceived and that will have a negative effect on the news site’s brand and credibility. Though less controversial, there is also some debate regarding pay-per-article. For every article bought, Blendle receives 30% of revenue and publishers 70% which gives Blendle the incentive to only publish articles that are bound to be popular to maximize their profits.

Future Perspective

The future prospective for native advertising looks promising. The biggest plus side being that we, the consumers, are already faced with sponsored advertising on a daily basis with popular sites such as Facebook and Twitter. Alternatively, the pay-per-article model is at an earlier stage of social acceptance, having just overcome the hurdle of getting publishers on their side.

Written by Team 8 – Technology Of The Week – while using the following sources;

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