“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


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.



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.


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;

Abbruzzese, J. (2014) “John Oliver on Native Advertising: It’s Gross, But This Is Our Fault”, Mashable.com. URL visited on September 9, 2014. (http://mashable.com/2014/08/04/john-oliver-native-advertising/ )

Boxer, B. (2013) “What Buzzfeeds Data Tells About The Pricing Of Native Advertisements”, Forbes.com. URL visited on September 10, 2014. (http://www.forbes.com/sites/benjaminboxer/2013/09/10/what-buzzfeeds-data-tells-about-the-pricing-of-native-advertisements/)

Boxmeer, van E. (2014) ‘Alle landelijke dagbladen binnenkort in Blendle’, Bnr.nl URL visited on September 12, 2014 (http://www.bnr.nl/radio/bnr-mediazaken/904643-1404/alle-landelijke-dagbladen-binnenkort-in-blendle)

Bronzwaer, S. (2014) “Wat gaat Blendle met onze persoonsgegevens doen?”  nrcq.nl. URL visited on September 11, 2014 (http://www.nrcq.nl/2014/04/28/wat-gaat-blendle-met-onze-persoonsgegevens-doen)

Chen, Y., Wang, Q. & Xie, J. (2011) ‘Online Social Interactions: A Natural Experiment on Word of Mouht Versus Observational Learning’,  Journal of Marketing Research, vol. 48.

Clemons, E. K., Gu, B. & Lang, K. R. (2002) ‘Newly vulnerable markets in an Age of Pure Information Products: An Analysis of Online Music and Online News’, Journal of Management Information Systems, vol.  19.

Edmonds, R., Guskin, E., Mitchell, A., Jurkowitz, M. (2013), ‘Newspapers: Stabilizing, but Still Threatened’, The State of the News Media 2013

eMarketer (2014) ‘What’s Next for Native Ads?’, eMarketer.com URL visited on September 12, 2014 (http://www.emarketer.com/Article/Whatrsquos-Next-Native-Ads/1010696)

Godes, D., Mayzlin, D., Chen, Y., Das, S., Dellarocas, C., Pfeiffer, B., Libai, B., Sen, S., Shi, M. & Verlegh, P. (2005) ‘The Firm’s Management of Social Interactions’, Marketing Letters, vol. 16.

Granados, N. et al. (2008) “How Has Electronic Travel Distribution Been Transformed? A Test of the Theory of Newly Vulnerable Markets”, Journal of Management Information Systems. Vol. 25, No. 2, pp. 73-95.

Infolinks (2013) ’Beating Banner Blindness: What The Online Advertising Industry Can Do To Make Display Matter Again’, infolinks

Klöpping, A. (2014a) ”The first 30 days of the iTunes for newspapers”, Medium.com. URL visited on September 11, 2014 (https://medium.com/on-blendle/our-dutch-paydike-for-journalism-gets-the-economist-to-try-something-new-c26db16ac1ac)

Klöpping, A. (2014b) ” From 0 to 100,000 users in 4 months. This is Blendle, the iTunes of journalism.”, Medium.com. URL visited on September 11, 2014 (https://medium.com/on-blendle/from-0-to-100-000-users-in-4-months-this-is-blendle-the-itunes-of-journalism-fea25b56959c)

Lazauskas, J. (2014) “Study: Sponsored Content Has a Trust Problem”, contently.com. URL visited on September 11,2014. (http://contently.com/strategist/2014/07/09/study-sponsored-content-has-a-trust-problem-2/)

Manalo, J. (2014) “A Brief History Of Native Advertising”, Contently.com. URL visited on Sepember 9, 2014. (http://contently.com/strategist/2014/03/28/a-brief-history-of-native-advertising/)

Mane, S. & Rubel, S. (2014) ”Getting In-Feed Sponsored Content Right: The Customer View”, IAB.net. URL visited on September 11, 2014. (http://www.iab.net/media/file/IAB_Edelman_Berland_Study.pdf)

McGlade, A. (2013) “How Native Advertising is Changing The Rules Of Cat And Mouse”, Forbes.com. URL visited on September 10, 2014. (http://www.forbes.com/sites/alanmcglade/2013/11/18/the-game-of-cat-and-mouse-between-brands-and-consumers-how-native-advertising-is-changing-the-rules/)

Mizerski, R. (1982) ‘An Attribution Explanation of the Disproportionate Influence of Unfavorable Information’,  Journal of Consumer Research, vol. 9.

Oliver, J. (2014) “Last Week Tonight with John Oliver: Native Advertising (HBO)”, YouTube.com. URL visited on September 11, 2014. (https://www.youtube.com/watch?v=E_F5GxCwizc&index=8&list=PLmKbqjSZR8TZa7wyVoVq2XMHxxWREyiFc)

Phil., B (2014) ‘The Pros and Cons of Native Advertising’, PhilforHumanity.com URL visited on September 12, 2014 (http://www.philforhumanity.com/Native_Advertising.html)

Rothmann, W. & Koch, J.  (2014) ‘Creativity in strategic lock-ins: The newspaper industry and the digital revolution’, Technological Forecasting and Social Change, vol. 83.

Sebastian, M. (2014) “New York Times Tones Down Labeling on Its Sponsored Posts”, AdAge.com. URL visited on September 11, 2014. (http://adage.com/article/media/york-times-shrinks-labeling-natives-ads/294473/)

Shapiro, C., & Varian, H. R. (2013) ‘Information rules: a strategic guide to the network economy’, Harvard Business Press.

Smith, C. (2013) “The Native Ad Rush Is On: Social Media Budgets Are Pouring Into In-Stream Ads”, Businessinsider.com. URL visited on September 10, 2014. (http://www.businessinsider.com/the-rise-of-social-native-advertising-2013-10)

Tomesen, R. (2014) ‘Nederlanders lezen steeds vaker digitale krant’, bnr.nl. URL visited on September 12, 2014. (http://www.bnr.nl/incoming/154222-1301/nederlanders-lezen-steeds-vaker-digitale-krant)

Van Soest, T. (2014) “Redder of killer van de journalistiek? Blendle in 10 wetenswaardigheden”, Volkskrant.nl. URL visited on September 11, 2014 (http://www.volkskrant.nl/vk/nl/2664/Nieuws/article/detail/3643388/2014/04/28/Redder-of-killer-van-de-journalistiek-Blendle-in-10-wetenswaardigheden.dhtml)

Verheul, J. (2014) “Jan Verheul (MyJour): “We hebben veel baat gehad bij de lancering van B.”, YouTube.com. URL visited on September 11, 2014. (https://www.youtube.com/watch?v=LleI5U4jJGE)

Wasserman, T. (2013) “Why Native Advertising Is The Opposite Of Porn”, Mashable.com. URL visited on September 9, 2014. (http://mashable.com/2013/09/25/native-advertising-porn/)


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: