It’s no secret over the past 10 years or so, local [and national] media companies have been clamoring to develop new revenue streams to support a dwindling traditional revenue model. As the digital transformation has continued to disrupt model after model, many media organizations are wondering, “What does the future hold?”
As news and information continues to proliferate social media platforms, and competition with the likes of Facebook, Google, and other programmatic options stiffens, publishers must begin to (or continue to) diversify their revenue streams in order to secure their future. Is there still a place for local media in today’s market? Absolutely. Will traditional revenue models sustain them? Certainly not. So how can a local media company striving to stay afloat amid growing disruption secure new revenue streams and meet the needs of their changing local markets?
While consumer revenue is a predictable source of revenue for media companies, the real opportunity lies in offering non-traditional advertising and marketing services to local advertisers. Consider what Gordon Borrell, owner of major media advising firm, Borrell and Associates, has to say on the topic of local media revenue opportunities. When asked what the biggest opportunities are today for media companies, Borrell responded:
“It’s definitely in the Digital Services category, and of course packaging digital media and marketing services with some sort of traditional media product. Digital Services, especially around social media, are definitely the fuel that’s helping drive print and broadcast sales.” (Local Media Association)
Clearly, with staffing and budgetary constraints, offering services of this magnitude becomes somewhat of a nonstarter. That’s where the right type of partnership becomes crucial for media companies. Partnering with a digital services provider becomes so crucial. Partnering with the right provider can not only increase your revenues, but if the provider also boasts products with high retention rates, you’ll enjoy the benefits of a more stable, evergreen revenue stream.
The bottom line, while digital services may be the sweet spot for generating revenue for your local media company, don’t think you have to go it alone. Building those capabilities in-house is unnecessary. Leave that to those who do digital services best—and your staff can manage what you do best; forging relationships with local advertisers.
Despite the changing market—securing new revenue streams is still a very real possibility. With the right partnership, your media company can be a trend-setter and success story.
Want to learn more about how to partner with Vivial to provide digital services to your local advertisers? Contact us today!