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Industry Insights:  New Media facing the same headwind as Old Media

Apr 21, 2016
Industry Insights

Industry Trend of the Week
BuzzFeed, a new media startup, announced they were going to miss their earnings by half; Mashable chopped most of its news team and is pivoting to video; the media ad-spend is being hogged by Facebook and Google. Even though new media companies have acquired huge valuations and massive reach, they are experiencing the same difficulties that old media has faced, but without the loyalty that old media companies have earned. How they react to these new challenges will go a long way to shaping the media landscape of the future.

Story of the Week
Newsonomics: With new roadblocks for digital news sites, what happens next?
With BuzzFeed missing its earnings targets, has the time come for new media companies to reinvent themselves in the guise of old media companies? Video is big now, but will it be big when VR hits the mainstream? Ken Doctor analyzes whither new media now that these companies are encountering their own headwinds.

Media Websites Battle Faltering Ad Revenue and Traffic
As audience increasingly turns towards social media for content, the ad spend is following, in the first quarter of 2016, 85% of the ad spend will go to Google or Facebook. Also, news is increasingly being consumed in mobile apps, not on the web and so, the transformation of an internet of websites to an internet of mobile apps is no longer the future, it’s here.

Escaping the Digital Media ‘Crap Trap’
Politico’s founder Jim VandeHei lays out his vision of the future and it includes less clickbait, fewer media companies, the loss of major brands and the emergence of quality content that people will be willing to pay for.

How Facebook Became Our Biggest News Publisher—And Why We Should Be Worried
Media analyst Dan Kennedy talks about Facebook has become the largest distributor of news and why publishers should be increasingly concerned.

Google News is getting its own carousel of AMP stories, and other AMP features in the works
Google is ramping up AMP, offering AMP stories at the top of the Google news feed in a carousel that users can easily scroll through. AMP’d stories are marked with a lightning bolt and are getting an algorithmic boost from the company to appear at the top of the news feed.

So you thought you knew about mobile?
This pre-FIPP London conference interview is with Ross Sleight, the chief strategy officer at Somo. Slight goes through what he’s learned about platforms, mobile and content in the past few years and how media companies can adapt.

How BuzzFeed Thinks About Data, And Some Charts, Too
A really interesting read from BuzzFeed’s publisher about how the company is interpreting its audience metrics and what they are doing with them.

Consumer Awareness Of Blockers Reaches Critical Mass, 42% Would Pay
Accenture conducted a global study, polling 28,000 people in 28 countries and learned that 42% would pay to have an ad-free experience. Further, people in emerging markets are more likely to pay than those in mature markets.

Who guarded the Guardian? I did
Alan Rusbridger, recently savaged by Stephen Glover over his stewardship of the Guardian, replies and defends his strategy for the paper including his long-term view of the future of the media industry.

For News Outlets Squeezed From the Middle, It’s Bend or Bust
Is media the BuzzFeed watermelon, being squeezed so hard that it will ultimately explode? Metrics are invading the newsroom and letting journalists and editors know what is being read and what isn’t. The question is whether newsrooms will use those metrics to change their reporting but still report news that’s boring but essential to the community it covers.

A new understanding: What makes people trust and rely on news
The introduction to the report is very informative, the API goes through some bullets that discuss why people trust the news, the demographics, how they feel about news on social networks and their influences. If you don’t have time to read the whole study, the intro is enough to gain insight that can be fleshed out in sections you may be interested in.

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