1. ‘Online and Mobile Media’ Week 8
Presentation by Kristina Kraft and Sara Hankiewicz
How to make money with online news?

2. 1. Relationship Online Content and User
Economic influence
• • Distribution
• • Evaluation
• • Content Production
2. Relationship Online Content and Investors
• Revenue Models
• • Online Advertising
• • Subscription
• • Sponsorship
• • Paid Content
Conclusion
Sources

3. • Online content: Established print
brands go online, favoured by readers
• Composed in LINEAR matter
Economic value: Reuse of already
written material from the newspaper,
in some cases selling articles through
pay walls (NYT)
• User: Constant delivery, approach
through interest

4. Who of you is
willing to pay for online news content?

5. • Distribution through Social Network sharing
Economic value: Personalized advertisement through
friends: authentic, suitable and free

6. Interaction through reaction on news stories: Media Watch Blogs and
direct commenting
Filtered comments: BBC ‘Have your say’
Unfiltered comments: The Guardian, news commenting

7. Economic value: Costumer interaction heightens inclusiveness 
Regular users, more website hits: more attractive for advertisers

8. • Hyperreader: Gives and
receives
• Engaging and contributing,
‘active’ readers
Source: Alexander Hay

9. Economic value: Consumer as unpaid photographer/
journalist for newspaper, often not paid when published.
• Platforms: Twitter, Flickr (Picture service by Yahoo)
Example: London Subway Bombing

10. Economic risk: Replacing of established news brands with independent
news communities such as ‘The real news’ and blogs.
Danger: No Journalist code of Ethics, no quality and accuracy guaranty

11. Can have very unique appearance, in contrast to linear traditional media
Example: Reddit
Future for
established News
brands?

14. What financial models for Online News
can you think of?

15. Revenue Models for Online
Newspapers
• Online Advertising
• Subscription
• Sponsorship
• Paid Content

16. Is the Online Advertising Model successful?

17. Online Advertising Facts
• The internet is source number 2 for news after
television
• In 2010 Online Advertising was more
successful than newspaper advertising
• It grew 13.9% between 2009 and 2010 and
reached a total of $25.8 Billion
Benefits:
• Ad can be published immediately
• Ads are not geographically bound
• Ads can be customized to the article‘s content

18. Online Advertising Types
• Banners
• Advertorials
• Wallpaper
• Floating ad
• Pop Up
• Expanding
• In - Text Ads
• Video Ads

22. • Static
• Pre-Roll
• Post-Roll
• Overlay

23. Newspaper style
Has to state that it‘s
an advertorial

24. How it works:
• CPM - Cost Per Mille
• CPC - Cost Per Click
• CPA - Cost per Action

25. • For certain parts of the website
– to support an article
– e.g. sponsored posts
• Through Donations

26. Feel
Get your online
newspaper via email
Have your news
personalized

27. • Users are not willing to pay
• Content available for free
New Payment options
should be considered

28. Paid Content Options
• Micro Payment
– Pay small amounts per article (2 cents)
• Paywall
– Restricted Website - pay for the access

29. • New technologies have changed:
- the reader-reporter relationship
- the way news services achieve their revenue
•What to do now:
- watch your users
- adapt to financial models for online media
Keep the users attracted with updated,
interactive content!

30. Publications:
• Cohen, Elisia L.: Online Journalism as Market-Driven Journalism. In: Journal of
Broadcasting & Electronic Media, 2002.
• Chyi, Hsiang Iris: Online Newspapers in the U.S. – Perceptions of Markets,
Products, Revenue, and Competition. In: JMM Editorial, Vol. 2, No. 2, 2000.
• Hay, Alexander: Hypernews, Hyperreaders and Beyond. In: Journal of Electronic
Publishing. Vol. 13, No. 3, 2010. Online access:
http://quod.lib.umich.edu/j/jep/3336451.0013.302?rgn=main;view=fulltext Last
revised 15.09.11
• Kapica, Jack: Op-Ed. Exposing advertorials posing as online news sites. In: The
Digital Journal 30.09.09
• Picard, Robert G.: Changing Business Models of Online Content Services- their
implications for Multimedia and other content producers. In: JMM Editorial, Vol.
2, No. 2, 2000.
• Digital sources:
• http://digitaljournal.com/article/275047 Last revised 15.09.11
• Wessels, Jan: The future of digital content – Free or paid? Online access:
http://www.itas.fzk.de/eng/e-society/preprints/ecommerce/wessels.pdf Last
revised 15.09.11