Tuesday, August 16, 2011

Dedication and loyalty, increase revenue — on and offline

A commuter uses a Blackberry and a Kindle while riding the subway in New YorkPlatform proliferation requires new ways of working. Photo: Lucas Jackson/Reuters

Guardian News and Media has taken a strategic decision to move beyond its traditional newspaper roots and focus on becoming a digital-first undertaking.

This means commissioning develop guardian.co.uk and other digital platforms, and shift resources away from the guardian and newspapersobserver more energy.

The philosophy that will drive the digital expansion is based on the concept of editorial "openness", as guardian has defended under editor-in-Chief Alan Rusbridger.

"Open" describes a form of journalism, which is in line with the spirit of the web: mutualised, collaborative and networked.

Rusbridger says that this is part of a broader Shift in business, Government, education and society toward more open ways of doing things, which links to, and take advantage of the capabilities and potential of the web.

Achieve commercial success from printing to digital, recognises the GNM shall grow much larger, more engaged digital audience to attract larger digital advertising revenue.

Andrew Miller, CEO of GMG, says: "we must build an open and individual relationship with guardian reader deliver quality journalism and branded goods and services that meet their diverse needs and interests at different times. And we must allow commercial partners unparalleled access to this relationship, so everyone benefits.

"Simply growing our audience will not be enough. In an online world ' commoditised» news we must be distinctive, and we will invest in our brand and marketing to achieve it and critically, we must have more engaged users.

"Engagement and loyalty drive average revenue per user. Our strategy increases commitment in two ways: journalistic, through our open and mutualised approach; commercially, by building individual reader relationships and optimizing them — using new technologies to deliver customized content and andf recommendations.

"More importantly, we are moving from a world where we relied on a relatively small number of large revenue streams, one with more, less revenue streams. We are targeting above market growth in competitive categories such as video and jobs, and more aggressive growth in new areas such as America, mobile apps and the teachers ' network. "

When developing digital-first strategy, GNM directors quickly ruled out an exit from Print, in the short term, as the newspapers remain "critical" importance to reach, the relationship with readers and as a source of revenue.

But a general rule of thumb has been introduced, GNM shall consider what we would be like as an organization, if 80% of our efforts was on digital offerings and the remaining 20% on newspapers.

Rusbridger says "80/20" should not be interpreted too literally or attached directly to areas such as revenue targets and costs, but that it is a broad and comprehensive way explain Shift your organization needs to make.

Some aspects of the conversion will happen faster than others. GNM is, for instance, already a 70/30 organization in the form of digital intended only for Print audience with guardian.co.uk now enjoys more than 50 m unique browsers per month, while the mix of revenue and costs will change much more slowly.

To redirect the funds will be made savings in Print through the development of a new Monday to Friday newspaper, which will lead to reductions in pagination and reduced costs.

The international editions will stop in autumn as a cost-saving efforts that are now possible because the guardian is available on digital platforms such as the Kindle and the Ipad.

The purpose of the new guardian Weekday Editions is to find the right Print expression for times; a that is differentiated from the Internet and that matches the way people use print.

Research by GNM shows that half the readership now reads the paper tonight and just 4% say they read it for breaking news, even the guardian is still built around the idea that print is the primary vehicle for news.

Rusbridger says: "the newspaper will be tighter and more focused on a small number of stories, which will be covered in depth. It will be more like him than news at ten – more on making sense of news than tells what happened during the past 36 hours after the incident. It will be as readable 9 PM it is 9 pm. It will also be a high quality, premium product – something like a premium price can be charged.

"When people get to read the newspaper, most already feel comfortable with the summary of the most important news of the day. What they want from their printed newspaper is to help them to understand it, or go in-depth into stories of real importance. They want longer reads, context, analysis and comment. "

GNM will eventually look at reorganization both Saturday guardian and the observer.


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