Topic > Online Media Profitability Essay - 2016

Maintaining Online Media Profitability It is commonly recognized that the role of the media is to provide the public with the information they need to get involved in their communities and participate in political discussion. The free flow of information is so integral to American society that it is protected by the First Amendment of the United States Constitution. Widespread dissemination of information has been associated with increased awareness and civic engagement (demand). Technological advances, such as the advent of the Internet, allow news organizations to convey information to readers more quickly and effectively. However, the shift from print newspapers to online media has proven problematic for maintaining the profitability of news companies. The traditional business model of newspapers relied heavily on advertising. Revenue from print advertising has allowed newspapers to maintain low prices and high circulations. As the focus shifted from print to digital media, this business model faltered. Readers have shifted their attention to online media, causing print circulation and advertising revenue to decline. While there has been an increase in online advertising, revenue is not increasing fast enough to fill the gap left by declining print revenue (Economist). The shift toward digital media has raised other concerns that could impact the profitability of news companies. Journalists and news organizations rely on readership and business credibility. However, there is a general lack of trust in information obtained from the Internet (credibility). If audiences don't trust online news sources, they are less likely to visit online publications. This attitude could lead to a...tariff......paper media used by Facebook and Google. Advertisers might be willing to pay more if they were confident they were reaching their target audience. For example, online publications might offer advertising space in the sports section to athletic training facilities, professional sports teams, or sports equipment companies. Digital media sites might also use surveys to personalize the type of news and advertising a person sees. This way, online news sources would be less like newspapers and more like news aggregators. Each reader would have a personalized list of articles they are likely to find interesting. This method would allow publications to charge more for advertising because they would be tailored to a specific demographic, making advertising space more valuable. The use of personalized advertising could alleviate some of the pressure in charging for content, thus increasing readership.