Have publishers got digital all wrong?

It was the first Australian Media Watch we’ve found interesting in a while…

According to their special edition, the digital ad model that most publishers are hailing as their salvation is deeply flawed and likely to send them “off a cliff”.

The problem: Facebook’s Instant Articles, adblocking and shrinking CPMs.

Former Sydney Morning Herald editor Eric Beecher painted a bleak picture (he normally does) saying the problem was too much inventory and shrinking prices.

“They [digital sites] are heading towards the cliff and it’s not their fault but they are heading towards the cliff really fast … I think that cliff, for everybody, is within a year or two or less,” he said.

“What we’ve seen over the past five years is the emergence of Facebook … and other global players,” Alex Parsons, chief digital and marketing officer for Nine Entertainment Co was reported as saying .

But perhaps veteran Alan Kohler, who sold his site The Eureka Report to News Ltd, painted the best – or worst – picture, when he said he had built his business plan on a $50 cpm charge…and the price today was $3-$5.


You can watch Media Watch’s special publishing report here: http://www.abc.net.au/mediawatch/transcripts/s4481060.htm

Prepare to be depressed.



About the authorPeter Lynch

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