AC

Leading Your Content to the Money — A New Equation for Selling Content to Consumers

In Innovation, Internet Business Models, Social Media on August 4, 2010 at 7:00 am

The notion that information wants to be free is absurd when the delivery mechanism is making a fortune and the creators are getting what amounts to zilch. – Peter Osnos, “Will Google Save the News?

Monopoly by Mikael Miettinen on flickr

In order to focus their attention on big institutional content deals, publishers have traditionally relied on third-party service providers (agents and the like) to conduct business with individual end-users. However, with institutional budgets in decline, content providers are turning their attention to consumer markets as a potential source of business growth. Asserting themselves in the consumer space will require a new type of sales and marketing acumen and visibility into consumer behavior, which recognizes and responds to the many new ways that consumers are seeking to interact with vendors and each other in online environments.

The longstanding business equation in B2B publishing has been:

Quality Content + Brand Recognition + Operational Efficiency + Institutional Usage = Market Share/Financial Success

Publishers have negotiated big deals but have largely let consumers fend for themselves. This strategy will not fly in consumer markets, where visibility and demand are the primary drivers of revenue, and where methods for marketing to consumers have changed dramatically. The best approach for publishers wishing to enter the consumer marketplace is to take a step back, free themselves from preconceptions of what their business is about, and take a look at what is really working in the consumer Web. Only through entrepreneurial thinking will they have a shot at success in consumer content markets.

Consumers are constantly inundated with free content but are rapidly flocking to demand-based, interactive services and are making freemium purchases in that context. Content providers can meet this reality head-on by wrapping content in value-added service layers that address consumer needs and support collaboration …

Continue reading this post on The Scholarly Kitchen.

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