Almost everyone knows the far-reaching effects of the global recession that began in 2008, with millions of jobs lost, thousand of foreclosures and thousands more declaring bankruptcy. However, hardly anyone was privy to the state of American news media during those times of economic crisis.
After 2 consecutive years of low revenues and cutbacks, it seems that the news media industry in the United States finally saw a better year overall in 2010. Cutbacks in news agencies saw decrease during the previous year, and most sectors were beginning to approach normal levels of revenue.
Of course, there are a few notable exceptions. The newspaper industry for example, still suffers from an annual sharp decrease in revenue. But then again, the problems that plague this sector never really had anything to do with the recession anyway. As early as 2004, analysts have already predicted the demise of America’s newspapers due to the growth of the Internet—the economic crisis just exacerbated the situation.
What’s more important behind all this is the shift in journalism methods and avenues, which became more evident in the last year. The main problem is no longer about increasing an audience and carrying out experiments to generate more revenue. Instead, the challenge lies in maximizing the reach of digital media, a platform which now has an unforeseeable future due to the extremely fast pace of technology.
While the old structure of news organizations producing most of the content remains largely unchanged, it’s the way that content is delivered to consumers and advertisers that’s evolving at an unpredictable rate. Each technological advancement essentially adds a new dimension to the way news is provided to an audience; it also brings in new players who have control over how news is aggregated.
It used to be that all news organizations had to do was produce the news and rely on networks to sell the ads. As the Internet became a more mature platform to share content, aggregators such as search engine Google and social networks like Facebook and Twitter were tasked to spread the news to a large audience.
However, the combination of the Internet and cutting edge technology has made changes to the way news is consumed. As people begin to rely more on mobile media consumption, the rules of the game take an interesting turn as well. News organizations must now abide by the designs and rules of software developers and digital device manufacturers, as of the moment, both Apple and Google are leading the race, with each company coming out with their own line of mobile devices and mobile software.
This in effect has changed the way ads are created and displayed, with new players now exercising more control over revenue and audience reach. Enform can help your company take advantage of this shift. Give us a call anytime so we can discuss newer and better ways of engaging your target market.