World Association of Newspapers and News Publishers


New online revenue streams

World News Publishing Focus

World News Publishing Focus
Your Guide to the Changing Media Landscape

New online revenue streams

“Is this a media business?” asks Henrik Bruun referring to the online shop that his company, Denmark-based Nordjyske Medier, operates. “Maybe not, but it’s revenue for sure.”

Mr. Bruun, Manager of Loyalty and Relations for Nordjyske Medier, is discussing new ways the publishing house is making money online.

In addition to publishing a daily newspaper, Nordjyske Medier has 24 weeklies, 14 local websites, does its own TV, has a Groupon clone, and until recently was producing an iPad application, which it has since closed down “because we couldn’t see it ever getting a positive cash flow,” says Mr. Bruun.

“We still invest heavily in print: that’s where the money is,” he adds.

On Monday, (5 March) Mr. Bruun says Nordjyske Medier will launch its latest business venture- an online shopping mall that has already signed up some 50 retailers.

It works like this: retailers build the shops themselves using templates. They choose the photos and text they want to use, put in the prices of items and then decide on the advertising either in print where Nordjyske Medier includes QR tags that go to the shop, or online. “They can choose among all our media where they place the ads,” Mr. Bruun says.

“We take a fee of about 200 euros per month (per retailer) for the shop, and we turn that into advertising, and that helps enhance their status on Google, so they are more easily found,” he says.

“We have Nshop, which is the aggregated online mall, and through this you can find all the shops." He says Nordjyske Medier takes care of the marketing for the overall site.

In short, Nordjyske Medier benefits through the monthly fee, a share from sales (above a certain amount) and through new business opportunities. The customers benefit through getting an inexpensive, easy online shop, that is search optimized (they inherit Nordjyske Medier’s Google position), and through advertising that is included in the package.

Nordjyske Medier also operates its own online shop, which the company launched in the early 1990s with travel offers and have since added tickets (football, concerts, etc.) and other products.

Over the years, Mr. Bruun says the focus of the shop has changed from reader loyalty to turnover and a means of gaining customer knowledge through user data.

“The business model here is we take a share of the sales that our customers buy, going from 3 euros for a ticket sold on a football match to 300 euros for travel,” he says.

“Within the past two years, this has become the primary ticket shop in our region,” Mr. Bruun says, and adds that more than 50 percent of ticket sales in the region are sold through the shop.

“We have approximately 60,000 customers in the shop, and if they buy through the shop, we can then email them in the future (with related ticket offers),” Mr. Bruun says.

He says a next step can be to develop content based on trends they see from the customer data. “If they travel to Spain, why not include stories about Spain?” he asks.

“So, is it a media business? I think so,” Mr. Bruun says.

Author

Brian Veseling's picture

Brian Veseling

Date

2012-03-02 22:03

Author information

About 200 newspaper advertising experts will attend the 22nd World Newspaper Advertising Conference in Prague on 1st and 2nd March. WAN-IFRA will provide summaries of each speaker's presentation during the event. Check back on our blog for the latest updates.


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