Download - Ficci publicon-2011
Manish Dhingra
Co-Founder and Director
Digital Publishing – Unchartered Territory or
Greener Pastures
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
The above info graphic clearly highlights the reason why Digital Publishing is slowly
gaining momentum and is a must have for today’s publishing business.
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
Introduction
Over the last 4 years there has been a surge of interest on Digital Publishing and
consuming print content on digital devices. While there are several reasons that
have led to the built up of this interest, today Digital Publishing is more real and a
bigger opportunity as the world moves towards bridging all the geographic divides,
through technology and digitization.
Four main reasons have led to this being a paradigm which is here to stay.
1) New affordable set of devices: The iPad and a new set of Android powered
tablet devices have brought down the cost of owning and participating in
content consumption of Digital Devices. From the time when there used to be
one PC in a household to today every member of the household having their
own computing device, be it tablets or smart phones, the device access
factors which were until now stalling the revolution in the publishing industry
are now irrelevant.
2) Greater Connectivity: With a major improvement in the telecom
infrastructure, Wi-Fi and Broadband connectivity becoming more affordable,
along with 3G enablement on mobile devices, today the consumers are no
longer limited by Digital Access. Hence this brings in the perspective of an
always connected consumer who can easily access digitally published
content, at greater speeds.
3) Improved on Demand Computing: The emergence of Cloud Computing and
access to Cloud Computing setups like Amazon Web Services makes it
easier for businesses to setup and expand their computing infrastructure for
large loads. The services enable highly specialized use for storage,
computing, databases, emails and notifications.
4) Increased Social Media Penetration: Social Networking is slowly and
steadily taking over most of the content engagements which happen in the
digital world. Sites like Facebook and Twitter are increasingly being used to
create a highly interactive, social media optimized experience for content
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
publishers. Today publishers cannot ignore putting up a facebook like or a
twitter share widget on their sites. Hence to enable social sharing, content
needs to be available in a digitally hosted domain.
Why is the Digital Publishing Landscape so different?
While it is true that digital publishing is a very important trend in the industry and
should be looked at very closely, there are definitive reasons which have led to this
trend, and where knowledge of technology are most important.
1. Changing consumer preferences: With the advent of internet, the computer
started to become the preferred device for consuming real time content like
news. Mobile and e-reading devices like the iPad, the Galaxy Tab and Kindle
have made digital reading possible and convenient for other forms of content
like magazines and books.
2. High costs of distribution: Print is difficult to distribute and limited in reach.
The cost of paper, coupled with cost of transport and delivery makes digital
publishing very attractive.
3. Competition from new media: New Internet based technologies such as
blogging; micro-blogging and social networking have led to a drastic erosion
of readers from traditional print publishers forcing them to adapt themselves to
the digital media.
4. Carbon footprint: Paper is produced from cutting trees and there is an
increasing concern around the environmental impact of the same.
The Need for a Digital Publishing Platform
Unlike traditional print publishing, Digital Publishing is a more complex and dynamic
endeavour. Traditionally, publishing had two major aspects – content and layout.
However, in the digital world, apart from content and its layout, publishers also need
to think about making their content interactive, social and discoverable. Furthermore,
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
monetization of digital content is radically different from the old approach of selling
ad space in newspapers.
As the number of devices (be it mobile phones, e-readers or tablets) continue to
increase, publishers need a platform where they can create their content once and
then be able to publish it and monetize on all possible digital media.
A Digital Publishing Platform would hence contain the following elements
1. Interactive content creation: A web-based system to allow publishers to add
interactive elements like videos, slide shows, opinion polls etc. to their existing
static content.
2. Content digitization and optimization for various media: Ability to create
content once and then optimize it for distribution through the web, various
mobile devices, e-readers and tablets.
3. Social Media integration: Allow users to share content with their social
network and find out content being read or recommended by their friends.
4. Analytics: Ability to track and analyse readership data segmented by
devices, geography, demography etc.
5. Hyper local Targeting: There are several large media companies that have
very regional and local publications. The publications using a combination of
geo tracking and advertisement targeting can enable effective local
distribution.
6. Monetization: Inbuilt ad-serving capabilities optimized for specific devices
and modes of content consumption.
Where are the Revenue Sources
Digital Publishing opens up completely new avenues to revenue generation. Some of
the perspectives allow for revenue generation from pre-created content, which
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
effectively means a much greater return on investment. So of the newer modes of
revenue generation are highlighted below:
Subscription Sales
Publishers can choose to sell some or all of their Publications online, through a point
and click subscription based mechanism, today it is ever so easy to subscribe to
content which gets delivered to your inbox very easily.
It has been typically observed that niche content genres like personal finance,
education, career development, medical and travel are more relevant to subscription
based sales, since such content has a greater shelf life and a highly targeted
audience which understands the value of the subscription.
However if the content is generic, like local newspapers, news magazines, lifestyle
magazines, then that content is better off being distributed free, on a digital platform.
Nevertheless, even if that content is distributed free, the opportunities for revenue
generation are still available, primarily through Advertising.
Advertising Sales
Ever since the start of the internet age, spanning to almost 20 years now, digital
advertising has been the main stay of revenue generation from content forays on the
web.
So it is no different here to that Advertising Sales will play a major role in this space.
The difference however lies in the fact that the cost of putting your content up on the
digital platform is almost zero for an existing publisher.
The above is coupled with the fact that as access to news on various digital devices
increases, new ad-solutions which allow for a more immersive advertising
experience is emerging. Mobile Advertising networks like AdMob (Now owned by
Google) and InMobi are catering to this new genre of advertising.
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
Lead Generation and Newer Ad Formats
The Digital Publishing industry like any new industry has also brought in new
opportunities for enhanced, more interactive ad formats.
As we saw in previous years, every time a new publishing trend has come into being,
new advertising opportunities have cropped up. Similarly there are numerous new
possibilities in Digital Advertising, which are becoming more relevant to digital
publishing.
0.56
2.6
4.75
0.94 2.1
6.14 6.29 6.99
2.68 1.08
0
2
4
6
8
CPM Rates across categories (USD)
CPM
The Indian Internet Advertising Industry has seen robust growth in the last 5 years. Internet &
Mobile Association in India (IAMAI) predicts at least a 28-30% growth in these numbers over FY
2011 – 2012.
As per Comscore data,
on Display Advertising
Categories for 2010
newspaper sites attract
the highest CPM rates
from the advertisers,
owing to constantly
changing content and
greater interest in
world affairs among
the masses.
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
1980
• Online Advertising
1993
• First Clickable Banner Ad
1996
• First Ad-server
1998
• Yahoo! Advertising, PPC
2003
• Google Site Targeting
2006
• Admob, Mobile Advertising
2010
• iAd, Apple Inc
2011-2015
• New Formats for Digital Publishing
Interest Point
Augmentation is a format
of Advertising which
consists of providing
interactive opportunities
to consumers, to associate
directly with the content.
This could be through
hyperlinks which are
linked to advertiser sites
or lead generation forms
which allow for the
readers to associate with
the advertiser.
Digital Publishing –Unchartered Territory or Greener Pastures | Mediology Software
Confidential – Not to be replicated without permission from the authors
A Peek into the Future, What’s coming?
Augmented Ad section which enable lead