The reigning absurdity in the digital news economy
Frederic Filloux
24420

Frederic, can not agree more (except the fact that 5000 spend does not guarantee similar revenue — sunk costs :-))

Some additional thoughts:

Majority of Publishers do not have their readers loyalty segmentation. Often they have some vague understanding of the audience profile which is coming from third party data enrichment (for location, gender, device etc). But they fail short with what should be their key obligation — perfect understanding of their own audience based on their own data. Pareto rule exist at publishing as well and 15–20% of loyal users generate 80% PV but their engagement vary from content to content. From that point they should build their content and business strategy and as result editorial strategy would perfectly well aligned with business strategy.
Additionally, significant problem for publishers is their ability to sell user engagement in more sophisticated way — for where problem is the scale and standard. With existing environment publishers have compete on PV with other content, unless they find solutions to convince advertisers for Native advertisement or private RTB platforms. Solutions already exists — KPEX — is an extraordinary example of what is possible in a small advertising market when traditional media businesses work together to address the shift of agency spend from media buyers to their trading desks. Also German publishers started cooperating with T-mobile to create big scale publishers Ad market exchange.
http://www.inma.org/blogs/ideas/post.cfm/4-news-partners-3-strategic-principles-programmatic-ad-success?utm_source=newsletter&utm_medium=email&utm_campaign=dailyMember

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