It seems like smart phones can do just about anything, but can they save newspapers? Newsonomics blogger Ken Doctor thinks so - in this article, Doctor describes how location-based mobile advertising could revive the old advertising-based business model of news media.
Doctor points to companies like Verve Wireless, which serves over 400 news sites. Verve focuses their local efforts on training old media professionals how to sell on mobile platforms. Most importantly, they are working to set CPM price floors, eroding the myth that advertising revenue is no longer a viable source of funding for news content.
These efforts get to the heart of what traditional media needs most - to adapt. There's no shortage of articles about how newspapers are dying - how the web/bloggers/YouTube kittens are stealing away audiences. Verve and companies like it are amongst the first to recognize that people are willing to pay for news the same way they always have - through subscriptions and ad impressions. Only now subscriptions are bought in app stores and ads follow you wherever you go.
"What's apparent is how early we are in local mobile selling - and how far away it is today from adding appreciably to news site revenues," explains Doctor, further reinforcing that it isn't just news organizations that need to adapt. Local vendors, consumers and advertisers have to evolve in tandem.
Newsy is at the forefront of this desperately needed revolution. With a full range of mobile apps - and dynamic and unique content - we are poised to incubate this updated revenue model and welcome news media to the brave new world of mobile.