It wasn’t until our most recent lecture that the true power of social media was explained to me.
After listening to Adam Tinworth (of RBI) and Mark Ramskill (of Subhub), I think i’ve created an: Equation for businesses who want to make through premium content on the internet. Here it is:
The Equation of the Future:
Good Marketing Strategy + Social Media and Blogging +/- B*llsh*t
=
More Customers Paying For Premium Content
The national papers are still on top of the money tree in the print world. B2B business magazines are second in front of consumer mags, then at the bottom are the local papers. One of the reasons that the B2B are doing so well is because of their internet activity. Tinworth changing with the times has paid off for RBI. His job title, Head of blogging, shows how important consumer interaction with their business’ are.
Open enough to show us their turnover from magazines vs their internet turnover, RBI’s money is increasing from web activity whilst (probably quite obviously) the magazine turnover is reducing. But the more important reason for RBI’s success was not just down to their number of blogs and social media usage, but the way they used they used them i.e. the use of forums so people can voice opinions on the blogs thus attracting more to view blogs and the attractiveness of uber niche blogs. It’s the uber niche blogs that attracted the most loyal viewers and consumers viewing and posting on theses blogs make the company money. Their imput makes them part of the group and thus implements them to buy the premium content.
This new vortex of money-making through the internet is where journalists want to get in. Print have tried, but it hasn’t worked thus far. Consumer magazines will have to try harder. And the BBC obviously don’t want to charge, as they believe that people pay for the TV service already. But if jobs are being cut, and more are being hired in the web areas of the BBC, somethings got to give soon as the other networks are seiriously struggling.
