The Two Biggest Challenges Facing All Media Today - Steve Blacker - MediaBizBloggers

1. Universal broadband and an open Internet have created a "fools gold" mentality in creating an over abundance of new offerings for consumers. Unfortunately, today's greater efficiencies and easier access to consumers has not resulted in creating profitable business models. Instead universal broadband and an open Internet are the two biggest challenges facing all media today.

2. The impact on newspapers alone for the past five years is startling. Editorial spending and staffing is down by over one third. Advertising is minus 42%. Ironically, most people list their local newspaper as the number one or two source for getting their local news Online.

3. Investigative reporting has become a luxury. Three years ago the Investigative Reporters Association had 50,000 members. Today it has less than 3,000! One approach that news Web sites are taking is to team up with not for profit organizations to fund major investigative special reports. This model should be used by newspapers and even news magazines as well.

4. Any media product that is 100% dependent on advertising is an endangered specie. Media brands must create membership opportunities that provide real benefits for their customers. These benefits should not be just highly discounted sub offers or traditional calendars. Benefits need to be easily perceived as real added value benefits for the consumer.

5. Media brands should partner with major advertisers to create special opportunities for their customers. For example, if a major cosmetic company wants to introduce a new product why not create an exclusive offer for several different media brands. The new cosmetic brand could be offered on Telemundo's Web site. You print out a coupon and take it to the nearest retailer to earn a special discount or receive a gift. The same could be done with all of Hearst's women's titles Web sites.

6. Greater efficiencies will not create a profitable business model! More and more digital start-ups and even established ones are finding out that generating more traffic does not insure profitability. Facebook is a rare exception and worth studying. Advertising was very slowly and carefully added to the mix. The consumer/customer remained Facebook's key focus; not pursuing ad dollars. Google is another good example.

7. Just as the "Gold Rush" eventually petered out so will the rush to launch an endless array of new digital media brands. Hopefully those companies that have established media brands be they magazines, newspapers, cable channels, etc. will realize they have a great opportunity to establish new membership benefits.

8. Whether the benefits are focused locally and are hyper active or national will not matter. Aside from offering consumers new products with special media brand linkage discounts; making a person's life much easier/time saving is important too.

9. The challenge is not in generating traffic; but in eventually generating a profit within the near term. Too many media brands; especially apps and Web sites are being launched on the basis of just generating traffic.

Steve's new book You Can't Fall Off The Floor - The Insiders' Guide to Re-Inventing Yourself and Your Career chronicles his 50 year career working for over 25 different companies with 189 lessons learned and insider tips from Gayle King, Cathie Black, Chuck Townsend and 28 others; Blacker is still going strong today as a partner in Frankfurt & Blacker Solutions, LLC. His web site is blacker-reinventions.com and e-mail address is blackersolutions@aol.com

Read all Steve’s MediaBizBloggers commentaries at Media Reinventions.

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