Traditional publishers are often afraid to invest in new media, says Paul Calento, senior vice president of strategic development at IDG Media Group, because they’re afraid those features can’t be monetized. But Calento says dismissing new media components can create revenue opportunities for new competitors who are often more likely to tackle cutting-edge initiatives. Here, he shares some tips on how to generate revenue from new media.
"It makes sense to look at things that didn’t work two to five years ago," says Calento. "They have an ability to resurface." For example, he says some sites, especially in IT media, tried but failed to monetize audio updates because their distribution wasn’t ready, so they dropped them altogether. Now, monetization of podcasts is common.
Calento says it’s important to see not just what your direct competition and others in media are doing but also at what is happening in other industries. Computerworld looked to retail sites like Amazon and iTunes, for example, when it sold a carousel-style ad unit that opens to a lead-generation page. "Advertisers got excited about it because they were using it in their personal lives," says Calento. He adds that it’s also important to look at what individuals are doing with computers on their own time that media companies haven’t delved into yet.
Manage Vendor Risk
Creating scale and measurability for the vendor is key when trying to sell new media. This can be done by bundling-adding value to a package of elements that already work and are already measured and selling that package at a higher price. InfoWorld.com recently began embedding vendor-created videos into banner ad positions, which offered the advertiser access to existing traffic through a new medium.
Piggyback with a Technology Partner
When experimenting with new media, it helps to team with a technology partner on a month-to-month basis. That way, neither party incurs a loss unless there’s a program running against it.