Paid Content and Blog Sponsorships Generate Highest E-Profits
Banner ads and online directories are the least profitable, per FOLIO: survey.
The wisdom of paid online content is still debatable but blog sponsorships and paid content are the most profitable e-media revenue streams, with more than 50 percent of respondents saying they see a profit margin of more than 30 percent from these two areas, according to the 2009 FOLIO: E-Media Survey. However, just eight percent of publishers sell sponsorships against blogs and only 28 percent offer paid content.
Of course, that doesnâ€™t mean blogs and paid content are generating significant revenue at this point. Paid content is the fourth largest e-media revenue stream for magazine publishers today (banner advertising remains number one).
However, 32 percent of respondents say banner advertising was the least profitable e-media revenue stream, generating profit margins of less than 10 percent, followed by online directories.
The 2009 FOLIO: E-Media Survey tracks e-media performance for magazine publishers including fastest growing revenue streams, product pricing, product investment and e-media profitability. The survey will be available in full later this year.