There are quite a handful of people who told me that the market cap for media industry is fixed and it is too small a market to fit more than 2 or 3 tech media outlets.
“Your time is better spent tackling problems in bigger market”.
Apart from the fact that I have little experience in other verticals and I dont have a real problem worth solving which I can relate to, I’m super passionate about telling stories and putting things together into thoughtful pieces.
I think there’s a very real opportunity here in the content space, and I’m getting more and more excited every, single day.
1) More people coming online
As I wrote in my previous article, Internet penetration as a whole is going up everyday, and we are consuming more content than ever before, thanks to access to mobile. More people are getting access to Internet, what this means too is that the absolute online traffic will only continue to grow, especially in Asia, where internet penetration is relatively low but they are growing faster than anywhere around the world.
All of these new traffic source (demand) is looking for reliable news site to consume content (supply). Also, online traffic is not a zero sum game: news site with the most interesting and consistent content (in terms of quality and quantity) will win the loyalty of the readers.
In the next few years, there are hundred millions of internet users coming onboard from Asia looking for content to consume.
This is a big deal.
Increasingly, conversations between media outlet and readers will be more important than ever before. Media outlets in this part of the world is still very much engaged in a one way conversation with readers.
Also read: Blogs are no longer just blogs
2) Traditional news site shifting online
Print is dead. Magazines are shutting down. Cable tv, Radios and old medias are looking for new ways to engage their audience, and all of these ways point to one direction: online, where all the users are congregating.
The segregation of these traffic will diffuse to other new media outlet which often can move fast enough than old clumsy traditional news site (though of course they usually have greater financial backing).
Look at it this way: traditionally, we can only cross from one country to another country by ship (before the invention of aeroplane). With Aeroplane, all of the sudden, a person can buy a budget airline ticket, a first class ticket, or he can take multiple pit stops, and he can choose whichever airlines he is pleased with.
Similarly, we used to rely on traditional media outlet for information. We can only gain access to information through the nation’s newspaper or the national television. With Internet, all of the sudden, we can consume all the content we want, in whichever ways we want.
3) Marc Andreessen
Mr Marc Andreessen, a popular Venture Capitalist engaged in a Twitter conversation just a few days after I wrote my previous post, saying that he is (and I quote) “more optimistic/bullish about future of news industry over next 20 years than almost anyone I know. Will grow 10x-100x.”
Exactly my point #1.
He also argued that:
- Distribution going from locked down to completely open, anyone can create & distribute, no $ premium for control of distribution.
- Formerly separate industries colliding on Internet. Newspaper vs magazine vs broadcast TV vs cable TV vs wire service, now all compete.
- Market size dramatically expanding–many more people consume news now vs 10-20 yrs ago, many more still in 10-20 yrs. Big, big deal.
This is a great assurance to the content industy. If you need more signs, Jon Russell of The Next Web recently painted a great picture on the growth potential of the content industry:
4) Access of information
Another reason why I’m bullish about the content industry is this, the person with the access of information wins. Everyday, media outlets get pitched hundreds of stories, and it is easy to spot who’s the new popular startup, and the next big thing.
Of course, news media outlet needs to then see how can they leverage on these information, at the same time maintain its integrity. These informations are usually leveraged and manifested in the form of conferences. More on this later.
5) Asia is the new growth engine
Finally, we’ve heard this over and over again. Asia is the new growth engine.
This chart I included in my previous post says it all, where in the next few years, over 400+ M people from SEA are potentially coming online:
Things to note:
Though there are great potential in Asia’s online content industry, there are a couple of things that media outlets need to bear in mind, based on a few observations I made:
1) Breadth vs depth
Marc mentioned that you either go wide or go deep to win. I think there has to be a balance. Logically, depth is better than breadth: as there are more noise online, there’s a premium for quality content which are in depth. However, there’s a risk of reporting news for the sake of reporting it, without proper understanding of the ecosystem or the topic in mind. I think in Asia, there is a lack of in depth content or proper journalism. Which is fine, because everything takes time. Then the strategy should be to go breadth, cover as many topics as you can, with a particular theme connecting all the topics.
In content, quantity is also king, as much as quality is king. There’s a big debate on this, but I’m a firm believer that quantity is king. It’s simple really: every article has the potential to harness different traffic from the Internet. You will never know which reader you attract will end up being a loyal reader. And of course, pageviews correlate directly with ad revenue, the core business model for news site, although it sucks as one.
Still not convinced?
- News site A produces 10 articles a day generating an average of 1000 pageviews per article.
- News site B produces 5 articles a day generating an average of 1200 pageviews per article.
In the long run, who will win? 🙂
But if there are too much content being produced, then the media outlet will be seen as a content farm, which might be detrimental to the brand. Which brings back to my point: there has to be a balance. I think the 80 – 20 rule applies here too: 80% general content + 20% in depth content.
There are other companies focusing on content marketing, in which their content strategy is 100% quality in depth content. That’s another topics to discuss on: companies focusing on building thought leadership through content marketing (such as Buffer and First Round Capital)
2) “Buzzfeed”-ish and “Upworthy”-ish articles
I’m sure all of us came across the above-mentioned two websites which rose to fame thanks to heart touching headlines such as these:
“A Funny Video That Makes You Never Want To Fall For This Natural Lie Again”
“5 Reasons Why My Girlfriend Thinks She’s Not Beautiful Enough, No Matter What Anyone Tells Her”
“He Was About To Take His Own Life — Until A Man Stopped Him. Here He Meets Him Face To Face Again.”
I remembered a fellow journalist telling me that she doesnt subscribe to these kind of content, and that she despise it.
I’ve seen what this kind of content can do to news media outlet (to the extent that it broke our server), and as Jon Evans put it, this is the future, whether it lives or dies. We think it is necessary to be included as part of media company’s content strategy.
We subscribe to this too, and we understand that all online news follows a power law. The scaling exponents may vary, but the fundamental distribution remains the same. A small number of viral articles get most of the attention, a long tail gets little to none, and the decay from the former to the latter is described by a surprisingly smooth curve.
Like it or not, this is the trend now, and why fight the trend when you can ride on it? That is why over at Vulcan Post, ~5% of our content are “Buzzfeed”-ish and “Upworthy”-ish articles, which brings in fresh new traffic. Although majority of them never come back, even if 5% of them stayed on, that is a significant conversion for us.
A majority of the traffic also “sprinkle over” to other articles, through carefully placed “recommended articles” section. These other articles which, hopefully, are “in depth” and “quality” enough to convert the non valuable traffic from the “Upworthy”-ish articles into valuable traffic. More on this in another post.
3) Revenue Model
Another big debate for online media outlet is this: revenue model. There’s a huge debate on whether paywall works or not.
Marc said that he doesn’t think paywalls are going to work for many media companies, because they “penalize most loyal customers” and are therefore very tricky.
I think it might work; but it has to be manifested in other forms: online exclusives, or online magazine. This is something that The Information (online exclusives) and The Next Web (magazine) is doing. Would be super interesting if TNW can share their numbers and growth for the magazine.
The way I see it, tech media publication is a distribution channel for all the other money making verticals that you have to venture into, as a media company. For examples: Conferences, Magazines, E Commerce, Consulting etc. That’s why you see companies like Techcrunch going for events and The Next Web going for magazines, products etc.
4) Mobile growth
One last thing to note about the content industry is this: Mobile. An astounding 70% of Vulcan Post’s traffic comes from mobile. I think there’s a lot of opportunities there, but it is not fully understood yet.
News site are currently still designed and optimized for readers reading from desktop. This is a different context from optimizing your site for mobile and enabling a mobile view. I’m talking more about ad placement opportunities, recommended reading sections, or even text based optimization. I know for myself that a 4 paragraph article on desktop might be readable, but the similar content is too long to consume on my mobile.
Really really excited for this space and for all the innovations that will be coming!
Jon Russell of The Next Web nailed it:
All happened within a span of 6 months.
Who says there are no future for tech blogs?
Internet penetration up, we are consuming more content thanks to access to mobile, and more people are getting access to Internet = absolute traffic will only continue to grow, especially in Asia, where internet penetration is relatively low but they are growing faster.
The graph from Tech in Asia shows that there are at least 400M new internet users coming onboard in the next few years from Southeast Asia, looking to consume online content. This is assuming there are no population growth.
Huge potential and opportunities.
If there’s one platform that I’ve always wanted to be part of, as a writer, it would be Svbtle.
For those unfamiliar with it, it’s a blogging platform that promises to be the easiest platform for blogging.
Its description read:
“We’re a network of great people mixed with an extremely simple platform for collecting and developing ideas, sharing them with the world, and reading them. We’ve focused all of our energy into building the simplest interface for accomplishing these goals. Svbtle is blogging with everything else taken away.”
Before today, you have to approved by the team in order to be part of Svbtle. Because of the highly specific curation process, there were a lot of high quality articles and authors on the platform. Being in Svbtle is like being in a cool club. It is exclusive. It is authoritative. It is an identity, an endorsement. Everyone wants to be on it.
But that changed today. Svbtle now opens its access to the public, taking away all the sexy appeal of Svbtle. Anyone can just sign up to be part of the blogging platform.
Personally, I think that was a bad move (but who am I to critic anyways).
You see, there are a lot of blogging platforms nowadays: Blogger, WordPress, Tumblr, Medium, Quora, and now, Svbtle. Guaranteeing a “slightly better user interface” might not that appealing to compete with other blogging platforms.
I’ve always wanted to be part of the network, and despite several requests, was never granted the invitation. Now that it is no longer exclusive to be part of the network, I’m not sure if I’d spend time on that network. WordPress works fine for me. I have a Medium account, and a Quora account (with a premium domain name!) which I hardly have enough time to generate different content to grow and harness the different traffic from all these platforms.
Opening up to the public also means that Svbtle is letting the mass market determine its voice. WordPress is meant for company blogs & businesses, Tumblr is meant for teenagers, Medium is meant for creatives/authors, which segment will Svbtle be targetting? Entrepreneurs? Startup founders? Maybe. I’m just hoping that they have a critical mass of this audience segment pool to attract the other mass market founders whom have time to write. Then maybe the identity can be preserved.
But of course, Svbtle had to open up to attract more growth because it raised an undisclosed round from investors last year.
Let see if there are any major news coming from the platform in the next 3-6 months in terms of growth.
As there are more and more content produced everyday, old content which are non time sensitive which still provides a lot of relevance are “pushed back” and replaced by the newer ones. There should be a tool where you can rediscover these old gems.
If the relevance is still there, not only can you reshare them and get more page views, you can also reduce your dependency on the need to produce fresh content everyday.
In a way, you are helping your new audience rediscover these old but “still relevant” content, because overtime your audience should technically grow, but overtime, your old content only get buried away by all the digital noise.
Something worth looking into.
For the longest time, people have been differentiating media as old and new media. Old media includes print, traditional newsroom, radio, magazine, books etc, platform which exist before the internet. New media, of course, is everything that rely on Internet as a distribution channel. Eg: blogs, social networks, and increasingly, mobile as a platform.
I think we should stop thinking of media as old and new media, but start thinking about media that meets people where there are. For instance, in Singapore where people commute to work through bus or MRT, social network works in reaching out to them, because they are checking their mobile on the move. (Newspaper used to work too, because people can pick it up and read it on the go, but mobile killed it).
For Malaysia, where people own cars, these channels don’t really work, simply because you can’t read when you are on the go (though this is arguable for KL). All of a sudden, radio might be a good media platform to reach out to your audience. Perhaps that’s why radio hosts are more popular in Malaysia.
Another way to analyse which media platform to focus on is this: understand what your audience are doing at the different time during the day, and how can you best meet their needs.
For example, in the morning, people are looking for information that helps them succeed at work: weather forecast, traffic condition, news of the day (maybe stock?) etc. So in the morning, you should concentrate your messaging around these theme, which would then lead you to command a higher level of credibility among your audience (because you deliver actual value to them).
In the afternoon they are looking for information that helps them get through the day, especially light information or funny stuffs. At night they have more time to consume stuffs and share things, so save your “viral-able” articles for night time.
This is the time where they are more likely to engage in conversation too (might be different for different segments). Data also proves this point:
So if you have a piece of content you are thinking of reaching a higher audience, night time would be a better chance, as there are more people online consuming content. Or when you are pushing your content, it will give you a new perspective if you ask: the audience you are trying to reach, what are they doing now? Are they on the move? Can they tweet/share your article on Facebook? Are they eating and socializing with their colleagues?
I’m on the look out for people to discuss content strategy with, and it is incredibly hard to find someone interested in this vertical.
These are some of the things I have been experimenting with. Happy to share results and exchange thoughts
- Pageviews growth (increasingly, social referrals are getting more important because they are relatively easier to hack, as opposed to organic referrals through google. Its simple really: Google has been indexing content for way longer than social networks)
- What are the distribution channels (forums, social networks, search engines)
- Which distribution channel works
- Best organic search practices
- Google trend analysis (been using this but not sure if im missing out any best practices. Is anyone using them?)
- Facebook news feed optimization (news feed is a better way to get eyeballs than facebook pages)
- Content syndication (good for SEO value but traffic value might not be that high)
- Twitter as a content distribution channel (I find Twitter has relatively low traffic value compared to FB).
- Sources of News (mostly through social networks. Here’s an article worth reading by Mark Cuban: Is Search Changing?)
You know how to reach me. 🙂 Twitter’s @jackyyapp and email’s email@example.com