Reinventing the B2B Media Business Model
The 39 th FIPP World Congress brought together over 700 media professionals from around the world to share innovation and insight into the continued challenge for media owners to re-invent their business model.
While many of the speakers highlighted the continued contribution, and innovation, from print media, the transformation is working best for publishers following a model of ‘digital first’, as shared by Peter Kreisky, Chairman of Kreisky Media Consultancy.
According to their analysis, lessons learned from leaders include:
1- Organise around markets rather than products, where you have strong brand authority, knowledge of customers, an attractive competitive environment and best potential for growth.
2- Lead platform strategy with digital , with strategic roles for platforms based on future potential, including establishing priority for each media platform.
3- Create new branded businesses across platforms , continuing to lead with ‘Digital First’. Strategy should be to renew and extend advertising driven models as possible, but to reinvent the model with a mainly end-user driven focus.
4- Monetize communities of interest to create holistic new businesses that leverage strong brand engagement and deep market insights.
5- Invent the future through creation, investment, partnerships, divesture, and acquisitions – this could include a number of restructuring tactics, or un-conventional partnerships with competitors or companies outside your field, or even internal venture capital divisions to invest in future growth.
Peter’s final point was to empower the organization, as new challenges require new organizational solutions and cultural change. Changing the goal and focus, and leaving the current structure is unlikely to win. Modern media companies require decentralised and flat structures, and fostering key talent and entrepreneurship is essential to succeed.
For many media companies, especially market leaders with successful legacy models, this type of change can be difficult, though there is no doubt resistance is likely to be futile – if not fatal. As ever, those most likely to succeed will be also those most able to change.