Tom Standage, deputy editor of The Economist, believes that a business model based solely on advertising is not sustainable for digital media. Standage argues that the value of digital advertising is decreasing as ad-blocking software becomes more prevalent and companies are increasingly wary of their ads appearing next to inappropriate content. Instead, he champions a model based on subscriptions and circulation revenue, which has worked well for The Economist.
Standage also points out that while social media can be useful for attracting new readers, it is not a reliable source of revenue. He suggests that publishers should focus on creating high-quality content that readers are willing to pay for. The Economist’s strategy is to provide a ‘finishing school’ for readers, offering a comprehensive summary of the week’s news.
The deputy editor further comments on the trend for news personalisation, stating that it can lead to a ‘filter bubble’ where readers only see news that reinforces their existing views. Standage believes that readers should be exposed to a range of opinions and perspectives. He also notes that The Economist’s approach of offering a single, curated version of the news has been successful.
Go to source article: http://www.niemanlab.org/2015/04/the-economists-tom-standage-on-digital-strategy-and-the-limits-of-a-model-based-on-advertising/