Independent print startup thrives despite crisis

While print newspapers are losing subscribers and advertisers in the rest of Europe, an Italian print publication launched by an investigative reporter is thriving because of its independent voice.

Il Fatto Quotidiano (The Daily Facts) has been slaying sacred cows since 2009 and makes its money from subscribers and newsstand sales -- roughly 6 million euros in profit in both 2010 and 2011. Part of its success may be attributable to its opposition to then-Prime Minister Silvio Berlusconi, whose control of a vast media empire tended to stifle criticism of his administration.

As of June last year (the latest figures available), Il Fatto had circulation of 127,000 daily, with 42,000 subscribers (at 290 euros annually), with the rest sold on newsstands. Earlier this year it reported 450,000 unique users daily for its online edition.

The fact that a print publication supported by subscribers could thrive amid a worldwide economic downturn and a collapsing economic model for print seems remarkable.

How much to charge advertisers? As much as possible

Versión en español aquí.

Many digital news entrepreneurs have no idea how much to charge for the advertising on their sites.

To set a fair price you have to balance the interests of both the publisher and the advertiser. A fair price should represent the full value of service to the advertiser as well as a just reward for the media outlet.

Generally, Google’s Adsense will not give a publisher a decent price that reflects the content’s value. Adsense is an auction that favors the buyer of advertising since the supply of potential ad space is virtually unlimited.