Deal with the Devil: Facebook, Google, mobile apps

A deal with the devil.

Versión en español

It was the science fiction writer Arthur C. Clarke who wrote, "Any sufficiently advanced technology is indistinguishable from magic." And clearly many people think that way about applications for smartphones.

 

Mobile apps can show us detailed maps of most places on earth. 

 

They can read QR codes that tell us when the next bus is coming to this stop. 

 

They alert us to the scores of sporting events we care about. 

 

They allow us to send text messages, free, to billions of people anywhere in the world (WhatsApp and WeChat users alone account for nearly 2 billion).

 

So we willingly give ourselves over to these services that do all these amazing things for us. Often we sign in to them using our Facebook or Google or Twitter accounts, thereby giving those social network platforms access to information about our preferences for products, who are friends are, where we are dining, and how we are amusing ourselves.

 

Making money Part III: How journalists can do ad sales

This weekend I spent a day and a half participating online in NewsU's Revenue Camp for Journalism Entrepreneurs, an intense session on some of the new ways journalists are making money on the Web. (The entire course will be available to view online in a few days; Twitter comments from the course are at #revcamp.)

The biggest mistake that journalism entrepreneurs can make in selling is assuming rational behavior on the part of the client, says Mike Orren, principal of Just Be Amazing, a consultancy on content, sales and marketing. 

We might think the client will buy based on the traffic numbers or the audience profile, but often the decision is an emotional one: the client likes the sales rep from your publication more than the rep for a competitor, Orren says. (My own experience as publisher of a business journal is similar to Orren's.)

Reloading an old business model for new media

Veteran journalist Tom Stites writes on the Nieman Blog that new digital media might be overlooking a venerable method of sustaining themselves -- the cooperative.

The cooperative is defined as a business organization owned and operated by a group of individuals for their mutual benefit. Today we might call it crowd-funding.

When the market fails

Stites says that people form cooperatives when the normal for-profit market forces fail to supply a service or product that their community needs.

There are many examples of user-owned news cooperatives in other countries but none in the U.S.
Stites is trying to launch one here.

Stites reviews recent studies of attempts to establish sustainable business models and concludes that many of the media currently held up as models depend too much on foundation support, which rarely is maintained over the long haul. In addition many of these operations depend on volunteer work, and volunteers burn out. There is thus an urgency to find a new model.

A hybrid model for local news

What is appealing about the cooperative model is that there are many news organizations already functioning. They can be replicated. They mix characteristics of for-profit and non-profit businesses and they can be tailored to the needs of the local community.

More than any other type of news, local community coverage has suffered in the recent downturn of the news industry. The co-op might help give it life again.


Related:
Robert Niles: How to Make Money Publishing Community News Online
How much to charge advertisers? As much as possible
More paywalls won't save journalists' jobs
Google takes magic out of advertising sales process
How I ran my newspaper monopoly
Language barrier helps publisher paywalls
How to tailor news for 4 different platforms? 'Responsive design'