Ever failed at monetizing your digital content? You’re not the only one. And unfortunately, instead of giving it another go as tech evolves and the publishing industry shifts, many publishers have given up on their digital strategies, the memory of that painful first failure still seared into their brains. This means they’re essentially giving away online content for free …
and that’s crazy.
If you tried charging for digital in the past and things didn’t work out, it’s time to try again. Trust us, it’s doable. Here are five things to keep in mind as you work to boost your digital revenue:
1. Know the Value of Your Digital Product
If you’re giving online content away for free, you’ve basically been teaching readers that your digital product isn’t worth money. Shift your mindset: Digital is valuable.
Your website is the digital version of your magazine, they have the same great content and the same level of professionalism, so why are you charging for one and not the other? There are publishers out there charging premium prices for digital content, and readers are biting. Why? Because they understand the value of the product.
Think of a boutique clothing store. While some items there are comparable – or even the exact same – as items in box stores, the prices are significantly higher. And they still get business. Interestingly, many shoppers will pass on something if they think it’s too cheap. Charging premium prices solidifies the idea that what you’re offering is worth something.
Of course, to charge premium prices, you need a premium product. So look at your digital offerings and ask yourself honestly … How much are they worth?
2. Marketing Segmentation and Research
This is important:There is a vast amount of data out there that will help you understand your target audience. You need to use it. Too many publishers seem to be stuck on the outdated idea that they’ll get the results they want by just sending their product to anyone and everyone. They won’t.
The digital world is competitive. If you want to succeed, you need to use market segmentation and research to understand your target audience and cater your products towards them. This way, you’re sending your product to people who actually care (with ads they’re actually interested in) instead of just trying to hit a general audience.
By the way, this data isn’t hard to get your hands on. If you don’t take advantage of it, someone else will. They’ll steal your readers right out from under you, simply because you didn’t evolve with the industry. If you don’t take advantage of marketing research and market segmentation, your business is not going to go far. Especially in the digital world.
3. The Difference in Cost
Digital has an incredibly high margin. Think about it – if you have a $220 CPM and you’re charging $4,000 for an ad, how much profit are you actually making? By the time you subtract out the print and mailing costs, as well as other associated expenses, more than half of your revenue is gone. A website, on the other hand, is a sunk cost.
If you charge $2,000 worth of digital impressions on your website, the profit is all yours (aside from the percentage that goes to the sales rep). You don’t have any additional expenditures. With digital, your hard costs are gone, and ironically, the ad impressions are more tangible because engagement is being tracked and campaigns optimized in real-time.
The profit potential is not only higher but also more predictable with digital. With traditional print and mailing expenses, you’re at the mercy of a fluctuating market. Digital platforms offer consistent profitability, giving you more control over what you’re paying.
4. Know your Niche
What can you do that nobody else does? The digital world is vast. Your readers have limitless options. If they want to be entertained, they can go to TikTok or Instagram and scroll for hours through an algorithm mind-numbingly accurate at knowing which specific things will keep them hooked.
What most publishers have, the one thing that gives them an edge over major companies like Google and Facebook, is a thorough understanding of their community. Our advice is to prioritize local cultural expression – and do it better than anyone else in your market.
Consistently deliver high-quality content that resonates with locals, and slowly but surely build a loyal audience who sees your platform as the authoritative voice – their primary source for local news, stories, and perspectives. The go-to platform. Not only will you strengthen your ties with the community, you’ll also make yourself an indispensable hub for cultural connection and information in your market.
5. Evolve to Meet Expectations
Ask yourself: What problem is your website solving for your community? At one point, the Yellow Pages solved the question of how to find someone. But as tech evolved, that service became less and less needed.
The service you provided for your community a decade ago may no longer be what’s needed most today. Take a good look at your readers and ask yourself: What do they really need? Then take a good look at your publication and ask yourself: Are we delivering it?
Staying relevant in the digital world means constantly assessing and adapting to the shifting demands of your audience. Community engagement goes beyond content delivery, it’s about building trust and understanding the evolving preferences of your readers. Listen to feedback, be open to change, and evolve with them.
If your website disappeared off the face of the earth, what would people miss about it?
A lot has changed in the last two decades. And with the way the world is going, building your digital brand is no longer just something that “would be nice.” If you want to be successful, you have to have a valuable digital product.
Becoming a cornerstone in your digital community is rewarding. Future-proofing your business is satisfying. And trust us, once you figure out what works for you, it’s going to be a game changer. So get up, dust yourself off. It’s time to try again.
