Media Companies' e-Commerce
Focus Notes - 15/02/2009
Creating the Media Store
For most traditional media companies, advertising alone is not enough to finance their online operations. They are having to contend with more competitors: pure players, content aggregators, other media UGC (User-Generated Content). CPM is lower: an online consumer generates five to 10 times less ad revenue than an offline consumer. E-commerce is thriving, and offering media sites a potential source of added income, particularly since they have been involved in sales activities offline for a long time (shopping channels, licensed products, co-branded and special editions).
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| MF90109 |  | PDF | 34 |
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| MF90109 |  | PDF | 35 |
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1. Executive Summary
2. e-Commerce Market Bigger than Online Advertising
2.1. Limits of the ad-funded only model
2.1.1. Print media incapable of compensating online for the drop in print ad revenue
2.1.2. Internet radio: the mass market trap
2.1.3. Video services: CPM still too low
2.2. e-Commerce market booming
2.2.1. Sizeable rise in sales
2.2.2. A bigger and more profitable market than online advertising
2.3. Internet merchants competing with media companies over content
2.4. The media and offline commerce
3. Media Company Sites’ e-Commerce Best Practices
3.1. Monetising traffic and affiliation
3.1.1. The Sky portal strategy
• The affiliation system
3.2. Consumer services and price comparison
3.2.1. Bild.de "serving" readers
3.3. Licensed and by-products
3.3.1. Clear Channel radio stations playing the iTunes card
3.3.2. CBS radio: impulse buys, licensed products and ticket sales
3.3.3. Mediaset sells products derived from its programmes
3.4. Targeted e-commerce according to audience
3.4.1. Euronews recommends a language learning method
3.4.2. The Wall Street Journal sells no-name wine
• Operating a no-name online shop
3.4.3. El País selling high-tech products online
3.5. Close incorporation of e-commerce into editorial content
3.5.1. Fox Sports associates each sport with an online shop
3.5.2. Elle.fr increasing its stable of online shops
4. Diagnosis
• Le Figaro group’s e-commerce models
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• Table 1: Top 10 news and media sites – USA – January 2009
• Table 2: Broadcast and online audio services market in developed countries
• Table 3: Growth of online video viewing in France, Germany and the UK between April 2007 and May 2008
• Table 4: Online advertising vs. e-commerce: revenue and net margin in 2007
• Table 5: Analysis of "technology and content" costs on Amazon.com
• Figure 1: American newspapers’ ad revenue
• Figure 2: Growth of B2C e-commerce revenue, 2006-2012
• Figure 3: Comparison of online advertising and e-commerce net margins in 2007
• Figure 4: Sky.com portal traffic ranking
• Figure 5: Product displayed on sky.com
• Figure 6: Affiliation on Sky.com
• Figure 7: Shopping.com price comparison, available on bild.de
• Figure 8: Buying a song in MP3 format via radio station Fresh 102.7
• Figure 9: Buying a mobile ringtone via radio station Sunny105.9
• Figure 10: Ticket sales via 923krock.com
• Figure 11: Catholic TV online shop
• Figure 12: Mediaset online shop
• Figure 13: TellMeMore pop-up after the free lesson on Euronews.net
• Figure 14: The Wall Street Journal’s online wine shop
• Figure 15: El Pais consumer electronics shop
• Figure 16: Online shop associated with the Fox college sports channel
• Figure 17: Online shop associated with the Fox Soccer channel
• Figure 18: Online shop associated with hockey on the foxsports.com portal
• Figure 19: Elle online shop
• Figure 20: Co-branded Elle/Espace Max shop
• Figure 21: Products sold on the co-branded Elle/24H00 shop
• Figure 22: Media company websites’ different e-commerce models
• Figure 23: Media companies’ e-commerce strategies |
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