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The hyperlocal promise innovation | sustainability | diversity Piet Bakker Marco van Kerkhoven

The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

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Local reporting has become an endangered occupation. Print publications merge, close down or face budget cuts because audiences and advertisers spend more time and money online. Local broadcasting has not succeeded in filling the gap in local news coverage. The result is that fewer journalists are covering local affairs. Online models were expected to take over the role of traditional media as they were more flexible and cheaper to operate, especially in terms of production and distribution while these media could also use citizen as contributors. In the Netherlands we identified 123 hyperlocal news websites with 350 editions that are more ambitious than the average blogger in terms of scope (local news), frequency (recent updates), business (advertising and other income sources), staff (participation on a regular basis) and journalistic practices (indications of professionalism). We analysed all websites to uncover their business model, their content, their motives and the staff they employ. Data was gathered through content analyses of websites and interviews with owners and staff members. Results indicate that models are extremely diverse, ranging from fully staffed professional operations to spare-time home-operated websites. In terms of revenues, most sites rely on banner advertising. Offering local content does not seem to be the biggest problems. Many sites, however, in particular the smaller operations, suffer from underperformance in terms of business models, advertising, attracting staff and use of social media. Launching a site does not seem to be a major issue, but maintaining it, changing it when technology or market changes demand that, and develop a sustainable business model seems to be more problematic.

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Page 1: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

The hyperlocal promiseinnovation | sustainability | diversity

Piet BakkerMarco van Kerkhoven

Page 2: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

“Sustainable hyperlocal media”

“Location-based technologies (...) offer a potential revolution for very local media”

“People feel attached (...) to their neighbourhood and street.”

“Hyperlocal services could deliver a plurality of relevant news (...) bringing our communities together for good purpose.”

Page 3: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

WhereWhoWhyHowWhat

search: municipality & “news”independent sites

original & general local newscontent analysis & interviews

RQ & Method

Page 4: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

One site

88More sites

262# sites

350

123 operations

7.5 per owner

1.8 per municipality

88 with one site

35 with more sites

417 municipalities199 with a local news site

Page 5: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

Filling the news gap?

Page 6: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

Business model & motivation

motivation: filling the news gap individuals, small teams, part-

timers & volunteers

“In 2002 we became a one-paper-city. I felt that some competition was needed. So I started my own site in 2003.”

“Regular media contained very little news on accidents and crimes.”

“We want to be financially independent and hire professional journalists and sales people.”

“We want to break even and perhaps make some money (…). If we make no money at the end of the year I will pull the plug.”

Page 7: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

Content

politicpoliticss

crime/crime/911911

human human interesinteres

ttculturcultur

ee

sportsportss

otherother

businesbusinesss

non-

loca

lno

n-lo

cal

1215 items last 10 items on all sites

50% of the sites

50% of the sites

80% of the sites

67% of the sites

24 sites with more than 50% crime-news

Page 8: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

Performance:information, advertising, content, participation

Page 9: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

Discussion beyond innovation ...

•Launching is not the issue, making a hyperlocal news sites sustainable is.

•How to overcome underperformance (social media, ads sales, revenue model, UGC...).

Page 10: The Hyperlocal Business Model in Practice - The future of journalism Cardiff 2013

twitter: @PietBakker | @martincornelismail: [email protected] | [email protected]: www.journalismlab.nl

Piet BakkerMarco van Kerkhoven