Media companies operate in a rapidly-changing environment, making it difficult to make changes quickly enough to protect existing revenue sources. Some media companies continue to struggle with advertising revenue declines, making it more important than ever to look for and create new revenue streams to help supplement the top line and improve the bottom line of a business.
Businesses need to focus on activities that build their audience and drive revenue, and should consider eliminating areas that do not contribute to these two items. Some tactics that they may want to consider employing include:
- Reducing Costs – Streamline the business with the goal of needing fewer people.
- Benchmarking – Develop benchmarks and analyze trends that allow for comparison to the industry as well as past performance. Measurement is critical and information sharing with team members is necessary in order to make improvements.
- Strategic Planning – Identify markets, products, and deliverables that can grow revenue and add profits to the business.
- Team Management – Put the right team in place to execute your strategic plan. Experienced individuals may not necessarily be the right fit if they are unable to understand the changes in the markets and your business model.
- Communication – Preach the mission to your team so that everyone understands the objectives and the path to achieving those goals.
Many companies have completed some or all of the items noted above. Part of the process on the revenue side is to look for new sources of revenue or improve and possibly change existing sources of revenue. Some steps to consider for new revenue streams include:
- Evaluating the markets that are currently served by the business and those served by competitors.
- Identifying which markets are underserved or simply not served at all. When moving into new markets it is important to know the customers being targeted.
- Determining whether you have the ability to deliver to a new market or develop new products. If so, it is important to create a plan that allows the organization to deliver efficiently and effectively.
- Analyzing whether the organization is nimble enough to enter new markets quickly and prepare itself to serve new customers.
Media companies have the ability to offer new products such as event planning, weeklies, and niche magazines, and they have the ability to do it both digitally and in print. Finally, it is important when pursuing alternative revenue sources that they align with the goals of the organization, both strategically and financially.
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