Online media outlets need better strategies for community interaction, says Globe’s Kapoor

TORONTO—News outlets have to better learn to interact with their audiences and “build the community around them” as they adjust to new media platforms, Anjali Kapoor, managing editor of digital at The Globe and Mail, said at a panel discussion in Toronto Wednesday. “News organizations must be strategic in how they serve content—on what platform, at what time of the day and to what audience,” she said at a discussion about the future of media and the ways in which new technologies affect revenues. “They also need to know how to interact with that audience. It’s not just about giving somebody content; it’s about ways to build the community around them.” The event, titled “Future of Media,” was organized by Digital Journal, a global digital news network. Other panelists were David Skok, senior producer of online content at Global News; Elmer Sotto, head of growth at Facebook Canada; Mark Evans, principal of ME Consulting, a digital marketing and social media strategic agency; and Kunal Gupta, CEO of Polar Mobile, a leading mobile content solutions enabler for large media companies. One of the main topics debated by the panel was the state of revenues at Canadian news organizations and the impact of digital media on news business models. “The old saying of television dollars and digital pennies still exists today,” Skok said. “In the digital space, we like to almost fall in love with ourselves and say we are the future. The audience is growing, but it’s still not at the same level as the television audience, unless you are a major, major site.” Skok added that in comparison to the multi-million dollar online media industry, broadcasting remains a multi-billion dollar phenomenon. Panelists also discussed the popularity of pay walls, which require users to pay fees to access content. Panelists couldn’t agree on whether they are an effective revenue generator or whether, in the absence of a pay wall, advertising revenues are enough to sustain news outlets. “I think that one of the main issues with the pay wall is the missing infrastructure,” said Gupta, whose clients include Time Magazine, CNN Money, Sports Illustrated, Canwest Global Communications and Bloomberg. “For example, I’m on a plane three times a week . How do I pay for news if I want to access it there? I think this infrastructure will greatly develop, however, in the coming year.” Skok suggested that it’s not yet clear how companies will make worthwhile profits from social media platforms. “It is still hard right now to measure the ROI on social media,” Skok said in an interview with The Wire Report. “However, we are seeing that it is driving referral traffic back to us. It is getting the brand name out there, which ultimately, in turn, will drive revenue.” Chris Hogg, CEO of Digital Journal, said that as publishers and media outlets delve into social media, they are hiring staff. “You have a very high level of engagement, and a lot of people participating, so from the operational side you have to be prepared to financially support the people who are talking about your brand, about your story, about a specific news piece,” he said. Hogg said he thinks that the place for social media in the news business model has yet to be determined. But he added that any media outlet that looks to capitalize on the future of digital media will find revenue opportunities. The general shift toward web content has some reporters who say new media is promising. “Reports show that online revenue is starting to grow,” David McKie, an Ottawa investigative reporter with the parliamentary bureau of CBC News, who reports on all platforms, said in an interview. “The fact that you have organizations like the CBC, The Globe and Mail and The Toronto Star, which actually put a lot more money, resources and energy into their online content, bodes really well.” Statistics show that news organizations are adapting. The Newspaper Association of America reports that overall U.S. ad sales had the smallest second-quarter decline since 2006, with only a 5.6 per cent drop from a year earlier. Online sales, on the other hand, grew 14 per cent. Panelists agreed that the future is not as gloomy as many say. “I’m not one who thinks that mainstream media is in its demise phase,” Skok said. “In fact, I think we are just beginning, and there is a lot of excitement for people who are willing to embrace the change that’s taking place in the industry today.” news@thewirereport.ca

Online media outlets need better strategies for community interaction, says Globe’s Kapoor

Broadcast | September 9, 2010

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Online media outlets need better strategies for community interaction, says Globe’s Kapoor

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