According the report, volume metrics, the cornerstone of advertising-based revenue streams, need rethinking. Publishers with a volume-driven mindset have to shift to value-driven one. The report has been produced by FT Strategies, a subsidiary of UK-based Financial Times. Some common challenges include:
• Lack of alignment: A profitable subscriptions model is a demanding goal that requires focus and resource from the entire organization
• Basic understanding of readers: Many news organizations think they are reader centric. But in reality, they remain product-centric, dealing in audience averages and not using the right metrics.
• Poor experimentation culture: Often, testing programs suffer from a lack of prioritization, proper iteration, and buy-in from all parts of the business.
• Deficiencies in tools & capabilities: Many publishers do not have robust structures in place to store and analyse subscriber and reader behavior, such as central data lakes and data analysis platforms.
The full report can be downloaded from the FT Strategies website.