FOBM: Beyond Ads: Alternative Revenue Models

As traditional business models for publishers are disrupted by new media, where should media turn?

“We’ve seen from the year 2000 where print represented 48% of member revenue on average that has dropped to 38%” said Gordon Hughes, President & CEO of American Business Media. “And what we’ve seen is tremendous growth in tradeshows and events, and of course the internet has had the greatest growth.”

“Moving to new business models. 85% of our members are still in that spot where they’re working with advertising as their primary revenue source and 50% or more are beginning that migration.
Streaming media has become a new robust revenue stream, whether it’s 7 or 12 second rollups agencies are starting to like this. A number of our members are doing this and I love the idea of two revenue models, subscription and ad sales.”

Elisabeth Sami CNBC’s SVP Global Business Development added some metrics on the company’s pursuit of dual revenue models online, saying CNBC has nearly 200,000 users across its enterprise and direct to consumer subscription products while the company is generating solid revenue through ads on CNBC.com. She said the company feels well positioned to effectively reach a large affluent audience and continues to see growth in nascent areas like mobile and satellite radio.

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