Despite heavy investments and a very good reach, the share of publishers in digital turnovers is on average just seven percent. Up to now, it has not proved possible to translate the reach in the digital sector into revenues. To date it has been mainly digital players, such as Google and Facebook, that have benefited from the trend that growing numbers of readers consume their news independent of place and time via digital devices. “Google alone now has higher annual advertising revenues than all the publishing companies in the world together. And Google and Facebook are responsible for 96 percent of growth worldwide (excluding China) in online advertising”, says David Böhm.
Consequently, this CEO is now taking the initiative by combining forces with the publishers and counting on their willingness to cooperate. Individual attempts undertaken by publishers to establish new revenue models for the digital sector have been only moderately successful so far. Newsadoo could close this gap and become a new digital business model for all participating parties. The Austrian publishing company, 18th Floor Onlinemedia, developed the platform as a new news ecosystem with the Pulpmedia marketing agency.
“We simply do not believe that individual publishers can develop solutions that have the potential to become successfully established in the competitive, worldwide online market”, says Newsadoo CEO Böhm. What is needed is a full focus on the users, what they want and what they are prepared to pay for. The objective is to create a news platform for personalised news, but one that differs from Google News by taking as a basis the collaboration and participation of the publishing companies. It is only by acting together that it is possible to challenge the American giant. “We have developed a solution that can work for all players in the European publishing industry and that offers a genuine prospect for the future.” The publishers will be able to generate more traffic through the platform, but also achieve revenues proportionately in line with the reach of the content. In addition, the new European solution shall be in accordance with the EU values in relation to data protection.