Real Estate A Proven Revenue Model For The PressSOME UNKNOWN STATISTICS ABOUT THE PRINT MEDIA

It is indeed true that the newspaper industry has undergone

changes and has revolutionized itself with the changing time,

demand and trends. With the growth in technology, the industry

has accommodated the digital medium as it proved to be a faster

intermediary between the news and its readers. The digital

medium also had adverse effects, grabbing a chunk of the revenue

from the advertisements in the print media. This forced many key

and small players to start-up their own news portals online. Many

still remained conservative with the decline in the revenue and

coped up with the same, whereas on the other hand, some with

their optimistic forecasting power boomed in the industrial

scenario. Compared to the developed countries, it is the develop-

ing nations which are climbing up, exceeding the decline and is

predicted to have a stabilized growth of 0.1% from 2015-2018.

Newspapers Today & Tomorrow...

Source:(www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/newspaper-publishing.jhtml)

In 2012, newspapers lost $16 in print ads for every $1 earned in

digital ads and it still continues as...

Newspaper Industry on a global basis is down by $51 billion a

year from 2006 and has lost 39% of its take. Though concentrat-

ing on Mobile devices turned fruitful initially, it struggled with the

local competitors in generating unique news. 53% of the mobile

ad revenue in US is pulled by Google followed by Facebook. Un-

derstanding the growing need of the customers and incorporat-

ing the features seems to be the only way out.

The Crisis

Source:http://www.theatlantic.com/business/archive/2013/03/this-is-the-

Source:(http://www.theatlantic.com/business/archive/2013/03/this-is-the-scariest-statistic-about-the-newspaper-business-today/274125/)

scariest-statistic-about-the-newspaper-business-today/274125/

Source:http://www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/newspaper-publishing.jhtml

The future may vary with regions, as with more con-

sumers and advertising demand, China (8.3%

CAGR*) & India (7.5% CAGR) will help the Asia Pacif-

ic market to grow at an average of 3.4% CAGR till

2018. On the other hand with increased digital

demand in North America, the consumer migration

continues and the CAGR is expected to fall by -4.2%.

CAGR*- Compound Annual Growth Rate

The Futuristic Growth

It seems to be an irony when we consider the time spent on the media and ad spend. Where time spent share is less ad spent share is more and vice versa.

Source:http://www.businessinsider.in/These-Charts-Show-Just-How-Far-The-Newspaper-Industry-Has-Fallen-In-10-Years/articleshow/44919703.cms

Ad Spend- An Irony

0%

10%

20%

30%

40%

50%

TV Internet Radio MobilePrint (Newspapers&Magazines)

Though the circulation increased, there was a steep decline in the advertising for years, but now from 2013, it has showed a positive trend of catching up the momentum which rose to 47% and is

expected to grow to 49% by 2018 and is very soon to match the circulation revenue as well.

Circulation & Ad Revenue

2009 2009 2009 2009 2009 2009 2009 2009 2009 200970

75

80

85

90

Advertising

Circulation

Source:http://www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/newspaper-publishing.jhtml

The print media is busy concentrating primarily on its digital medium publishing effective content for connected devices and so on. The digital circulation of newspapers grew by 66.2% throughout 2013, but is expected to make-up just 8% by 2018, of total cir-culation revenue globally. In 2013, the annual digital revenue growth reduced to 11.7% from 17.7% in 2012. The advertising strategies lacks novelty, as it continues to linger around the same revenue models trying to tap the maximum out of it. Its high time, for exploration.

Overall Digital Revenue Slows down

Source:http://www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/newspaper-publishing.jhtml

While 46% of the digital population visits newspaper web-

sites, they just constitute a small part of total internet con-

sumption, representing only 6% of total visits, 0.8% of pages

views and 1.1% of total time spent on digital platforms. The

publishers are yet to find out a solution where they can

engage the audience.

36% of the newspapers market value is in Asia, 34% in

Europe, The Middle East & Africa, 21% in North America &

9% in Latin America.

Television

Internet

Newspapers

Magazines

Outdoor

Radio

Cinema

40.1%

20.7%

16.9%

7.9%

7%

6.9%

0.5%

Global Newspaper Market Value

Source:http://www.wan-ifra.org/press-releases/2014/06/09/world-press-trends-print-and-digital-together-increasing-newspaper-audienc

Increasing social media presence to interact with audience and building brand.

Promoting upcoming material and providing incentives through database marketing.

Improving website navigation and revamping pages based on audience interest and priority.

Developing audience knowledge, based on past visits, enhancing their experience and time spent.

Cliché Adopted Methodologies

Source:http://www.wan-ifra.org/press-releases/2014/06/09/world-press-trends-print-and-digital-together-increasing-newspaper-audienc

Beyond targeting cliché methodologies, to survive and flourish, the

newspaper industry needs to look out for niche audience and strat-

egise marketing accordingly. One such proven revenue model is the

niche industry of real estate. There is ample requirement for the

service, irrespective of the continent or country. If a newspaper

tend to provide real estate service, there are multiple modes

through which it can drive revenue, through advertising, prioritising,

by adding local agents, brokerage and much more. Realizing the

embedded output & ROI, many newspaper biggies have already

incorporated the service on their online portal, which has not only

increased their customer base but also the overall revenue, helping

them to stay afloat in the crisis scenario.

Real Estate - Most Effective Revenue Model

Source:http://www.abc.net.au/news/2014-08-08/newscorp-earnings-drop-on-declining-newspaper-revenue/5657480

Source:http://www.nytimes.com/2014/11/06/business/publishing-and-real-estate-services-push-revenue-up-at-news-corporation.html?_r=1

Amidst the crisis, News Corp., the publishing company reported the growth of last quarter by 4 percent, to $2.15 billion from $2.07 billion, compared with the same period a year ago, in a scenario where even biggies like The Wall Street Journal, had a 3% revenue decline. Tribune publishing, owner of the newspapers, The Los Angeles

Times and The Chicago Tribune also suffered loss .

Beyond publishing news, New Corp is an organisation which always tries to innovate and the idea of real estate service was at the right pace. Last month they bought Move Inc., which operates real estate listings websites,

for $950 million, which helped them to stay afloat.

Proven by News Corporation

From 2011 to 2014, the amount real estate brokers and agents are estimated to spend on news-paper advertising dropped by 65%, according to data and projections from advertising research

firm Borrell Associates Inc. Over the same time period, the agent and broker online ad spend escalated to a whopping 544%.

YEAR BROKER AND AGENT ESTIMATED AD SPENDON NEWSPAPER (% OF TOTAL)

BROKER AND AGENT ESTIMATED AD SPEND ONLINE (% OF TOTAL)

2011

2014

$4.6 billion (34.0%)

$1.6 Billion (11.9%)

$6.5 billion (48.2%)

$10.3 Billion (74.6%)

An Unknown Stat

Source: (http://www.nytimes.com/2014/11/06/business/publishing-and-real-estate-services-push-revenue-up-at-news-corporation.html?_r=1

Broker and agent as dollars have been shifting from newspapers to online

Realty advertisements and brokerages have huge turnover and assured ROI

compared to other platforms, having the capability to compensate the overall

financial structure, even in the most unworthy hours. Through this a press

can easily generate advertisement quotes for the newspaper as well.

Success rate is high for a press, as it will already have a well structured needy

customer base, giving an upper hand over the core service providers.

Being a basic human requirement of owning a shelter, unlike other sectors,

real estate will always be in demand irrespective of the market fluctuations,

which a press will be aware of primarily.

It is only the real estate platform which provide multiple revenue models, only

through advertising as property listing, property featuring, agent/agency

advertising, brokerage etc, and can be easily pushed by the press as it too

works on advertising.

Unlike other platforms, the ideology or service is not novel, only the mode of

action and deliverance is novel. Hence the service will be easily

anticipated publically, especially when promoted by a press

Compared to other digital business models which the newspapers have

already adopted, real estate has very less competitors in the industry.

As it works basically by selling advertisements, unlike other marketplaces, it

doesn’t require the selling of listed property to fetch revenue.

Unlike other sectors, realty is flexible as it help the press to stretch the service

to other verticals like book publishing (magazines), which too will be in

demand.

Just like start-ups in other sectors, here brand building is not required, as

beyond the press brand, it is the property brand that is into concern.

Why Press should focus on a Realty Platform?

You know what it means when a press starts a real estate platform; News Corp buying Move Inc, The Los Angeles Newspaper Group launching www.socalhomesite.com , The Alameda Newspaper Group launching bayhomesite.com and the ever successful HomeFind-er.com of Gannet Co. Inc., The McClatchy Co. and the Tribune Co , are a few examples.

Real estate being the assured revenue model for the press, a realty platform can be an advantageous and time conserving ROI source in a number of ways which are as follows:-

Easy to build early adopters by using news subscriber database.

A huge revenue on realty marketing could be saved effectively and a

better ROI.

Related service providers like plumbers, carpenters, contractors could be

added to the platform effortlessly.

Effortless tie-up with the local agents and agencies.

It will help in fetching more referrals, thus more customer base and ultimate-

ly a higher circulation.

More customer engagement, not just brokers and agents, but new start-up

entrepreneurs could be driven.

Success of the platform will naturally drive investors from other verticals.

A press can develop multiple revenue models based on the brokerages and

commission involved serving in both print and digital formats.

A new news generator medium in a news crisis scenario.

A press with a real estate platform can very well create an ecosystem for

Banks, Home buyers and builders to indulge in on a mutually beneficial

stance.

How A Realty Platform Benefits Press?

Source: http://www.prnewswire.com/news-releases/los-angeles-newspaper-group-launches-new-real-estate-platform-developed-by-indigio-56095617.html,

Source: http://www.prnewswire.com/news-releases/alameda-newspaper-group-launches-new-real-estate-platform-developed-by-indigio-56218317.html

Source: http://www.inman.com/2014/11/24/newspaper-giants-real-estate-portal-set-for-big-expansion/

Efficiently segregating the customer base in the classifieds and effectively

shifting them to the platform.

Choosing a fully customizable platform is important and reframing revenue

models over the platform is futuristic and depends on the discretion of the

press with respect to the subscriber’s response.

59% of page views on real estate websites come from smart phones and

tablets. Hence integrating the geo targeted mobile app is inevitable, which

will help the press to distribute the same among its existing agents, who can

add on properties as they move.

The website of the press will already be generating a fixed crowd flow. Redi-

recting the crowd to the platform and vice-versa will be mutually beneficial.

The press should thus focus on the design, navigation and loading time, to

provide good user experience.

Can easily escalate the realty platform to a fulltime communication platform

based on the subscriber categories.

Converging both print and digital mediums using latest technologies like

Augment Reality (AR).

Easily convert the platform database into a print solution, under the press

brand name.

A press having an established domain, the SEO framework and online mar-

keting tools will boost its fame further, keeping it alive over the search

engines, creating more readers for all kind of news.

The sophisticated CRM will not only help the press to maintain a strong rela-

tionship with its subscribers but will help in reaching out to new subscribers

and investors from the realty world and related verticals like banks and other

financial institutions.

Tweaking the content every now and then is an essential part of any press

scenario. Hence the CMS can be utilized to the fullest.

With MLS (IDX) integration, a press can easily provide the service to the

agents and agencies much faster than any other medium and can charge

for the same.

A press will always have a good social media presence and as such, running

retention programs will help in retaining the customer base and maintaining

trust.

How Can A Press Make Its Realty Platform Successful?

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