New Independent Research Reveals 6 in 10 Media Companies Realize That To Become Digital Leaders They Must "Rethink" How They Serve Online Audiences
Study Released Today at Think Commerce Summit Describes How Media Companies Have a Big Opportunity For New Revenue Stream With Their Digital Channel, But Still Struggling to Monetize
NEW YORK, Dec. 4, 2012 /PRNewswire/ -- A new e-commerce survey conducted by Forrester Consulting and commissioned by Group Commerce involving more than 100 notable media companies reveals — according to more than half of respondents — that audience use of the Web and mobile to tap into their content has boosted publishers' paid subscriptions and helped grow both advertising dollars and market share.
On the other hand, 62% said their media companies needed to rethink how they serve the online audience in order to become a leading digital content provider. In fact, half (49%) of respondents said their organizations must "drastically change" to enable e-commerce.
The Forrester study examined how digital content is monetized in the media industry. According to the report, the biggest surprise is that media companies can't figure out how to make money in the digital age, even though they have a large opportunity to develop a new stream of revenue. The study adds that, "Traditional media companies blame the lag time on corporate initiatives that question e-commerce as a revenue stream...[when what] needs to be asked is if they can afford to wait."
Forrester will present the full results of the survey today at the first-ever Think Commerce, a summit where the top minds in publishing, technology, and retail will discuss the $1 trillion global e-commerce market. Hosted by Group Commerce, Think Commerce kicks off 11:30 AM till 5 PM at Pier 60, Chelsea Piers in Manhattan. More than 500 attendees are registered from top media and technology companies.
The Forrester study also disclosed that while a majority of media companies are not suffering losses from digitizing their content, they have yet to convert that into a promising revenue stream. It revealed that e-commerce marketplaces are perceived as much more compelling profit opportunities for media companies than daily deals. The study also said "e-commerce is more likely to drive revenues, deepen brand loyalty and increase audience base than additional advertisers."
Other survey results include:
- Seven in 10 (68%) agree that a digital and print subscriber is worth substantially more to media companies than just as a print subscriber.
- Six in 10 (61%) agree that in the future their e-commerce strategy will be a key factor in how they invest in technology to support their content.
- Six in 10 (62%) agree that their company must rethink how it serves the online audience to become a leading digital content provider.
- Nearly half (49%) agree that their organization must change dramatically to enable an e-commerce marketplace.
- Just fewer than 1 in 5 publishers think their audience wouldn't be interested, meaning that up to 80% of publishers perceive unmet demand for e-commerce marketplaces.
CEO Jonty Kelt, of New York City's Group Commerce, said "the dynamics of resistance to change are not new, and the struggle to change old business models and introduce new revenue initiatives within media companies has accompanied every paradigm shift throughout the history of mass media."
Kelt noted that the discussion of how media companies need to adapt to the booming e-commerce marketplace will be the focal point of Tuesday's Think Commerce summit, which will feature senior media executives who, he said, "know exactly what it takes to get a new commerce initiative funded, running, and succeeding at the highest levels. We'll also be hearing from reporters covering companies succeeding in digital — as well as from the top investors who are backing their expansion into this space."
Think Commerce will feature visionary panels and keynotes on the collision of content, commerce, and technology from the perspective of media companies, brands, and consumers. The event will explore how e-commerce will become the dominant revenue model for media companies and publishers of all kinds and every size. Tickets are still available at Think.GroupCommerce.com.
About Group Commerce
Group Commerce is the market-leading platform for publishers who want to succeed in e-commerce. Group Commerce serves consumers, publishers, and merchants. Founded in 2010, Group Commerce is funded by Spark Capital, Carmel Ventures, Jafco Ventures, Lerer Ventures, and Bob Pittman. Clients include Boston.com, CBS Local, DailyCandy, The New York Times, and Thrillist.
Group Commerce Contact
Joshua Neckes, Director of Marketing, email@example.com or (917) 715-0347.
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