Maligned and mistrusted, yet bigger and broader than one all-encompassing term, there’s room for growth in all sectors of the industry.
The worst thing about media is the word. “Media.”
Much of the current narrative surrounding the industry focuses on its challenges, such as declining trust, job cuts and the struggle of traditional media brands to increase ailing revenues.
Each year, the Edelman Trust Barometer highlights growing concerns over trust in media, yet this discourse overlooks the sector’s differentiation. The term ‘media’ encompasses a broad array of platforms and sectors, each with its own dynamics and potential for growth.
Investment banker Reed Phillips provides an insightful sector-by-sector breakdown in an op-ed he wrote for us at Media Makers Meet (Mx3), highlighting areas of M&A potential in the media (publishing) and tech sector.
It looks like this:
- Rising stars: AI and the creator economy
- High growth potential: Book publishing and events
- Moderate growth potential: B2B and (focused) digital media
- Low growth potential: News and magazine media
His nuanced analysis suggests that the general pessimism about the media might miss out on specific opportunities for growth and innovation.
A quick recap
The digital landscape has transformed the media industry, leading to the emergence of new platforms that operate on ad-driven models similar to traditional mass media, but on a much larger scale.
This shift has effectively ended the era of mass media as we knew it, with internet fragmentation allowing audiences to gather around various personal and professional interests. Around those interests, they can create micro-communities with a handful of people, to cross-border communities with millions of people.
The rise of focused publishing in areas such as B2B and the creator economy shows that success in today’s media landscape requires a departure from the generalist approach towards more targeted, authentic engagements with audiences.
Despite the challenges faced by once-celebrated digital news media giants like Vice Media and BuzzFeed, the prevailing narrative about media misses the broader picture.
The struggle of these companies in a market dominated by Big Tech and changing advertising dynamics does not spell the end for news media as a whole. Instead, it underscores news media companies’ need to adapt by focusing on niche markets, enhancing direct relationships with their audiences, and diversifying revenue streams.
The success of independent news outlets like Daily Maverick, or niche startups like Good Things Guy demonstrates the viability of a focused approach over chasing broad, platform-fueled traffic.
Earlier this year, I wrote about three trends for New York-based Creative Licensing International…
1. Media verticalisation
As mentioned above, vertical media publishers with community-first strategies are resilient, even thriving. These publishers understand that the “glamour days” of media are gone but that “smaller” and “successful” can go together.
Whereas publishers-built-for-platforms outsourced audience relationships to platforms, those with strong, direct audience relationships (and data) could build robust, diversified revenue streams with less dependence on platform-generated traffic to fuel ad-driven models.
Vertical media thrives on this direct engagement, bolstered by the success of Substacks and podcasts, and reinforced by investment in specialised content areas developing high-quality, authentic relationships with their audience.
I wrote more about the trend towards niche and B2B here.
2. Direct-to-consumer
Direct-to-consumer (DTC) strategies have evolved beyond subscription models to encompass a holistic approach that includes first-party data collection, deep audience relationships, and diversified monetisation methods.
The synergy between media verticals and DTC strategies is evident, as a focused approach enhances the ability to cultivate these relationships and implement effective monetisation strategies.
One example is the continued value of newsletters, while a sector like eventing provides publishers with another tremendous direct engagement channel.
People thrive on deep connections and meaningful conversations around the subject matter that interest them. DTC taps into this.
I wrote about ways to maximise direct audience relationships here.
3. Artificial Intelligence
AI represents the biggest and most fascinating trend of them all. This is the backdrop against which everything else happens. The rate of change is rapid. Any disruption is fraught with friction (eg, The New York Times versus OpenAI and Microsoft).
Much like in the 1990s with the digital revolution, there is an energy around AI that makes life exciting.
Those developing AI will again be the rule makers, but from multiple conversations at and around our Mx3 events, it ‘feels’ like publishers at least acknowledge the disruptive power of AI better than the head-in-the-sand approach that existed in many companies with the explosion of the consumer Internet in the 1990s.
I’m personally quite fascinated about how AI will change the way consumers interface with content, and I touch upon that here and here.
This free-to-download report which we produced from an Mx3 AI meetup in London in December last year, offers some insight into developments in the sector.
Ultimately, building a media business is hard, and it will remain that way. We will see brands and businesses disappear, as you do with every new wave of disruption.
The good news is that ‘media’ is not dead. You just need to know where to look.
Cobus Heyl brings a uniquely global perspective to his analysis of the future of media as it intersects with technology and changing consumer behaviours. He has actively worked across Africa and Europe and continues to run multiple industry events around the world. As co-founder of Media Makers Meet (Mx3), an international B2B information services and events company, he connects industry leaders through online and in-person channels to share knowledge and shape conversations about media, tech and the future. Learn more at mediamakersmeet.com and connect with Cobus at linkedin.com/in/cobusheyl.
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