Media Companies' e-Commerce Strategies

Table of Contents

1. Executive Summary

2. e-commerce market bigger than online advertising

• 2.1. Limits of the ad-funded only model
  • 2.1.1. Print media incapable of compensating online for the drop in print ad revenue
  • 2.1.2. Internet radio: the mass market trap
  • 2.1.3. Video services: CPM still too low
• 2.2. e-commerce market booming
  • 2.2.1. Sizeable rise in sales
  • 2.2.2. A bigger and more profitable market than online advertising
• 2.3. Internet merchants competing with media companies over content
• 2.4. The media and offline commerce

3. Media company sites' e-commerce best practices

• 3.1. Monetising traffic and affiliation
  • 3.1.1. The Sky portal strategy
    • The affiliation system
• 3.2. Consumer services and price comparison
  • 3.2.1. Bild.de “serving” readers
• 3.3. Licensed and by-products
  • 3.3.1. Clear Channel radio stations playing the iTunes card
  • 3.3.2. CBS radio: impulse buys, licensed products and ticket sales
  • 3.3.3. Mediaset sells products derived from its programmes
• 3.4. Targeted e-commerce according to audience
  • 3.4.1. Euronews recommends a language learning method
  • 3.4.2. The Wall Street Journal sells no-name wine
    • Operating a no-name online shop
  • 3.4.3. El Pais selling high-tech products online
• 3.5. Close incorporation of e-commerce into editorial content
  • 3.5.1. Fox Sports associates each sport with an online shop
  • 3.5.2. Elle.fr increasing its stable of online shops

4. Diagnosis

• Le Figaro group' s e-commerce models

Tables and figures

• Table 1: Top 10 news and media sites - USA - January 2009
• Table 2: Broadcast and online audio services market in developed countries
• Table 3: Growth of online video viewing in France, Germany and the UK between April 2007 and May 2008
• Table 4: Online advertising vs. e-commerce: revenue and net margin in 2007
• Table 5: Analysis of “technology and content” costs on Amazon.com

• Figure 1: American newspapers' ad revenue
• Figure 2: Growth of B2C e-commerce revenue, 2006-2012
• Figure 3: Comparison of online advertising and e-commerce net margins in 2007
• Figure 4: Sky.com portal traffic ranking
• Figure 5: Product displayed on sky.com
• Figure 6: Affiliation on Sky.com
• Figure 7: Shopping.com price comparison, available on bild.de
• Figure 8: Buying a song in MP3 format via radio station Fresh 102.7
• Figure 9: Buying a mobile ringtone via radio station Sunny105.9
• Figure 10: Ticket sales via 923krock.com
• Figure 11: Catholic TV online shop
• Figure 12: Mediaset online shop
• Figure 13: TellMeMore pop-up after the free lesson on Euronews.net
• Figure 14: The Wall Street Journal' s online wine shop
• Figure 15: El Pais consumer electronics shop
• Figure 16: Online shop associated with the Fox college sports channel
• Figure 17: Online shop associated with the Fox Soccer channel
• Figure 18: Online shop associated with hockey on the foxsports.com portal
• Figure 19: Elle online shop
• Figure 20: Co-branded Elle/Espace Max shop
• Figure 21: Products sold on the co-branded Elle/24H00 shop
• Figure 22: Media company websites' different e-commerce models
• Figure 23: Media companies' e-commerce strategies