Media Business Model-Michael Giusti

Giusti started out by outlining what a business model is and how different it is than a business plan.

A Business Plan
-55-page monsters
-used to secure funding/investors
-helpful in defining your operations

Business Model
-Why are they important? They help you focus your organizational strategy.
–Do I add a new publication or app?
–Do I hire a new staff?
–Do I run a new promotion?
-They help you decide on content.
–Are you covering the right things?
–Are you targeting the right demographics?

Business Model Components
1.) Your product-What it is that you’re producing.
2.) Your funding source.
3.) Your customers.
4.) Your competitors.
5.) Your delivery method(s).
6.) Your competitive advantage. (Why you rock)

Funding Sources
–4 traditional funding sources
-Someone pays you for your content (subscribers)
-Someone pays you for access to your audience (advertisers)
-Someone pays you for your mission (donors, foundations)
-Someone pays you for your expertise (event attendees)

What is your product?
As the Northerner, our product is the Newspaper. We shouldn’t sell advertisements, we should sell ACCESS to our audience.
*Don’t sell ads, sell audience. Your product is your audience.

Who are your customers?
Readers, advertisers.

Your delivery method:
–Have a set, published distribution calendar.
–Have good, attractive news bins. (How do we hold up, NKU?)
–Hire (or appoint) a reliable, professional distribution manager (not a committee)
–Keep track of how many papers are picked up at each distribution point.
–Adjust that number to account for high and low spots. (EMPTY BINS ARE BAD!!)
*Google Analytic.

Untapped potential?
–Can you tap niche markets?
-Law review
-Greek Life guide
-Online alumni newsletter
-Incoming freshman survival guide
–Can you improve circulation/readership?
-Dorm Distribution
-Hand-to-hand
-Better, new bins
-Marketing push, giveaways

Who are your competitors?
-For news product
-For attention
-For campus information
*The Northerner is competing with the N3 newsletter & Facebook.

Your competitive advantage
–Environment
-We have the 18-24 year olds everyone is looking for.
College students are a premium product.
College students have more disposable income than any other group than retirees.
They aren’t brand loyal yet.
-We are on campus.
And free.
We are in the space students are in.

Post by: Brook Clifford, Staff Writer