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Solution Construction Kit

Modules for Digital Media Transformation

The Current Situation

Already today, the utilization of media by younger people is primarily digital and mobile. If younger user groups until 45 years of age shall be reached and captivated in a sustainable way, publishing companies have to accept these use habits and adapt their content - as well as ads - in layout, size and multimediality to the specific possibilities of mobile devices.

Simultaneously, users today do want an active participation in the communication process. They expect to be addressed at eye level; the reader will become also a producer of content ("prosumer"), who may not only comment, but also shall be empowered to vote on content, to correct and/or amend it. Information regarding the course of events today will be needed preferably in realtime, in order to react in an appropriate manner. Advertisers anticipate a prompt evidence of success for their placed adverts, combined with the possibility to update and optimize their ads with respect to the previous feedback at any time.

This expectation will be superimposed with the possibilities of the digital age to get all products and services at mass market prices tailored to the personal needs and interests (»mass customerization«). This is also valid for information offers of the media industry, the seventies credo "one size fits all" inceasingly looses its charisma.

Young users of a mobile digital media
Picture credits: © Syda Productions /

Solution Concept

The solution construction kit we have developed for digital media transformtion features modules, which can be utilized by their own or in a combined way, and comprises as well modules with innovative functional as well as proven organizational concepts. Beyond the pure digitalization of the products, services and production processes, the individual modules of the construction kit describe the application of the following central solution principles for digital media transformation:

  • personalization of products/services
  • participation of users, customers
  • communication in realtime
to the content types a) editorial content (news, reports, ... ) and commercial content (adverts, infomercials). Additionally, the solution principle "effectivity and synergy" subsumes the individual concepts for an up-to-date editorial organization in order to support the prior solution principles with a suitable organization in a adequate manner.

The Digital Business Model

The business model for digital media associated with the solution construction kit typically supports two target groups :

  • advertisers doing their business in fragmented local / regional markets,
  • younger user groups up to the age of 45, which have turned away from classic media.

The value proposition for advertisers is to optimize the impact of their placed adverts by specifically utilizing mobile devices for ad display (e.g. the localization information). Thematically, only those ads will be displayed to users, for which the corresponding ad theme - or a generalization thereof - has been selected by the user in his personal interest profile (see below). Furthermore, ads will be in particular and proactively displayed to users, when their current location will be in the vicinity of a sales or event location for the specific offer. For the user of a digital media, the value proposition is an information plenitude covering his / her individual interests especially for the living environment and which can be easily configured with respect to the individual interests. Together with the interactive participation in communication at eye level.

The value chain for adverts especially includes the regular (e.g. daily) analysis of the publishing company about the ad displays happened, when ads have been displayed to users where and how long rsp. often. More demanding special services of the publishing company for the advertiser might include the identification of regular customers, which visited a sales or event location repeatedly, in order to offer to those customer rebates, specials, ... . In detail, the advertiser will be offered the possibility to change and update the content of this ads by himself at any time, based on the delivered analysis. The value chain for editorial content encompasses the preparation of content to be published by the location of events and thematic categories, in order to make this content eligable for mobile display with respect to the specific interest profile. It includes the enrichment of content by editorial background material as well as the the automatic, proactive inclusion of additional rapporteurs in a scattered news situation.

The yield mechanism of the business model is based on two revenue sources:

  • ad revenues, which will be differentiated by the placement period, the number of sales and event locations and the multimediality of the advert, and may be extended by special services for advertisers like the identification of regular customers,
  • subscription fees for the provisioning of content with the selected thematic categories. In contrast to the stationary Internet, the user's willingness to pay for apps rsp. content and services for mobile devices is given.
Beside standard positions like marketing and sales expenses, on the cost side of the business model the costs for editorial operations and the highly available delivery of the information offers via Internet will be accounted. The abandonment of printing works, paper and a distribution organization for the handling of physical products constitutes a not negligible cost advantage against classic print media, but also the cessation of the so far market entry barrier for competitors.