SIPAlert Daily – Choosing the right business model for your mobile and the process one member went through

“What are you trying to accomplish [through mobile]?” asked Larry Schwartz, president of Newstex, during last week’s second webinar—titled Monetization and Business Models—of SIIA’s new Mobile Essentials series.

Of course, you want to be seen, heard and found, and building a mobile app is a good way to do that. “Mobile Internet traffic is building very quickly and desktop access is falling off,” Schwartz said. Apps now account for 82% of all mobile access. He suggested that you look at the percentage of your traffic that is coming from mobile. It’s probably growing.

[This webinar with the full presentation is now posted on the SIIA website for SIIA/SIPA/ABM members to access.]

Schwartz then proceeded to lay out the various business models that should drive a publisher’s mobile strategy:

1. Mobile extension to desktop product. The purpose is not to replicate your desktop product, but to provide a mobile product to complement it. For example, CQ did this and it has enhanced the value of their content. The app is free to download from the app store, but users need a log-in and password from CQ.

2. Newsstand subscription. If you publish your content no more than once every 24 hours and bundle your content into issues, then the Apple newsstand app may for you. Your app will be available in both the app and newsstand store. “Our experience is you should publish at least four issues per year,” Schwartz said. Apple charges 30% fee, but they handle all the side issues. “If you’re interested in expanding to the international market, Apple’s a great way to do it. I think they’re in more than 225 countries now.”

3. Freemium model. It’s designed to drive awareness and interest in your content in a free app while generating upscale opportunities to the free version. The Guardian uses this model for their mobile app. You can access content on an ad-supported basis or pay 69p for their premium tier (the lowest price allowed in the U.K.). The key to success is that the free version must be able to stand on its own, Schwartz said.

4. Digital Print Bundle. This is a current favorite among publishers because it provides a means to extend the life of your print to figure out how to replace those dollars. It allows publishers to experiment. A magazine like Consumer Reports will give their print subscribers access to their digital tools—a kind of best of both worlds.

5. Sponsored or ad-supported app. These treat mobile as a specialty product. The CQ Roll Call app, for instance, is ad supported and can be downloaded free from the Apple store. Banners can be placed in the story. You must think through the design for this to work. Size and placement do matter here.

6. Native ads. These are effective but controversial—indeed, the FTC has started to look into them—because the advertiser seeks to gain attention by providing content in the context of the user experience. Native ads match the form and function of the content. If they are publisher produced, then it’s similar to an advertorial. The intent is to make paid ads feel less intrusive.

7. Transactional or In-App purchase. Allows you to download a free app and then make a purchase to keep using it or to upgrade the app by using Apple’s In-app system. Amazon has also just launched a system. LexisNexis offers a free trial and then you choose a subscription level. It’s also very international and you can sign in on multiple devices.

Schwartz offered one last tip: Smart App banners. When a user comes in on their IOS device using Safari, they would see a pop-up banner that shows the app on their iPad. If they have the app, it comes up. If they don’t, it tells you to download it.

 

Next up was Ed Keating, chief content officer for BLR and in charge of new products. BLR has a long history of experimentation, first with the HR Daily Advisor. “Luckily, we’ve migrated to a new [mobile] platform,” Keating said. “It just launched over the weekend—covers all of our verticals.”

What process did BLR use to get to that stage? There were three steps:

1. They researched their customers, checking their mobile traffic and what people said they want to use.

2. By working with an established provider—in this case, Newstex—they learned a lot.

3. They debated business models. How were they going to pay for this and how is this going to work within BLR’s business?

They did a lot of surveys and found differences in the breakdown of devices being used. The critical question they asked was, “What are you using mobile for?” They were reading news, taking training, keeping records. “What kind of workflow thing might we want to be thinking about?” Keating said they next asked. Interestingly, there was not a big difference between their paid and unpaid audience.

What were the challenges? “On the strategic side, are you mobile first or mobile second?” Keating asked. “We were probably mobile third. We have been digital for a long time and still have print products and need to support those. But our mobile traffic is up.

“How do we integrate mobile platforms into our overall strategy? The challenge for BLR products is that their use is episodic,” Keating continued. “They answer questions. If people are not getting a lot of questions, what do you do? Mobile allows us to be in their forefront all the time. We can be more pervasive in their day. Trying to own your customers share of day is a good goal and metric.”

From the operational side, here were BLR’s concerns:

1. How do you budget? It’s like the Internet. You just need it.

2. Content readiness. Self-explanatory.

3. Not built here. BLR had some mobile expertise in Tennessee. But because no one there owned it, it “did not get in [their] way.”

4. Ignorance. “We don’t know what we don’t know,” Keating said.

5. Timeline. That was tough. Who owned it? “It took us forever to get the thing launched,” Keating said. “Where in the organization should this thing live?” You need your top people to communicate.

6. Business model. How do you pay for this? “We got caught up on that one,” Keating said. “We played around with a couple ways to make this work for us.”

The sponsored and ad-supported model proved most appealing. “BLR has been building an ad business here—growing quite well,” Keating said. “It was great to have something else to put in the bags of our sales reps. Having mobile was a logical extension. And maybe it could grow towards [a] Freemium [model].”

The ad-supported model was also the easiest way for BLR to get new names to follow. “It’s incredibly trackable and metric oriented.” BLR was already offering some free content to potential subscribers. With the added capabilities of the platform, they could ask for an email address and give a lot more functionality. That would make them more alluring.

Keating also had a final tip. At first, he said BLR looked around at what others do. “The most, well-thought out strategy came from the head of mobile at Thomson Reuters,” he said. “’We are striving to design and develop best-in-class platforms to facilitate agility, quality and consistency across products that will help people work as efficiently while mobile as they are in the office—and seamlessly no matter what platform they use.’

“For many of us in the SIPA, ABM and SIIA world, that is something to strive for. Can we match where our customers want to go?”

 

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Ronn LevineRonn Levine began his career as a reporter for The Washington Post and has won numerous writing and publications awards since. Most recently, he spent 12 years at the Newspaper Association of America covering a variety of topics before joining SIPA in 2009 as managing editor. Follow Ronn on Twitter at @SIPAOnline

SIIA buys UK Specialist Media Show, Schedules Fall Conference in London

SIIA is happy to announce that we have bought the Specialist Media Show, a UK-based organizer of live and online events and resources for consumer and B2B publishers.

The Specialist Media Show has showcased digital media innovation at events for niche publishers since 2010. The next event, Specialist Media Conference, will take place April 24 at the British Library. SIIA’s acquisition will take effect after the event.

SIIA also announced in November that it has merged with the Specialized Information Publishers Association (SIPA), a membership organization serving the needs of niche publishers in the US and Europe. SIIA and SIPA members will work closely with the Specialist Media Show to create joint networking opportunities in Europe.

SIIA is planning a media & publishing summit in September 2013, in London, which will bring together the communities of SIIA, SIPA and the Specialist Media Show.

Launched in May 2010, the Specialist Media Show caters to the needs of niche consumer and business publishers in learning about how to adapt their business to digital media, with workshops, conference, exhibitions and online resources. The live events have generated an online community of specialist publishers with access to practical resources and networking.


Laura Greenback is Communications Director at SIIA. Follow the SIIA Content Division @SIIAContent.

SIIA Announces Commitment to Data-Driven Innovation as a Top Policy Priority in 2013

The SIIA Government Affairs Council met Wednesday to outline the organization’s policy priorities for 2013.  In addition to identifying the specific initiatives it will pursue in the year ahead, SIIA and its member companies expressed a commitment to making data-driven innovation a top policy priority in the year ahead.  The SIIA Government Affairs Council includes: Reed Elsevier, IBM, Adobe, Cengage, Dow Jones, Intuit,  Kaplan, Kiplinger, Google, McGraw Hill Education, McGraw Hill Financial, Oracle, Pearson, Red Hat, SAS, and Thomson Reuters.

A key theme unifying the work of SIIA on behalf of its members is an increased focus on advancing the effective collection and positive use of data. It is essential that public policy recognizes that innovation and business strategies are increasingly driven by data. Importantly, data-driven innovation not only holds the promise of advancing economic opportunity and jobs, but of providing tremendous consumer and societal benefits.

With so much at stake, SIIA is committed to actively promoting the economic and social value of data-driven innovation. Our efforts will involve direct outreach to legislators, along with a White Paper that includes recommendations for policymakers and governments. Our goal is to make certain that public policy helps enable the tremendous societal and economic benefits of data-driven innovation.

With members in both technology and information services, SIIA is uniquely positioned to highlight and address the public policy issues that arise from the increased salience of data-driven innovation. We began to focus more strongly on this issue in 2012, and it will be an even more important part of our work in 2013.

SIIA also announced its general tech policy priorities for 2013, along with policy priorities in the areas of: intellectual property; public sector IT, and; education technology. [Read more...]

SIIA Launches Public Sector Innovation Group to Address Changes to the IT Acquisition Environment

SIIA today announced the launch of a new membership group to help technology firms take advantage of the evolving Federal investment in cloud-related technologies. SIIA also announced that it has brought on Mike Hettinger, a Capitol Hill veteran and leading expert on public sector management, to direct the new division.

Called the Public Sector Innovation Group (PSIG), this new membership division will help cloud service providers and Third Party Assessment Organizations (3PAO) take advantage of the evolving Federal investment in cloud-related technologies. PSIG is the only organization of its kind to serve this innovative segment of the public sector technology market. While SIIA been a leader for years in guiding tech companies in the government procurement process, the formation of PSIG reflects the dramatically changed government marketplace.

The move to the cloud is an enormous opportunity for many government contractors. The creation of PSIG will help SIIA members understand the changing landscape, seize upon new government initiatives, and generally be better positioned for success with Federal IT procurement.

SIIA has been guiding our members through this process for six years, with our annual Cloud/Gov conference at the centerpiece. When the Federal government issued its ‘Cloud First’ policy last year and adopted the FedRAMP Concept of Operations, we knew it was time to do more to help our members understand the impact of changes to the IT acquisition environment.

Hettinger most recently served as Executive Director overseeing Strategic Planning and Market Development in Grant Thornton’s Global Public Sector Practice, where he was responsible for firm-wide strategic business planning, federal marketing, and external relations. Prior to joining Grant Thornton, Hettinger was the staff director of the House of Representatives Committee on Government Reform, Subcommittee on Government Management, Finance and Accountability. Hettinger also has an extensive background in public affairs, having served as a Public Policy Counselor at Patton Boggs LLP, where he oversaw large-scale lobbying and public affairs campaigns. Prior to joining Patton Boggs, Hettinger was Chief of Staff to Representative Tom Davis of Virginia.

Read more about PSIG in today’s Government Computer News feature.


Laura Greenback is Communications Director at SIIA.

SIIA Issues $35,000 in Anti-Piracy Rewards in Fourth Quarter

SIIA paid $35,500 in anti-piracy rewards during the final quarter of 2011, among the highest in any quarter since the program’s inception. The rewards went to five people who reported cases of significant workplace end-user software or content piracy.

The workplace is a major battlefield in the fight against piracy, and SIIA’s mission is to identify and stop businesses that profit from software and content they are not authorized to use. We rewarded five individuals who saw significant illegal piracy in the workplace and took action to stop it.

The information these sources provided has allowed SIIA to launch several new investigations and continue the industry’s most aggressive campaign against software and content piracy.

Our Corporate Anti-Piracy Program seeks verifiable tips in order to investigate and stop software and content piracy occurring within an organization. Since the reward program began in 2003, no other trade association has given out more rewards in an effort to combat software and content piracy.

SIIA protects the identities of whistleblowers—making it safe for individuals to report software and content piracy in their workplaces.

One anonymous reward recipient who provided valuable information said, “Thanks to SIIA, the process of reporting software piracy was simple, thorough and secure. I was able to make a difference and, in a small way, help crack down on the illegal use of computer software.”

“I was forced to use illegal software in order to do my job and support my family,” continued the source. “I felt ‘guilty by association.’ It bothered me that they were profiting from the software and never felt obligated to purchase it.”

Corporate piracy often occurs when software has been installed or content is being copied and/or distributed by an organization that does not have a license, or has insufficient licenses from the publisher. Through our Anti-Piracy Reward Program, SIIA offers rewards to eligible individuals who report verifiable instances of corporate software or content piracy. Rewards range from $500 for a settlement of $10,000, to $1 million for cases with settlement amounts over $20 million.

How to Report Corporate Software or Content Piracy
Sources can report corporate software piracy by e-mail (piracy@siia.net), telephone (1.800.388.7478), or the Internet (www.siia.net/piracy/report). Usually the source is a current or former employee of the firm, an SIIA member company representative, vendor, or a person with first-hand knowledge about a company’s IT operations.


Laura Greenback is Communications Director at SIIA.

SIIA kept busy with Privacy Issues and Cloud Computing; Back from Recess, Congress tackles Patent Reform

Congress is back and patent reform is at the top of the Senate’s agenda this week.  The House-passed legislation (H.R. 1249) will be before the Senate for a procedural vote this evening, with votes on amendments and ultimately a final vote later this week.  The key issue still looks to be the funding provision, where amendments are expected to be offered to maximize PTO funding and prevent any fee diversion.  If the bill passes without amendment, it will be expedited to the President for enactment. However, any amendments would send the legislation back to the House.

Last week, SIIA joined the Future of Privacy Forum’s (FPF) Application Privacy Working Group and became a sponsor of the FPF project, ApplicationPrivacy.org, an effort to help develop voluntary privacy principles and best practices for mobile software applications.  SIIA joined the project out of the conviction that the industry does not need government regulation, but rather to help focus the industry’s voluntary adoption of transparent practices regarding collection, use and protection of consumer data.  SIIA strongly believes that a trusted environment for users is critical to ensure continued growth and innovation in the mobile marketplace.

Also last week, SIIA submitted comments to the European Commission’s (EC) cloud computing consultation, a public inquiry to develop a European cloud computing strategy that the Commission will present in 2012.  While this is a laudable objective to stimulate a European cloud industry, SIIA’s comments highlighted the challenges associated with trans-border data flows and urged caution regarding the development of harmful approaches like cloud-specific policies and localization requirements.

For SIIA policy updates including upcoming events, news and analysis, subscribe to SIIA’s weekly policy email newsletter, Digital Policy Roundup.

SIIA submits comments on Cybersecurity, Innovation and the Internet Economy

In our continuing effort to maintain and expand the partnership between the private sector and the government to address our nation’s cybersecurity challenges, SIIA submitted comments to the Department of Commerce on Monday in response to their recent Green Paper on Cybersecurity, Innovation and the Internet Economy.

At the heart of the Green Paper is an effort to help define the roles of the Government and the private sector in combating cybersecurity threats and protecting the systems and networks that support the infrastructure that drives the nation’s economy. In our comments, SIIA offered strong support for the Department’s approach of looking toward voluntary codes of conduct for an innovative sector such as the Internet and Information Innovation Sector (I3S). We noted that the most critical element of achieving these goals is to resist an approach that is overly-prescriptive, where mandates would have the adverse effect of slowing the development of standards in the private sector, or the unintended effect of putting U.S. companies at a disadvantage to their counterparts around the world. Given the broad, rapidly-evolving cross-section of industry that comprises the I3S, a flexible industry-led approach is the correct best path forward to achieve an ideal security framework, rather than a regulatory model.

SIIA also noted that while the primary purpose of the Green Paper is to discuss an area that is outside of the critical infrastructure segment, and to bolster security in this area, this exercise can also help to appropriately define the critical framework of what is “covered critical infrastructure,” and it can help to avoid confusion and appropriately allocate resources where they are most needed.

For SIIA policy updates including upcoming events, news and analysis, subscribe to SIIA’s weekly policy email newsletter, Digital Policy Roundup.