Digital media strategy: verticals, consolidation and the ‘squeezed middle’

Vertical business models provide publishers with incentives in an online world where true scale is measured in the hundreds of millions (if not billions), dominated currently by digital giants Facebook and Google.

For many magazine media publishers the progression to online vertical plays is a natural one: it is about content catering to specific groups of consumers, sectors or industries, with those niche or special interest audiences presenting strong advertiser appeal (as well as, on the basis of the strength of relationship, other opportunities to monetise).

Vertical audiences can measure from the thousands into multiple millions; size is determined by the potential of the particular market segment. The common theme, however, is that the quality of audience connections in a vertical – the depth of audience relationships – matter.

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