She Strengthens

The Shifting Landscape of Digital Media: Understanding the Business Behind the Content

In recent months, the digital media industry has faced unprecedented turmoil, with mass layoffs, closures, and a pivot to video content. This shift has left many wondering about the viability of online publications and the future of digital media. As a niche media company, we’ve had a front-row seat to these changes, and we’re here to pull back the curtain on how we make money in this tumultuous landscape.

The Harsh Reality of Digital Media

The truth is, consumers have largely abandoned the idea of paying for the media they consume daily. This shift has made it increasingly difficult for digital outlets to find a monetization model that works. As a small operation, we’re fortunate to be insulated from the bigger industry trends, but we’re not immune to the challenges. Our lane – personal finance for women – is relatively niche, which has allowed us to thrive, but bootstrapping a media company is never easy.

The Business of Media: Breaking Down Our Revenue Streams

So, how do we make money? We’ve diversified our revenue streams to stay afloat in this turbulent industry. Here’s a breakdown of our income:

• Programmatic Ad Revenue: These display ads are the bread and butter of most websites, but they’re also one of the least lucrative revenue streams. We net about 20% of our overall revenue from programmatic ads.
• Pre-Roll Ads: These ads play before our YouTube videos and are more valuable than display ads due to their engagement and targeting capabilities. They account for about 25% of our revenue.
• Custom Content: This includes sponsored posts, branded Instagrams, and shout-outs in our videos or podcasts. Custom content is hugely valuable for niche audiences and accounts for around 35% of our revenue.
• Affiliate Marketing: This model involves linking to products or services and taking a commission on transactions. We engage in affiliate marketing sparingly, and it accounts for around 5% of our revenue.
• Editorial Product: This encompasses original content, syndicated packages, books, TV, and other media. Editorial product accounts for around 10% of our revenue.
• Everything Else: This bucket includes e-commerce, licensing, and consulting, and accounts for around 5% of our income.

The Challenges of Scaling Digital Media

While we’ve found a model that works for us, there are key takeaways for consumers and creators alike: none of these ad models scale well, and even if you maintain a niche audience, the costs of running a digital property increase substantially as you grow. Moreover, any one of these models can come crashing down at any time, forcing you to restructure overnight.

The Cultural Shift Needed to Support Quality Media

The underlying issue remains the same: if we demand quality media, we must be willing to pay for it. As consumers, we’ve gotten used to the idea of media costing nothing, but that’s far from the truth. We need to be more aware of how our favorite outlets make ends meet and be willing to contribute to seeing more of what we love. Just because you’re not paying for something doesn’t mean it’s free.