Das ka Dum with Dr Bhaskar Das | Why do you think does digital news media not attract as much advertising as print or television even though consumption numbers are very high?

28 May,2020

Bhaskar DasThe question today may not be profound, but the issue is. So here it is: the May 28 edition Das Ka Dum with Dr Bhaskar Das. Btw, our question for tomorrow is really very profound. Do come back for it. Meanwhile, over to the Wizard with Words…

 

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Q. Why do you think does digital news media not attract as much advertising as print or television even though consumption numbers are very high?

 

A. Digital media is relatively new. Most importantly, a few big players have started early and have developed such functionality, consumer experience and scale as to receive massive user stickiness. Even their monetisation techniques are based on precision marketing that focuses on performance. That’s music to the ears for the supply side owners. The first movers have invested on the tech side so robustly and blitzscaled their operations that have made those organisations really surpetitive, to borrow a term of Edward de Bono, and in the process they serve the advertisers’ future backwards business strategy. The catch up game would be Herculean for any late entrant and they can at best be niche players. The FAANG group is a borderless country by itself and the economy structure would be more akin to oligopolistic than perfect competition.

 

It’s unfair to compare at this stage the digital medium with print and TV as both the formats got a headstart over digital and hence have some legacy advantages like defined industry metrices, ROI of investments for advertisers etc. They are also amongst the Top 3 large media formats of delivery. So for digital to upset the pecking order might take time. Anyways digital has come up to the second largest medium , anyways. But benefits would mostly accrue to the oligopoly of FAANG.

 

 

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