Overview
The world of publishing is undergoing a significant transformation, one marked by disruption and innovation.
Print advertising continues to erode as consumers increasingly engage with digital platforms. Meanwhile, revenue models for digital remain challenging, with ecosystems like Google, Meta and TikTok capturing major chunks of consumer attention and advertising value.
That said, there has never been more consumer demand for information, and publishers have developed a range of new publishing monetization streams to drive topline growth, from programmatic advertising, social marketing and affiliate/commerce marketing to lead generation, brand licensing and subscriptions. These revenue streams and business models, which require scale and a range of new digital publishing capabilities, have contributed to a period of rapid industry dealmaking and consolidation.
How we help
L.E.K. Consulting has extensive experience working across the publishing landscape on projects that include:
- Content owners and platforms
- Data owners
- B2C digital publishing
- Consumer and B2B digital publishing
- Trade book publishing
- Educational publishing and software solutions
- Newspapers and magazines
- Audiobooks
We help publishing clients understand market shifts, customer needs and competitive positioning. We help guide growth strategies, investment priorities and the development of new revenue. Typical client issues and scenarios we assist with include:
The core value proposition of the service offer is clearly articulated to ensure alignment with market expectations.
- Competition between digital platforms and traditional print media channels is managed with informed strategic positioning.
- Subscriber and audience potential is evaluated to guide resource allocation and growth planning.
- Revenue potential is broken down by audience segment to improve financial modeling and monetization strategies.
- A tailored mix of business models and bundled pricing is designed to meet audience needs and revenue targets.
- We identify the level of investment required to support sustainable growth.
- The range of potential revenue and cash flow outcomes is estimated in order to support strategic planning.
Content and feature planning
- A prioritized set of content and features is selected to meet subscriber expectations and drive engagement.
- The relative value of each proposed content feature is assessed through a subscriber-value lens.
- ROI for development initiatives is calculated to inform content investments.
Generative AI and content monetization
- IP usage by GenAI platforms is analyzed to assess exposure and data ingestion.
- GenAI market growth is evaluated to inform data valuation.
- Strategic paths are assessed between content licensing and first-party GenAI products.
- Licensing models are designed with optimized pricing and IP protection measures.
Pricing and packaging
- A data-informed pricing strategy is developed based on the target consumer base, value delivered and the competitive landscape.
- Differentiated pricing tiers with distinct benefits are structured to maximize revenue potential.
Tactical subscriber growth support
- The available runway for further penetration of the target customer base is assessed through market sizing.
- Tactical levers are deployed to drive incremental subscriptions and reduce churn effectively.
International expansion
- A roadmap is developed to take the domestic service international in a scalable and efficient manner.
- High-priority international markets are selected based on strategic fit and growth potential.
- Market-specific localization strategies and investment levels are determined to optimize regional performance.
Examples of our work
Our work has helped drive the revenue of multiple clients, including by:
- Supporting national news organizations in gaining a deep understanding of new market opportunities and developing new revenue streams
- Helping major magazines develop new ancillary consumer products such as digital offerings, events, books, community services, swag, etc.
- Advising multiple digital information service providers on pricing optimization to achieve higher revenue
- Supporting numerous financial sponsors in evaluating the potential for new revenue streams under various likely scenarios
- Providing several publishers with an in-depth understanding of recession vulnerabilities while developing strategies to deal with future recessions
