Journalism is expensive, and mass-market Web advertising alone will not sustain it. Rather, news organizations must become adept at “advisor-tising” — in other words, offering a service that allows permission-based sharing of commercial messages with individual users based on their expressed interests and needs.
News organizations need to to come up with a completely different revenue model to support third-party product and service marketing — “advisor-tising.” No newspaper is ever going to make a business with one-dollar CPMs the way Google and Facebook can. They won’t have the audience size.
So they are going to have to slice and dice their audience down to interest-based cohorts of anonymous individuals, offer them a highly customized user experience and deliver them accurately to marketers with messages relevant to the cohorts.
A problem is — Google and Facebook know this, and have thousands of engineers working on achieving it. The **only** way the news industry remains a coherent industry is if it collaboratively works on this challenge, with or without tech partners.
That’s why the Information Trust Exchange is at least necessary (although not necessarily sufficient) to the survival of the news industry.