Though abundant pessimism about the future of journalism, the American media prove that newsrooms are filled with young talent, so that venture capitalists have decided to give a chance to publishers investing millions with them. The online media are the new target of venture capitalists.
BuzzFeed has gotten $ 46 million financing, Vox Media has raised about $ 80 million in venture capital and Business Insider has gotten around 30 million. This turnaround in the media not only reflects a renewed confidence in the publications, but also shows that online media are increasingly perceived as profitable companies in the world of new technologies.
However, even those venture capitalists that are increasing their participation in the media, are divided on whether this funding demonstrates a twist or just a moment of optimism in the market. Risk investors that are willing to support publishers seek a pattern for the most suitable companies.
Recent investments in publishing are not a sign of enthusiasm about the sector but rather a sign that the publishing world is in a less bad situation than it should be. "Things are not getting better, just being less bad".
What is clear is that the Internet offers many new opportunities. The audiences are fragmented, allowing advertisers to identify and deliver specialized content. A clear example of what is stated above is ‘The Dodo’, a website that was launched late last year with news relating to the animal world, which has been a success. Specializing in online media is a guarantee to avoid failure.
Moreover, the Internet ad spending will continue to grow in the coming years in the United States, reaching 25.6% more in 2015, according to an eMarketer study (Source: Marketing directo).
clementeferrer3@gmail.com. Author and journalist Clemente Ferrer has led a distinguished career in Spain in the fields of advertising and public relations. He is currently President of the European Institute of Marketing.
Filed under: http://www.theleader.info/article/44753/
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