Hot debate over digital business models

“Present your case,” says the Lord. “Bring forth your strong reasons,” says the King of Jacob. Isaiah 41:21

The topic of finding successful digital business models is an ongoing hot debate in the radio broadcast community.

Radio CEO Jeff Smulyan and media consultant Mark Ramsey took to the blogosphere to argue several sides of the issue.

The debate opened with Mark Ramsey’s post attacking the NAB’s “Radio Rocks My Phone” commercial created to generate enthusiasm for getting FM on all mobile phones.

Mark says consumers are not demanding FM-equipped mobile devices and trying to persuade them otherwise is misguided. The radio industry needs to see beyond its hundred-year history and develop new digital extensions that makes consumers want more.

Jeff Smulyan’s response is the first comment following Mark Ramsey’s post.

Jeff says streaming is too expensive and no one is making money at it. Consumers don’t see the value in making a broadly based communication medium a one-to-one medium. Mobile is the salvation of both over-the-air radio and television. Major wireless carriers are blocking free radio on phones so they sell music downloads. Congress should intervene.

In a follow-up, point by point rebuttal post, Mark says the argument isn’t about distribution, FM on cell phones. The main issue is relevance.

The debates have helped to clarify the need for Christian communicators to develop a cloud business strategy of their own.

Three keys to building a digital ecosystem

1. Overcoming obstacles in the transition to digital media is about the gospel first, not technology and monetization. Those things are very important, but people are searching the Web for hope, healing and spiritual solutions. The issue is, will Christian communicators be the dominant force in meeting their needs?

There have always been obstacles to the gospel and the challenges of moving to digital are not going to stop it.

2. Geo-relevant targeting is changing the face of local media. Increasingly, local churches and businesses are turning to Facebook, Google, Groupon and LivingSocial ads and promotional deals.  According to eMarketer, last year Facebook grossed $1.86 billion in advertising revenue. Of that, $1.12 billion (60%) was earned from small businesses in local markets.

Today advertising, tomorrow hyper local features like local news/information, local events, local goodwill endeavors, and local church services. What is more locally relevant than the gospel? Local Christian radio, churches and businesses are in the drivers seat to build local digital platforms around religious content. For now.

The opportunity is there for those involved in local Christian communication to establish a new digital “being” by joining hands with technology intermediaries to reach out to mobile users and everyone online.

3. Someone has said, “Create compelling content, and MAYBE the uprising will happen.” Good point. A successful transition can only happen with great content. Christian communicators have the world’s largest source of excellent Spirit inspired, community-created messages. However, there is more to consider on this point.

Unless the only thing you want people to do is hear a message, then response to the message must also be taken into account. That will take an optimized content delivery method, visitor behavior systems and conversion rate analytics.

What do Christian broadcasters want to happen when a visitor engages with the gospel: Receive Christ right now by faith through prayer? Recommit their lives to Jesus? Send comments? Ask questions? Meet local believers? Visit a local church? YES, all of the above!

Being social in digital outreach is not about being social through the content. It is about connecting people to Jesus and to one another.

There is a time for everything. General market broadcasters will continue to duke it out over their digital strategies. The time for getting out of the business model wars and getting on with business of spreading the gospel online is now, before the opportunity is lost.