B2B Strategies: PRO services as the key to the future of media

Summary of the conference I gave a few days ago at the LATAM Media Leaders Summit by WAN-IFRA in Bogotá (Colombia)

The media industry, as we all know, is at a critical inflection point: advertising is not enough, and general subscriptions, after significant growth, are generally plateauing, if not in outright decline.

In a presentation I recently gave at the LATAM Media Leaders Summit by WAN-IFRA in Bogotá, based on what we are applying in some media through my consultancy Next Idea Media, SL, and on market knowledge, I addressed a strategy that can be essential for the sustainability and growth of media: implementing services aimed at professionals in newspapers, under a PRO subscription with higher added value and greater profitability.

I offer below an adapted summary of that presentation given in Colombia. WAN-IFRA has distributed the presentation among its members and attendees, but if anyone who was not present is interested in obtaining the projected PPT, you can request it directly through my profile on LinkedIn or X (Twitter), and I will gladly send a copy.

This is the adapted summary of the presentation.

A favorable juncture for diversification

Traditional media are experiencing a series of well-known difficulties, along with some elements that can improve the situation:

• Insufficient advertising revenues and permanent risks: Dependence on advertising has proven to be unstable and does not guarantee long-term profitability.
• Stagnation of general subscriptions: Subscriptions aimed at the general public have plateaued, with a low price range due to intense competition and little possibility of increasing in the medium term.
• Impact of artificial intelligence: AI is redefining processes, freeing up time that can be allocated to higher value-added tasks and allowing the handling of large volumes of data. Moreover, it facilitates the automation of reports and the creation of services that are not only based on new content but also on leveraging and prioritizing existing resources.

This juncture forces us to seek new diversification models and to leverage the advantages offered by AI. One of the most promising strategies is the creation of PRO subscription packages at higher prices, aimed at professionals seeking specialized information and tools.

What are PRO services?

PRO services are solutions specifically designed for professionals in a sector, focused on access to specialized information that facilitates their work and professional development. The main basis remains quality and exclusive content.

Moreover, these services are not limited to providing new content but also repurpose, enhance, classify, and summarize existing content, giving it added value, and add other services aimed at professionals.

Among the services that can be offered are:

• Specialized information: we have specialized journalists in newspapers who can dedicate part of the time saved by AI to writing more valuable reports and articles aimed at professional sectors.
• Specialized databases: directories and profiles of key players in the sector, with detailed information about their history and connections.
• Tracking tools: systems to monitor in real-time critical processes such as legislative developments, business agreements, or regulatory changes.
• Exclusive newsletters: curated newsletters with last-minute analysis and news not available in general subscriptions.
• Personalized calendars and alerts: tracking of key dates and automatic notifications about important events.
• Automation of reports: using AI to package available information, and with the final intervention of the journalist, offering frequent contextual reports.
• Etc.

Success stories in PRO Services

Axios PRO

Axios PRO is a prominent example of how a media outlet can diversify its revenue through PRO services. It comprises three pillars:

• Pro coverage (Axios Pro: Deals and Axios Pro: Policy): offers specialized information in areas like Fintech, Climate, Retail, Health Technology, and the Media Industry. Each area has two specialists who provide exclusive news and daily analysis. Subscriptions are specific to each area, costing $599 per area, with a full subscription available for $2,499.
• Deals tracker: A database of over 55,000 deals published since 2017. They have created an AI-powered research tool that allows companies and professionals to analyze this information efficiently.
• Reports: Brief reports that summarize the most relevant changes and forecasts in each sector, allowing subscribers to stay informed in just a few minutes.

Additionally, Axios PRO offers:

• Direct interaction with specialized journalists: subscribers can send questions and receive personalized responses.
• Exclusive events: organizing sector-specific events to foster networking and offer firsthand information.

Politico PRO

Politico PRO is a subscription service focused on offering information and analysis on public policies to sector professionals, such as lobbyists, consultants, and analysts. Its main features are:

• News and analysis: daily and exclusive updates in over 22 policy areas in the United States and Europe, including a daily breakdown of newsroom updates delivered at 6 a.m., with key articles sent throughout the day.
• Updated directories: detailed information on key political figures, including biographies and contact details.
• Event calendar: a filterable tool to locate relevant events in the policy area.
• Policy trackers: real-time legislative and regulatory tracking with tools like Legislative Compass and Regulatory Compass.
• Documentation: access to original source documents, such as transcripts, agency documents, and legislative texts. It centralizes all critical information for policy tracking and research, simplifying data management.
• Pro analysis: tools that offer detailed analyses and data visualizations on power dynamics and policies (Pro Issue Analysis, Pro Data Analysis, and Pro Bill Analysis). Provides in-depth analyses of complex topics and tools to create data visualizations and legislation analysis.
• Stakeholder management: Identification and tracking of key influencers and organizations.
• Weekly briefings: Weekly reports that provide direct information from experts in key areas like elections, energy, health, defense, finance, and technology. These reports offer a concise summary of the current state in topics most relevant to users.
• Etc.

Politico PRO offers different subscription levels, such as Pro Plus and Pro Analysis, tailored to the specific needs of professionals. For individual subscriptions, the price is over $3,000 annually to access a single vertical, while group subscriptions (such as companies) start around $8,000 annually.

The Economist Intelligence Unit

The Economist Intelligence Unit (EIU) offers specialized services for professionals who require high-level economic and political analysis:

• EIU viewpoint: analysis for strategic decision-making and risk management.
• Country analysis: forward-looking insights into the political and economic landscape in different countries.
• Financial risk and operational risk: monitoring of financial, economic, and operational risks in multiple markets.
• ESG rating service: assessment of environmental, social, and governance risks in different countries.
• Speaker bureau: offers EIU's award-winning experts to audiences seeking strategic information on political, economic, and policy developments through presentations and personalized briefings.
• Brief reports with curated and well-organized information: partly repurposed content, selecting the most essential information, accompanied by graphics, and given new life.
• Events between journalists and PRO subscribers: a team of journalists or analysts visits each province or region to speak with PRO subscribers, companies, etc.

The Information

Services offered with the professional subscription ($749 per year):

• Access to an organizational chart library: Definitive reports on 3,000 executives and directors in over 60 companies, from Meta to Amazon, with new companies added monthly.
• Databases: Covering AI data centers, sports rights, chips, startups.
• Monthly updated technology sentiment tracking: Conducted through surveys and delivered in charts.
• Exclusive surveys
• Pro Newsletters
• Exclusive access to professional events
• Insights: Weekly briefings

More Newspapers with PRO Services: The Wall Street Journal (PRO subscriptions for Bankruptcy, Private Equity, Central Banking, Venture Capital, and Cybersecurity, starting at $495 for an annual subscription to a single area); Reuters, Bloomberg, Financial Times, etc.

Other Notable Examples Addressed in the Conference, from Smaller Newspapers:

• Crain's Chicago Business: offers a niche subscription for healthcare professionals, including access to specific industry data in Chicago and a high-value specialized newsletter.
• CQ Roll Call: CQ Roll Call is another PRO service focused on providing detailed analysis, news, and real-time tracking of legislative activities in the United States. (Roll Call is the open-access version, and the PRO subscription is CQ).
• The Post and Courier: offers an exclusive subscription on South Carolina politics, which includes premium newsletters, early access to political events, and comprehensive coverage on its digital platform.
• Handelsblatt (Germany): provides a subscription for business professionals with exclusive newsletters, tools and market data, access to events and webinars, and live training on relevant topics.
• Digiday: Digiday has a subscription for media industry professionals, offering exclusive analysis, guides and reports, special research, tutorials, PRO digital events, etc. Another subscription includes a transcription service and interviews (Marketecture). The Marketecture option raises the subscription price from 309 euros per year to 469 euros per year.
• Etc.

The economic objective: bundling services and creating High-value and stable subscriptions

The implementation of PRO services aims to create specific subscriptions for professionals at a higher price, offering:

• Higher revenue per subscriber: improves profitability and provides financial stability.
• Greater loyalty and retention: professionals value specialized content and are less likely to cancel their subscriptions.
• Positioning as a sector leader: elevates the authority and reputation of the outlet, opening doors to collaborations and exclusive opportunities.

For professionals, these services offer access to critical information, in-depth analysis, and tools that support decision-making and enhance their effectiveness in the field.

Key steps for a successful implementation

Market Research

• Gather demographic and socioeconomic data: understand the population composition, income levels, and predominant economic sectors.
• Identify regional trends and information gaps: detect areas where information is needed but scarce.
• Choice of professional sectors: based on the analysis, select sectors with demand, payment capacity, and growth potential.

For example, in the real estate sector, we could focus on:

• Real estate developers: seek information on regulations, market trends, and investment opportunities.
• Real estate investors: interested in market analyses and economic forecasts.
• Agents and brokers: Need data on prices, regulations, and buying and selling trends.

Definition of the value proposition and services

• Exclusive and relevant content: market analysis, regulatory updates, and legal compliance.
• Analysis tools and data access: exclusive databases, personalized alerts, and real-time notifications.
• Exclusive events and networking opportunities: promote interaction and knowledge exchange.

Business Plan

• Initial investment and operational costs: technological development, hiring experts, and marketing expenses.
• Revenue and profit projections: realistic estimates based on the number of subscribers and subscription prices.
• Loss analysis and break-even point: calculate the time needed to recover the investment and achieve profitability.

Master Content Plan

• Setting objectives and KPIs: number of subscribers, retention rate, content interaction, among others.
• Content strategy: editorial planning with relevance, depth, exclusivity, and practical applicability.

Formation of a Multidisciplinary Team

• Definition of roles and responsibilities: specialized journalists, data analysts, and product managers.
• Intensive training: training in new technologies and updating on sector topics.

Launch Planning

• Pre-testing with industry leaders: beta version of the service to obtain feedback and generate testimonials, which will also be used in the launch.
• Strategic launch date: coincide with relevant industry events.
• Preparation of promotional materials: press releases, introductory videos, and service demos.

Risks and Advantages

Risks

• Insufficient added value: high quality expectations require superior content.
• Cancellations due to cost reduction: in times of crisis, companies may cut expenses, affecting subscriptions.
• Slow subscriber growth: limited market and longer sales cycles due to higher price and internal approval processes.
• High initial investment: development costs and long-term return on investment.

Advantages

• Greater loyalty and retention: More engaged subscribers and long-term relationships.
• Higher revenue per subscriber: Improves profitability and provides financial stability.
• Positioning as a sector leader: Authority and reputation as a reliable and expert source.
• Lower price sensitivity: Professionals willing to invest if they perceive a clear benefit.
• Valuable feedback and adaptation: PRO subscribers often provide useful insights to improve the service.

A path open to all media

It is important to note that the implementation of PRO services is not exclusive to large media outlets with extensive resources. Modest, local, or niche newspapers can also explore this strategy, as in some of the examples mentioned of smaller newspapers, leveraging their deep knowledge of specific audiences, delving into reports, repurposing content and offering insights, incorporating databases, partnering with companies that offer valuable services for those professionals, etc.

By focusing on specialized content and services tailored to the needs of their professional communities, these publications can create value offerings without requiring significant investments.

Final Thoughts

PRO services are a key component for the future of media. They allow us to adapt to a changing environment, diversify our revenue streams, and offer real value to professionals seeking specialized information and tools.

The integration of artificial intelligence and other emerging technologies is not just a trend but a necessity to enhance our capabilities and offer unique experiences. We often hear that AI will take over routine work from journalists so they can focus expressly on creating higher-value content. This is a path toward that.