Is Macquarie’s closure of indicative of things to come …

So Macquarie has closed it’s site

Mumbrella article here –>

Personally, I had never used it and didn’t really know it existed. I remember it being promoted at launch but didn’t hear a peep after.

According to Macquarie it had 200,000 users and around 2m page views. They sound like big figures but they’re not … and nowhere near enough to make money.

So the reason it was closed was it wasn’t making enough money.

“ was successful from a traffic perspective but this was not translating into incremental revenue that justified its costs of operation. The renewed focus on core assets is already reaping significant revenue rewards.”

I’m a big believer on focusing on what you’re good at and not putting resource into areas you’re really not that good at.

Livenews is an example of that. It was a distraction.

So with that in mind, how many companies with big digital aspirations maybe need a reality check around this very issue.

How many are just not that good at trying to be digital media companies?

And no matter how hard they try, and how much cash they blow, they’ll never be particularly good.

Probably quite a few … and I wouldn’t be surprised if over the next 12-18 months some hard decisions are made to pare back their committment to digital assets and focus on what they’re good at.

Because at the end of the day, there’s a shitload of web companies in Australia that just will never make any money. No matter how hard they try.


2 responses to “Is Macquarie’s closure of indicative of things to come …

  1. The traffic numbers were higher 300-400 uvs.
    And 2-3 staff only.

    If Fairfax & News stuck to what they were good at they’d still be just doing print newspapers.

    Fairfax 50% of rev came from online in 09.

    MRN is rare in the media space that it only owns radio assets and only in Sydney[they do syndicate]

    They dont have a print asset to protect, so the audience was a new audience they have grabbed from elsewhere.

    The sales force that has only ever sold radio, clearly couldn’t sell digital advertising.

    I note whenever I saw the 2GB microphone on TV when someone was being interviewed it had on it as well.

    But it’s gone and I agree with you , that if you’re not commited and have cultural buyin you’ll fail.

  2. Yawn… What about the digital only sales reps who kept quitting because it was too hard to sell! The site just wasn’t that good, half the traffic was coming from overseas through searches. Anyway general news sites get abut $2 cpm, on whatever the number of UV’s above it really had no chance of survival, get over it. Talk about cultural buyin, maybe the management team responsible for the site and it’s ultimate failure need to adopt their own new culture that’s not completely based on blaming others.

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