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Online news delivery is a big business. Soon, it might be the business for newspapers. With traditional print suffering from loss of advertising, the online versions are soaring. And although traditional advertising still makes up a bulk of the revenue, the profitability potential of a good online news site will only increase in the coming years.

We do have some gems

It is interesting to observe how our local, South African websites are reacting to the moving cheese.

The www.mg.co.za and www.thetimes.co.za have both applied a new design, and a new approach to how online news should be delivered. Even if neither delivers a perfect offering yet (is there even such a thing?), the websites deliver the news efficiently and brilliantly.

Both these newspapers have done two things very well:

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Advertising is not a dirty word

Both points are crucial to the success of any online news source. The adverts serve an obvious purpose by providing a revenue source for the paper. Also, ads are used to promote other site sections, and to drive readership (subscription) of the respective tangible papers. The “citizen journalism” aspect, where I can comment on stories, and even submit my own is an essential component to any Internet savvy user. More and more people are expecting content providers to not just talk, but to actually listen.

And although advertising is obviously very present, it is also very well integrated. As a reader I am not too bothered by it: it is just prominent enough for me to notice it (and act on it, if I choose) but not so prominent as to become obtrusive. And since both sites are supported by excellent writing, news breaking stories, timeous reporting and a bunch of other features, there is an overall enjoyable and informative browsing experience. Good for them.

It’s not all good news, though….

But what about the biggest (and most popular) South African website, www.news24.com? Or the website of our dailies, www.iol.co.za. Both fall so short of being good, that it is almost embarrassing. It seems that they got lost in the Internet era of 1990s, and forgot to consult a map on how to build a website for today.

The first problem with both websites is that they seem to hold each other as a shining example of excellence. I actually had to do some research to make sure they are not owned by the same company. It seems that both sites were designed on the same template. And the template sucks.

The second problem is that they lost sight of the fact that they are a news site, over and above everything else. Both are laden with distracting ads that are made even less effective by their dark background (seamless integration of text ads gives highest click through rates, Google or not). A cleaner, smarter approach to content delivery and ad integration will not only lead to more page views, it will also lead to more ad click-throughs.

Build it badly, and still they come?

The irony is that News24 is already sitting on traffic gold, with over 30 million page views per month, making it the most visited local website. Imagine if they set the high standard for what local sites should be!

Maybe the popularity has made them complacent, and if that is the fact that is a pity. (To be fair, News24 has recently hired Matthew Buckland who was one half of the brilliant Buckland/ Maher team that redesigned www.mg.co.za to its present glory. That suggests that they are scheming greater things. If that is the case, they should start hinting, so the public can participate in suggestions).

Usually, a site is redesigned to draw more traffic and higher user participation (both with content and ads). News24 has an interesting case, since they already have the high traffic (although more is always, of course, good). So now they face the challenge of figuring out how to use that traffic to maximise revenue. Which, by any standard, is not a bad challenge to have!

Truth is, any good news source should sustain itself purely from online revenue, without the tangible cost of a printing press. That is exactly what the Christian Science Monitor is hoping for, once it discontinues its printed version and moves into online only early next year. Some newspapers, such as The Wall Street Journal, are sticking to a subscription model, but that can really only work if you are offering really propriety news (such as financial analysis etc).

News24 and Iol better get themselves in gear, and fast, because there is another new medium to conquer: mobile. For now, the http://m.thetimes.co.za takes the top prize for local mobile news delivery, but all is still up for grabs. Nevertheless, the longer News24 takes to get its web presence right, the easier it will be for another player to become the number one local news provider.

Let’s start with a simple, clean design and a cohesive attitude to ad placement. Throw in some cool features, a mobile app and a number of new revenue opportunities (there are dozens to choose from!) and watch the page views ..and the revenue..rise.