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Plus Report - By Thomas Baekdal - May 2019

The problem with in-market vs out-of-market for publishers

One of the fascinating things about the internet is how it has redefined how we look at our in-market and our out-of-market.

In the old days, we didn't really have these two markets. They existed in principle, but not really in practice. For instance, local newspapers defined their in-market as the audience that was living in the same city, whereas their out-of-market were people from other cities. And while newspapers might offer to deliver to these out-of-market readers a day or two later, this out-of-market was never a big focus. It was the in-market that defined everything. The internet has completely changed this.

Take a simple example like a YouTuber. What is the in-market of a YouTuber, and what is the out-of-market?

Is the in-market all the people who live in the same city (or even country) as the YouTuber? No, of course not. Geographic location has no meaning.

So what is it?

Is the in-market the people who have chosen to subscribe to this YouTubers' channel? Well, you might say that, but that isn't really an accurate description either.

You see, the way YouTube works is that its recommendation system will update itself to show you what it thinks you are interested in. Meaning that if you watch a video from one YouTuber, Youtube will start to show you other videos from the same person. And then if you watch some of those, YouTube will continue to show you videos from that channel whenever something new is posted.

The result is that you can end up following a YouTube channel without ever subscribing to it, and if you ask many YouTubers, this 'recommended' traffic can exceed their subscriber traffic, and can even have a larger share of loyal viewers.

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Thomas Baekdal

Founder, media analyst, author, and publisher. Follow on Twitter

"Thomas Baekdal is one of Scandinavia's most sought-after experts in the digitization of media companies. He has made ​​himself known for his analysis of how digitization has changed the way we consume media."
Swedish business magazine, Resumé


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