Experimental Proposition Design for News Corp Australia
Problem
Digital media businesses face multiple challenges in commercialising their audience: a shift toward new business models amid declining ad revenue, content saturation leading to consumer choice overload, and economic pressures affecting discretionary spending. Many consumers feel subscription fatigue, overwhelmed by multiple subscriptions. Intense competition requires standout propositions and adaptation to changing consumer preferences, including short-form and interactive content. Diversifying and growing revenue streams outside of the core business requires new ways of working.
Pressure
Creating valuable, sustainable propositions is complex. Failed subscription models can harm reputation and finances, with 90% of online businesses failing within months, causing significant industry losses. For large media firms, internal competition often hampers collaboration, creating a paradox: the need for fast adaptation and innovation carries inherent risks, yet not evolving in response to consumer demands is equally risky. This balancing act is a high-stakes challenge in maintaining relevance and viability.
Solution
We established a digital experimentation capability, enabling ROI assessment and payment propensity analysis for new propositions through direct consumer feedback. This independent digital infrastructure offered unprecedented speed and agility, distinct from core business systems. It allowed News Corp Australia to evaluate proposition desirability and viability with high confidence, saving hundreds of thousands of dollars by preventing investments in unsound markets and propositions.
Impact
We significantly reduced experimentation risks, saving hundreds of thousands of dollars through process efficiencies and smarter investment choices. This capability bolstered decision-making and cross-unit collaboration, involving various stakeholders within the organisation. Crucially, it enabled quicker, more confident validation of market and audience opportunities beyond the core business, ensuring that exploratory growth initiatives are grounded in solid, empirical consumer data and insights.