Transcript Why Integrated Newspaper Audience

Moderator
Mike Blinder
President, Blinder Group
Company
Washington Post Co. (Newsp. Only)
New York Times Co. (Newspapers)
Morris Communications (Newspapers)
Scripps (Newspapers)
McClatchy (Newspapers)
Private Company (Radio & Newspapers)
Belo Corp. (Newspapers)
Gannett (Newspapers & TV)
Tribune Co. (Newspapers & TV)
Lee Enterprises (Newspapers)
Private Company (Radio Grp.)
Media General (Newspapers & TV)
Belo Corp. (TV)
Private Company (Single Newspaper)
Private Company (Newsp., Radio & TV)
Hearst-Argyle (TV)
Private Company (Newspapers)
Private Company (Radio Group)
Private Company (Radio Group)
Private Company (TV)
Journal Register (Newspapers)
Journal Communications (Newsp. Only)
Private Company (Single Newspaper)
2007
forecast
10.7%
8.1%
8.1%
7.0%
6.6%
6.5%
6.0%
5.9%
4.6%
4.3%
3.5%
3.5%
3.2%
2.8%
2.6%
2.4%
2.4%
2.2%
1.8%
1.7%
1.6%
1.4%
1.4%
2.2 million dollars
4.6 million dollars
3.7 million dollars
10.5 million dollars
In over 1300 sales calls
-> Training traditonal reps to “demystify” Web marketing
• “Dee Geeking” the medium
• Focusing the reps on the “eye balls” not the technology
• So they can fold it into their daily sales routine
Tacoma (WA) News Tribune
Circ: 144,000
QuickTime™ and a
Projected to generate $1,000,000
new Online revenue
decompressor
are needed to see this picture.
Palm Beach (FL) Post
Circ: 155,000
QuickTime™ and a
decompressor
are needed to see this picture.
Projected to generate $1,000,000 new Online revenue
Grand Rapids/ Kalamazoo
Moderator
Mike Blinder
President, Blinder Group
Does Integrated Selling Really Work?
Do Integrate Selling Metrics Really Work?
Gary Meo
Senior Vice President, Print & Digital Media Services
Scarborough Research
Editor & Publisher and Mediaweek
19th Annual Interactive Media Conference & Trade Show
May 14-15, 2008
The Rio
Las Vegas, NV
We must change the way we think about,
define and quantify our audience.
Integrated Newspaper
Audience
A new print and online newspaper audience
metric
Agenda
• Brief Scarborough overview
• Why audience?
• Integrated Newspaper Audience (INA)
defined
• Audience-FAX initiative
• The evolution of INA
• Summary/implications for newspapers
Introduction to Scarborough
Research
• Comprehensive, syndicated annual survey of 81 U.S.
markets
• Annual sample of 220,000+ Adults (18+)
Average local market samples -- 2,000 and 13,000
• Measures demographics, shopping/retail behavior,
product consumption, entertainment/leisure, media
usage
• Newspaper audience ratings service in the U.S. for 34
years
• Partnership between The Nielsen Company and
Arbitron, Inc.
From Circulation to
Readership to Audience
•
Audit Bureau of Circulations (ABC)
established in 1914
•
For 94 years, circulation has been the
key metric used by advertisers to
evaluate newspapers
Why talk about Audience instead
of Circulation?
More accurate measure of newspaper reach
People reached, not papers delivered
Allows for the qualitative evaluation of the target
audience
Demographic, psychographic, consumer behavior,
lifestyle, media usage
Comparable to the way other media are evaluated
TV and radio are bought and sold based on their
audiences (not on the number of TVs and radios out
there)
Major emphasis of the newspaper industry to shift
the focus to audience
Newspaper Ad Revenue Down 7.9%
in 2007
• Revenue from ads in
printed newspapers
dropped 9.4% for the
year, the biggest drop
in any year since
1950.
• Internet ad revenue
+18.8%
20.00%
10.00%
0.00%
on newspaper sites
rose 18.8%.
• Online ads accounted
for just 7.5 percent of
all newspaper ad
revenue in 2007.
-10.00%
-9.4%
-20.00%
Source: Newspaper Association of America
Print
Online
Advertising Advertisig
Where is the Growth?
2008 Forecasts (% Change Over 2007 Estimates)
17%
Internet
5%
Direct Mail
6%
Cable TV
Syndication TV
1%
4%
3%
4%
Total Spend
Magazines
Local TV
National Radio
National Yellow Pages
1%
2%
5%
4 TV Networks
Local Newspaper
Local Yellow Pages
Local Radio
National Newspaper
-2%
1%
0%
-1%
10%
National spot
-2%
3%
8%
13%
18%
Source: Robert Coen Presentation on Advertising Expenditures, December, 2007 Universal/McCann
Local Online Advertising Growth
•
Borrell Associates: “Local online advertising," defined
as search, ‘local banners,’ and video (classifieds are also
in there), would reach $12.6 billion in 2008.”
•
Jupiter Research: "Local advertising will grow at a
CAGR of 13% percent from 2007 to 2012, faster than will
online advertising as a whole. Display and search
advertising are leading the way, with CAGRs of 18% and
16%, respectively, during the next five years. Meanwhile,
online local classified advertising, which is a relatively
much larger and more mature market, will grow at a
CAGR of 10 percent.”
•
Veronis Shuler Stevenson: “Local online advertising
was worth $8.4 billion in 2007 and would be worth $19.2
billion in 2011.”
Why Integrated Newspaper Audience
(INA)?
companies – including newspapers –
recognize that growth will come from their digital
businesses
• Media
• Internet advertising revenue at U.S. newspapers is
growing at double-digit rates while print revenue is
declining
• Need for a new metric that demonstrates the value of
the newspaper Web site audience (quantitatively and
qualitatively)
• Get the marketing community to start thinking about
newspaper audiences beyond the daily printed paper
Integrated Newspaper Audience Defined
Five-day weekday cume
OR
Average Sunday
OR
Visited Web site past 7 days
Past week print readershi
Integrated Newspaper Audience of
Boston Globe
Boston DMA
Base = Boston DMA (4,788,972)
Net unduplicated reach
2,109,362
2,400,000
1,859,684
5 Daily/1 Sunday Net
759,050
1,600,000
Past 7-day audience
800,000
0
5D/1Su Boston Globe
Boston.com
Source: Scarborough Research, R2 2007 Boston
Net Audience
Scarborough-ABC-NAA Audience-FAX
Initiative
• New initiative that launched in
November 2007
• Integrates newspaper readership and
online audience information into ABC
circulation reports
• Circulation statements will show:
Print readership
Online readership
Net Combined Audience
Web Site Usage
•
Provides advertisers and agencies with
a more complete picture of a
newspaper’s full presence and total
market coverage
Publisher’s Statement Prototype
Paragraph 1 data remains unchanged.
Publisher’s Statement Prototype
Additions to bottom of page one.
The Future for Integrated Newspaper
Audience
• Newspaper companies must grow audience beyond
the daily printed paper and Web site
• Development of niche printed products, specialty
publications, targeted Web sites, direct mail and
events
• Use product mix of portfolio to develop advertising
solutions that target specific audiences (boomers,
young adults, Hispanics, working moms, job
seekers)
• Audience aggregation (footprint) measurement
demonstrates the delivery of the product mix
Audience Aggregation
(Footprint)
Online
Classified
Advertising
Print Classified
Sections
Local
Community
Newspaper
DAILY
NEWSPAPER
Newspaper
Web Site
Specialty
Publication
Spanish Language
Publication
“All our companies are building an impressive portfolio comprised of
many different products. In almost any market across this country, our
products can frequently reach virtually any audience an advertiser
desires.
How vitally important it is that we get our message out about what a
substantive footprint each of us has in our markets.
How important it is to understand our customers' needs and to
develop solutions across multiple platforms.”
2007-2008 NAA Chairwoman Susan Clark-Johnson,
President, Newspaper Division of Gannett Co., Inc.
INA Summary
• The Internet is having a profound impact on
traditional media audiences and advertising
• Newspapers are growing audience with their
Web sites
• Integrated Newspaper Audience (INA)
demonstrates the value of the combined print
and Web site audience
• INA is helping to offset the decline in Print
audience
• INA is evolving into Audience Aggregation
(footprint)
Overall Implications for
Newspapers
• Readership of the core printed paper is likely to
continue to decline
• The daily printed product may no longer be the
core product for some advertisers
• Develop targeted niche products and specialty
Web sites
• Position newspapers as part of a multi-media
buy
• Leverage local brand, local news, local
relationships – because nobody can “do local”
like the newspaper
It is not necessary to
change. Survival is not
mandatory. ~W. Edwards Deming
Thank You
Gary Meo
512-250-2206
[email protected]
Moderator
Mike Blinder
President, Blinder Group
Moderator
Mike Blinder
President, Blinder Group
E&P Interactive
May 2008
Belden Associates
“The customer has all the
answers and all the
money.”
Iron Law of Marketing
“Give customers more of what they say they want
and less of what you think they need!”
- Ries and Trout
www.accessabc.com
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Advertiser Keys
REACH
FREQUENCY
AUDIENCE PROFILE
Program slides:
BlinderGroup.com/getinfo
(713) 626-0333
[email protected]
(512) 250 2206
[email protected]
(214) 640-3103
[email protected]
Moderator
Mike Blinder
President, Blinder Group
(917) 865-4827
[email protected]