Transcript AP Media Editors PAID CONTENT AND THE EMERGING NEW WORLD Just a thought to start….

AP
Media Editors
PAID CONTENT
AND
THE EMERGING NEW
WORLD
Just a thought to start….
PAID CONTENT
• I’D LIKE SOME OF YOUR MONEY!
The Problem…
Is actually worse than that…
Cost is not really an issue…
Van Westendorp Modeling – One Market N = 221
Re-Inventing the value of news…
• Now, THAT’s a challenge!
But first, let’s think about
Audience….and where that money is
going to come from…
Compounding the “Age Issue” is
Length of Subscription…
How long has your household subscribed to the LOCAL DAILY? N = 559
Diverging Audiences
Last 30 days
Last 7days
Audience Use
Just how big is the there, there?
How many actual people visit your website?
How many people use your apps?
Digital Audience
Print subscribers
& readers
The three flavors of audience will determine
the structure of local opportunity
Frequency and Loyalty will be the
primary drivers of opportunity.
Second Tier Prospects
Least Best Prospects
Top Tier Prospects
Incidental =3 or fewer visits in month
Core = 4 or more visits per month
12
Case Study
Total Pageviews
610,000
User Sessions
230,000
Unique Visitors
98,000
Known Incidental (0 in prior 7 days)
4+ Visitors
Total Core
Fly by
GRAND TOTAL
24,760
7,657
32,417
8,533
40,950
Local Pop (18+)
Local Digital Audience
Extended Local Audience
Market Reach
Extended Local Reach
155,918
28,851
9,232
18.5%
5.9%
Max Circ
27,500
Print Readership
Extended Local Audience
55,200
9,200
Total Combined Audiences
64,400
Computers now most common
e-device, with mobile coming on strong
Desktop/Laptop/Notepad computer
93%
Television set
90%
Mobile device (Smartphone or iPad/Tablet)
76%
TiVo/DVR device
52%
Radio receiver
51%
Cable TV
49%
Satellite TV
45%
Satellite radio
28%
Non-Internet capable cell-phone
None of above
20%
0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Which of the following types of media and devices do you own and use? [Check all that apply.] N = 2,806
100%
Mobile revolution in active progress
On an average weekday (Monday-Friday) from which locations do you usually access news
and information websites? (Check all that apply.) N = 2,756
Mobile
That sound you hear…is the rubber
hitting the road
Cellphone Type
Standard cell phone without Internet
access
Standard cell phone with Internet
access
18%
12%
iPhone
Android-based smartphone such as
Samsung, HTC, Motorola
34%
Blackberry
2%
Other "Smartphone"
6%
Other
1%
N (Single Market)
26%
1,147
What type of cell phone do you
personally own and use?
Single Market N = 1,245
Lots of uses
Smartphone Uses
Texting
Email
Sending photos/seeing photos
General Internet access
Mapping - Directions
Updating Facebook/Social Network
Music
Games (like Scrabble, Angry Birds, etc.)
Store locators
Watching general video (incl YouTube clips)
Researching product information/availability while shopping
Watching news video & sports video
Coupons for discounts and rewards
Price comparisons while shopping
Reading or listening to books
Hobby apps
None of above
Other (please specify)
Single Market N =
78%
68%
64%
60%
60%
52%
46%
45%
33%
32%
30%
26%
25%
25%
22%
15%
7%
1%
1,984
LOTS of Technology Owned
Technology Owned
Wi-Fi on laptop or home computer
DVD Player
Laptop or Notebook portable computer
Digital camera
GPS locator for driving, hiking, camping, etc.
DirecTV, Dish Network (TV), ZoomTV, or other Satellite TV
Apple iPad or iPad mini
iPod or similar digital music device
Xbox, PlayStation, Wii, or other electronic game device
Internet-enabled TV
Sirius/XM Radio or other Satellite Radio
TiVo or other Digital Video Recorder
eReader such as Kindle from Amazon or Nook (not including
Kindle Fire)
Kindle Fire eReader
Other Tablet (Not iPad or mini)
Apple TV
None of above
Single Sample Subset N 400
74%
73%
71%
70%
51%
42%
39%
38%
37%
34%
33%
32%
27%
19%
14%
6%
2%
Computer Uses
Computer Uses
Google Maps
72%
Access YouTube.com
63%
Use Pandora.com online music service
46%
Access iTunes.com
Purchase books for reading on eReader/Tablet such as Kindle, iPad, etc., or
smartphone like iPhone
Access online information like sports scores, headlines, stock quotes, etc.
by cell phone or other mobile device
43%
Instant messaging (IM) on computer
33%
Subscribe to Netflix
Use computer video camera for live telephone calls (Skype or similar
service)
32%
Online Gaming (Angry Birds, Poker, etc.)
25%
Purchase audio books for listening on computer, iPod, or other device
17%
Use Hulu.com online video service
11%
None of above
6%
answered question
40%
39%
31%
399
News Content
General News Content Interests
Response Percent
Top breaking stories
67%
Local News
66%
Local Weather
65%
General state, regional, national, & world news
37%
Events
27%
Local sports
22%
Sale and shopping information
19%
Business news
18%
Traffic news
18%
Professional sports (NFL, MLB, NBA, PGA, etc.)
16%
College sports
15%
Entertainment information (movies, TV, etc.)
12%
Sample N
742
Top Breaking News
Major National News Stories Last 12 Months
Response Percent
Boston Marathon bombing
42%
Bengahzi attacks in Libya
14%
Syrian civil war
13%
Superstorm Sandy
8%
Edward Snowden revelations on NSA
5%
Pope resignation/election
4%
Egyptian events/Morsi Ouster
3%
WikiLeaks/ Bradley Manning trial and revelations
1%
Alex Rodriguez banned by Major League Baseball
1%
San Francisco airliner crash
1%
Quebec train derailing
1%
None of the above
10%
answered question
507
Local TV is first source, then national
news sources….then Facebook?
22. How did you first hear about [Q21]?
1. Local TV news station/Local TV station website
2. National Network TV News/Website
3. Facebook or other social network site
4. Cable TV News/Website
5. Radio/Radio station website
6. Word of mouth
7. Browser landing page on Google, IE/Bing, Yahoo, or other
search engine
8. SMS/Mobile notice
9. Local newspaper/local newspaper website
10. Twitter
11. Email push alert
12. Other non-major media news website via computer
13. Text from friends
14. News search via iPad/tablet device
15. News search via smartphone
16. National newspaper/national newspaper website
Don't remember
Other (please specify)
answered question
Response Percent
31%
16%
10%
9%
7%
4%
4%
4%
3%
2%
2%
2%
1%
1%
1%
0%
3%
1%
454
Getting more…
And, after you heard about [Q24], to which media did you first turn to
find out more?
Local TV news station/Local TV station website
Local newspaper/local newspaper website
Cable TV News/Website
News search via smartphone
National Network TV News/Website
Facebook or other social network site
Browser landing page on Google, IE/Bing, Yahoo, or other search
engine
Word of mouth
Other non-major media news website via computer
Radio/Radio station website
Text to friends
Twitter
National newspaper/national newspaper website
News search via iPad/tablet device
Don't remember
Other (please specify)
answered question
Response Percent
51%
23%
4%
4%
3%
3%
3%
2%
1%
1%
1%
1%
1%
1%
4%
1%
391
Paying for Content
 Most respondents report they do not pay for content;
those who do cited WSJ.com most often
 Respondents split evenly on ease/difficulty of
replacing LocalSite.com news and information
 Other Internet and TV sites top list of possible
alternative sources
 Respondents would look to other free sources before
paying
Site Visitors Value the Content from Print edition
of the Local News at LocalSite.com
40. In general, how valuable is it to you to be able to access all
of Local Local Print print content online at LocalSite.com?
Sample Base: All
Respondents N = 657
26
But these Site Visitors report a higher value of
info at LocalSite.com
25. In general, how valuable do you think the news and
information posted at LocalSite.com is to you?
Sample Base: All
Respondents N = 657
27
Four in ten think LocalSite.com content would
be easy to replace
26. If LocalSite.com stopped posting their news and information to the Web, how easy do you think it
would be to find a replacement for that news and information you are currently getting from
LocalSite.com?
Sample Base: All
Respondents N = 657
28
TV tops the “switch to media,” but
print edition is close second
27. What other media/sources do you think you would use if news and
information from LocalSite.com were no longer available? [Select all that apply.]
Sample Base: All
Respondents N = 657
29
TV also tops the “Switch to Digital Media,” but
other Internet follow
28. Which, if any, online sources would you be most likely to turn
to if LocalSite.com were no longer available? [Select all that
apply.]
Sample Base: All
Respondents N = 657
30
Resistance is high
33. If LocalSite.com began to charge a fee for access to some or all of its content including all
its articles, blogs and multimedia, how would this affect your LocalSite.com visiting behavior?
Sample Base: All
Respondents N = 657
31
Audience strategy
Content verticals
Key goals
Content
Lifestyle
Family
Shopping
Local+
Local news/blogs
Home
Schools
Deals
Nabe news
RSS/data/algo
Garden
Parenting
Yard sales
Calendar
User content
Food
Activities
Swaps
Schools
Contact
Dining
Senior care
‘Craig’ list
Crime
Social/mobile media
Music
H.S. sports
‘Angie’ list
Realty
Commerce
Biking
Faith
Online mall
Marketplaces
Bowling
Paid content
Crafts
Transactions
Pets
And more
Marketer strategy
Product suite
Key goals
Holistic
Ad sales
Marketing
Community
Analytics
Ad sales
Owned media
CRM
Best practices
Planning
Marketing services
Print
Scheduling
News/blogs
Benchmarking
Recurring
Web
Direct mail
Social media
Measuring
Sell once,
stick forever
Mobile
W/M hosting
‘LinkedIn’
ROI analysis
Portals
SEO
Marketplace
Third party
Social sites
PR ‘blotter’
Local net
Rep mgmt
Swap mart
SEM
Content
RFP exchange
Social ads
Collateral
Forums
Legacy
Pens & signs
Efficient
Self-service:
Planning
Creative
Ordering
Analytics
And more
Key Data Summary
 Visitors at local newspapers sites have a preference
for the Internet for news and are frequent users of
both LocalSite.com and other news and information
media
 Despite valuing LocalSite.com content, Visitors would
seek other free access sites before signing up to pay
 Visitors’ favor a price for LocalSite.com monthly
subscription access only $4.00 more than single day.
 Strong overall resistance to paid access
 Indicated price points are relatively low
44
Implications
• Revenue modeling MUST be based on accurate
numbers for local audience & total audience.
• Opportunity modeling MUST be based on an correct
understanding of audience behavior patterns.
• Price modeling must be done on a market-specific
basis.
• Marketing modeling MUST have two major elements:
– Addressing real audience objections to paid
– Describing meaningful and persuasive arguments as to why paying for
access will bring profound and important user benefits.
– Both of these elements can only be correctly constructed based on
direct feedback from audience members.
45
It’s about value.
• You job, Media Editors, should you choose to
accept it, is to lead your enterprises back to
being relevant again.
• It won’t be easy.
• But, it is possible.
Thank you.
Greg Harmon
Borrell Associates
415 566 4348
[email protected]