Site Matters: The Value of Local Newspaper Web Sites

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How important is local information online? Very. Does the site on which an ad is placed affect consumer opinion of the ad? Yes. What sites do consumers perceive as most trustworthy and credible for …

How important is local information online? Very. Does the site on which an ad is placed affect consumer opinion of the ad? Yes. What sites do consumers perceive as most trustworthy and credible for information and advertising? Newspaper Web Sites!

This PowerPoint presentation, based on 2009 comScore survey results, gives you the full story on consumer preferences for local online information and their perceptions about advertising on various categories of sites.

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  • Is there value for online advertisers in reaching consumers in their own communities? Does the premium quality of content sites and particularly newspaper Web sites produce results for advertisers when it comes to consumer behavior? A study conducted by comScore for the Newspaper Association of America in November 2009 builds upon research also done in 2009 by NAA on consumer media behavior and on research conducted by The Online Publishers Association in 2009 on the value of content sites for advertisers.
  • Advertisers looking to utilize the power of the Web have a tough choice when it comes to selecting where to get the best ROI online. There are in excess of 100 million Web sites to choose from and more than 25 billion pages on which to advertise. However, with an average click-through rate of less than one-tenth of 1 percent, how do you best affect your results from the over 250 million monthly Web users in North America?
  • When consumers go online, they typically have a purpose. The question is, during what Web activity do advertisers have the best chance of making a meaningful connection with consumers. A 2009 Online Publishers Association study revealed that consumers spend 40% of their time online with content rather than other activities. They spend a bout one-quarter of their time with e-mail, 5% of their time searching, and 12% with social networking. This research suggests that when you want to influence people with advertising, content sites might be your best bet.
  • Today’s consumer is besieged by advertising. And, while consumers do not appreciate intrusive advertising (56% complain about interruptive ads), consumers agree that advertising consumption is both widespread and useful. About half of all consumers remember advertising and its impact on decision making.
  • Given the plethora of online choices and the natural consumer reaction to intrusiveness, the site on which you advertise matters.
  • Given the plethora of online choices and the natural consumer reaction to intrusiveness, the site on which you advertise matters.
  • The OPA research further indicates that Local Media Sites attract consumers who spend more money online. Looking at consumers who spent $500 or more online in the past 12 months, media sites reached more of these individuals than portals or consumers overall, with newspaper sites reaching 40% of these shoppers and overall at 34%
  • A spring of 2008 OPA study conducted by Jupiter Research points out that advertising, an important content component, on Local Media sites are more likely to generate action. That OPA research shows that almost one half (46%) of local online content users took some action buying, researching, or visiting a store after seeing local advertising on a newspaper site.
  • A spring of 2008 Online Publishers Association study conducted by Jupiter Research points out that advertising, an important content component, on local media sites are more likely to generate action. That research shows that almost one-half (46%) of local online content users took some action buying, researching, or visiting a store after seeing local advertising on a newspaper site.
  • A 2009 OPA research study reinforced the previous studies making the point that ads on content sites have the greatest impact. The January 2009 effort conducted by Dynamic Logic allows that ads on these sites raise awareness, builds message association, brand favorability and purchase intent more than the portals or ad networks.
  • The strength of local newspaper Web sites grows when respondents were asked to identify websites used most often for specific types of local content. Newspaper sites ranked first as a source for local information (29%), local sports (27%) local entertainment (26%) and local classifieds (39%), ahead of both local television Web sites and online portals. Local newspaper Web sites and local television Web sites were cited by nearly identical percentages (30% and 31%, respectively) as sources relied on most often for local news.
  • Local newspaper Web sites rate better overall than other local competitors in terms of being trustworthy or reliable. While virtually tied with local television Web sites as the one source considered most trustworthy or reliable for local news (33% vs. 32%, respectively), newspaper sites had a larger lead in all the other content areas. Local newspaper Web sites led television by 12 percentage points (34% vs. 22%) for local information, by six points for local sports (30% vs. 24%), by 10 points for local entertainment (30% vs. 20%) and by 29 points for local classifieds (42% vs. 13%).
  • 4-in-10 adults (40%) agreed that their opinion of the advertising they see online is influenced by the type of Web site upon which the ad appears. Younger adults (18 – 34) are more likely than those 55 and older to agree that the type of Web site matters for advertising (46% vs. 31%). Those in higher income households are slightly more likely to agree than those with lower household incomes (42% vs. 38%). However, education level does not appear to make a difference.
  • Among those who agree that their opinion of advertising is influenced by the type of Web site, local newspaper sites are rank first in terms of the trustworthiness of the advertising. More than one-third (36%) selected local newspaper Web sites for trustworthy advertising compared to less than one-fourth (23%) for local television Web sites and less than one-in-eight (12%) for online portals. And local newspaper sites were the clear winner across all demographic categories -- even among the younger 18-to-34 age group, leading the second-ranked television Web sites by thirteen percentage points (35% vs. 22%), and online portals by 24 percentage points (35% vs. 11%).
  • Advertising on local newspaper Web sites is considered more trustworthy because the ads are more current, with credibility and local relevance also important factors. All demographic groups rated “more likely to be current” as the top reason, nearly or exceeding 8-in-10 for each group. Credibility was an especially important factor for those in upper-income households and the college-educated (57% for each). Advertising considered as “more local” ranked high for those age 55 and older (68%) and for the college-educated (55%).
  • Why are newspaper sites the most trusted by online viewers? The comScore research says that consumers believe that newspaper sites have ads that are more likely to be current (78%) 48% say newspaper sites have ads that are likley to be more credible, ads tend to be more local (46%), ads are from sources that are more familiar due to the printed paper(30%), that newspaper sites offer a combination of advertising and other local content (23%) and newspaper sites are perceived to have less junk advertising (21%).
  • The value of newspaper Web sites remains strong for all demographic groups. For example, the 18-34 year old group prefers newspaper sites vs. other local sites for being the main source of local online information for being the most trusted local source, the most credible source and the most informative source.
  • When we examine comScore behavioral data we find that ads on newspaper sites drive more search than ads on other sites
  • And ads on newspaper sites drive consumers to advertisers sites in the two weeks after a display ad runs on a newspaper site.
  • And ads on newspaper sites drive consumers to advertisers sites in the two weeks after a display ad runs on a newspaper site.
  • Where you advertise online matters. If you want action, effectiveness, credibility and trust as well as to be recognized within the local community, newspaper Web sites do provide a quality premium environment.

Transcript

  • 1. Local Content Matters Online 2010
  • 2. Advertiser’s Online Choices
    • 100,000,000
    • Web sites
    • 25,000,000,000
    • Pages on which to advertise
    • .1%
    • Average click-through rate
    • 250,000,000
    • Web users in North America
  • 3. Consumers Spend 40% of Online Time with Content
    • 1/4 of time spent with e-mail
    • 5% of time spent searching
    • 12% spent in community
    • 14% spent with commerce
    –– Online Publishers Association 2009 Internet Activity Index/Silent Click
  • 4. 56% of Adults do not like Advertising that is Intrusive
  • 5. The Site Matters
  • 6. Content Site Audiences have Higher Engagement –– Online Publishers Association, 2008
  • 7. Local Media Sites Attract Consumers who Spend More Money Online –– Online Publishers Association, 2008
  • 8. Ads on Local Media Sites are More Likely to Generate Action –– Online Publishers Association, August 2009
  • 9. Consumers are 24% More Likely to Act on Local Ads Placed on Newspaper Sites –– Online Publishers Association, August 2008
  • 10. Ads on Content Sites have the Greatest Impact –– Online Publishers Association, January 2009
  • 11. 57% of Consumers Use Newspaper Web Sites for Local Online Information –– comScore, 2009
  • 12. Consumers Express High Interest in Local Information Online –– comScore, 2009
  • 13. Newspaper Web Sites The most used sites for:
    • Local Information
    • Local Sports
    • Local Entertainment
    • Local News
    –– comScore, 2009
  • 14. Newspaper Web Sites Top local source for:
    • Trust
    • Credibility
    • Most informative
    –– comScore, 2009
  • 15.
    • Consumer Opinion of Ads Affected by Sites Where Ads are Placed
    –– comScore, 2009
  • 16. Ads on Newspaper Sites are More Trusted than Other Sites –– comScore, 2009
  • 17. Newspaper Sites are the Most Trusted Source of Online Advertising
    • Most current sites
    • Most credible sites
    • Most relevant sites
    –– comScore, 2009 Consumers believe newspapers are:
  • 18. Ads on Newspaper Sites Most trusted because:
    • More likely to be current
    • More likely to be credible
    • Tend to be more local
    • Ads are from more familiar sources
    • Less junk advertising
  • 19. 18-to-34 Year Olds Prefer Newspaper Web Sites for:
    • Main Source for local online information
    • Most trusted source
    • Most credible source
    • Most informative Source
  • 20. Ads on Newspaper Sites Drive More Search than All Other Sites
  • 21.
    • Ads on Newspaper Sites Drive Consumers to the Advertisers’ Site
  • 22. Accelerating Growth –– Nielsen Net//Ratings Unique visitors to newspaper Web sites totaled 74.9 million January 2010 Page views averaged over 3.5 billion per month 37% of all active Internet users visited newspaper Web sites.
  • 23. The Value of Newspaper Media OPT-IN Advertising In an OPT-OUT World