API ITZ Belden Revenue Initiatives Survey

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API ITZ Belden Revenue Initiatives Survey

  1. 1. Revenue Initiatives 2009 Presented by ITZBelden September 14, 2009p , Reston,VA Belden Interactive 1
  2. 2. Introduction and MethodologyIntroduction and Methodology The study: API conducted research in partnership with Itz Publishing and Belden Interactive to understand online revenue opportunities, and where the news industry is and where it is going. The methodology: • 118 online interviews, based on questionnaires self-administered by industry executives at newspapers across the U.S. and Canada. • 2 400 executives at 1 380 enterprises solicited using the API Partner email list2,400 executives at 1,380 enterprises solicited using the API Partner email list. • Study will be ongoing over at least the next year. It’s not too late to submit your data! Belden Interactive 2
  3. 3. Industry ParticipantsIndustry Participants Sit f th 30Sites from more than 30 corporate groups and 20 independents participated. No corporate group submittedp g p for more than 7 sites; most submitted for 1-4 enterprises. Position %Position % Pres/Publisher 40% GM 7% VP/SVP 16% N M di Di /M 11% (N = 118) New Media Dir/Mgr 11% Editor 6% Other Dir/Mgr 20% Belden Interactive 3
  4. 4. Today’s ProgramToday s Program 1 API industry survey results1. API industry survey results Provider perspectives — What “we” think. Visitor perspectives from Belden Interactive localVisitor perspectives from Belden Interactive local market research — What “they” think. 2. Audience and Opportunity2. Audience and Opportunity 3. Benchmarking data 4 Case studies4. Case studies Belden Interactive 4
  5. 5. Provider PerspectivesProvider Perspectives What U S newspapers are thinking and doingWhat U.S. newspapers are thinking and doing regarding revenue from paid access: ePapers Paid access sites, live Paid access plansPaid access, plans Registrations Log-insLog ins Perceptions of audience Belden Interactive 5
  6. 6. Re-publishing ContentRe publishing Content 10. Does your Website publish most or all print articles to the Web in some form? Publish Most/All Articles 20% 80% No Yes 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% No N = 118 Publish Articles in Full 91%Yes 11. Does your site publish print articles in full? 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No N = 118 Belden Interactive 6
  7. 7. Adoption of selected best practices for dend-user engagements 12. Which of the following content programs do you have on your site? N = 118 13. E-paper issues: Do you have an e-paper reproduction (Olive or other solution) available on your Website? Belden Interactive 7 solution) available on your Website?
  8. 8. Subscription levels required for e-paperp q p p 16. If you have an additional charge for access to the e-paper, how much is it? 19 If yes what is the charge for an online only $30 00 $35.00 19. If yes, what is the charge for an online-only subscription? 17 What print subscription level is required for free $20.00 $25.00 $30.00 N = 72 Median = $5.99 17. What print subscription level is required for free access to e-paper? [Select one.] $5.00 $10.00 $15.00 Range of online-only subscriptions varied based on a Median = $4.99 Median $5.99 $- Subsciber Upcharge Online Only Price Range of online only subscriptions varied based on a variety of factors. Mean, users accessing: 3875 Mean, online-only: 706 Net: 18% “Web only” [55 sites reporting] • Subscriber up-charge price reported N=25 • Online-only charge price reported N=64 Belden Interactive 8 Net: 18% Web only [55 sites reporting]Online only charge price reported N 64
  9. 9. ePaper Revenue Usep 14. Is access to your e-paper paid in any way? N = 79 15. Do current print subscribers have access to the e-paper without additional charge? N =72 • Are not charging…or • Not charging much…and • As always, discounting convenience… Belden Interactive 9
  10. 10. 1 in 10 have paid sites; nearly all maintain some kind of free sitemaintain some kind of free site 22. Does your enterprise maintain a paid-access Website that is not an e-paper? 23. (Those with a paid site:) Do you have BOTH a paid and an open/free site (or paid/free sections) for yoursite (or paid/free sections) for your main news and information content? N = 118 Belden Interactive 10
  11. 11. Six of 10 are considering paid access initiativespaid access initiatives 36. Are you considering initiating paid access of any type to your main, currently open/free news and information content? N = 118 Timeframe 12% 10% Q4 2009 Now, Q3 37. What is your expected timeframe for implementing any new paid strategies? N = 68 49% 2% 10% 18% 12% 0% 10% 20% 30% 40% 50% 60% Undecided Q3 2010 Q2 2010 Q1 2010 Q4 2009 Belden Interactive 11 0% 10% 20% 30% 40% 50% 60%
  12. 12. Various approaches being consideredbeing considered [BLUE BARS] 38. Which of the following types of paid content for your currently open/free site are you actively considering? [Select all that apply.] (1 of 2) [RED BARS] 39. Which of the following do you think your enterprise is most likely to adopt? [Select all that apply.] N = 68 Belden Interactive 12
  13. 13. Various approaches being consideredbeing considered (2 of 2) [BLUE BARS] 38. Which of the following types of paid content for your currently open/free site are you actively considering? [Select all that apply.]p y y g [ pp y ] [RED BARS] 39. Which of the following do you think your enterprise is most likely to adopt? [Select all that apply.] N = 68N = 68 Belden Interactive 13
  14. 14. New revenue and preserving print are the primary driversare the primary drivers [BLUE BARS] 42. In considering introducing paid access to online content, which of the following are important strategic goals? [Select all that apply.] [RED BARS] 43. Of the following goals, which do you think is or will be the most important factor in driving any final decision? [Select one only.] N = 68 Belden Interactive 14
  15. 15. Decision Location 44. Do you expect that decisions with respect to adopting a paid solution will be… 40% 41% Approved by corporate but following a local decision by your enterprise team Locally determined and implemented 2% 18% Other Mandated by corporate to follow a common program at all your associated papers N = 68 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Belden Interactive 15
  16. 16. Prospects for Micropayments ModelsMicropayments Models 40. There are many possible approaches to specific micropayments models that might be implemented for non-subscribers. How likely to succeed do you think any of these models might be?p y y y g Belden Interactive 16 N = 68
  17. 17. Some concern about content piracy but little actioncontent piracy, but little action 46. How concerned are you about unauthorized/ uncompensated use of your content? N = 118 47. Are you actively engaged in tracking unauthorized/ uncompensated use of your content across the Web? Active Tracking 75% 25% No Yes content across the Web? N = 118 Belden Interactive 17 0% 10% 20% 30% 40% 50% 60% 70% 80%
  18. 18. Registration — Most allow, few require, some considering few monetizingsome considering, few monetizing 48. Does your site accept user registrations? N = 118 49. Does your Website require user registrations? N = 84y q g 50. Is your enterprise considering some type of required registration as an alternative to paid access to content? N = 61 53. Does your site have a specific program or programs for monetizing registration information that is in active use now? N = 84/ Belden Interactive 18
  19. 19. Registration — Of 34 sites reporting, average i fis 11% of UV count Sites reporting indicated that 62% of registered visitors logged on in the last 30logged on in the last 30 days. N = 34 Belden Interactive 19
  20. 20. Registration Data CollectedRegistration Data Collected 55. Which of the following types of information do you include in your registration form? 61% 77% 86% Gender ZIP Code Email Address 37% 45% 60% 61% 61% Phone Number Physical Address (Residence) Age Full Name Gender 6% 13% 14% 18% 37% Marital Status Education Level Personal Interests (Hobbies) Household Income Phone Number 7% 5% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other Shopping Habits Marital Status N = 84 Belden Interactive 20
  21. 21. Log-in Programs Few sites use ZAG and just 1 in 4 who do use for ad targetingFew sites use ZAG, and just 1 in 4 who do use for ad targeting 57. Does your site use ZIP, Age, Gender (ZAG) log-ins? ZAG Programs in Place 85% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% No Yes N = 118 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% ZAG Programs for Ad Targeting 72% 28% N Ye 58. Does your site use ZAG information for ad targeting? N = 18 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% No Belden Interactive 21
  22. 22. Providers vs. Visitors Perception: Value of site news and informationValue of site news and information 60. How would your users rate the news and information posted at your main 25. In general, how valuable do you think the news and information posted atp y news and information site? p LOCALSITE.com is to you? Providers Visitors N = 118 Source: Belden Interactive 2009 Local Market Surveys (N = 4,113) Belden Interactive 22 y ( , )
  23. 23. Providers vs. Visitors Perception: Value of print content on WebsiteValue of print content on Website 61. How valuable is it for your users to be able to access all of your print l d 40. In general, how valuable is it to you to be able to access all of local daily lcontent online at your main news and information site? news print content online at LOCALNEWS.com? Providers Visitors N = 118 Source: Belden Interactive 2009 Local Market Surveys (N =4,113) Belden Interactive 23
  24. 24. Providers vs. Visitors Perception: Difficulty of replacing siteDifficulty of replacing site 62. If your main site stopped posting its news and information to the Web, how easy do you think it 26. If LOCALSITE.com stopped posting its news and information to the Web, how easy do you think it would would be for your users to find a replacement for that news and information they are currently getting from your site? be to find a replacement for that news and information you are currently getting from LOCALSITE.com? Providers Visitors Source: Belden Interactive 2009 Local Market Surveys (N = 4,113) N = 118 Belden Interactive 24 y ( , )
  25. 25. Providers vs. Visitors Perception: Market Options to WebsiteMarket Options to Website 27. What other media/sources do you think you would use if news and information 63. What other media/sources do you think your users would use if news and information from your from LocalSite.com were no longer available? [Select all that apply.] Visitors main news and information site were no longer available? [Select all that apply.] Providers Source: Belden Interactive 2009 Local Market Surveys (N = 4,113)N = 118 Belden Interactive 25
  26. 26. Providers vs. Visitors Perception: Online options to WebsiteOnline options to Website 28. Which, if any, online sources would you be most likely to turn to if LOCALSITE.com were 64. Which, if any, online sources do YOU think YOUR USERS would be most likely to turn to if y no longer available? [Select all that apply.] VisitorsProviders your main news and information site were no longer available? [Select all that apply.] Source: Belden Interactive 2009 Local Market Surveys (N = 4,113)N = 118 Belden Interactive 26
  27. 27. Paid Future — Silver Bullet? No consensusNo consensus 65. How likely do you think it is that newspapers will succeed in charging for content in such h h ill i ifi l ib h f f ?a way that these new revenues will significantly contribute to the future of newspapers? 39% 12% Somewhat likely Very likely 5% 36% Not at all likely Not very likely 5% 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Don''t know Complete failure nearly certain N = 118 Belden Interactive 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 27
  28. 28. Challenge: A di d O t itAudience and Opportunity If we do not accurately understandy our audience we cannot calibrate… Opportunity • Any possibility of converting to paid content or any other revenue Opportunity ROI • Any possibility of converting to paid content — or any other revenue opportunity — depends upon key variables: Knowing audience size K i di b h iKnowing audience behaviors Knowing user price points Articulating user benefits from their perspective Belden Interactive 28
  29. 29. Omniture and Google Analyticsg y • Omniture and Google analytics’ UV counts raiseg y concerns, such as… • Unique Visitor counts equal to local population or more • Unique Visitors counts 10x circulation • Unique Visitors counts 2.5x visiting per month U i Vi i i di l f k• Unique Visitors counts indicate mostly out of market Let’s look at what the Omniture data are telling usLet s look at what the Omniture data are telling us. NOTE: Most sites say they do not believe Omniture UV but have no other source except Belden Interactive 29 y y p Nielsen/Comscore, which have significant limits, notably the focus on top markets only.
  30. 30. UV counts are 10 times circulation and 1.3 times greater than local populationstimes greater than local populations Average UV Count: 4,957,772 Average Market Pop: 3,828,973 UV reports were on average 133% of local population for large markets. Average UV Count: 347,446 A M k t P 375 997Average Market Pop: 375,997 UV reports were on average 92% of local population for mid-sized markets. A UV C t 157 229Average UV Count: 157,229 Average Market Pop: 97,474 UV reports were on average 161% of local population for small markets. Average UV Count: 58,519 Average Market Pop: 40,285 UV reports were on average 145% of local population for very small markets. Belden Interactive 30 very small markets. N = 99
  31. 31. Reported “Unique Visitors” exceed l l l ti i ll k t ilocal populations in all market sizes Large Market Sites: +100K Circ. (N = 20) Mid-Size Market Sites: 25K to 99K Circ. (N = 30) Small Market Sites: +10-25K Circ. (N = 26) Very Small Market Sites: <10K Circ. (N = 23) Belden Interactive 31 N = 99
  32. 32. Overall Traffic Patterns – Nearly every market t th tt f 10 PV 2 5V 1UVreports the same pattern of 10 PV : 2.5V : 1UV Large Market Sites: +100K Circ. (N = 15) Mid-Size Market Sites: 25K to 99K Circ. (N = 27) Small Market Sites: +10-25K Circ. (N = 26) Very Small Market Sites: <10K Circ. (N = 16) Belden Interactive 32 N = 84
  33. 33. Overall Traffic Patterns – Nearly every market t th tt f 10 PV 2 5V 1UVreports the same pattern of 10 PV : 2.5V : 1UV Large Market Sites: +100K Circ. (N = 15) Mid-Size Market Sites: 25K to 99K Circ. (N = 27) S ll M k t Sit +10 25K Ci (N 26) V S ll M k t Sit <10K Ci (N 16)Small Market Sites: +10-25K Circ. (N = 26) Very Small Market Sites: <10K Circ. (N = 16) Belden Interactive 33 N = 84
  34. 34. Visits Per Month – Excluding 3 outliers, the average site shows 2 5 visits per monthaverage site shows 2.5 visits per month 60 of 96 sites report 2.00-3.99 visits per month. There has been no increaseThere has been no increase in the Omniture/Google analytics net monthly visits rates in reported data since Mean 2.5 p 2003. Mean 2.5 N = 96 Belden Interactive 34 N 96
  35. 35. Local Market Reach: i i54 Sites Reporting Local Market Reach 90 0% 70.0% 80.0% 90.0% While the overall average is 31% reported reach, the overall range of 1% to 85% 40.0% 50.0% 60.0% overall range of 1% to 85% strongly suggests a random distribution. 10 0% 20.0% 30.0% 0.0% 10.0% N = 54 Belden Interactive 35 NOTE: Local market reach data are NOT typically reported from Omniture/GA data
  36. 36. Why?Why? • Why is this pattern always the same?y p y –10 x circ? –1.3 x local pop? –2.5 x per month? –Large implied out of market Regardless of market, circulation size, or seemingly anything… Belden Interactive 36
  37. 37. Belden Interactive 37
  38. 38. Loyalist Audience FrequencyLoyalist Audience Frequency (Incidental and Core Visitors – excludes fly-bys) Source: Belden Interactive 2009 Belden Interactive 38 Source: Belden Interactive 2009 Local Market Surveys (N = 4,113)
  39. 39. Newspaper Website Audiences i h lCome in Three Flavors Fly-byy y •1 time per month •Sourced from Search •Wide variation in In- vs. Out-of- Market mix Varies between 25% & 80% of total•Varies between 25% & 80% of total people visiting in a month. Incidental Loyalists •1 3 days per month 1 2 times•1-3 days per month, 1-2 times on days visiting. •Predominantly local. Core LoyalistsCore Loyalists •20 days per month, 2-3 times on days visiting •Mostly to overwhelmingly local. Belden Interactive 39 Local market definitions may vary.
  40. 40. Loyalists are the f hiBase for Everything Loyalists drive the vast majority of pageviews at all local newspaperpageviews at all local newspaper Websites. As a group they have known characteristics: V j i f i•Vast majority of pageviews •Vast majority of over-counting Belden Interactive 40
  41. 41. How does this affect strategy?How does this affect strategy? • Core audience has engagement. • Higher engagement is higher opportunity.pp y Belden Interactive 41
  42. 42. The Friction Challenge Saying “pay” is easy. Getting it is hard. • Single-story fees. Likely to appeal only to fly-by visitors; large resistance can be expected. • Single-day pass. Likely viable for all types; greatest total revenue opportunity and least resistance of llall types. • Subscriptions. Likely to appeal only to core l li t i t d tloyalists; some resistance; capped revenues; most familiar, and easiest to implement. Belden Interactive 42
  43. 43. Paid Opportunity by Profilepp y y Fly-by audience: Frequency 1 day per month,Fly by audience: Frequency 1 day per month, not returning. Typically driven by search or other reference to some specific story or content item. Best opportunity: Single-story fees? Incidental loyalist audience: Frequency 1-3 days per month, returns on a semi-regular basis. returning. Typically driven by desire to see some specific content for news ads classifiedssome specific content for news, ads, classifieds, etc. Best opportunity: Single-story fees? Day passes? C l li t di F 18 dCore loyalist audience: Frequency 18+ days per month, 2-3 times per weekday. Typically driven local and breaking news. Best opportunity: Day pass? Subscriptions? Belden Interactive 43
  44. 44. Revenue Strategy by Profilegy y Fly-by audience: Frequency 1 day per month, not returning. Leveraging the API Incidental loyalist audience: Frequency 1-3 days per month, returns on a semi-regular basis. returning. Leveraging Core loyalist audience: Frequency 18+ daysCore loyalist audience: Frequency 18+ days per month, 2-3 times per weekday. API Belden Interactive 44
  45. 45. Digital Delivery: What you want, h hwhen you want, where you want • Isaacson recommended iTunes• Isaacson recommended iTunes or similar micropayments. • Why iTunes and other onlineWhy iTunes and other online payments work — despite very strong initial resistance. Belden Interactive 45
  46. 46. A Consumer Perspective - MusicA Consumer Perspective Music This is the problem iTunes solves. 1 of 14 Songs Wanted •You love one song on this album, “Treetop Flyer.” But it is not available as a single, you must buy the whole lb f 14 f $14 99album of 14 songs for $14.99 to get the one you want. •93% of purchase price “wasted.” •In iTunes you can go in and find the one song you want to add to o r pla list and b it 1 of 1 Song Wanted add to your playlist and buy it for $0.99. •100% of purchase price delivers what I want, when I Belden Interactive46 want, and where I want.
  47. 47. A Consumer Perspective: Subscriptions?Subscriptions? This is the problem with print. 1 of 5 Sections Interest •In subscribing to printed newspapers, people must buy all the content to get what they want — news, sports, ads, etc. No one wants all the content — perhaps only 1 of 5 sections on aperhaps only 1 of 5 sections on a regular basis. -75% of purchase price “wasted.” An online subscription does not solve the problem if the same “buy all to get Problem is worse with online subscription. some” rule applies. People typically read 4 of perhaps 40 newly available online articles on any day. •90% of purchase price “wasted ” Belden Interactive 47 •90% of purchase price wasted.
  48. 48. What do the data imply?What do the data imply? • Missed opportunities for… ePaper InteractivityInteractivity Registration • “Print” precepts still driving our thinking. Comfort with words, not interactivity, y Obsession with “credibility” and professional Control of conversation– not trusting visitors Price to end user focused on advertising Cost to end user consistently discounted or free No focus on user benefitsNo focus on user benefits • Potentially deep disconnect between “us” and “them” — content creators and end- users, our visitors. • Visitors’ focus is on Internet and TV, not print. • Little audience understanding of basic reach and behaviors. Belden Interactive 48 • Faulty models likely in place for assessing opportunity and ROI.
  49. 49. Hands-onHands on • How many people?• How many people? • How much opportunity for core? • Subscription Opportunityp pp y • Micropay Opportunity Belden Interactive 49
  50. 50. Worksheet Audience Unique Visitors X Visits per month X Pages per visit = Page- views Revenue Opportunity Omniture x x = Site Estimate Flavors: Fly-by x 1.0 x = id lIncidental x x = Core x x = Total Belden Interactive 50
  51. 51. Case StudiesCase Studies Enterprise Ownership Site Linkp p Pittsburgh PA Post-Gazette Independent PGPlus Newport RI IndependentNewport RI Independent Little Rock, AR Arkansas Democrat-Gazette Independent ArkansasOnline.com Lima, OH The Lima News Freedom Communications LimaNews.com Kankakee, IL The Daily Journal Small Newspaper GroupThe Daily Journal Group Manchester, CT Independent Erie, PA E i Ti N Independent GoEire.com Belden Interactive51 Erie Times-News
  52. 52. Experimental Matrix ki f l !Looking for Volunteers! Pay Model Test 1 Test 2 Pricing NotesPay Model Test 1 Test 2 Pricing Notes Subscription Model Allow Current Subs Free All Pay $6 to $10/month We may consider that this has been done. L i t hi h Day Pass 24 Hrs. Allow Current Subs Free All Pay $1.00 to $1.50 Lower resistance, higher revenue. Allows to get some revs from Fly-bys & incidentals, though not much. Revs per visitor likely to be 2x subs model per + more participation. All C t All P With Day: $1.00 to May want to introduce some flavor of FinTimes model on Day Pass/Single Article Allow Current Subs FreeWith Single Article All Pay With Single Article y $ $1.50 Single Article: $.50 to $.75 flavor of FinTimes model on this, but not much, as there is no real solution for the cookie problem. Prompt at 2 nd visit, for sure. Belden Interactive52
  53. 53. Revenue Initiatives 2009Revenue Initiatives 2009 Benchmarking print revenues Belden Interactive 53
  54. 54. Contribution to print revenues from national retail By enterprise scale Actual 2008 Projected 2009 100% 100% 92% 70% 80% 90% 100% nse 100% 100% 100% 70% 80% 90% 100% nse Very Small Unreported 0% 0% 0% 0%0% 0% 0% 0% 92% 0% 92% 8% 86% 20% 30% 40% 50% 60% MeanRespon Very Small Unreported 0% 0% 0% 0%0% 0% 0% 0%0% 91% 9% 83% 20% 30% 40% 50% 60% MeanRespon 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large Mid-Range Small Very Small0%0% 0% 0% 8% 8% 0% 0% 0% 0% 14% 0% 0% 0% 10% Large Mid Range Small Very Small Unreported 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large Mid-Range Small Very Small0% 0%0% 0% 0% 0% 9% 0% 0% 0% 0% 17% 0% 0% 0% 10% Large Mid-Range Small Very Small UnreportedLarge Mid-Range Small Very Small Unreported g g y p Belden Interactive Sample Size = 42
  55. 55. Percentage of total print revenue from national ads by enterprise size 1516 by enterprise size 15 10 15 12 14 16 se 6 6 6 8 10 MeanRespon L Mean 2008 2 2 2 2 1 0 2 4 Large Mid-Range Very Small Small Unreported Mean 2009 1 Mean 2009 Mean 2008 Belden Interactive Sample Size = 40
  56. 56. Contribution to print revenues from local retail By enterprise scale Actual 2008 Projected 2009 50% 60% 70% e 60% 70% 80% e 0% 17% 50% 17% 17%0% 22% 67% 11% 67% 33% 55% 27% 67% 20% 30% 40% 50% MeanResponse 0% 17% 50% 17% 17%0% 38% 63% 58% 42% 75% 71% 20% 30% 40% 50% MeanResponse 0 - 19% 20 - 39% 40 - 59% 60 - 80 Large Mid-Range Small Very Small Unreported 11% 0% 0% 0% 0% 18% 0% 0%0% 33% 0% 0% 0% 10% 0 - 19% 20 - 39% 40 - 59% 60 - 80 Large Mid-Range Small Very Small Unreported 0% 0% 0% 0% 0% 17% 8% 0% 0% 14% 14% 0% 0% 0% 10% 79% 80 - 100% Large Mid-Range Small Very Small Unreported 79% 80 - 100% Large Mid-Range Small Very Small Unreported Belden Interactive Sample Size = 44
  57. 57. Contribution to print revenues from local Inserts By enterprise scale 90% 90% Actual 2008 Projected 2009 80%89% 83% 60% 70% 80% 90% ponse 83% 88% 75% 60% 70% 80% 90% ponse Very Small Unreported 20% 0% 0% 0% 11% 0% 0% 0% 17% 0% 0% 70% 30% 83% 10% 20% 30% 40% 50% MeanResp Very Small Unreported 17% 0% 0% 0% 13% 0% 0% 0% 75% 25% 0% 55% 45% 43% 57% 20% 30% 40% 50% MeanResp 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large Mid-Range Small 0% 0% 0%0% 0% 0%17% 0% 0% 0% 0% 10% 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large Mid-Range Small 0% 0% 0%0% 0% 0% 0% 0% 0% 0% 10% Large Mid-Range Small Very Small Unreported S l Si 42 Large Mid-Range Small Very Small Unreported Belden Interactive Sample Size = 42
  58. 58. Percentage of total print revenue from national inserts 12 9 10 7 12 8 10 12 se 4 4 8 8 6 4 6 8 MeanRespon Mid R Mean 2008 4 0 2 Mid-Range Large Very Small Unreported Small Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 36
  59. 59. Percentage of total print revenue from niche pubs 1818 12 11 12 12 14 16 nse 5 12 76 8 10 MeanRespon V S ll Mean 2008 2 5 5 4 0 2 4 Very Small Large Small Unreported Mid-Range Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 40
  60. 60. Percentage of total print revenue from classifieds 27 3030 24 22 19 27 27 2320 25 30 se 19 18 10 15 20 MeanRespon L Mean 2008 0 5 Large Mid-Range Small Very Small Unreported Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 44
  61. 61. Revenue Initiatives 2009Revenue Initiatives 2009 Benchmarking online revenues Belden Interactive 61
  62. 62. Percentage of total online revenue from display ads (ROS) 60 60 51 50 53 44 40 50 60 se 33 3138 37 32 20 30 40 MeanRespon V S ll Mean 2008 0 10 Very Small Small Unreported Large Mid-Range Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 45
  63. 63. Contribution to online revenues from behavioral targeting By enterprise scale Actual 2008 Projected 2009 100% 90% 100% 100% 50% 100% 100% 100%50% 60% 70% 80% 90% esponse 100% 100% 100% 100% 100%50% 60% 70% 80% 90% Response Small Very Small Unreported 0% 0% 0% 0% 50% 50% 0% 0% 0%0% 0% 0% 0% 0% 0% 0% 0% 100% 10% 20% 30% 40% 50% MeanR Mid-Range Small Very Small Unreported 0% 0% 0% 0%0% 0% 0% 0%0% 0% 0% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% MeanR 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large Mid-Range 0% 0% 0% 0% 0% 0% Large Mid-Range Small Very Small Unreported 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large Mid-Range 0% 0% 0% 0% 0% Large Mid-Range Small Very Small Unreported Belden Interactive Sample Size = 21
  64. 64. Percentage of total online revenue from behavioral targeting 10 10 8 7 8 9 10 e 4 2 5 4 5 6 7 eanResponse Mean 2008 0 2 0 0 2 0 1 2 3 M Very Small Large Mid-Range Small Unreported Mean 2009 0 0 Mean 2009 Mean 2008 Belden Interactive Sample Size = 21
  65. 65. Percentage of total online revenue from local search 4 g 34 4 33 4 4 se 1 23 22 2 3 MeanRespon S ll Mean 2008 0 0 0 1 1 Small Large Unreported Mid-Range Very Small Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 23
  66. 66. Contribution to online revenues from mobile By enterprise scale Actual 2008 Projected 2009 90% 100% 90% 100% 100% 100% 100% 100% 100% 40% 50% 60% 70% 80% anResponse 100% 100% 100% 100% 100%50% 60% 70% 80% nResponse 0 19% L Mid-Range Small Very Small Unreported 0% 0% 0% 0%0% 0% 0% 0%0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% Mea Mid-Range Small Very Small Unreported 0% 0% 0% 0%0% 0% 0% 0%0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% Mean 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large0% 0% 0% Large Mid-Range Small Very Small Unreported 0 - 19% 20 - 39% 40 - 59% 60 - 79% 80 - 100% Large 0% 0% 0% 0% Large Mid-Range Small Very Small Unreported Belden Interactive Sample Size = 18
  67. 67. Percentage of total online revenue from national or regional remnant 8 8 5 6 67 66 7 8 e 2 5 3 4 5 eanResponse Mean 2008 2 3 2 0 1 2 3 M Unreported Very Small Large Small Mid-Range Mean 2009 0 Mean 2009 Mean 2008 Belden Interactive Sample Size = 28
  68. 68. Percentage of total online revenue from Search Engine Optimization 7 7 5 5 6 7 se 2 3 4 MeanRespon V S ll Mean 2008 0 0 0 0 0 0 0 1 2 Very Small Mid-Range Large Small Unreported Mean 2009 0 0 0 Mean 2009 Mean 2008 Belden Interactive Sample Size = 19
  69. 69. Percentage of total online revenue from Search Engine Marketing 4 3 4 3 4 4 se 12 2 3 MeanRespon Mid R Mean 2008 0 0 0 1 0 1 1 Mid-Range Large Small Very Small Unreported Mean 2009 0 0 0 Mean 2009 Mean 2008 Belden Interactive Sample Size = 18
  70. 70. Percentage of total online revenue from Video Advertising 8 6 8 6 7 8 se 3 5 43 4 5 MeanRespon Mid R Mean 2008 1 0 0 1 0 1 2 Mid-Range Large Very Small Small Unreported Mean 20090 Mean 2009 Mean 2008 Belden Interactive Sample Size = 28
  71. 71. Contribution to online revenues from Classifieds Actual By enterprise scale Actual 2008 Projected 2009 60% 70% 80% e 60% 70% 80% e 33% 67% 0% 50% 50%56% 11% 58% 33% 71% 20% 30% 40% 50% % MeanResponse 50% 50% 0% 57% 43% 67% 11% 64% 36% 71% 20% 30% 40% 50% % MeanResponse 0-19% 20-39% 40-59% -79% 0% arge d-Range Small VerySmall Unreported 0% 0% 0% 0% 0% 0% 11% 11% 22% 0% 0% 8% 0%0% 29% 0% 0% 0% 10% 0-19% 20-39% 40-59% -79% 0% arge d-Range Small VerySmall Unreported 0% 0% 0% 0% 0% 0% 11% 11% 11% 0% 0% 0% 0% 14% 14% 0% 0% 0% 10% 4 60- 80-100 La Mid Large Mid-Range Small Very Small Unreported 4 60- 80-100 La Mid Large Mid-Range Small Very Small Unreported Belden Interactive Sample Size = 37
  72. 72. Percentage of total online revenue from classifieds 2225 22 22 22 17 1618 17 20 25 se 17 15 15 15 10 15 MeanRespon U t d Mean 2008 0 5 Unreported Small Mid-Range Large Very Small Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 38
  73. 73. Percentage of total online revenue from Sponsorships 7 4 7 5 6 7 se 3 3 2 3 4 MeanRespon V S ll Mean 2009 0 1 0 2 1 1 0 1 2 Very Small Mid-Range Unreported Large Small Mean 2009 Mean 2009 Mean 2009 Belden Interactive Sample Size = 22
  74. 74. Percentage of total online revenue from business directories 18 10 17 12 14 16 18 nse 1 76 8 10 MeanRespon Small Mean 2008 0 3 1 6 4 2 0 2 4 Small Unreported Very Small Mid-Range Large Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 25
  75. 75. Average Sell-Through (% Inventory sold) 70 54 43 58 54 61 61 60 5850 60 70 se 29 35 20 30 40 MeanRespon L Mean 2008 0 10 20 Large Mid-Range Very Small Unreported Small Mean 2009 Mean 2009 Mean 2008 Belden Interactive Sample Size = 44
  76. 76. Case StudiesCase Studies • PG Plus • Newport RI • Arkansas• Arkansas • Lima OH • Kankakee • Manchester, CT • GoErie Belden Interactive 76
  77. 77. AppendicesAppendices Belden Interactive 77
  78. 78. Content InitiativesContent Initiatives Social networks links/presence 86% E-commerce storefronts 80% Email subscriptions/alerts 70% N = 118 Niche sites (moms, gardens, etc.) 70% Premium-content site/section 8% • Facebook (79%) and Twitter (80%) most-often cited social networks. • Photos (75%) and paid archives (48%) most common ecommerce elements. • 1 of 83 with email subscriptions with payment. • 59 of 83 (71%) sold advertising into email subscription/alert programs. Belden Interactive 78 ( ) g p / p g
  79. 79. Digital DeliveryDigital Delivery 35. Do you provide access to stories or information such as sports scores, headlines, stock quotes, etc., by any of these digital delivery platforms? [S l ll h l ][Select all that apply.] N = 118 Belden Interactive 79
  80. 80. Current RegistrationsCurrent Registrations 59. Have you registered to receive emails, alerts or permission-based advertising at any of the following media or businesses? [Select all that apply.] Sample Base: All Respondents N = 795 Belden Interactive 80

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