The Big Picture

Slide 1: The Big Picture 2008 Journalism, audience and advertising on the Web Anthony Moor Deputy Managing Editor/Interactive The Dallas Morning News amoor@dallasnews.com

Slide 2: Agenda • The birth of the Semantic Web • Our promiscuous, ‘help me’ audience • Journalism as a service, not a product • Advertising decouples from news • Discussion

Slide 3: Web 1.0: The good old days Web 1.0 (1993-2003) Audience Geeks Unit of Content Page (article) State Static (HTML) Architecture Client/Server Engagement Read (Britannica online) Ad Distribution A few large sites (DoubleClick) Search Boost Domain name speculation (Netscape)

Slide 4: Web 2.0: The interactive Web Web 1.0 Web 2.0 (1993-2003) (2003-2010) Audience Geeks Everyone Unit of Content Page (article) Data (mashup, widget) State Static (HTML) Dynamic (XML, Ajax, RSS) Architecture Client/Server Web services (syndication) Engagement Read Write/Contribute (Britannica online) (Wikipedia, Flickr) Ad Distribution A few large sites The entire Web (DoubleClick) (Google AdSense) Search Boost Domain name SEO (Google) speculation (Netscape)

Slide 5: Web 3.0: The data-driven Web Web 1.0 Web 2.0 Web 3.0 (1993-2003) (2003-2010) The Semantic Web Audience Geeks Everyone •Data powers the Unit of Content Page (article) Data (mashup, widget) Web State Static (HTML) Dynamic •Automated (XML, Ajax, RSS) mashing up of Architecture Client/Server Web services personalized (syndication) content Engagement Read Write/Contribute •Intelligent-agent (Britannica online) (Wikipedia, Flickr) driven assembly Ad Distribution A few large sites The entire Web and interactivity (DoubleClick) (Google AdSense) Search Boost Domain name SEO (Google) speculation (Netscape) Source: Chicago Tribune

Slide 6: Audience Trends • Our newspaper.com audience is aging

Slide 7: The newspaper.com audience is aging Source: Belden Associates, ‘Be Web Now’

Slide 8: Audience Trends • Our newspaper.com audience is aging • The online public is relying on social networks and collaborative filtering to edit the news

Slide 9: Growing use of social networks • Membership in online communities doubled in only three years • 54 percent of online community members log into their community at least once a day • 71 percent of members say their community is very important or extremely important to them • Fifty-six percent report meeting online counterparts in person • 25% of bank and brokerage customers use social networks1 Sources: USC Annenberg School, 2008 Digital Future Project; 1Forrester (Feb. 2008)

Slide 10: Social networks exchange news

Slide 11: Social networks exchange news

Slide 12: Social networks recommend sites

Slide 13: Social networks recommend sites

Slide 14: Social networks collaboratively edit

Slide 15: Social networks collaboratively edit

Slide 16: Audience Trends • Our newspaper.com audience is aging • The online public is relying on social networks and collaborative filtering to edit the news • Brand promiscuity is the norm

Slide 17: An audience of ‘fly bys’ Source: 2006 McKinsey survey of 2,100 US Customers

Slide 18: Audience Trends • Our newspaper.com audience is aging • The online public is relying on social networks and collaborative filtering to edit the news • Brand promiscuity is the norm • They expect us to be where they are, not to go where we are

Slide 19: “If the news is that important, it will find me.” – The words of a college student, as recalled by Jane Buckingham, founder of Intelligence Group, a market research company Source: New York Times, Mar. 27, 2008

Slide 20: Access is more important than quality Source: 2006 McKinsey survey of 2,100 US Customers

Slide 21: Info sought from newspaper.coms Any news content 96% Breaking news 74% Local or community news 73% (Women higher) Weather 63% Local entertainment information 55% (Women, 18-54s) National or international news 46% Sports scores or information 46% (Men) Political coverage 30% (Men, 55+) Lifestyle info (fashion, etc.) 30% (Women, 18-54s) Financial/investment info 12% (Men) Source: NAA Digital Edge report, 2006

Slide 22: Info sought from dallasnews.com 1. Breaking national news 2. Breaking local news during the workday 3. Breaking local news in the evening and overnight 4. Breaking crime news 5. Breaking local news on the weekend 6. Crime map in my city and zip code 7. More frequent updates to the home page during the day 8. Morning email newsletter with the top 10 local stories happening today 9. Breaking sports news during the workday 10. Weather maps, radar, alerts Source: dn.com online survey, Dec. 2007

Slide 23: Audience Trends • Our newspaper.com audience is aging • The online public is relying on social networks and collaborative filtering to edit the news • Brand promiscuity is the norm • They expect us to be where they are, not to go where we are • They want us to help them get things done

Slide 24: Q&A site visits are exploding • U.S. visits up 118% in 2008 • Up 889% over two years

Slide 25: Dallas audience asks for help • Watch my back – Watchdog journalism – Local crime and safety news (mapped to neighborhood) • Watch my wallet – Local bargains and ‘best of’ – Resources to solve everyday problems – Personal financial advice – Business news and analysis Source: Dallas Morning News survey, Dec. 2007

Slide 26: Dallas audience asks for help • Watch out for me and mine – Local green and health news – Tips for helping kids do better academically – Weather news, maps and info – Product recalls • Keep a watch on my neighborhood – News briefs from my part of Dallas – Neighborhood coverage Source: Dallas Morning News survey, Dec. 2007

Slide 27: Audience Trends • Our newspaper.com audience is aging • The online public is relying on social networks and collaborative filtering to edit the news • Brand promiscuity is the norm • They expect us to be where they are, not to go where we are • They want us to help them get things done • They’re watching more video

Slide 28: Video use continues to grow • Various studies show video use up and frequency is up • Total video audience – Leichtman: 14% of all adults watch at home weekly, 4% daily – Pew: 74% of online adults watch at home or work, 19% daily • Most popular categories – News is #1 (except for 18-29 year olds who prefer comedy) – Comedy – Movies/trailers – Music videos Source: State of the News Media, 2008

Slide 29: Audience Trends: Implications? • Our newspaper.com audience is aging • The online public is relying on social networks and collaborative filtering to edit the news • Brand promiscuity is the norm • They expect us to be where they are, not to go where we are • They want us to help them get things done • They’re watching more video

Slide 30: Journalism Trends • News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done Source: State of the News Media 2008

Slide 31: Home pages emphasize service

Slide 32: News is a feed – like electricity

Slide 33: Data centers provide utility

Slide 34: Mobile becomes a lifeline

Slide 35: Business info goes actionable

Slide 36: If you help watchdog, we help you

Slide 37: Journalism Trends • News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done • News Web sites are no longer final destinations Source: State of the News Media 2008

Slide 38: Audience visits via the side door • SJ Merc: Two-thirds of its audience comes from aggregators1 • Dallasnews.com: 61% of visits entered somewhere other than the home page (Jan. 08) Source: 1The Bivings Report

Slide 39: Press becomes ‘press sphere’ Source: Jeff Jarvis, Buzzmachine

Slide 40: A story is a point on a news timeline Source: Jeff Jarvis, Buzzmachine

Slide 41: Journalism Trends • News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done • News Web sites are no longer final destinations • User-generated content doesn’t replace the story, it becomes part of the news process Source: State of the News Media 2008

Slide 42: We’re not getting ‘articles’ from users • TIKK president earns 8th degree black belt (by himself – a karate studio owner!) • Grand Hyatt DFW Ranks #19 in Dallas Business Journal Best Places to Work Survey (by the Haytt’s PR company!) • Botox...Not Just for Wrinkles Anymore! (need we say more?)

Slide 44: Seeding Cit J sites works better Five part-time posters and moderators

Slide 45: The 1% rule • Of 100 people online, one will create content, 10 will "interact" with it (commenting or offering improvements) and the other 89 will just view it • 50% of all Wikipedia article edits are done by 0.7% of users • You Tube "creator to consumer" ratio at just 0.5% Source: guardian.co.uk (Jul. 2006)

Slide 46: Crowdsourcing aids reporting

Slide 47: Beat blogging shows promise • Pro-am journalism • Users provide insight, ‘stubs’ of information, that pros polish “News becomes a collaborative and cumulative work in progress pieced together by multiple contributors, rather than a media-certified byproduct carved in press plates and fixed in time.” – Carl Sessions Stepp, AJR

Slide 48: It’s reporting with a network “This is still about managing relationships. Reporters are naturals at that - but not usually in an online environment. A beat reporter needs to go where the people are, meet them on their own turf, or provide a space where they can be comfortable.” -- David Cohn, BeatBlogging.org

Slide 49: Journalism Trends • News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done • News Web sites are no longer final destinations • The prospects for user-generated content appear more limited than initially thought • Media companies are broadening the definition of journalism to include helping users navigate through content from others Source: State of the News Media 2008

Slide 50: News sites link out

Slide 51: Inline links offsite increase

Slide 52: NYTimes.com: We ‘edit the Web’

Slide 53: Journalism Trends: Implications? • News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done • News Web sites are no longer final destinations • The prospects for user-generated content appear more limited than initially thought • Media companies are broadening the definition of journalism to include helping users navigate through content from others Source: State of the News Media 2008

Slide 54: Advertising Trends • Display advertising has plateaued

Slide 55: 45.00% 40.00% Search 35.00% Display Ads Ad Spending 30.00% Classified 25.00% Rich Media/Video 20.00% Lead Generation 15.00% E-Mail 10.00% Sponsorships 5.00% 0.00% 2006 2007 2008 2009 2010 2011 Source: eMarketer, Oct. 2008

Slide 56: Advertising Trends • Display advertising has plateaued • Locally, video and search advertising are where the growth is

Slide 57: 2012: Video ads, paid search dominate local $16,000 Millions Total $14,307 $14,000 $12,000 Online Video Local Online Ad Spending $10,000 $10,865 Total 76% $7,713 $8,000 Online Video - $2,000 Paid Search 29% Paid Search $6,000 E-Mail Ads - $4,000 Banners & E-Mail Ads $2,000 Listings Banners & Listings $- 2007 2012 Online Video $371,000,000 $5,000,000,000 Paid Search $1,837,000,000 $5,865,000,000 E-Mail Ads $233,000,000 $1,302,000,000 Banners & Listings $5,272,000,000 $2,140,000,000 Source: Borrell Associates Inc. Feb. 2007

Slide 58: NAA: The big money is in advertorials • Longer-form “infomercial” • One to two minutes about an advertiser’s product or service. • Already used in the real estate industry to provide video walk- though tours of homes for sale

Slide 59: Advertising Trends • Display advertising has plateaued • Locally, video and search advertising are where the growth is • Small spenders are where the big local dollars are

Slide 60: Self-service advertising

Slide 61: Business directories

Slide 62: Advertising Trends • Display advertising has plateaued • Locally, video and search advertising are where the growth is • Small spenders are where the big local dollars are • News and advertising are decoupling

Slide 63: Search engines suck up the dollars • Google, Yahoo, AOL and MSN accounted for 57% of net online ad dollars in 2006 • Top 10 sites received 70% • Advertising on news/current events sites grew 9% while others grew faster • Growth rate down from 2005 Source: State of the News Media 2008

Slide 64: Advertising Trends: Implications? • Display advertising has plateaued • Locally, video and search advertising are where the growth is • Small spenders are where the big local dollars are • News and advertising are decoupling

Slide 65: Discussion http://www.slideshare.net/ajmoor