... Play WotW intro 46’ in background via Spotify ... > Now for those of you who aren’t men of a certain age and geeky disposition, that was Richard Burton’s opening lines from the rock-opera version of HG Wells’ War of the Worlds. > If you fast forward the setting by 100 years, substitute planet Earth with the world of magazines, > and cast Apple, Google and Facebook as the alien invaders... > and ok, I know this is a stretch! ... then this is where I believe consumer magazines are today.
But before justifying that claim, a bit of background about myself and my consultancy, Ink on Dead Trees...
> I made 30 specific predictions and recommendations in the report, which I finished in January > Most of these, I am pleased to say, have been borne out in the intervening 5 months...
> Although I have had a few surprises... > However, having written 10,000 words about mobile media strategies, today I just want to focus on two themes which I see as critical
> What are the best ways of generating revenue from your mobile apps? > This is my own classification, ranked in order of what I think are proving to be most sustainable. > Note: These are not exclusive business models - far from it, often combinations are the best > Also: This is a moving feast - sponsorship is still a strong model, especially for iPad apps, because of the novelty factor for advertisers, and publishers’ desire for a fixed income to offset their development costs. > But I see the emergence of two core models: 1) Freemium, with an upsell to an integrated subscription - in other words, combined with online access and/or print. This is co-evolving with the paywall debate, and variants of metered access. Apple has done its best to assert more control over the ecosystem, but is being forced to soften its line and allow publishers to share data. 2) Lead generation, embedded within increasingly sophisticated in-app workflow. > This doesn’t mean there won’t be a place for the other models, but rather that, for most publishers, these will be incremental rather than core
> For the next 12 months, Apple’s iOS will remain the biggest app platform, particularly for paid-apps. > But Android is moving ahead faster, whilst iOS is slowing down > My prediction is that Android will be given a boost by RIM throwing in the towel and deciding that competing in software development with Google just isn’t worth it ...RIM Playbook’s Android compatibility is already a sign of this ...But a possibility that MS throws enough cash to bribe RIM to Windows instead bullet> Microsoft will keep playing a game of catch-up bullet> Apple will remain a ‘profitable niche’ premium mobile brand > So don’t use “platform proliferation” as an excuse for doing nothing - not that complicated
> It is becoming clear that m.sites are primarily a marketing tool, optimising the UX of your brand when they discover your site through mobile search or mobile referral > Mobile apps, with poor discoverability on over-crowded app stores, focus on functionality - enhancing your product offering with location-awareness, workflow, and other smartphone features > The FT is now leading the way into a new wave - html5 based web apps. With similar functionality to mobile apps, but bypassing app store restrictions > But I don’t think this spells the end of app stores for media content - mobile apps can evolve faster, and the major app stores cannot be ignored as marketing channels in their own right
> I think this slide carries huge importance for media owners, on several levels. > If you’re a consumer publisher, Facebook is probably your #1 competitor, given that users spend an average 45 minutes per day on it. > The bad news is that social media fits hand-in-glove with mobile devices and apps. > Facebook’s app is the most-downloaded on iPhone, Android and even on BlackBerry > Add FB’s 80m m.site users to their 170 million active app users, and you get 42% of their 600m global total. > App users are twice as active as non-app users, and over 60% (that’s 100m!) of them are daily users! > Facebook still is adding 2.2m active app users every week . > Facebook - along with Twitter and LinkedIn - is also now a critical channel for media brand discovery > So to survive , you’ve got to follow them on to mobile with a compelling user experience > And to thrive , you have also got to exploit these social platforms for your own viral marketing > Oh, and if you’re a B2B rather than consumer publisher, the mobile picture for Twitter is similar, with LinkedIn some way behind.
> This is a case study for lead generation models... > Who here has used Top Table? > Top Table is a purely online business, although its marketing director is ex-Bauer, and restaurant reviews have of course been a staple of magazines and newspapers. ... bullets ... > Now, this model can be applied to newspaper, and specialist B2B and B2C classified ads > Easy enough to add mapping functionality into your app, plus trackable contact-the-seller options... > Autotrader has already made the leap, with two-thirds of its revenues coming from digital leads, and a growing proportion of those from mobile > Regional publisher Kent News is heading this way too on its iPad app - although only insertion fees so far...
> Turning to freemium and integrated subscription models, the FT is showing the way > The FT operates a paywall on its website and apps, with 10 free articles/month for registered users ... bullets ...
> Perhaps this is unwise in a room full of magazine professionals, but I characterise the approach taken by the majority of magazine publishers with the iPad so far as... - “let’s replicate our print issue, add a few multimedia bells and whistles, and stick with our print pricing.” > This simply doesn’t offer sufficient value to consumers, who are now voting with their wallets. > The collapse in downloads shown on this slide is against a background of soaring #s of iPad devices > Files are too big - they take too long to download and occupy too much space on the device > Apps are too expensive - compared to subscription equivalents, and compared to the £/$3 app price ceiling > This approach also denies the critical role of social media and social sharing: - viral marketing is the future So please... > Don’t even bother with an app-embedded pdf of your issue; will only damage your brand > Reconsider whether the Adobe/InDesign path for app-creation really makes sense > I know I’ve been strident in my views during this presentation, and, on this one, I admit that I could yet be proved wrong. ... In particular... > there may be ways of enabling social sharing in these types of digital issues > and editors and designers are getting better at creating functional, as well as beautiful, iPad apps
Mobile Strategies for Media Owners <ul><li>Dominic Jacquesson, Ink on Dead Trees </li></ul><ul><li>Mobile Media Strategies 2011, June 14th, London </li></ul>
Ink on Dead Trees <ul><li>Digital marketing and digital publishing consultancy </li></ul><ul><li>Work with several publishers, large and small, and also with several VC funded ‘disruptive tech’ start-ups </li></ul><ul><li>Subscription / recurring revenues speciality </li></ul><ul><li>Previously Chief Operating Officer at Institutional Investor Inc, and at Electric Word plc </li></ul><ul><li>February - published a business intelligence report on mobile strategies for publishers, with TheMediaBriefing </li></ul>
Some predictions that have been borne out... <ul><li>Smartphones become the norm in mobile </li></ul><ul><li>Tablet market still booming </li></ul><ul><li>Android penetration overtakes iOS </li></ul><ul><li>Blurring of line between apps and html5 </li></ul><ul><li>Pricing ceiling for apps at £/$3 </li></ul><ul><li>Integrated subscriptions will prevail </li></ul><ul><li>Digital replicas of print issues don’t work </li></ul><ul><li>Virality is the best form of marketing - be social </li></ul><ul><li>Think workflow, not issues - be innovative </li></ul>
...with a few surprises <ul><li>Nokia choosing Microsoft Mobile rather than Android </li></ul><ul><li>Slower-than-expected rollout of tablets to compete with the iPad </li></ul><ul><li>Fewer mobile successes among traditional media than I had expected (hoped?) </li></ul>
Ten models for monetising mobile apps <ul><li>Freemium </li></ul><ul><li>Integrated subscriptions </li></ul><ul><li>Lead generation </li></ul><ul><li>Sponsorship </li></ul><ul><li>One-off sales </li></ul><ul><li>Embedded advertising </li></ul><ul><li>In-app issue purchase </li></ul><ul><li>Digital news-stand </li></ul><ul><li>Standalone subscription </li></ul><ul><li>Issue-based payment </li></ul>Decreasing effectiveness Increasing effectiveness
1. Android will dominate this market <ul><li>BlackBerry will switch to Android (probably) within 18 months </li></ul><ul><li>Microsoft will keep playing a game of catch-up </li></ul><ul><li>Apple will retain a ‘profitable niche’ status </li></ul><ul><li>Makes your platform decisions fairly easy... </li></ul>IODT June 2011: mobile OS projections by 2015
2. A new digital media landscape is emerging m.site www app.site www m.app www. Discoverability (marketing) Functionality (product) + + = = Paywalls
3. Social media is drawing old media into mobile m.site iPhone Android B’berry Samsung Ovi millions of MAUs Facebook usage is already 40% mobile IODT time-series analysis, June 2011
4. Apple is backing down on subscriptions <ul><li>30% revenue share is a good deal for consumer publishers compared to news-stand or subscription fulfilment costs </li></ul><ul><li>Data-sharing is getting better: </li></ul><ul><ul><li>Incentives being allowed to encourage opt-in </li></ul></ul><ul><ul><li>Print subscriber integration being explicitly allowed </li></ul></ul><ul><li>‘Best price’ rules are being covertly relaxed </li></ul>Android’s rise and the threat of app.sites have forced the re-think in Cupertino
5. Innovation is working, replication is failing <ul><li>“Pay-once, access anywhere...and we’ll know” </li></ul><ul><li>Lead-generation revenue models </li></ul><ul><li>Location-aware functionality </li></ul><ul><li>Workflow from data </li></ul><ul><li>Joyful user experience </li></ul><ul><li>Social media integration </li></ul>
Thank You [email_address] Twitter: domjacquesson
Are you investing in innovation or managing decline? Revenue growth Profit margin %
Case Study: Top Table <ul><li>Online restaurant search and reservations </li></ul><ul><li>1.3 million registered users, 1 million reviews, 2.5 million visits/month, 70 staff </li></ul><ul><li>Earns a fee for every diner-reservation. £100 million booked in 2010 </li></ul><ul><li>iPhone app for 11 months - location and cuisine based search, real-time reservations </li></ul><ul><li>250,000 downloads and 10% of total reservations... and growing </li></ul>
Case study: Financial Times <ul><li>“ Most admired” app strategy in my survey of publishers in November </li></ul><ul><li>207,000 digital subscribers (+71% YOY), and over £200 million digital revenue </li></ul><ul><li>Integrated subscriptions, across print, online and apps - ie pay once </li></ul><ul><li>iPhone app 595,000 downloads, iPad app 487,000. Also Android and BlackBerry </li></ul><ul><li>Sponsorship supported 2 months full free access to iPad app, worth £1million </li></ul><ul><li>1 in 10 new digital subs now via iPad app </li></ul>
Digital issues aren’t working on tablets... Wired June = 105,000 November = 22,000 Glamour September = 4,300 November = 2,775 Men’s Health June = 2,800 October = 2,000