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The New Business of News

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This was a 60 minute webinar delivered by Adam Carroll for the Iowa Newspaper Association Foundation on the changing face of the newspaper industry.

Published in: News & Politics, Business
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The New Business of News

  1. 1. Understanding the ‘New’ Business of News Understanding the ‘New’ Business of News
  2. 2. The changing landscape of news
  3. 3. <ul><li>“ The Internet is poised to overtake newspapers as the 2nd largest US advertising medium by revenue behind TV” </li></ul><ul><li>PWC Global Entertainment and Media Outlook 2010-2014 </li></ul>
  4. 4. new technologies...
  5. 5. <ul><li>“ The future is here, it’s just not evenly distributed yet.” </li></ul><ul><li>--William Gibson </li></ul>
  6. 10. Stantum
  7. 12. Flexible Display Center at Arizona State
  8. 13. <ul><li>84.4% of users use the tablet to follow breaking news. </li></ul><ul><li>predominantly affluent, well-educated men between 35-64 who tend to be early adopters </li></ul><ul><li>31% said they wouldn’t subscripe to a print newspaper </li></ul><ul><li>approx. 32 million sold to date </li></ul>
  9. 14. <ul><li>70% of the New York Times’ registered online users are print subscribers. </li></ul><ul><li>Avid online readers are likely to be professionals and also readers of printed news. </li></ul>
  10. 15. “ The only thing dead is the either/or nature of the musty print vs. online debate... The hybrid future is kicking down the door.”
  11. 16. Where does the revenue come from?
  12. 17. US Ad Spend By Medium
  13. 18. Revenue By Advertising Verticals
  14. 19. Media Share of US Advertising 1959-2009
  15. 20. Ad Revenue By Type (constant dollars)
  16. 21. Trends in News Access
  17. 22. Daily Newspaper Circulation (000)
  18. 23. Revenue and Circulation
  19. 24. Classified revenues moved from 18% in 1950 to 40% in 2000
  20. 26. Between 2000-2008, Craigslist had $100M in sales and evaporated $10B in classified ad revenue. They did so with 30 employees.
  21. 28. The impact of the internet
  22. 29. Mobile advertising will quadruple from $414M in ’09 to $1.6B in ’14
  23. 30. Now has nearly half as many readers in America as it does at home.
  24. 34. <ul><li>Moves information with zero variable cost, meaning no barriers to growth </li></ul><ul><li>Entry costs are low. Anyone with a computer can become a publisher. </li></ul>
  25. 35. 25-34 year olds are the most active online readers
  26. 36. Experimentation With New Business Models
  27. 38. <ul><li>cut size </li></ul><ul><li>cut news hole </li></ul><ul><li>now covering the “meaning” of news </li></ul>
  28. 41. <ul><li>“In the future, high quality journalism will be funded and sponsored by non-profit organizations.” </li></ul>
  29. 42. New Newspaper Business Model: Create Compelling Graphic, Wait For Others To Use It... And Then Sue
  30. 43. Monetizing The Web
  31. 44. <ul><li>Ann Arbor news closed and reopened as www.annarbor.com and revolves entirely around deals. </li></ul><ul><li>www.MinnPost.com is largely supported by donors and launches a real-time ads feature </li></ul>Coupons & Deals of the Day
  32. 45. Sponsor Posts <ul><li>Use advertising slots within the flow of posts. They look like regular posts on the site, but aren’t bylined and are written by the advertiser. </li></ul>
  33. 46. Video <ul><li>A number of organizations are experimenting with pre-roll ads and advertising bugs that appear on news videos. </li></ul>
  34. 47. Paid Content <ul><li>pairing subscriptions with micropayments (like iTunes - paying a nominal price for individual stories online). </li></ul><ul><li>allowing 10 free stories and then reader hits the paywall. </li></ul>
  35. 48. Lists & Databases <ul><li>Selling data. </li></ul><ul><li>A book of lists (top businesses by sector, fastest growing neighborhoods, etc.) makes a great annual print edition to grab premium advertising and boost brand awareness. </li></ul>
  36. 49. Mobile <ul><li>a fee for the mobile application carrying the latest news or a subscription for daily news alerts. </li></ul>
  37. 50. Specialized Advertising Services <ul><li>The idea is to provide advertising consulting services. For a premium on top of an ad buy, the hyperlocal coordinates the business’ entire web presence. </li></ul>
  38. 51. Gift Cards <ul><li>The media company sells advertising in exchange for gift certificates. The reader then buys the gift card at just less than retail from the media company. Everyone gets a deal. </li></ul>
  39. 52. <ul><li>AdBright </li></ul><ul><li>BlogAds </li></ul><ul><li>BlogHer </li></ul><ul><li>Complex Media </li></ul><ul><li>Federated Media </li></ul><ul><li>Glam Media </li></ul>Ad Networks <ul><li>Lycos </li></ul><ul><li>MOG Music Network </li></ul><ul><li>ReachLocal </li></ul><ul><li>ShortTail Media </li></ul><ul><li>Yardbarker </li></ul><ul><li>Glam Media </li></ul>
  40. 53. Content <ul><li>http://www.time.com/time/magazine/article/0,9171,1877402,00.html </li></ul><ul><li>http://denispombriant.wordpress.com/2009/03/03/reinventing-the-newspaper-business-model-with-zuora/ </li></ul><ul><li>http://www.washingtonpost.com/wp-dyn/content/article/2005/05/02/AR2005050201457.html </li></ul><ul><li>http://www.economist.com/node/7830218/print?story_id=7830218 </li></ul><ul><li>http://businessjournalism.org/2010/03/21/new-models-for-delivering-the-news/ </li></ul><ul><li>http://itstrategyblog.com/wall-street-journal%E2%80%99s-emerging-strategy/ </li></ul><ul><li>http://www.ajr.org/article.asp?id=4605 </li></ul>
  41. 54. Content <ul><li>http://inma.org/modules/article/index.cfm?action=articleView&articleId=48629 </li></ul><ul><li>http://www.forbes.com/2009/06/02/knight-foundation-alberto-ibarguen-business-media-alberto.html </li></ul><ul><li>http://www.techdirt.com/articles/20070129/082445.shtml </li></ul><ul><li>http://newsinnovation.com / </li></ul><ul><li>http://pewresearch.org / </li></ul><ul><li>http://www.naa.org/ </li></ul>

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