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ISOJ 2014

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  1. 1. 1  Print revenue from advertising and subscriptions still account for more than 65% of most all metro papers total revenue.  Newspapers have successfully raised home delivery prices and shifted some of the revenue burden away from their dependency on print advertising.  Newspaper print advertising CPM’s are 5–7x higher than digital advertising CPM’s. The Case for Print
  2. 2. 2  Print ad revenues have declined year‐over‐year for more than 30 consecutive quarters.  Total newspaper print circulation peaked in 1990 and has been declining ever since.  The print subscriber demographic profile skews very old. Problems with Print
  3. 3. 3  100 million people are accessing newspaper media on laptops and desktops.  127 million people are accessing newspaper media on smartphones and tablets.  The New York Times has almost 800,000 digital‐only subscribers.  Facebook generated almost $1.3 billion in mobile advertising revenues in 2013.  In November of 2013, Millennials clocked in at an average of 96 hours online – both desktop and mobile.  On December 25, 2013, there were 17.4 million digital device activations, far surpassing the 6.8 million activations on December 25, 2012.  Marc Andreessen says the News Business will grow by 1,000 percent. The Case for Digital
  4. 4. 4  Most metro papers have a digital‐only subscriber base that is less than 15% of their Sunday print subscriber base.  The supply of digital advertising impressions continues to expand aggressively putting downward pressure on digital advertising CPM’s.  The rise of programmatic buying/selling of digital advertising puts more downward pressure on digital advertising CPM’s. Problems with Digital
  5. 5. 5  Local news audiences don’t scale digitally. And that’s a problem because: - Take 40 million page views per month (TDMN monthly average) - Put two ad positions on every page - Achieve an annual 80% sell through rate at an average $8 CPM for all ad positions In one year you will generate a total of $7.6 million. (That’s less than 2% of TDMN’s total revenues.) Problems with Digital