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
 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
 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
 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
 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