SlideShare a Scribd company logo
1 of 14
Download to read offline
How Much is Enough?
International Symposium on Online Journalism
April 8, 2005
Online Advertising:
The Good News
• Is increasingly relevant to advertisers of all
types and categories
– Travel
– Business
– Education
– Finance
– Retail
• Provides recognized value in branding, reach,
cost-efficiency
Power of Online
in Affecting Consumer Behavior
 Last year consumers spent $130 billion at stores on Internet-
influenced purchases American Interactive Consumer Study, “The Dieringer Research Group, Sept.
2003
 For every $1 spent online, consumers are influenced by the
web to spend another $6 offline Jupiter Research, 2004
 For the full year, total online consumer spending rose by
26%, from $93.2 billion to $117.4 billion in 2004 emarketer, Inc., 2005
 69% of consumers use online information to help them select
a specific store and product Jupiter Survey, November 19, 2002
53 52
42 41
37
20 22
38
8 5
10
14
29
23
35
31
13
20
23 24
0
20
40
60
80
100
Where I prefer to find out
about new products
Where I prefer to receive
information about
companies
Have advertising that is
rich in information
Have advertising that
helps me decide what to
buy
Internet TV Radio Magazines Newspapers
Total At Work Media User's Attitudes toward Advertising
At Work Users believe Internet advertising has
unique values …intrinsic branding attributes
Source: Online Publishers Association/MBIQ Media Consumption Study, May 2003
Q. 12: Please give your impressions of advertising you see on each of the following media. For each statement, please select all the different types
of media which you think apply. (Includes Duplication) Base: At Work (1053)
InPercents
Internet:
The Preferred Source for Local Merchant
and Store Search
Source: The Kelsey Group and Constat, Inc.,
March 2005; MediaPost, March 2005
70%
62%
70%
73%
75%
60%
Newspapers
Yellowpages
Internet
Feb-05 Oct-03
Newspaper Web Site users are
Your Ideal Consumers
• Newspaper Web pages reach more local online users than other
local media sites in 22 of the top 25 U.S. markets.1
• Local advertisers spent $811 million to promote their products on
newspapers' sites in 2003.2
• Newspaper Web site users spend almost twice as much time online
than other Internet users are more likely to have high-speed
connections. 3
• Newspaper Web site readers are younger, better educated and
more ethnically diverse compared with online audiences in general.3
• As a medium, Internet advertising is as likely as television to
influence purchases made by Internet users. 3
1. The Media Audit, April 2004
2. Borrel Associates, “What Local Web Sites Earn,” May 2004
3. @plan 2004
Registration:
What Have We Learned?
• Targeting ability has become the norm, not a
premium
– ZIP, age, gender, income
• Trade-offs between “permanent” registration
and “lite” registration
• Still missing key attributes
– Children in the household, interests, education
level
Changes in Advertising
• Larger ad units
• More video ads
• Targeting is the norm
• Text ads
• Pay for performance models
• Downward pressure on pricing
• Online evaluated by many in terms of direct
response
Paid Content:
What have we learned?
• Calendarlive.com re-launched as paid site on
August 4, 2003.
– $4.95/month or $39.95/year; free to 7-day
newspaper subscribers
– Included discounts coupons/card for entertainment
venues and events around Southern California.
• Goals:
– Test the market for premium content
– Provide additional value to subscribers
– Better monetize our entertainment site
The Results
• Calendarlive.com not well-known enough to
establish value.
• Marketing message to print subscribers was
too long for most sales channels.
• Online users generally not enthusiastic about
paying for this type of content.
• BUT… did generate more revenue (between
subscriptions and advertising) than before
(just advertising).
Online Revenue
• Interactive revenue up 40%+ YOY
• But still a very small % of total company
revenue
• Does not contribute to newsroom costs
• Does pay allocation for overhead, but
benefits from the company economies
of scale.
Where are we now?
• Newspaper circulation still declining
• Newsprint costs increasing
• Employee costs increasing
• Classifieds business moving online
• Display advertising under fire
– Department store consolidation
– Big stores that don’t advertise in newspapers
(Wal-Mart, Kohls, Costco)
– Advertisers looking for “sub-zip” delivery to make
their ads less expensive, more efficient
A Fictional Example
• Daily Newspaper
– 300 editorial staff ($20
million)
– 300,000 daily
circulation
– $300 million revenue
– $225 million expenses
– $75 million profit
•Dailynewspaper.com
–30 dot-com staff
($2.4 million)
–$13 million revenue
–$7 million expenses
–$6 million profit
How much is enough?
• Online sites are the future for
newspaper companies, and for better or
worse carry the burden of the revenue
growth for the foreseeable future.

More Related Content

What's hot

Trends Shaping Local Search in 2014
Trends Shaping Local Search in 2014Trends Shaping Local Search in 2014
Trends Shaping Local Search in 2014Neustar, Inc.
 
White Paper: Local Search Usage Study 2010
White Paper: Local Search Usage Study 2010White Paper: Local Search Usage Study 2010
White Paper: Local Search Usage Study 2010Cory Grassell
 
Search Strategy Marketing - Search Optimization for Local Businesses
Search Strategy Marketing - Search Optimization for Local BusinessesSearch Strategy Marketing - Search Optimization for Local Businesses
Search Strategy Marketing - Search Optimization for Local BusinessesSearch Strategy Marketing
 
The Tomorrow Lab Presents - Bing Ads For Your Business
The Tomorrow Lab Presents - Bing Ads For Your BusinessThe Tomorrow Lab Presents - Bing Ads For Your Business
The Tomorrow Lab Presents - Bing Ads For Your BusinessThe Tomorrow Lab
 
Local Business Marketing And adverising
Local Business Marketing And adverisingLocal Business Marketing And adverising
Local Business Marketing And adverisingLinden Moe
 
Social Media Marketing For Small Business Marketing Secrets
Social Media Marketing For Small Business Marketing SecretsSocial Media Marketing For Small Business Marketing Secrets
Social Media Marketing For Small Business Marketing SecretsLinden Moe
 
K8 - Facebook Measurement from Rob Creekmore of Facebook
K8 - Facebook Measurement from Rob Creekmore of FacebookK8 - Facebook Measurement from Rob Creekmore of Facebook
K8 - Facebook Measurement from Rob Creekmore of FacebookKenshoo
 
Glass Frog Powerpoint Promo
Glass Frog Powerpoint PromoGlass Frog Powerpoint Promo
Glass Frog Powerpoint PromoThe Images Group
 
2015 Holiday Shopping Prediction
2015 Holiday Shopping Prediction2015 Holiday Shopping Prediction
2015 Holiday Shopping PredictionAdobe
 
Understanding Messaging and Chatbots
Understanding Messaging and ChatbotsUnderstanding Messaging and Chatbots
Understanding Messaging and ChatbotsEdward Kitchingman
 
An Environmental Analysis for Amazon Prime Video
An Environmental Analysis for Amazon Prime Video An Environmental Analysis for Amazon Prime Video
An Environmental Analysis for Amazon Prime Video Jessica Gold
 
SUMMIT Ad Report 2019 -- Digital De-cluttering
SUMMIT Ad Report 2019 -- Digital De-clutteringSUMMIT Ad Report 2019 -- Digital De-cluttering
SUMMIT Ad Report 2019 -- Digital De-clutteringAdobe
 
Neustar US Mobile Phone Local Search Report
Neustar US Mobile Phone Local Search ReportNeustar US Mobile Phone Local Search Report
Neustar US Mobile Phone Local Search ReportApplied IT Savings Ltd
 
Greenlight's Gaming Sector Report, April 2013, Issue 10
Greenlight's Gaming Sector Report, April 2013, Issue 10Greenlight's Gaming Sector Report, April 2013, Issue 10
Greenlight's Gaming Sector Report, April 2013, Issue 10Greenlight Digital
 
Future of Ecommerce - 7 Trends Shaping the Future of Retail
Future of Ecommerce  - 7 Trends Shaping the Future of RetailFuture of Ecommerce  - 7 Trends Shaping the Future of Retail
Future of Ecommerce - 7 Trends Shaping the Future of Retailjbatistich
 

What's hot (20)

8.26.14
8.26.148.26.14
8.26.14
 
Moblie consumer
Moblie consumerMoblie consumer
Moblie consumer
 
Trends Shaping Local Search in 2014
Trends Shaping Local Search in 2014Trends Shaping Local Search in 2014
Trends Shaping Local Search in 2014
 
White Paper: Local Search Usage Study 2010
White Paper: Local Search Usage Study 2010White Paper: Local Search Usage Study 2010
White Paper: Local Search Usage Study 2010
 
Search Strategy Marketing - Search Optimization for Local Businesses
Search Strategy Marketing - Search Optimization for Local BusinessesSearch Strategy Marketing - Search Optimization for Local Businesses
Search Strategy Marketing - Search Optimization for Local Businesses
 
Getting Your Customers Found in a Crowded Marketplace
Getting Your Customers Found in a Crowded MarketplaceGetting Your Customers Found in a Crowded Marketplace
Getting Your Customers Found in a Crowded Marketplace
 
The Tomorrow Lab Presents - Bing Ads For Your Business
The Tomorrow Lab Presents - Bing Ads For Your BusinessThe Tomorrow Lab Presents - Bing Ads For Your Business
The Tomorrow Lab Presents - Bing Ads For Your Business
 
Local Business Marketing And adverising
Local Business Marketing And adverisingLocal Business Marketing And adverising
Local Business Marketing And adverising
 
Social Media Marketing For Small Business Marketing Secrets
Social Media Marketing For Small Business Marketing SecretsSocial Media Marketing For Small Business Marketing Secrets
Social Media Marketing For Small Business Marketing Secrets
 
K8 - Facebook Measurement from Rob Creekmore of Facebook
K8 - Facebook Measurement from Rob Creekmore of FacebookK8 - Facebook Measurement from Rob Creekmore of Facebook
K8 - Facebook Measurement from Rob Creekmore of Facebook
 
Glass Frog Powerpoint Promo
Glass Frog Powerpoint PromoGlass Frog Powerpoint Promo
Glass Frog Powerpoint Promo
 
2015 Holiday Shopping Prediction
2015 Holiday Shopping Prediction2015 Holiday Shopping Prediction
2015 Holiday Shopping Prediction
 
Understanding Messaging and Chatbots
Understanding Messaging and ChatbotsUnderstanding Messaging and Chatbots
Understanding Messaging and Chatbots
 
Gen Z Explorer 2019
Gen Z Explorer 2019Gen Z Explorer 2019
Gen Z Explorer 2019
 
An Environmental Analysis for Amazon Prime Video
An Environmental Analysis for Amazon Prime Video An Environmental Analysis for Amazon Prime Video
An Environmental Analysis for Amazon Prime Video
 
SUMMIT Ad Report 2019 -- Digital De-cluttering
SUMMIT Ad Report 2019 -- Digital De-clutteringSUMMIT Ad Report 2019 -- Digital De-cluttering
SUMMIT Ad Report 2019 -- Digital De-cluttering
 
Neustar US Mobile Phone Local Search Report
Neustar US Mobile Phone Local Search ReportNeustar US Mobile Phone Local Search Report
Neustar US Mobile Phone Local Search Report
 
Mobile phone shopping diaries
Mobile phone shopping diariesMobile phone shopping diaries
Mobile phone shopping diaries
 
Greenlight's Gaming Sector Report, April 2013, Issue 10
Greenlight's Gaming Sector Report, April 2013, Issue 10Greenlight's Gaming Sector Report, April 2013, Issue 10
Greenlight's Gaming Sector Report, April 2013, Issue 10
 
Future of Ecommerce - 7 Trends Shaping the Future of Retail
Future of Ecommerce  - 7 Trends Shaping the Future of RetailFuture of Ecommerce  - 7 Trends Shaping the Future of Retail
Future of Ecommerce - 7 Trends Shaping the Future of Retail
 

Viewers also liked (10)

Travelling
TravellingTravelling
Travelling
 
Indispensable
IndispensableIndispensable
Indispensable
 
Tania
TaniaTania
Tania
 
Chae
ChaeChae
Chae
 
Huang
HuangHuang
Huang
 
Mensing
MensingMensing
Mensing
 
Wilson
WilsonWilson
Wilson
 
Moroney
MoroneyMoroney
Moroney
 
Bachmann
BachmannBachmann
Bachmann
 
Chyi
ChyiChyi
Chyi
 

Similar to Zinngrabe

Financialindependence
FinancialindependenceFinancialindependence
FinancialindependenceKnight Center
 
Local journalism for local readers
Local journalism for local readersLocal journalism for local readers
Local journalism for local readersDamon Kiesow
 
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...Dawn Yankeelov
 
Value digital newspaper
Value digital newspaperValue digital newspaper
Value digital newspaperRalph Paglia
 
Dispatchdigitalseminaraug2014 140828034617-phpapp01
Dispatchdigitalseminaraug2014 140828034617-phpapp01Dispatchdigitalseminaraug2014 140828034617-phpapp01
Dispatchdigitalseminaraug2014 140828034617-phpapp01Laurie Allen, MBA
 
Local Mobile Digital Marketing
Local Mobile Digital MarketingLocal Mobile Digital Marketing
Local Mobile Digital MarketingStudioHOF
 
OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...
OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...
OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...Theresa
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution Kekacobb
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution Kekacobb
 
C3 for Washington Newspaper Publishers Association
C3 for Washington Newspaper Publishers AssociationC3 for Washington Newspaper Publishers Association
C3 for Washington Newspaper Publishers AssociationSteve Buttry
 
Nonprofits and Technology: Fundraising in the Digital Age
Nonprofits and Technology: Fundraising in the Digital AgeNonprofits and Technology: Fundraising in the Digital Age
Nonprofits and Technology: Fundraising in the Digital AgeRoss Kasper
 
Digital Media Marketing for Auto Dealers
Digital  Media Marketing for  Auto  DealersDigital  Media Marketing for  Auto  Dealers
Digital Media Marketing for Auto DealersPatsy Stewart
 
Co c integratedmediamarketing
Co c integratedmediamarketingCo c integratedmediamarketing
Co c integratedmediamarketingStacy Bruder
 
NRF Big Show: The Digital Channel
NRF Big Show: The Digital ChannelNRF Big Show: The Digital Channel
NRF Big Show: The Digital ChannelResource/Ammirati
 
Ns hut advirtisement proposal
Ns hut advirtisement proposalNs hut advirtisement proposal
Ns hut advirtisement proposalTanjil Rahman
 
Wisconsin State Journal Brand Expand 2014 Presentation
Wisconsin State Journal Brand Expand 2014 PresentationWisconsin State Journal Brand Expand 2014 Presentation
Wisconsin State Journal Brand Expand 2014 Presentationwismarkm
 

Similar to Zinngrabe (20)

Financialindependence
FinancialindependenceFinancialindependence
Financialindependence
 
Local journalism for local readers
Local journalism for local readersLocal journalism for local readers
Local journalism for local readers
 
Yahoo
YahooYahoo
Yahoo
 
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...
Customer Retention: Learn Critical Factors for Maintaining Online Commerce Su...
 
Value digital newspaper
Value digital newspaperValue digital newspaper
Value digital newspaper
 
Online Marketing
Online Marketing Online Marketing
Online Marketing
 
Dispatchdigitalseminaraug2014 140828034617-phpapp01
Dispatchdigitalseminaraug2014 140828034617-phpapp01Dispatchdigitalseminaraug2014 140828034617-phpapp01
Dispatchdigitalseminaraug2014 140828034617-phpapp01
 
Local Mobile Digital Marketing
Local Mobile Digital MarketingLocal Mobile Digital Marketing
Local Mobile Digital Marketing
 
NYT paywall
NYT paywallNYT paywall
NYT paywall
 
OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...
OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...
OPA South Africa Workshops on Online Industry In SA Andrew Lanning - Head of ...
 
ROUNDTABLE 2016: DIETZ
ROUNDTABLE 2016: DIETZROUNDTABLE 2016: DIETZ
ROUNDTABLE 2016: DIETZ
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution
 
ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution ATD Austin Yellow Pages Solution
ATD Austin Yellow Pages Solution
 
C3 for Washington Newspaper Publishers Association
C3 for Washington Newspaper Publishers AssociationC3 for Washington Newspaper Publishers Association
C3 for Washington Newspaper Publishers Association
 
Nonprofits and Technology: Fundraising in the Digital Age
Nonprofits and Technology: Fundraising in the Digital AgeNonprofits and Technology: Fundraising in the Digital Age
Nonprofits and Technology: Fundraising in the Digital Age
 
Digital Media Marketing for Auto Dealers
Digital  Media Marketing for  Auto  DealersDigital  Media Marketing for  Auto  Dealers
Digital Media Marketing for Auto Dealers
 
Co c integratedmediamarketing
Co c integratedmediamarketingCo c integratedmediamarketing
Co c integratedmediamarketing
 
NRF Big Show: The Digital Channel
NRF Big Show: The Digital ChannelNRF Big Show: The Digital Channel
NRF Big Show: The Digital Channel
 
Ns hut advirtisement proposal
Ns hut advirtisement proposalNs hut advirtisement proposal
Ns hut advirtisement proposal
 
Wisconsin State Journal Brand Expand 2014 Presentation
Wisconsin State Journal Brand Expand 2014 PresentationWisconsin State Journal Brand Expand 2014 Presentation
Wisconsin State Journal Brand Expand 2014 Presentation
 

More from Knight Center (20)

Martin
MartinMartin
Martin
 
Britt
BrittBritt
Britt
 
Joseph yoo
Joseph yooJoseph yoo
Joseph yoo
 
Singer
SingerSinger
Singer
 
Ramirez
RamirezRamirez
Ramirez
 
Griggs
GriggsGriggs
Griggs
 
Ting tingchia
Ting tingchiaTing tingchia
Ting tingchia
 
Symson
SymsonSymson
Symson
 
Garcia ruiz
Garcia ruizGarcia ruiz
Garcia ruiz
 
Brundrett. 2015
Brundrett. 2015Brundrett. 2015
Brundrett. 2015
 
J moroney
J moroneyJ moroney
J moroney
 
Collins
CollinsCollins
Collins
 
Ray
RayRay
Ray
 
Owen
OwenOwen
Owen
 
Royal blasingame
Royal blasingameRoyal blasingame
Royal blasingame
 
Diakopoulos
DiakopoulosDiakopoulos
Diakopoulos
 
Scacco
ScaccoScacco
Scacco
 
Havlak
HavlakHavlak
Havlak
 
Lee
LeeLee
Lee
 
Hernandez
HernandezHernandez
Hernandez
 

Recently uploaded

13042024_First India Newspaper Jaipur.pdf
13042024_First India Newspaper Jaipur.pdf13042024_First India Newspaper Jaipur.pdf
13042024_First India Newspaper Jaipur.pdfFIRST INDIA
 
Geostrategic significance of South Asian countries.ppt
Geostrategic significance of South Asian countries.pptGeostrategic significance of South Asian countries.ppt
Geostrategic significance of South Asian countries.pptUsmanKaran
 
11042024_First India Newspaper Jaipur.pdf
11042024_First India Newspaper Jaipur.pdf11042024_First India Newspaper Jaipur.pdf
11042024_First India Newspaper Jaipur.pdfFIRST INDIA
 
Political-Ideologies-and-The-Movements.pptx
Political-Ideologies-and-The-Movements.pptxPolitical-Ideologies-and-The-Movements.pptx
Political-Ideologies-and-The-Movements.pptxSasikiranMarri
 
Power in International Relations (Pol 5)
Power in International Relations (Pol 5)Power in International Relations (Pol 5)
Power in International Relations (Pol 5)ssuser583c35
 
12042024_First India Newspaper Jaipur.pdf
12042024_First India Newspaper Jaipur.pdf12042024_First India Newspaper Jaipur.pdf
12042024_First India Newspaper Jaipur.pdfFIRST INDIA
 

Recently uploaded (6)

13042024_First India Newspaper Jaipur.pdf
13042024_First India Newspaper Jaipur.pdf13042024_First India Newspaper Jaipur.pdf
13042024_First India Newspaper Jaipur.pdf
 
Geostrategic significance of South Asian countries.ppt
Geostrategic significance of South Asian countries.pptGeostrategic significance of South Asian countries.ppt
Geostrategic significance of South Asian countries.ppt
 
11042024_First India Newspaper Jaipur.pdf
11042024_First India Newspaper Jaipur.pdf11042024_First India Newspaper Jaipur.pdf
11042024_First India Newspaper Jaipur.pdf
 
Political-Ideologies-and-The-Movements.pptx
Political-Ideologies-and-The-Movements.pptxPolitical-Ideologies-and-The-Movements.pptx
Political-Ideologies-and-The-Movements.pptx
 
Power in International Relations (Pol 5)
Power in International Relations (Pol 5)Power in International Relations (Pol 5)
Power in International Relations (Pol 5)
 
12042024_First India Newspaper Jaipur.pdf
12042024_First India Newspaper Jaipur.pdf12042024_First India Newspaper Jaipur.pdf
12042024_First India Newspaper Jaipur.pdf
 

Zinngrabe

  • 1. How Much is Enough? International Symposium on Online Journalism April 8, 2005
  • 2. Online Advertising: The Good News • Is increasingly relevant to advertisers of all types and categories – Travel – Business – Education – Finance – Retail • Provides recognized value in branding, reach, cost-efficiency
  • 3. Power of Online in Affecting Consumer Behavior  Last year consumers spent $130 billion at stores on Internet- influenced purchases American Interactive Consumer Study, “The Dieringer Research Group, Sept. 2003  For every $1 spent online, consumers are influenced by the web to spend another $6 offline Jupiter Research, 2004  For the full year, total online consumer spending rose by 26%, from $93.2 billion to $117.4 billion in 2004 emarketer, Inc., 2005  69% of consumers use online information to help them select a specific store and product Jupiter Survey, November 19, 2002
  • 4. 53 52 42 41 37 20 22 38 8 5 10 14 29 23 35 31 13 20 23 24 0 20 40 60 80 100 Where I prefer to find out about new products Where I prefer to receive information about companies Have advertising that is rich in information Have advertising that helps me decide what to buy Internet TV Radio Magazines Newspapers Total At Work Media User's Attitudes toward Advertising At Work Users believe Internet advertising has unique values …intrinsic branding attributes Source: Online Publishers Association/MBIQ Media Consumption Study, May 2003 Q. 12: Please give your impressions of advertising you see on each of the following media. For each statement, please select all the different types of media which you think apply. (Includes Duplication) Base: At Work (1053) InPercents
  • 5. Internet: The Preferred Source for Local Merchant and Store Search Source: The Kelsey Group and Constat, Inc., March 2005; MediaPost, March 2005 70% 62% 70% 73% 75% 60% Newspapers Yellowpages Internet Feb-05 Oct-03
  • 6. Newspaper Web Site users are Your Ideal Consumers • Newspaper Web pages reach more local online users than other local media sites in 22 of the top 25 U.S. markets.1 • Local advertisers spent $811 million to promote their products on newspapers' sites in 2003.2 • Newspaper Web site users spend almost twice as much time online than other Internet users are more likely to have high-speed connections. 3 • Newspaper Web site readers are younger, better educated and more ethnically diverse compared with online audiences in general.3 • As a medium, Internet advertising is as likely as television to influence purchases made by Internet users. 3 1. The Media Audit, April 2004 2. Borrel Associates, “What Local Web Sites Earn,” May 2004 3. @plan 2004
  • 7. Registration: What Have We Learned? • Targeting ability has become the norm, not a premium – ZIP, age, gender, income • Trade-offs between “permanent” registration and “lite” registration • Still missing key attributes – Children in the household, interests, education level
  • 8. Changes in Advertising • Larger ad units • More video ads • Targeting is the norm • Text ads • Pay for performance models • Downward pressure on pricing • Online evaluated by many in terms of direct response
  • 9. Paid Content: What have we learned? • Calendarlive.com re-launched as paid site on August 4, 2003. – $4.95/month or $39.95/year; free to 7-day newspaper subscribers – Included discounts coupons/card for entertainment venues and events around Southern California. • Goals: – Test the market for premium content – Provide additional value to subscribers – Better monetize our entertainment site
  • 10. The Results • Calendarlive.com not well-known enough to establish value. • Marketing message to print subscribers was too long for most sales channels. • Online users generally not enthusiastic about paying for this type of content. • BUT… did generate more revenue (between subscriptions and advertising) than before (just advertising).
  • 11. Online Revenue • Interactive revenue up 40%+ YOY • But still a very small % of total company revenue • Does not contribute to newsroom costs • Does pay allocation for overhead, but benefits from the company economies of scale.
  • 12. Where are we now? • Newspaper circulation still declining • Newsprint costs increasing • Employee costs increasing • Classifieds business moving online • Display advertising under fire – Department store consolidation – Big stores that don’t advertise in newspapers (Wal-Mart, Kohls, Costco) – Advertisers looking for “sub-zip” delivery to make their ads less expensive, more efficient
  • 13. A Fictional Example • Daily Newspaper – 300 editorial staff ($20 million) – 300,000 daily circulation – $300 million revenue – $225 million expenses – $75 million profit •Dailynewspaper.com –30 dot-com staff ($2.4 million) –$13 million revenue –$7 million expenses –$6 million profit
  • 14. How much is enough? • Online sites are the future for newspaper companies, and for better or worse carry the burden of the revenue growth for the foreseeable future.

Editor's Notes

  1. But online is growing. Growth of shopping online/ YOY increase (though numbers are small… growing quickly as consumer change behavior)
  2. The Internet not only attracts this daytime audience, studies have shown that “at-work” users prefer to receive advertising, marketing and general information from the Internet—ahead of all other media.