Olivier Bonsart

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Presentation at the INMA seminar in Copenhagen "Re-creating Value in An Age of Abundance".

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Olivier Bonsart

  1. 1. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Monetizing newsmedia : where is the problem ? 02/2010 SIPA/Ouest-France Hello everybody, My boss asked me « why do those web sites, with such big audiences, don’ get more ads ? t Where’ the problem ? s 1
  2. 2. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Newspapers web sites announce huge audience! 330 000 copies, 5 millions UV/month 330 000 copies, 6 millions UV/month 123 000 copies, 2,9 millions UV/month 02/2010 SIPA/Ouest-France The fact is, in France as elsewhere, newspapers web sites have huge numbers, much higher than their circulation. We’ talking of millions UV each month, up to 10 or 20 re times more than copies sold. 2
  3. 3. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Great audience, but no ad 02/2010 SIPA/Ouest-France But this is the main problem : Great audience, but no money. And no business model. Newspapers don’ get on the web the money they lose in the t print … 3
  4. 4. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k What metrics do we hear about ? • Circulation of a daily newspaper • Unique visitors of a web site in one month • Advertising revenue : display … 02/2010 SIPA/Ouest-France I’ quite surprised with the metrics used by media pundits, m journalists, and even publishers. I’ been reading about the weakness of circulation (daily ve circulation), and of the strength of the web sites audience (counted in Unique Visitors per month). For advertising, you never know whether they talk about total advertising revenue or commercial advertising, excluding classifieds. 4
  5. 5. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k = 02/2010 SIPA/Ouest-France In English you say « counting apples with oranges ». How can we seriously compare a daily circulation with a monthly unique visitor ? I guess it’ forbidden in primary school ! s 5
  6. 6. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Advertising revenue = eyeballs * value of these eyeballs Question 1 : how many eyeballs ? What audience do you sell ? 02/2010 SIPA/Ouest-France 6
  7. 7. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k What is audience ? Audience = Users * Usage Talking about UV is not enough, we must talk Usage. Usage = visits * page views Or Usage = visits * time spent 02/2010 SIPA/Ouest-France 7
  8. 8. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k The great illusion of news sites audience • In France: 36,7 millions people on the net •Spending 39 hours 41 minutes per month •Out of 50,4 millions aged 15+ • Out of them: •23 millions visit at least one news site (Google news included), at least once in a month •7 visits per month on all sites •Spending only 41 minutes per month Ø That’ less than 1 min 25 sec per day ! s 02/2010 SIPA/Ouest-France A closer look to figures is flabbergasting ! In France, many people spend a lot of time on the web, ans it’ soaring. s But they are not much interested in news sites ! Less than one and a half minute per day for those who visit a news site ! 8
  9. 9. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k The voice of him that crieth in the wilderness … 02/2010 SIPA/Ouest-France We could almost say that our news sites are like … We newspapers people do like voice of God journalism … 9
  10. 10. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k The forgotten power of print • In France: –41 million read at least one newspaper at least once in a month (UV !) –35,3 million at least once a week –24 million readers per day –Spending 28 minutes per day ØThat’ 20 times more than news web sites ! s 02/2010 SIPA/Ouest-France Print is declining (paid circulation). Print is loosing money (mostly from classified and subscribers) But print is still very powerful : One french out of two spends almost half an hour per day ! 10
  11. 11. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Wanna talk eyeballs ? 02/2010 SIPA/Ouest-France From an audience point of view, there is no comparison between newspapers and news web sites 11
  12. 12. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Wanna talk revenue? 02/2010 SIPA/Ouest-France This explains why news web sites do not bring a lot of money … 12
  13. 13. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Advertising = eyeballs * value of these eyeballs Question 2 : value of these eyeballs ? What money do you get per eyeball ? 02/2010 SIPA/Ouest-France 13
  14. 14. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k A quick survey, just to check … • Information gathered from 12 INMA fellows • Print : circulation, readers, number of issues, number of pages seen/read, time spent, … • Web : Unique Visitors, days of visits, page views, time spent • For both : advertising turnover, excluding classified 02/2010 SIPA/Ouest-France I wanted to check this new theory. I asked my Inma fellows some figures. Don’ ask me which newspapers. Figures are coming from t different european and north american countries, with very different levels of web performance. 14
  15. 15. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Counting apples with apples •Myaveragenewspaper : – 300 000 copies, 36 pages, 70 % seen/read, weekdays – 900 000 readers per day, 25 minutes per reader – €45 millions advertising (excluding classified) •myaveragenewspaperonline.com : – 4,4 millions UV, 11,7 million visits per month – 5,4 page views and 6,3 minutes per visit – €8 millions advertising 02/2010 SIPA/Ouest-France To compare things seriously, I’ show you the figures of a ll fictitious newspaper, which is in fact an average of all the different newspapers I could get the figures from. I first tried with Ouest-France data, then with another newspaper, then a third one, and so on. I got the same kind of results with 11 newspapers out of 12. This is why I’ imagined this average dailynewspaper and ve its web site. You can benchmark your own performance, and I would love to receive more data to improve this analysis. The idea is to build ratios, comparing the web site figure to the same figure for the print edition: a visit ratio, a page view ratio, a time spent ratio, and an advertising ratio 15
  16. 16. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Counting visits •Print : •900 000 readers per day * 25,8 days per month = 23 220 000 « visits » per month •Web : •11 700 000 visits per month Ø Web/print ratio on visits : 50 % 02/2010 SIPA/Ouest-France So let’ count. s Visits : newspapers have visitors, they call them readers. This average newspaper has 900 000 visits per day, and is published on weekdays. That makes 25.8 issues per month. Thus, we can say this daily gets more than 23 millions visits per month, while its web site gets a bit less than 12 millions visits. The web vs print ratio is 50 % on visits. Does it make sense to you ? Any trouble ? 16
  17. 17. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Counting page views •Print : •36 pages, 70 % seen/read => 25 « page views » per « visit » •25*23 220 000 visits = 580,5 millions page views per month •Web : •5,4 page views per visit •5,4*11 700 000 visits = 63,2 millions page views Ø Web/print ratio on pageviews : 11 % 02/2010 SIPA/Ouest-France Now counting page views. Out of the 36 pages of the daily, 70%, or 25 pages are read or seen by an average reader, That makes 25 page views per reader per day. Which makes 580 millions page views per month, while the web site gets 5,4 pages views per visit, say 63 millions page views per month. The web vs print ratio is 11%. Print edition brings 9 times more page views than the web site. This number can change from one newspaper to another, but the print issue is always much more powerful for delivering page views. 17
  18. 18. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Counting time spent •Print : •25 minutes per reader per day (per « visit ») •25 * 23 220 000 visits = 580,5 millions minutes •Web : •6,3 minutes per visit •6,3 * 11 700 000 visis = 71,3 millions minutes Ø Web/print ratio on time spent : 13 % 02/2010 SIPA/Ouest-France This is a difficult one. Time is pretty well measured for web sites, but it’ not so s precise for newspapers. So, we’ do it, but stay cautious with the results. ll Newspapers in my panel have pretty strong web sites. 18
  19. 19. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k What do we get ? • Visits : 50 % • Page views : 11 % • Time spent : 13 % • Advertising revenue : 19 % 02/2010 SIPA/Ouest-France Only one surprise, but a big one: the advertising performance of web sites is pretty good, above the page views or time spent ratios. 19
  20. 20. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Time spent and advertising revenue (web/print ratios) 50,0% 45,0% 40,0% 35,0% Time spent Turnover 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% 02/2010 SIPA/Ouest-France For any of the 12 newspapers, you can check that the advertising ratio is higher thant the time spent ratio. All newspapers have more revenue per minute spent on their site than in their print issue. 20
  21. 21. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Conclusion 1 : confirmation Print newspapers are extremely powerful at delivering eyeballs. That’ why they get so much advertising. s 02/2010 SIPA/Ouest-France The figures are OK with my first analysis 21
  22. 22. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Conclusion 2 : confirmation Newspaper web sites are not yet as powerful as their print edition when counting eyeballs 02/2010 SIPA/Ouest-France No surprise 22
  23. 23. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Conclusion 3 : surprise ! Newspaper web sites generate surprisingly good advertising revenue… compared to the eyeballs they deliver! They get more advertising revenue per page or per minute than their print counterpart. 02/2010 SIPA/Ouest-France The good surprise 23
  24. 24. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k There is a good advertising business model on news web sites ! 02/2010 SIPA/Ouest-France Unlike what we read and hear, there is a pretty good advertising business model for web sites. 24
  25. 25. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k For news web sites, the problem is not advertising, it’ audience ! s 02/2010 SIPA/Ouest-France A good business model, but not to be compared with the paer one. It’ much very difficult for a web sites to reach the same s performance. Yes, this is the key. 25
  26. 26. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k Hard time for newsmedia … • Paid print circulation keeps on declining • Classifieds are gone forever • Web sites get little audience, thus – Get less advertising money than print – Don’ get much money from paid content t ØThe old business model is dead 02/2010 SIPA/Ouest-France Our future may not be radiant, with so many bad news. Our web sites will never replace the print edition alone. A web site will never get back the money our print edition is loosing. 26
  27. 27. H H F-XC A N GE F-XC A N GE PD PD ! ! W W O O N N y y bu bu to to k k lic lic C C w w m m w w w w o o .d o .c .d o .c c u-tr a c k c u-tr a c k New business models ? • Think about smartphones, ipads , … – Already get much more audience per user – Thus will get more money, from ads, from content or from apps themselves • Think about downsizing your costs… • Think about engaging your audience : crowdsourcing, social medias … ØThere is a bright digital future to build 02/2010 SIPA/Ouest-France But there are many solutions. Not one fits all. Many. 27

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