The Big Picture

1. The Big Picture 2008 Journalism, audience and advertising on the Web Anthony Moor Deputy Managing Editor/Interactive The Dallas Morning News [email_address]

2. Agenda <ul><li>The birth of the Semantic Web </li></ul><ul><li>Our promiscuous, ‘help me’ audience </li></ul><ul><li>Journalism as a service, not a product </li></ul><ul><li>Advertising decouples from news </li></ul><ul><li>Discussion </li></ul>

3. Web 1.0: The good old days Domain name speculation (Netscape) Search Boost A few large sites (DoubleClick) Ad Distribution Read (Britannica online) Engagement Client/Server Architecture Static (HTML) State Page (article) Unit of Content Geeks Audience Web 1.0 (1993-2003)

4. Web 2.0: The interactive Web SEO (Google) Domain name speculation (Netscape) Search Boost The entire Web (Google AdSense) A few large sites (DoubleClick) Ad Distribution Write/Contribute (Wikipedia, Flickr) Read (Britannica online) Engagement Web services (syndication) Client/Server Architecture Dynamic (XML, Ajax, RSS) Static (HTML) State Data (mashup, widget) Page (article) Unit of Content Everyone Geeks Audience Web 2.0 (2003-2010) Web 1.0 (1993-2003)

5. Web 3.0: The data-driven Web Source: Chicago Tribune SEO (Google) Domain name speculation (Netscape) Search Boost The entire Web (Google AdSense) A few large sites (DoubleClick) Ad Distribution Write/Contribute (Wikipedia, Flickr) Read (Britannica online) Engagement Web services (syndication) Client/Server Architecture Dynamic (XML, Ajax, RSS) Static (HTML) State Data (mashup, widget) Page (article) Unit of Content <ul><li>Data powers the Web </li></ul><ul><li>Automated mashing up of personalized content </li></ul><ul><li>Intelligent-agent driven assembly and interactivity </li></ul>Everyone Geeks Audience Web 3.0 The Semantic Web Web 2.0 (2003-2010) Web 1.0 (1993-2003)

6. Audience Trends <ul><li>Our newspaper.com audience is aging </li></ul>

7. The newspaper.com audience is aging Source: Belden Associates, ‘Be Web Now’

8. Audience Trends <ul><li>Our newspaper.com audience is aging </li></ul><ul><li>The online public is relying on social networks and collaborative filtering to edit the news </li></ul>

9. Growing use of social networks <ul><li>Membership in online communities doubled in only three years </li></ul><ul><li>54 percent of online community members log into their community at least once a day </li></ul><ul><li>71 percent of members say their community is very important or extremely important to them </li></ul><ul><li>Fifty-six percent report meeting online counterparts in person </li></ul><ul><li>25% of bank and brokerage customers use social networks 1 </li></ul>Sources: USC Annenberg School, 2008 Digital Future Project; 1 Forrester (Feb. 2008)

10. Social networks exchange news

11. Social networks exchange news

12. Social networks recommend sites

13. Social networks recommend sites

14. Social networks collaboratively edit

15. Social networks collaboratively edit

16. Audience Trends <ul><li>Our newspaper.com audience is aging </li></ul><ul><li>The online public is relying on social networks and collaborative filtering to edit the news </li></ul><ul><li>Brand promiscuity is the norm </li></ul>

17. An audience of ‘fly bys’ Source: 2006 McKinsey survey of 2,100 US Customers

18. Audience Trends <ul><li>Our newspaper.com audience is aging </li></ul><ul><li>The online public is relying on social networks and collaborative filtering to edit the news </li></ul><ul><li>Brand promiscuity is the norm </li></ul><ul><li>They expect us to be where they are, not to go where we are </li></ul>

19. <ul><li>“ If the news is that important, it will find me.” </li></ul><ul><li>– The words of a college student, as recalled by Jane Buckingham, founder of Intelligence Group, a market research company </li></ul>Source: New York Times, Mar. 27, 2008

20. Access is more important than quality Source: 2006 McKinsey survey of 2,100 US Customers

21. Info sought from newspaper.coms Source: NAA Digital Edge report, 2006 12% (Men) Financial/investment info 30% (Women, 18-54s) Lifestyle info (fashion, etc.) 30% (Men, 55+) Political coverage 46% (Men) Sports scores or information 46% National or international news 55% (Women, 18-54s) Local entertainment information 63% Weather 73% (Women higher) Local or community news 74% Breaking news 96% Any news content

22. Info sought from dallasnews.com Source: dn.com online survey, Dec. 2007 <ul><li>Breaking national news </li></ul><ul><li>Breaking local news during the workday </li></ul><ul><li>Breaking local news in the evening and overnight </li></ul><ul><li>Breaking crime news </li></ul><ul><li>Breaking local news on the weekend </li></ul><ul><li>Crime map in my city and zip code </li></ul><ul><li>More frequent updates to the home page during the day </li></ul><ul><li>Morning email newsletter with the top 10 local stories happening today </li></ul><ul><li>Breaking sports news during the workday </li></ul><ul><li>Weather maps, radar, alerts </li></ul>

23. Audience Trends <ul><li>Our newspaper.com audience is aging </li></ul><ul><li>The online public is relying on social networks and collaborative filtering to edit the news </li></ul><ul><li>Brand promiscuity is the norm </li></ul><ul><li>They expect us to be where they are, not to go where we are </li></ul><ul><li>They want us to help them get things done </li></ul>

24. Q&A site visits are exploding <ul><li>U.S. visits up 118% in 2008 </li></ul><ul><li>Up 889% over two years </li></ul>

25. Dallas audience asks for help <ul><li>Watch my back </li></ul><ul><ul><li>Watchdog journalism </li></ul></ul><ul><ul><li>Local crime and safety news (mapped to neighborhood) </li></ul></ul><ul><li>Watch my wallet </li></ul><ul><ul><li>Local bargains and ‘best of’ </li></ul></ul><ul><ul><li>Resources to solve everyday problems </li></ul></ul><ul><ul><li>Personal financial advice </li></ul></ul><ul><ul><li>Business news and analysis </li></ul></ul>Source: Dallas Morning News survey, Dec. 2007

26. Dallas audience asks for help <ul><li>Watch out for me and mine </li></ul><ul><ul><li>Local green and health news </li></ul></ul><ul><ul><li>Tips for helping kids do better academically </li></ul></ul><ul><ul><li>Weather news, maps and info </li></ul></ul><ul><ul><li>Product recalls </li></ul></ul><ul><li>Keep a watch on my neighborhood </li></ul><ul><ul><li>News briefs from my part of Dallas </li></ul></ul><ul><ul><li>Neighborhood coverage </li></ul></ul>Source: Dallas Morning News survey, Dec. 2007

27. Audience Trends <ul><li>Our newspaper.com audience is aging </li></ul><ul><li>The online public is relying on social networks and collaborative filtering to edit the news </li></ul><ul><li>Brand promiscuity is the norm </li></ul><ul><li>They expect us to be where they are, not to go where we are </li></ul><ul><li>They want us to help them get things done </li></ul><ul><li>They’re watching more video </li></ul>

28. Video use continues to grow <ul><li>Various studies show video use up and frequency is up </li></ul><ul><li>Total video audience </li></ul><ul><ul><li>Leichtman: 14% of all adults watch at home weekly, 4% daily </li></ul></ul><ul><ul><li>Pew: 74% of online adults watch at home or work, 19% daily </li></ul></ul><ul><li>Most popular categories </li></ul><ul><ul><li>News is #1 (except for 18-29 year olds who prefer comedy) </li></ul></ul><ul><ul><li>Comedy </li></ul></ul><ul><ul><li>Movies/trailers </li></ul></ul><ul><ul><li>Music videos </li></ul></ul>Source: State of the News Media, 2008

29. Audience Trends: Implications? <ul><li>Our newspaper.com audience is aging </li></ul><ul><li>The online public is relying on social networks and collaborative filtering to edit the news </li></ul><ul><li>Brand promiscuity is the norm </li></ul><ul><li>They expect us to be where they are, not to go where we are </li></ul><ul><li>They want us to help them get things done </li></ul><ul><li>They’re watching more video </li></ul>

30. Journalism Trends <ul><li>News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done </li></ul>Source: State of the News Media 2008

31. Home pages emphasize service

32. News is a feed – like electricity

33. Data centers provide utility

34. Mobile becomes a lifeline

35. Business info goes actionable

36. If you help watchdog, we help you

37. Journalism Trends <ul><li>News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done </li></ul><ul><li>News Web sites are no longer final destinations </li></ul>Source: State of the News Media 2008

38. Audience visits via the side door <ul><li>SJ Merc: Two-thirds of its audience comes from aggregators 1 </li></ul><ul><li>Dallasnews.com: 61% of visits entered somewhere other than the home page (Jan. 08) </li></ul>Source: 1 The Bivings Report

39. Press becomes ‘press sphere’ Source: Jeff Jarvis, Buzzmachine

40. A story is a point on a news timeline Source: Jeff Jarvis, Buzzmachine

41. Journalism Trends <ul><li>News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done </li></ul><ul><li>News Web sites are no longer final destinations </li></ul><ul><li>User-generated content doesn’t replace the story, it becomes part of the news process </li></ul>Source: State of the News Media 2008

42. We’re not getting ‘articles’ from users <ul><li>TIKK president earns 8 th degree black belt (by himself – a karate studio owner!) </li></ul><ul><li>Grand Hyatt DFW Ranks #19 in Dallas Business Journal Best Places to Work Survey (by the Haytt’s PR company!) </li></ul><ul><li>Botox...Not Just for Wrinkles Anymore! (need we say more?) </li></ul>

44. Seeding Cit J sites works better Five part-time posters and moderators

45. The 1% rule <ul><li>Of 100 people online, one will create content, 10 will "interact" with it (commenting or offering improvements) and the other 89 will just view it </li></ul><ul><li>50% of all Wikipedia article edits are done by 0.7% of users </li></ul><ul><li>You Tube "creator to consumer" ratio at just 0.5% </li></ul>Source: guardian.co.uk (Jul. 2006)

46. Crowdsourcing aids reporting

47. Beat blogging shows promise <ul><li>Pro-am journalism </li></ul><ul><li>Users provide insight, ‘stubs’ of information, that pros polish </li></ul>“ News becomes a collaborative and cumulative work in progress pieced together by multiple contributors, rather than a media-certified byproduct carved in press plates and fixed in time.” – Carl Sessions Stepp, AJR

48. It’s reporting with a network “ This is still about managing relationships. Reporters are naturals at that - but not usually in an online environment. A beat reporter needs to go where the people are, meet them on their own turf, or provide a space where they can be comfortable.” -- David Cohn, BeatBlogging.org

49. Journalism Trends <ul><li>News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done </li></ul><ul><li>News Web sites are no longer final destinations </li></ul><ul><li>The prospects for user-generated content appear more limited than initially thought </li></ul><ul><li>Media companies are broadening the definition of journalism to include helping users navigate through content from others </li></ul>Source: State of the News Media 2008

50. News sites link out

51. Inline links offsite increase

52. NYTimes.com: We ‘edit the Web’

53. Journalism Trends: Implications? <ul><li>News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done </li></ul><ul><li>News Web sites are no longer final destinations </li></ul><ul><li>The prospects for user-generated content appear more limited than initially thought </li></ul><ul><li>Media companies are broadening the definition of journalism to include helping users navigate through content from others </li></ul>Source: State of the News Media 2008

54. Advertising Trends <ul><li>Display advertising has plateaued </li></ul>

55. Source: eMarketer, Oct. 2008

56. Advertising Trends <ul><li>Display advertising has plateaued </li></ul><ul><li>Locally, video and search advertising are where the growth is </li></ul>

57. 2012: Video ads, paid search dominate local Source: Borrell Associates Inc. Feb. 2007

58. NAA: The big money is in advertorials <ul><li>Longer-form “infomercial” </li></ul><ul><li>One to two minutes about an advertiser’s product or service. </li></ul><ul><li>Already used in the real estate industry to provide video walk-though tours of homes for sale </li></ul>

59. Advertising Trends <ul><li>Display advertising has plateaued </li></ul><ul><li>Locally, video and search advertising are where the growth is </li></ul><ul><li>Small spenders are where the big local dollars are </li></ul>

60. Self-service advertising

61. Business directories

62. Advertising Trends <ul><li>Display advertising has plateaued </li></ul><ul><li>Locally, video and search advertising are where the growth is </li></ul><ul><li>Small spenders are where the big local dollars are </li></ul><ul><li>News and advertising are decoupling </li></ul>

63. Search engines suck up the dollars <ul><li>Google, Yahoo, AOL and MSN accounted for 57% of net online ad dollars in 2006 </li></ul><ul><li>Top 10 sites received 70% </li></ul><ul><li>Advertising on news/current events sites grew 9% while others grew faster </li></ul><ul><li>Growth rate down from 2005 </li></ul>Source: State of the News Media 2008

64. Advertising Trends: Implications? <ul><li>Display advertising has plateaued </li></ul><ul><li>Locally, video and search advertising are where the growth is </li></ul><ul><li>Small spenders are where the big local dollars are </li></ul><ul><li>News and advertising are decoupling </li></ul>

65. Discussion http://www.slideshare.net/ajmoor