This document summarizes trends in digital media consumption and monetization. It notes that while consumers spend significant time online, they spend little time on newspaper websites. Tablet ownership is rising but television and radio remain important. Print newspaper circulation is declining sharply. Digital advertising is growing but not replacing losses from print. Mobile usage is increasing rapidly in importance. Free digital content and freemium models are common while some premium content remains. User data is becoming more important for targeting advertising and content.

1. Digital economy
Changing audience and monetisation trends
Patrick Smith - 4 July 2013

2. About TheMediaBriefing.com
● Media analysis and news
● Founded 2010 as a digital startup
● Editorial team of two
● 10,000 newsletters sent each week
● Site relaunch in 2013
● Three media conferences:
○ Mobile Media Strategies, 26/27 Sept 2013
○ Media Marketing Strategies, 19 Nov 2013
○ Digital Media Strategies, 4/5 March 2014

3. The market right now
UK consumers spend 34 hours online every month...
...But they spend 43 minutes on newspaper websites
One third of EU consumers own a smartphone...
... But 56 percent of them have never paid for content
UK tablet ownership doubled in 2012 to c16%
... But 80% of tablet owners still watch TV and 40% radio

4. Who reads newspapers?

5. Who reads newspapers?

6. Who reads newspapers?

7. Who reads newspapers?

8. What's happening to print?
From:
http://www.themediabriefing.
com/article/abcs-newspapers-
circulation-decline
22.5% drop from
2007 to 2012.
Projected 2007 to
2017 fall is 45%.
Note: this is
national not
regional

9. What's happening to advertising?
Source: WARC/
Advertising Assoc

10. What's happening to advertising?

11. What's happening to advertising?
Note: UK classified
market is far more
challenged: Johnston
Press went from £407m
in 2007 to £202m in
2012

12. Who uses the internet?
Almost 100% of 16 to 24-year-olds have used internet
in last 3 months
... compared to 30% of 75+
And 60% of 65-74s.
Worth remembering: 14% of UK
adults have never used the
internet, ever.
(Source: ONS, Q1 2013)

13. Who uses the internet?

14. How important is mobile?
"Mobile has been overhyped in the short term
and underhyped in the medium-to-long term"
Sir Martin Sorrell, CEO, WPP - 2009

15. How important is mobile?

16. What do people normally use
smartphones for?
Big challenge to
be noticed
among all these
activities

17. Daily consumption cycle
FT.com head of analytics Tom Betts on mobile: "We're not seeing a substitutional effect (on PC stats)"

18. Daily consumption cycle

19. Mobile phone market share

20. Emerging media business models
Free Guardian, Mirror, MailOnline,
regional/local, Facebook
Freemium FT.com, Wall Street Journal,
Telegraph, New York Times
Premium Times/Sunday Times, The Sun (from
August), some B2B titles,
academic/scientific content

21. Emerging media business models
The Times / Sunday Times
-- Launched bold paywall project July 2010
-- 99% content restricted to subscribers, all platforms
-- July 2013: 140,000 paying subscribers
-- c.500,000 daily "sales" including print + online
-- ARPU estimated at £12 means c.£1.6m gross
-- (not including churn, marketing costs etc etc)
-- Company claims 40m average reading time on iPad
-- Overall lost £28.7m in 2011/2012

22. Emerging media business models
Times digital sales have grown the
overall customer base.
But how much of it is substitution of
traditional print audience?

23. Emerging media business models
Guardian News & Media
-- 83m unique monthly browsers (ABC, May)
-- 4.6m daily browsers
-- 2012 digital revenue £45.7m (about 1/3 of total)
-- From an audience of c60m a month, Guardian made
£14.6m in 2012 from online ads
-- Big push into America - huge international audience
-- Free on web, paid on smartphone + tablet
-- Overall lost £44.2m (partly due to capital investments)

24. Emerging media business models
Daily Mail / MailOnline
-- Huge online growth due to split print +online operations
-- Different content, focus, audience to the newspaper
-- MailOnline gets 8m browsers per day / 130m per month
-- Rise of the "dark social network"
-- Customer data = crucial and growing
-- Digital revenue £134m (+34%)
-- Print revenue £655m (-1%)
-- MailOnline contributes £45m in sales (+ small profit)

25. Importance of user data
● From anonymous to known
● Usage patterns and consumption trends
● More valuable to advertisers
● Better, more targeted content
● What works? What doesn't?

26. Importance of user data

27. Digital publishing best practice
● Know the medium: print vs web vs online
○ "See picture left" on a web page
● Quality does matter - the audience knows the difference
● But no need for "TV on the internet"
● Sharing matters - is it as easy as possible?
● No shortcuts to traffic/sharing
● Track the metrics that matter (not just PV/UUs)
○ Don't always compare audience to print circulation

28. Digital publishing best practice
Editors + journalists = crucial
Technology changes but the craft doesn't

29. Thanks for listening
patrick.smith@briefingmedia.com
@psmith
www.themediabriefing.com