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revenue strategies
online newspapers
1996 | 2005
donica mensing
reynolds school of journalism
university of nevada, reno
19961996
19962005
19961996
19962005
19961996
19962005
revenue models
(Mings & White, 2000)
• advertising model
• subscription model
• transaction model
• bundled model
1996 mail survey
Population: (Nearly) all online
newspapers publishing daily news in
the U.S. as of April 1996 -- 187 total.
Survey sent to person in charge of
online site
83 responses -- a 44.3% return rate
2005 online survey
Population: (Nearly) all online newspapers
publishing daily news in the U.S. as of
Feb. 2005 -- 1,040 total.
Survey e-mailed to person in charge of
online site
242 responses -- a 23.3% return rate
Percentage of respondents by circulation size
Circulation
Size
1996 Survey
Valid Percent
2005 Survey
Valid Percent
Small
(24,999 or
less)
19.5 36.5
Medium
(25,000 to
99,999)
46.4 41.7
Large
(100,000 or
more)
34.1 21.8
Total 100% 100%
Mean response to the Mean response to the relative percentage of
revenue earned from importance of each revenue source on a
each source in 1996 and anticipated scale of 1-5, with 5 being very important
in 1997 (in order of importance) (in order of importance)
Source
Mean
Percentage
1996
Mean
Percentage
(1997
anticipated)
Source 2005
Display
advertising
34.4 34.5 Classified
advertising
4.67
Internet
access fees
20.4 13.8 Display
advertising
4.36
Classified
advertising
18.5 29.9 Subscriptions 2.99
Subscriptions 5.2 5.3 Archives 2.67
Premium
services
3.7 7.1 Other sources 2.5
Other sources 3.6 3.12 Transaction
fees
1.95
Transaction
fees
1.8 2.3 Custom
services
1.7
Importance of various revenue sources to current business models in 2005
Source
(1)
Unimportant
(2)
Somewhat
unimportant
(3)
Neutral
(4)
Somewhat
important
(5)
Very
important
Classified
advertising
3% 1.7% .6% 15.5% 79%
Display
advertising
3 4 5.7 29 58
Subscriptions 34 6 14 21 26
Archives 32 13.5 20 25 9.6
Custom services 63.8 12.8 14.8 6.7 2
Transaction fees 55.4 8.8 22.3 12.2 1.4
Internet access
fees
78.8 3.4 12.3 4.1 1.4
Other sources 42.4 3 27.3 12.1 15.2
classified advertising
display advertising
subscriptions
archives
other comparisons
• micropayments
• registration
• attitudes towards print
• promising strategies
“In the next few years we will have a
system of micropayments and will charge
very small amounts for visitors to purchase
content by the piece.”
requiring users to register
Perceptions of the impact of the online site
on the print product
Summary of open-ended answers to the question:
“What do you think are the most promising profit
strategies for publishing Web newspapers?”
what have we learned?

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Mensing. 2005.

  • 1. revenue strategies online newspapers 1996 | 2005 donica mensing reynolds school of journalism university of nevada, reno
  • 3.
  • 5.
  • 7.
  • 9.
  • 11.
  • 13.
  • 14. revenue models (Mings & White, 2000) • advertising model • subscription model • transaction model • bundled model
  • 15. 1996 mail survey Population: (Nearly) all online newspapers publishing daily news in the U.S. as of April 1996 -- 187 total. Survey sent to person in charge of online site 83 responses -- a 44.3% return rate
  • 16. 2005 online survey Population: (Nearly) all online newspapers publishing daily news in the U.S. as of Feb. 2005 -- 1,040 total. Survey e-mailed to person in charge of online site 242 responses -- a 23.3% return rate
  • 17. Percentage of respondents by circulation size Circulation Size 1996 Survey Valid Percent 2005 Survey Valid Percent Small (24,999 or less) 19.5 36.5 Medium (25,000 to 99,999) 46.4 41.7 Large (100,000 or more) 34.1 21.8 Total 100% 100%
  • 18. Mean response to the Mean response to the relative percentage of revenue earned from importance of each revenue source on a each source in 1996 and anticipated scale of 1-5, with 5 being very important in 1997 (in order of importance) (in order of importance) Source Mean Percentage 1996 Mean Percentage (1997 anticipated) Source 2005 Display advertising 34.4 34.5 Classified advertising 4.67 Internet access fees 20.4 13.8 Display advertising 4.36 Classified advertising 18.5 29.9 Subscriptions 2.99 Subscriptions 5.2 5.3 Archives 2.67 Premium services 3.7 7.1 Other sources 2.5 Other sources 3.6 3.12 Transaction fees 1.95 Transaction fees 1.8 2.3 Custom services 1.7
  • 19. Importance of various revenue sources to current business models in 2005 Source (1) Unimportant (2) Somewhat unimportant (3) Neutral (4) Somewhat important (5) Very important Classified advertising 3% 1.7% .6% 15.5% 79% Display advertising 3 4 5.7 29 58 Subscriptions 34 6 14 21 26 Archives 32 13.5 20 25 9.6 Custom services 63.8 12.8 14.8 6.7 2 Transaction fees 55.4 8.8 22.3 12.2 1.4 Internet access fees 78.8 3.4 12.3 4.1 1.4 Other sources 42.4 3 27.3 12.1 15.2
  • 24. other comparisons • micropayments • registration • attitudes towards print • promising strategies
  • 25. “In the next few years we will have a system of micropayments and will charge very small amounts for visitors to purchase content by the piece.”
  • 26. requiring users to register
  • 27. Perceptions of the impact of the online site on the print product
  • 28. Summary of open-ended answers to the question: “What do you think are the most promising profit strategies for publishing Web newspapers?”
  • 29. what have we learned?