The Future of Print

Cpm Rates for Q4 2008

Posted in Doom by futureofprint on June 24, 2009

Prices for display ads sold through networks have dropped for the second quarter in a row, dipping below $0.30 on average, according to PubMatic.

Data from PubMatic’s AdPrice index indicates that the average effective cost-per-thousand impressions (CPM) for display ads has declined to $0.27 – down by 27 percent from the average CPM in the first quarter of 2008.

Ad network CPM rates seem to have dropped across the board. CPMs on news sites dropped by 36 percent to $0.36, while those on entertainment sites dropped by 27 percent to $0.33, gaming sites dropped by 26 percent to $0.48, CPMs on business and finance declined by 22 percent to $0.86, and CPMs on social networks declined by 22 percent to $0.21.

Small websites continue to command higher than average ad network rates, with sites attracting less than one million page views per month charging an average CPM of $0.61. However, this average CPM also reflects a decline – of 29 percent – since the first quarter.

According to Zachary Rodgers, writing in The ClickZ Network, the fall in CPM prices is the result of a number of factors, including “the glut of social network ad inventory, the rise of vertical ad networks, and doubts about the branding effectiveness of traditional IAB standard ad formats.”

via Cpm Rates | Kikabink News – Internet Marketing News.

Yahoo!’s Dangerous Newspaper Deal? – Forbes.com

Posted in Doom by futureofprint on June 22, 2009

As newspapers around the country struggle to develop strategies for growing revenues online, more and more of them are turning to an unlikely ally for salvation: Yahoo!.

Last week, five struggling newspapers including the San Diego Union-Tribune and the Orange County Register joined the Yahoo! Newspaper Consortium, an online advertising partnership between the Web publisher and the print publishers. The group, launched in 2006, now counts 814 papers as members, or 51% of the entire U.S. newspaper market as measured by Sunday circulation.

At first glance, linking up with Yahoo! ( YHOO news people ) seems a no-brainer. By joining the consortium, the papers will be able to supplement the advertising they sell to local clients–mostly display ads in the papers and on their Web sites–with expensive ads targeted by geography and user behavior on Yahoo!’s collection of heavily-trafficked Web sites.

In exchange for access to Yahoo!’s ad inventory, papers turn over half of the revenue from ads they sell on the portal. Since joining the consortium, the Atlanta Journal-Constitution expanded its local reach, the proportion of the regional population who hit its Web site in a month, from 15% to 85%, Yahoo! says. The Evansville Courier Press, an Indiana daily with a circulation of 60,000, sold $1.1 million in Yahoo! ads in a week-long “sales blitz.” Yahoo! won’t discuss the specifics of the revenue-sharing agreement, but newspaper partners confirmed the 50-50 arrangement.

via Yahoo!’s Dangerous Newspaper Deal? – Forbes.com.

MediaPost Publications ‘Star Tribune’ Files Bankruptcy, ‘Cleveland Plain Dealer’ Issues Pay Cuts 06/22/2009

Posted in Doom by futureofprint on June 22, 2009

Two of the Midwest’s biggest newspapers, struggling to stabilize their finances, are implementing further cutbacks including wage cuts and unpaid furloughs. The reductions at The Plain Dealer in Cleveland and the Star Tribune in Minneapolis are part of an industry-wide retrenchment as publishers confront plummeting ad revenues and a credit crunch.

At The Plain Dealer, owned by Advance Publications, 500 union workers belonging to the Northeast Ohio Newspaper Guild Local 1 and Teamsters Local 473 agreed on Thursday to take a total wage reduction of 12%, which includes an 8% reduction in actual pay and 11 days of unpaid furlough.

This is the second round of pay cuts and unpaid furloughs at the paper; the first round, including a 10-day unpaid furlough, hit non-unionized employees in March.

Separately, the Star Tribune of Minneapolis submitted a Chapter 11 bankruptcy reorganization plan to the U.S. bankruptcy court for the Southern district of New York last week. If the plan is approved, the paper could exit Chapter 11 bankruptcy protection as early as this fall.

via MediaPost Publications ‘Star Tribune’ Files Bankruptcy, ‘Cleveland Plain Dealer’ Issues Pay Cuts 06/22/2009.

Yahoo’s Pitch To Small Businesses: Self-Serve Display Ads

Posted in Doom by futureofprint on June 22, 2009

There’s been some surprising good news about display-ad spending this past month—and Yahoo (NSDQ: YHOO) is betting that more is on the way. AdAge’s Michael Learmonth has the details about Yahoo’s latest bid to turn its display business around. On Monday, the company will release My Display Ads, a self-serve ad system that it will use to court small and mid-size businesses. The introduction of this product suggests that Yahoo feels ready to go head-to-head with Google (NSDQ: GOOG) and AOL (NYSE: TWX), as well as social networks Facebook and MySpace, which have had been aiming self-serve ads at smaller advertisers for several months. More after the jump

Yahoo’s latest display gambit comes as more advertisers, local and national, have increased their search-ad spend. But the pull of search appears to be waning among local busineses, according to a recent report by local ad analyst Borrell Associates. Even though other sites (like Yelp) have had their hooks in small marketers, there appears to be room for Yahoo to capture some of that business, which AdAge’s Learmonth says is a $13.6 billion market. Yahoo is offering the My Display Ads to marketers on both the CPM format or as a cost-per-click auction through the companies’ various other platforms, including its Right Media ad exchange system.

via Yahoo’s Pitch To Small Businesses: Self-Serve Display Ads | paidContent.

Study: U.S. Newspaper Biz Expected to Lose $25 Billion by 2013

Posted in Doom by futureofprint on June 17, 2009

NEW YORK The newspaper industry in North America is forecast to shed some $13 billion in revenue by 2013, according to new research from PriceWaterhouseCoopers (PWC).

The losses are expected to stem mainly from a drain in print advertising revenue. Total newspaper advertising will fall by a cumulative 32.7% during the next three years, according to the latest PriceWaterhouse Global Entertainment and Media Outlook: 2009-2013 report. Only in 2012 will advertising start to reverse, rebounding modestly.

Print advertising is expected to fall the most from $36.7 billion in 2008 to $24.3 billion in 2013.

Online advertising revenue is anticipated to decline over the next two years. PWC expects online ad revenue to grow to $3.7 billion in 2013 — a 2.5% increase when compounded annually from 2008.

via Study: U.S. Newspaper Biz Expected to Lose $25 Billion by 2013.

UK: Half of nation’s local and regional papers will be lost within five years, according to Enders Media – Editors Weblog

Posted in Doom by futureofprint on June 17, 2009

The launch of a cross-party select committee’s investigation into the future of newspapers in the UK today was overshadowed by the ominous prediction that half of the nation’s local and regional papers will be lost within the next five years.

The predictions are based on research conducted by the media analysts, Enders Media. Its founder, Claire Enders, voiced her concerns in front of the Culture, Media and Sport select committee this morning:

“We are expecting that up to half of all the 1,300 titles will close in the next five years.”

“Many titles are loss-making and are being sustained by the good graces of their owners. That may not last.”

According to research, there will be a 52 per cent decline in regional newspaper advertising revenue in the period 2007 to 2013. This represents a loss of 1.3 billion pounds a year lost in advertising revenue. Circulation looks set to decline by 8 per cent in the same period. Local community papers are deemed to be greatest at risk. The gloomy picture was not relieved by any flashes of what would be seen as false optimism; according to Enders the reduction of newsroom staff is inevitable and probably not financially restorative in the long term.

Via EditorsWeblog

Google’s Grab for the Display Ad Market – BusinessWeek

Posted in Doom by futureofprint on June 12, 2009

For all its success selling text ads alongside search results, Google GOOG can’t seem to make a go of it anywhere else in the ad world. In January, it shut down a two-year-old operation that sold print ads in newspapers. A few weeks later it abandoned an effort to buy and sell radio spots. And a TV ad project has been slow-going. To make matters worse, the economy has hit Google’s mainstay search ads: First-quarter revenue growth of 6%, though better than many companies in the recession, is far below its high double-digit gains of years past.

In its hunt for new growth, the search giant is redoubling efforts to grab a bigger piece of the largest online ad market it doesn’t control: display ads, the pictorial banners and videos that account for more than a third of the $40 billion online ad market. “Google has won the search battle, so its whole future is display,” says Jay Sears, executive vice-president for strategic products and business development with online ad firm ContextWeb.

Via Business Week

Online Advertising In Europe: 2008 Was Tough, 2009 Will Be Worse

Posted in Doom by futureofprint on June 11, 2009

In 2008 the total European online advertising market, or at least the 19 markets analyzed by IAB Europe and PwC, was worth €12.9 billion approx. $18 billion with a like-for-like growth rate compared to 2007 of 20%. For comparison, online advertising grew 10.6% in the United States in 2008 outpacing TV and was worth €16.6 billion $23.4 billion. However, the 20% growth figure paints a better-looking picture than the harsh reality, which is that it is far below previously stated expectations, of course caused by the crumbling of the global economy and the huge strain it has put on digital advertising spending worldwide.

If you look at the top 10 markets in Europe, year-on-year growth rates were under 20% more often than not. Considering the fact that these markets account for about 93% of the total value of the market, the following chart doesn’t accurately reflect the slowed growth because it over-accentuates the massive growth in Slovenia, Poland and Austria.

Broken down by formats, search remains the leading format in Europe with the strongest year-on-year growth rate 26%, accounting for 43% of online ad expenditure in the countries measured and a value of €5.6 billion. After search come classifieds, with growth rates of 17.4% bringing it to 26% share of total ad spend and a market value of €3.8 billion.

Via TechCrunch

API Report to Exec Summit: Paid Content Is the Future for News Web Sites

Posted in Boom, Charge by futureofprint on June 9, 2009

The American Press Institute (API) has surveyed the many options currently being discussed for paid content and “fair use” fees from Google and other aggregators, and basically endorses them all as a remedy to what ails the newspaper business.

In a 31-page white paper prepared for last week’s newspaper executive’s summit in Chicago, API concludes, “newspapers can make the leap from an advertising-centered to an audience-centered enterprise” and should get on with it immediately.

The report, titled Newspaper Economic Action Plan, recommends that industry leaders follow five new “doctrines.”

* True Value. Establish that news content online has value by charging for it. Begin “massive experimentation with several of the most promising options.”

* Fair Use. Maintain the value of professionally produced and edited content by “aggressively enforcing copyright, fair use and the right to profit from original work.”

* Fair Share. Negotiate a higher price for content produced by the news industry that is aggregated and redistributed by others.

* Digital Deliverance. “Invest in technologies, platforms and systems that provide content-based e-commerce, data-sharing and other revenue generating solutions.”

* Consumer Centric. Refocus on consumers and users. Shift revenue strategies from those focused on advertisers.

via Poynter Online – The Biz Blog.

Can Computer Nerds Save Journalism?

Posted in Boom by futureofprint on June 9, 2009

A cadre of newly minted media whiz kids, who mix high-tech savvy with hard-nosed reporting skills, are taking a closer look at ways in which 21st century code-crunching and old-fashioned reporting can not only coexist but also thrive. And the first batch of them has just emerged from Northwestern University’s Medill School of Journalism. See 10 ways your job will change.

They’ve just completed a new master’s program at Medill — with scholarships from the John S. and James L. Knight Foundation — aimed at training programmers in basic journalism so they can better understand how technology is impacting the industry and trying to engineer change down the road. Medill isn’t the only higher-education institution blending computer programming and journalism; at other schools such as the Georgia Institute of Technology and the University of California, Berkeley, traditional J-school programs are incorporating a dose of tech-thumping. Spurred by the success of content-driven websites such as Digg, which creates a front page of news stories based on what readers deem most popular each day, the brains behind these new programs are trying to capitalize on ways in which sophisticated programming can make the delivery of news more accessible.

Via Time