The Future of Print

Harris: Advertisers Migrate From Print To Net

Posted in Doom by futureofprint on July 27, 2009

The LinkedIn-Harris poll of 1,015 top executives at ad agencies and their corporate clients from June 22-June 30 found that while the number of advertisers using print and online are still roughly equal — 88% and 92%, respectively — the trend lines for the two media are headed in opposite directions.

Some 74% of advertisers that use Internet say they are using it more than they did one year ago, while 49% of advertisers that use print say they are using it less. Another 41% of advertisers that use print say their spending has remained steady with a year ago.

On the upside, 54% of advertisers that spend money online do so as part of a broader, multimedia campaign strategy, versus just 14% that only advertise online. The poll also had some good news for mobile advertising, which has struggled to find its footing in the U.S. market: 69% of advertisers that employ mobile advertising say they are using it more than they did a year ago, suggesting the medium has proven itself — at least to marketers willing to try it.

Via MediaPost

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Five Reasons to Advertise on Newspaper Web Sites – PRESSTIME

Posted in Boom by futureofprint on July 24, 2009

Newspaper Web sites are the No. 1 local site in 22 of the 25 top markets, Sheryl Oliver, NAA director of retail advertising, said during yesterday’s NAA webinar on newspapers digital value proposition.

To help newspapers continue to sell their Web sites to local advertisers, Oliver outlined five reasons for advertisers to include newspaper Web sites in their marketing plans.

Newspaper Web sites reach engaged local audiences. According to Scarborough Research, 46 percent of newspaper Web site visitors have an individual income of $150,000 or more.

Newspaper Web sites are growing exponentially. According to Nielsen Online, newspaper Web sites attracted more than 73.3 million monthly unique visitors on average 43.6 percent of all Internet users in the first quarter of 2009.

Newspaper Web sites offer products and services that engage users. These include RSS feed, blogs, video, social networking and mobile sites. When putting together a presentation for local advertisers, Oliver suggests that ad reps show examples of what their newspapers offer.

Newspaper Web sites extend local reach for advertisers. According to Borrell Associates, 66 percent of newspaper online revenue is local.

Newspaper Web sites encourage visitors to take action. According to early data from MORI Research, 82 percent of those surveyed said they “took action” as a result of newspaper advertising, including: clipping a coupon 61 percent, buying something 50 percent, visiting a Web site to learn more 37 percent or trying something for the first time 27 percent.

Via NAA.org

NYTimes.com Introduces Self-Serve Ads For Hyperlocal Sites | paidContent

Posted in Boom by futureofprint on July 24, 2009

The NYTimes.com has opened up a self-serve ad system for businesses who want to advertise on its hyperlocal sites. The Local, which consists of citizen-j blogs focusing on five neighborhoods in New Jersey and Brooklyn, will charge $5 CPMs for the ads. In a post on The Local via Nieman Lab, Jim Schachter, the NYT’s editor for digital initiatives, writes “that’s just this side of free.”

While general run-of-site rates on NYTimes.com start at around $30 CPMs, a NYTCo NYSE: NYT rep told us that to attract small, “mom & pop” businesses, the newspaper site will offer self-service rates of between $8 and $12 after the launch period. The campaigns are capped at “a few thousand dollars,” the rep said, with most running about several hundred.

When the NYTimes.com introduced the hyperlocal news sites in Febuary, executives had already been eying ways to attract the kinds of small-business marketers, such as plumbers and pizza parlors, that many newspaper sites had left to the online directories. Considering the huge financial challenges facing the NYTCo, which reports its Q2 earnings Thursday morning, any incremental advertising at this point is welcome, even if not immediately consequential.

Via Paid Content

Online Ad Revenues At The New York Times Keep Dropping Like A Rock

Posted in Doom by futureofprint on July 23, 2009

As if the New York Times doesn’t have enough to worry about, with total advertising revenues down 32 percent in the second quarter, its online business is deteriorating as well. In its earnings announcement this morning, the company breaks out Internet advertising revenues of $68 million, which is a 15.5 percent drop from a year ago.

The year-over-year declines keep getting worse, as you can see in the chart above. In the last three quarters the annual decline went from a 3.5 percent drop in the fourth quarter of 2008 to a 6.1 percent decrease in the first quarter of 2009 to negative 15.5 percent this quarter.

Annual Decline In Internet Advertising Revenues

4Q08: -3.5%

1Q09: -6.1%

2Q09: -15.5%

While the $68 million is a fraction of the NYT’s $454 million in total advertising revenues in the quarter and an even smaller portion of the company’s overall revenues of $702 million, which includes circulation and other sources, the NYT is a bellwether when it comes to media sites on the Web. And if it can’t stem the bleeding on the Web side of its business, other publishers are likely having trouble as well.

Via TechCrunch

Cost cuts return New York Times Co. to profit – Yahoo! Finance

Posted in Boom by futureofprint on July 23, 2009

NEW YORK AP — The New York Times Co. said Thursday its second-quarter profit climbed nearly 85 percent, as it cut costs aggressively to deal with punishing declines in newspaper and online advertising.

The company said it cut its operating costs by 20 percent to manage its revenue falloff, following a pattern that also emerged in recent earnings reports from fellow newspaper publishers Gannett Co. and McClatchy Co.

The company also signaled that the advertising slump may be starting to break. While ad revenue fell 30 percent across the company, Times Co. CEO Janet Robinson said “the rate of decline lessened throughout the quarter.”

The publisher of The New York Times, The Boston Globe, The International Herald-Tribune and 15 other daily newspapers said Thursday that it earned $39.1 million, or 27 cents per share, from April through June. That compares with a profit of $21.1 million, or 15 cents per share, in the same quarter a year ago.

Via Yahoo

More than 1,000 Publishers Join Fair Syndication Consortium

Posted in Boom by futureofprint on July 22, 2009

NEW YORK More than 1,000 publishers including The New York Times, The Washington Post, and The Dallas Morning News have signed on to participate in the Fair Syndication Consortium, a model built to help publishers receive compensation for their content.

Additionally, AdBrite, an online marketplace to buy and sell advertising, has agreed to work with the consortium to help partners monetize content.

Attributor, which tracks content across the Web, launched the Fair Syndication Consortium in April 2009. The charter members of the alliance include Thomson Reuters, Huffington Post, Politico, and Deutsche Presse-Agentur. The other content providers that have joined the group: The Boston Globe, Community News Holdings, Conde Nast, Gawker, Hearst Newspapers, Lee Enterprises, Magazine Publishers of America, Media News Group, Morris Communications, McClatchy, News Canada, Newsweek, E.W. Scripps, A.H. Belo, and The Oklahoman.

The membership represents more than 50% of the top U.S. newspaper publishers the release said.

“The Fair Syndication usage model is an important step forward in creating a thriving and sustainable commercial environment for our news agency and Reuters publishing businesses, as well as our peers in the publishing world,” Chris Ahearn, president of media at Thomson Reuters, said in a statement.

The Fair Syndication Consortium strategy is to track sites that swipe and re-use content from the original creators. The Consortium would then contact the site as well as the networks serving ads for compensation.

via More than 1,000 Publishers Join Fair Syndication Consortium.

Online Advertising’s $65 Billion Problem

Posted in Doom by futureofprint on July 22, 2009

A huge — $65 billion huge — part of the online advertising problem is that Web marketers know exactly how the Web works and how to engage its users — on their own.

These big companies know that using popular platforms like Facebook, YouTube, MySpace and yes, the Internet itself, they can market their products without paying for any advertising at all.

To this point, it’s worth reading CEO of Media research and advisory firm Outsell Anthea Stratigos’s Q&A with Forbes.

In it, she tells Forbes that over the last eight years, companies have shifted $65 billion in annual spending away from traditional advertising channels and spent it on “page content, Web analytics, search engine optimization and site design.”

$65 billion is a huge number. Here’s how Anthea put it in context for Forbes:

To scale that, compare the total U.S. TV and cable advertising revenue for 2009, which is about $66 billion. The marketing dollars companies now spend on their own sites is equivalent to all TV ad revenue for the year. Eight years ago we said that the Global 2000 would be the dot-coms of tomorrow. That’s what’s playing out.

She says the shift is why she agrees with Microsoft CEO Steve Ballmer’s assement that global advertising isn’t just in a recession but has been “reset” at a lower level.

“Advertising which has left the news industries is not going to come back in its same shape or form.”

Read Anthea’s Q&A at Forbes >

via Online Advertising’s $65 Billion Problem.

Yahoo Trying to Sell HotJobs, Yahoo Small Business

Posted in Doom by futureofprint on July 22, 2009

Now, peHUB has learned from multiple sources that as part of Bartz’s drive to dismantle non-core assets, Yahoo is also trying to shed both HotJobs, which Yahoo acquired for $436 million in cash and stock back in 2001, and Yahoo Small Business, which helps customers get their small businesses online by providing them with everything from domain registration to site monitoring to promotional tools.

“They’ve been approached by [major buyout firms] but they’re proactively looking to sell to a strategic investor like a Careerbuilder or Monster.com,” says one source familiar with the situation, adding that the company may be looking to avoid a future embarrassment. “If a Warburg [Pincus] or a Spectrum [Equity Investors] buys HotJobs for $300 million and resells it for $500 million in two years, that’s going to look pretty bad [for Yahoo],” says this person.

Strategy aside, Yahoo — which is attempting to sell the properties without the help of an investment bank – could use a financial boost. Newly released second-quarter earnings show Yahoo’s total revenues dropped 13 percent to $1.5 billion, despite an 8 percent rise in net income to $141 million.

For now, however, its pitch for both properties doesn’t seem to be resonating with potential acquirers. “They’ve been out there for two or three months; this isn’t a brand-new process,” says a source.

Via pehub

GRAHN: Newspaper advertising leads the way

Posted in Boom by futureofprint on July 21, 2009

Newspaper advertising remains the leading advertising medium cited by consumers in planning, shopping and making purchasing decisions, according to early data from MORI Research survey of more than 3,000 adults.

The findings recently announced by the Newspaper Association of America provide conclusive evidence of the ongoing value newspaper ads deliver for marketers trying to reach consumers who are ready to shop and spend.

This study, part of a series entitled “American Consumer Insights,” examined the impact newspaper advertising has on consumer shopping and spending patterns. Early results indicate:

• Nearly six in 10 adults (59 percent) identify newspapers as the medium they use to help plan shopping or make purchase decisions

• 82 percent of those surveyed said they “took action” as a result of newspaper advertising, including:

• Clipping a coupon (61 percent)

• Buying something (50 percent)

• Visiting Web sites to learn more (33 percent)

• Trying something for the first time (27 percent)

• 73 percent of adults regularly or occasionally read newspaper inserts

• 82 percent have been spurred to action by a newspaper insert in the past month.

Preliminary data also reveals that other media trailed well behind newspapers as the primary medium for checking advertising. The closest competitor — the Internet — trailed newspapers by 20 percentage points (41 percent vs. 21 percent). Direct mail only mustered a 14 percent response in the survey, and television was cited by only 8 percent of respondents.

http://www.newsandtribune.com/opinion/local_story_200013750.html?keyword=topstory

Magna: Ad Spending Will Be Off 14 Percent This Year | paidContent

Posted in Doom by futureofprint on July 13, 2009

Magna analyst Brian Weiser is telling ad agencies to expect a 14 percent decline to $161 billion in spending this year. The Interpublic Group media researcher’s report also cautions that even though the declines have bottomed out by this point and the worst appears to be over, growth won’t start to return until the second half of 2010. Weiser says e-commerce will provide some help for publishers. For the full year, he says online spending will drop 2.2 percent drop to $23 billion.

—National online: Total ‘09 revenue estimate: $5.5 billion, down 11.1 percent

—Local online: Total ‘09: $3.5 billion, down 5.9 percent.

—Direct online: Total ‘09: $13.9 billion, up 2.9 percent

—Print magazines: Total ‘09: $15.7 billion, down 18.3 percent

—Newspapers (print and online): Total ‘09: $28.5 billion, down 24.8 percent

via Magna: Ad Spending Will Be Off 14 Percent This Year | paidContent.