The Future of Print

Newspaper Digital Dollars Race

Posted in Boom by futureofprint on April 12, 2011

In terms of charting the changing balance between newspaper and online ad spending, worldwide newspaper ad expenditures were still 51 percent larger than the web’s in 2010. However, newspaper dollars are shrinking by 1.4 percent a year, as circulations continue to fall in developed markets, and readers shift to the internet.

At the same time, internet advertising continues to grow at breakneck pace, at a forecast average rate of 14.4 percent annually between 2010 and 2013. Zenith is forecasting newspaper ad spend to fall from $95.2 billion in 2010 to $91.2 billion in 2013, while internet ad expenditure rises from $63 billion to $94.5 billion over the same period.

As a result, Zenith is calling for global display ad spending to grow at an average of 16.4 percent a year to 2013, while paid search rises by 12.8 percent and classified by 10.2 percent.

via Zenith: Global Forecast Revised Down; But Display Remains ‘Invigorated’ | paidContent.


Mobile advertising leaps 116 percent, but digital ad slowdown worries remain | TheMediaBriefing

Posted in Boom, Tablets by futureofprint on March 24, 2011

Here’s a fact to brighten up your day: mobile advertising grew by 166 percent to £83 million in 2010, up from £37.6 million in 2009. New figures from PwC/IAB show that the rate of growth is unprecedented and is a note of optimism in an otherwise hesitant online advertising landscape.

Here are some other take-home points from the study:

– B2B and specialist media are increasing their share of the mobile ad spend pie, including telecoms and financial publishers, albeit from a low base

– Mobile search ad spend has tripled from 2009 to 2010, from £20.2 million to £54.9 million.

– Mobile display spend was up 61 percent to £28.1 million, up from £17.4 million in 2009,

– Mobile display ads, all those banner ads, text links and flashing things that you all ignore, rose 62 percent to £23.7 million.

– Pre- and post-roll ads rose 492 percent to grand total of… £1.1 million (translation: people didn’t used to have rich video-enabled phones, and now they have iPhones and Android phones).

– Entertainment is the biggest sector with 32.9 percent of mobile display ad spend, automotive is the smallest with a piddling 6.5 percent.

And the usage is, of course, through the roof. Smartphone ownership was up 58 percent year on year in 2010 to encompass 38 percent of the population – according to December figures from ComScore Loading… companies comscore .

And we’ve not even mentioned tablets yet. Here’s what Dominic Jacquesson, author of our new research report on mobile media strategies, says of them:

“When Apple Loading… companies apple-inc released its Q4 2010 sales, it revealed iPad sales of 17 million in the nine months since launch. It took the iPhone 21 months after launch to reach the same point. Every major analyst tracking Apple has under-estimated the success of the iPad, despite all the hype, and we can now expect sales estimates for 2011 to notch up once again.

From 15 million when it launched in April, to 28 million by November, and now nearer to 40 million – truly phenomenal for a brand new category of device, and starkly underlining the consumer appetite for tablets.”

What does this mean?

It means lots of people are buying smartphones and tablets and using them as a secondary – not primary – browser, and the ad market has a lot of catching up to do.

Mobile’s growth rate is impressive but the levels of spend are not. A 30-second advert during X Factor can go for as much as £250,000 – almost one tenth of the entire UK spend on mobile display ads.

Moreover, as the WARC figures from the end of last year showed (via Guardian), more than a third of display ad spend is specifically designed to get people to watch TV shows, to take them back to the big box in the corner and away from the small box in their hands.

Although, the two-screen viewing habits of modern Britons shouldn’t be ignored and so many of us watch the tube with a iPhone/iPad/laptop in front of us. TV vs mobile isn’t a zero-sum game and there is exciting growth in social TV participation business models.

Only so much money to go around

But the wider problem is a stagnation of online ad growth in the UK and elsewhere. If we look at the big picture, digital services will only account for 33 percent of European ad spend by 2014, including mobile and “desktop” browsing, according to PwC’s Global Outlook 2010-2014 study (pdf link).

According to Nielsen figures published in Marketing last week, 77 of the top 100 UK advertisers increased their spend in 2010, but at the same time the amount some big league player apportion to paid-for online ads is still tiny.

Proctor & Gamble spends 1.3 percent of its massive budget on paid-for display ads. Unilever Loading… spends 1.9 percent of its budget on the same, or £2.6 million. O2 is notable for remaining the country’s biggest online advertiser by spend, despite decreasing its total ad budget by nearly a third.

There is a hell of a long way to go before ad buyers and agencies see mobile as a core part of their campaigns. And if WARC’s prediction of a 2.3 percent all-media UK advertising rise for 2011 is accurate, then there will be a lot of people fighting over want scant new money will enter the market this year. And despite the smartphone/iPad craze, you can bet it won’t be mobile advertising that takes the lion’s share.

via Mobile advertising leaps 116 percent, but digital ad slowdown worries remain | TheMediaBriefing.

Local Digital Ad Revenues to Nearly Double to $42.5B by 2015 from $21.7B in 2010

Posted in Boom by futureofprint on March 21, 2011

BIA/Kelsey Forecasts U.S. Local Digital Ad Revenues to Nearly Double to $42.5B by 2015 from $21.7B in 2010

The firm’s newly released U.S. Local Media Annual Forecast indicates digital media will represent 23.6 percent of all local advertising by 2015

CHANTILLY, Va.and BOSTON, Mass. (March 21, 2011) – Local advertisers continue their steady migration to digital media platforms, according to BIA/Kelsey’s U.S. Local Media Annual Forecast (2010-2015). BIA/Kelsey, adviser to companies in the local media industry, expects online/interactive advertising revenues to climb to $42.5 billion by 2015, almost double 2010’s $21.7 billion, representing a compound annual growth rate (CAGR) of 14.4 percent. This growth coincides with anticipated improvement in the U.S. economy and a continued rise in overall local advertising, which the firm expects will reach $153.5 billion in 2015, up from $136.3 billion in 2010, representing a 2.1 percent CAGR.

As digital media — delivered to consumers through mobile, Internet or other electronic methods — continues to gain traction with local advertisers, BIA/Kelsey predicts it will represent 23.6 percent of all local ad spending by 2015.

“As the business climate improves and advertisers step back into the market, they are gravitating to digital options that perhaps were not as mature before the recession began,” said Tom Buono, chief executive officer, BIA/Kelsey. “Our analysis indicates that as advertisers move to online, mobile and, particularly, the variants of social media, we are fast approaching a tipping point where digital media will soon become a dominant segment of the local advertising marketplace.”

BIA/Kelsey reports among the key drivers of this year’s forecast are:

  • The increased number of smartphones and tablets is already playing a role in affecting revenue shares earned by traditional media.
  • Continued significant newspaper revenue erosion will drive pay walls and other creative approaches for rebuilding revenue base.
  • Intense political advertising and uptick in national advertising lifted television and other media revenues in Q4 2010, increasing prospects for the forecast period.
  • The interactive/online sector continues to advance and multiply with new formats such as social and mobile.

“What we’re seeing in terms of media share shifts and transformation is really unprecedented,” said Neal Polachek, president, BIA/Kelsey. “As we look forward, the core issue challenging advertisers is to figure out a media plan that leverages the transactional nature of digital media with the scale and reach of traditional media.”

BIA/Kelsey’s U.S. Local Media Annual Forecast also notes that social forms of digital media are increasingly becoming an important component of online revenues. Consumer spending on deal-a-day offers, which the firm expects will grow to $3.9 billion by 2015, illustrates an expanding market that includes Facebook and Twitter.

Topline numbers from the forecast were presented to some 500 local media industry executives this morning at BIA/Kelsey’s Interactive Local Media East conference, which is being held today through Wednesday at the Boston Marriott Copley Place.

via BIA Kelsey – Press Releases.

Research: iPad ads boost key marketing metrics

Posted in Boom, Tablets by futureofprint on January 24, 2011



A new study commissioned by Adobe found that ads in digital magazines outperformed static ads by as much as 70 percent in areas such as engagement, attitude and purchase intent.

The study, performed by Dr. Alex Wang from the University of Connecticut, tested ads in digital and print editions of Wired magazine. The study group comprised 65 consumers between 18-32 years old. Participants viewed either a print version of Wired or the Wired app on an iPad. Participants were asked to browse a section of the magazine that included seven ads, and were also asked to review a specific ad.

Participants rated the ads on a 9-point scale across five categories: perceived interactivity, perceived engagement, message involvement, attitude and purchase intention. Wang found that among the two groups, the interactive ads outperformed their static counterparts across all five categories.

“With digital magazines, we’ve seen a more immersive reading experience,” Dave Dickson, Adobe’s product marketing manager for digital publishing, said in an interview. “More interactivity actually drives results for brand advertisers, which has resulted in premium inventory.”

via Research: iPad ads boost key marketing metrics.

Newspapers Top Broadcasters In Web Video Streaming

Posted in Boom by futureofprint on December 23, 2010

Newspapers surpassed broadcasters for the first time in the third quarter in total video minutes streamed and the number of video titles uploaded, according to the latest data from analytics firm TubeMogul and video-hosting service Brightcove.

Newspaper sites had a total of 313 million minutes of video streamed compared to 290 million for broadcast sites. Meanwhile, the number of videos downloaded on newspaper sites surged 51% quarter-to-quarter and 110% from a year ago to 482,000, more than any other type of media company.”

This is an interesting development, and suggests that newspapers are rapidly adopting and producing video content for what was once a print business,” notes the TubeMogul/Brightcove report. It also noted that in contrast with longer-format content on broadcast sites, newspapers are producing many more, but fewer, titles on a rolling basis. That approach likely has more appeal for advertisers, allowing them to run more pre-roll spots more often.

“Newspapers have a lot of battle scars from the digital crusades of the last decade, so they’ve become pretty tenacious when it comes to the Internet,” observed Gordon Borrell, president of local media research firm Borrell Associates. A major part of that effort has been seizing on video in innovative ways to draw in online audiences. Because of concerns about cannibalizing TV viewership and ad revenue, broadcast companies have been more reluctant to embrace online video.

Thanks in part to the influx of video ad dollars, newspapers for the first time in five years have actually gained share of local online advertising dollars, according to Borrell. “Not much, but enough for us to say that they appear to be turning the corner and evolving from ‘newspaper’ companies to ‘media’ companies,” he said. Outfits like The New York Times and McClatchy Corp. will get about 25% of their revenue this quarter from digital compared to 5% to 7% for most broadcast companies.

via MediaPost Publications Newspapers Top Broadcasters In Web Video Streaming 12/23/2010.

iPad pricing, advertising looks promising for publishers

Posted in Boom, Charge, Tablets by futureofprint on December 20, 2010



Most iPad users view news and magazine content as appropriately priced — or even priced too low — according to Nielsen research. During a webinar this week delving into Nielsen’s October research about the iPad, Nielsen disclosed that about 45 percent of iPad owners surveyed believe that news and magazine content is appropriately priced. Sizable numbers think iPad apps are priced low relative to its value: more than 35 percent for news content and about 20 percent for magazine content.

via iPad pricing, advertising looks promising for publishers.

Premium Display Advertising Revenues Rebounding from Industry Slump –

Posted in Boom by futureofprint on November 29, 2010

The premium digital ad segment accounts for 80 percent of display ad revenues overall an estimated $23 billion in 2009, but there have been no sources of reliable data to measure pricing and spending trends in the broader market.

via Premium Display Advertising Revenues Rebounding from Industry Slump –

Media Buyers Need Time To Think? Get Automated 10/04/2010

Posted in Boom by futureofprint on October 4, 2010


There’s that “T” word again. Technology that automates media buys, cutting costs and time, giving media buyers time to think about more strategic campaigns.

Most marketers seem to understand automation tools streamline media buying, but not many embrace it. Do media buyers not realize automation squeezes out excess costs from the planning process similar to the way it eliminated costs from the manufacturing supply chain.

Automation enabled companies like Intel and Dell to reduce the cost of goods sold. The same thing will happen to the media buying process for paid search and display ads. Automation squeezes excess cost from processes. Media buyers who want to remove the fat from the media buying process will automate.

via MediaPost Publications Media Buyers Need Time To Think? Get Automated 10/04/2010.

Can Newspapers Create New Revenue Stream with ‘Digital Malls’?

Posted in Boom by futureofprint on August 19, 2010

Newspaper consultant Jim Chisholm has looked five years into the future and sees the industry’s best bet for vitality in digital shopping. Updating a futures report he did 18 months ago for the Newspaper Association of America, Chisholm predicts nominal growth for the industry 3.4 percent, probably less than inflation through 2014 in its current lines of business. That is a bleak forecast — unless an infusion of new revenue comes to the rescue.

Chisholm’s concept is “a digital news hub,” combining traditional and nontraditional content, that would be the equivalent of a flagship store that draws people to a bricks-and-mortar mall. The key would be getting them to stay on newspaper websites much longer than most do now.

hoppers would be lured by a critical mass of discounts and links to local stores and national retail sites. The newspaper mall sites eventually would get into direct transactions, taking a small cut of the proceeds. For all this to work, Chisholm concedes, the typical newspaper website would need a higher level of functional technology for mobile, for instance.

The idea has more potential if the industry can unite on common platforms or sales initiatives. However, newspapers often have a hard time working together in business ventures, even as they try to stave off their new digital competitors. My own take is that newspapers are edging toward this model, first cousin to the Newspaper Next concept of reorganizing as a local information utility. Local shopping looks like a hot prospect. As an example, newspaper organizations are rushing to partner with Groupon, Shoutback and other deal-of-the-day vendors.

via Poynter Online – The Biz Blog.

Associated reveals improvement in ad revenues – Media news – Media Week

Posted in Boom by futureofprint on July 27, 2010

This helped to offset a further drop at DMGT’s regional division, which it has denied is up for sale.

According to a trading update today 27 July, DMGT’s Associated Newspapers unit, which includes the Daily Mail, The Mail on Sunday and freesheet Metro, suffered a 3% year-on-year drop in revenues to £201m for the third quarter of its financial year to 4 July.

The unit has continued to cut costs and, recently, folded its digital business into the wider group in a cost-saving move.

But underlying advertising revenues, which exclude the closed London Lite and the sold London Evening Standard, rose 13%, fuelled by a surge in digital revenues up 46% on the year and display up 15% on the year.

Retail, the largest display category, grew by 19% in the period. Associated’s pure-play digital activities were up 16%, including a rise in its jobs’ businesses.

The group said the advertising trends had broadly continued in July.Northcliffe Media, the group’s regional arm which houses more than 100 titles, including the Hull Daily Mail, reported revenues were down 4% to £66m.

Overall advertising revenues at the division were down 4% on the year.

Northcliffe Media, like other regional newspaper groups, has suffered from a tough market and has cut more than 1,000 jobs since 2008. A recent national newspaper report claimed DMGT was in discussions with Trinity Mirror and Johnson Press over the sale of the entire Northcliffe division.

However, DMGT’s finance chief Peter Williams said today it was not talking to with other publishers about offloading its troubled regional titles.Williams said: “We can confirm that we are not in discussions over proposals to offload them, nor do we have any expectation of entering any discussions over their sale.”

via Associated reveals improvement in ad revenues – Media news – Media Week.