Sunday, October 26, 2014

How publishers can leverage the programmatic advertising trend


MAGNA GLOBAL reports that 63 percent of all display advertising in the United States will be programmatic advertising in 2014, up from 50 percent in 2013. By 2017, MAGNA GLOBAL predicts other countries will be close to the level of the United States in terms of penetration of programmatic advertising compared to other digital display categories.

For example, the countries outside the United States with the predicted highest penetrations of programmatic advertising in 2017 are the Netherlands, 70 percent; United Kingdom, 59 percent; France, 56 percent; Australia, 52 percent; and Japan, 40 percent.

As these and other countries ramp up programmatic buying strongholds, publishers are recognizing the value in occasionally partnering with their longtime competitors in order to bolster their national advertising businesses.

The most important advantage of developing national networks is improving national advertising revenues. Publishers and broadcasters in many countries have seen their national advertising diminish. For example, national advertising in the United States dropped 11.7 percent from 2011 to 2012 alone. An advantage to developing advertising consortiums is to re-gain lost national advertising. The key is to aggregate as many publishers and geographies as possible to create a “national buy.”

National advertising networks are being built by publishers and broadcasters in many countries, in an effort to raise CPMs in their own ad networks, and in conjunction with ad exchanges that employ programmatic buying. Newspaper companies in countries including Brazil, Switzerland, Italy, the United States and Japan have creating ad network consortiums in an effort to improve revenues.

The Local Media Consortium, a group of 800 daily newspapers and 200 broadcasters in the United States, has partnered with Google in order to leverage its strength in numbers and quality of audience with the growing presence of programmatic ad buying. Members will have the choice of using Google’s two advertising products, the DoubleClick advertising network or Google AdSense contextual advertising. Together, the 1,000 media outlets serve almost 9 billion ad impressions per month.

The real draw for the partnership, launched in February 2014, is participation in the new private advertising exchange that was created to sell the publishers’ inventory through programmatic buying. “The vision is that this will be not just about remnant inventory, but a way for the consortium members to monetize their full businesses,” said Laurent Cordier, managing director of Americas Publisher Sales at Google, according to a Feb. 2014 article published by Neimanlab.org.
Some American media companies are conspicuously absent from the consortium: The New York Times, the Washington Post and News Corp. Each of these companies launched its own ad exchange in 2013 to leverage the programmatic advertising buying trend.
While programmatic buying is certainly an opportunity to make more digital revenue, traditional publishers and broadcasters still face a familiar conundrum: teaming up with the likes of Google, which stands to gain the lion’s share of revenue on the backs of publishers and broadcasters who own the content. However, on the positive side, many publishers are forming alliances with former competitors in order to build scale in their countries. These strategic moves are promising and have the potential to result in a healthier bottom line for media companies struggling to monetize their digital businesses. Time and effort will drive the success or failure of these ventures.
World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The 2014 trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this data set. To download the GDMT free executive summary, go to www.wnmn.org

Discovering product in store or through a friend the most popular ways to purchase: UK study


Deloitte/GfK set out in 2012 and 2013 to determine how UK consumers purchase products and services online in the “Survival of the Fastest: TV’s evolution in a connected world.”

According to the annual surveys, the most important media to influence buying behaviors online is television, followed by websites and magazines. However, the most important drivers for buying products and services online were that consumers first came across the item in a store, with about one-fourth of the respondents saying so in 2012 and 2013. Recommendations from family and friends and television had similar impacts, with 15 percent of the 2013 respondents favoring family and friend recommendations and 14 percent favoring television to influence their online buying behaviors.

World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The 2014 trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this data set. To download the GDMT free executive summary, go to www.wnmn.org

Saturday, October 18, 2014

Newspaper revenue is No. 1 in U.S. ad market: Study



Total annual news revenue in the United States in 2013 was $63.2 billion, led by daily newspapers, which earned $38.6 billion, according to the Pew Research Center’s “State of the News Media 2014.” Despite their significant market share, newspapers continue to downsize their operations as their once vast empires continue to shrink, due mostly to a steep decline in print advertising revenue.

After newspapers, the media earning the next largest shares of adspend are local TV news with $8.9 billion, cable news with $5.2 billion, weekly newspapers with $3.6 billion and network TV news with $2.1 billion.

World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The 2014 trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this data set. To download the GDMT free executive summary, go to www.wnmn.org

Identity theft, viruses concern U.S. audiences: Study


The Zogby survey also identified the biggest concerns among U.S. Internet users, including identity theft, 38.7 percent; viruses and malware, 33.5 percent; government surveillance of data, 12.3 percent;, cyber bullying and stalking, 4.6 percent; and behaviourally targeted advertising, 4.4 percent.

World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The 2014 trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this data set. To download the GDMT free executive summary, go to www.wnmn.org

Saturday, October 11, 2014

U.S. publishers’ views on digital subscriptions: OPA Study

According to an Online Publishers Association study in 2013 digital subscription strategies in the United States, three media company executives responsible for subscription strategies emphasized that it is not just charging for content, but then retaining customers by engaging them, that is key. This can be accomplished by applying data-driven audience analytics to the subscription strategy.

“Retention and churn are huge issues for a digital subscription business. This has been a world of revelation – it’s not something the publishing industry had to deal with before. There are thresholds in usage (engagement) that show when people are likely to cancel subscription; this is what drives our product management – measure of success is how much new features drive the engagement on the site.”
- Rob Grimshaw, Managing Director, FT.com

“Engagement is very important to success – we need to convince people to spend more time with the New York Times and thus value their subscription more. Our recommendation engine is one such effort.”
- Denise Warren, EVP, Digital Products & Services, The New York Times
- Kim Miller, VP, Digital & Traditional Consumer Marketing, PEOPLE brand, Time Inc.
- Rob Grimshaw, Managing Director, FT.com
- Saira Stahl, VP, Corporate Strategy, Gannett Co, Inc.
- Rob Grimshaw, Managing Director, FT.com
- Christian Nimsky, VP, Digital Interactive Products & Services, Consumer Reports
- Saira Stahl, VP, Corporate Strategy, Gannett Co, Inc.

“We take inspiration from companies like Amazon, which spend a lot of time acquiring a customer and then spend an equal amount of time programmatically [i.e. applying data science] keeping the consumer engaged.” - Michael Rolnick, Head of Digital / Chief Digital Officer, The Wall Street Journal
--Source: “Digital Subscription Strategies Pay Off,” Online Publishers Association, reprinted with permission

The connection between subscriptions and the ability to sell higher-value advertising units is ramping up.

“When consumers login on the website we know who the they are...we can marry the behavior to demograph- ic and subscription data. This allows us to not only target the consumer as we pitch our internal products and content, but also allows advertisers to target better.”

“We are making investment in data analytics – this not only drives our consumer-focused efforts, but is some- thing we can also sell to advertisers. Our interactive tools allow us to know the consumer better – I think this is going to be hugely valuable to advertisers, this is where we will get a premium. Our total ad sales have grown 30% in the last few years even as print declined; we have not had an issue with trading print dollars for digital dimes.”
- Joshua Macht, EVP & Group Publisher, Harvard Business Review Group

“We have grown advertising business every single year since we’ve introduced subscription. Because of the deep relationship we have with the audience and the data we have on our subscribers we can guarantee that advertisers reach very specific scarce audiences. We consistently achieve a premium above market CPM.”

“We have more data on our consumer demographics that we can share with advertisers. We can show that this is a more valuable audience – more affluent, more digitally oriented. Moreover, we can also offer advertisers more information about what content consumers are interested in.”

World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The 2014 trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this article. To download the GDMT free executive summary, go to www.wnmn.org

TV, newspapers still get lion’s share of advertising revenue


Free TV continues to take the lion’s share of advertising expenditure in 2013, with 31 percent, followed by newspapers (17 percent), pay TV (10 percent), search (9 percent), and a three-way tie with magazine, radio and out-of-home, each with 7 percent, according to MAGNA Global.

North America in general, and the United States specifically, continue to garner one-third of the ad market, while Asia Pacific, and particularly Japan and China, draw another one-third. Twenty-eight percent belongs to the Europe, Middle East and Africa region (EMEA), which is anchored by Western Europe, at 21 percent of the world’s advertising spend. Meanwhile, Latin America drew 7 percent of the share in 2013.


World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this data set. To download the GDMT free executive summary, go to www.wnmn.org

Wednesday, October 1, 2014

New competitors is top barrier to grow for media companies


The top two issues that are standing in the way of growth for media companies are the entry of new competitors and the competition from free and low-cost alternatives to media companies’ products (such as offshoring). Those two tied for the top spot as the top barriers to growth, with 43 percent each, according to the Econsultancy study.

Meanwhile, innovation from traditional competitors and the move from offline to online content also have presented key challenges for media companies in 2014.

World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this data set. To download a free executive summary, go to www.wnmn.org

Lack of talent in emerging technologies is top internal barriers to growth for media companies


Lack of talent in emerging areas like technology and the Internet are becoming a significantly bigger problem in 2014, according to the Econsultancy media growth report. In 2013, 40 percent of the respondents said lack of talent in emerging areas was a problem, while 49 percent said so in 2014. This could be due to the evolving needs for new advertising, Internet and Big Data technologies in the past years, and the competition for talent in the marketplace in general.

Meanwhile, the lack of senior management talent is of less concern than in 2013, according to the study. In 2013, 34 percent of the respondents said lack of management talent was a problem, while in 2014 only 22 percent said so.

World Newsmedia Network has published Global Digital Media Trendbook each year since 2006. The trendbook contains 500 data sets and 230 pages of analysis about digital media usage and revenue patterns, including this data set. To download a free executive summary, go to www.wnmn.org