Archive for the ‘Online’ Category

Digital ad spending to pull ahead of print

Monday, March 8th, 2010

A 9.6 percent jump in digital advertising in 2010 means more money will be spent on digital ads than print for the first time this year, according to Outsell’s annual advertising and marketing study, says Forbes.

“Of the $368 billion marketers plan to spend this year, 32.5 percent will go toward digital; 30.3 percent to print,” Forbes says. “Digital spending includes e-mail, video advertising, display ads and search marketing. ‘It’s a watershed moment,’ says the study’s lead author, Outsell Vice President Chuck Richard.”

The study, which is due out today, also says that ad spending for magazines will rise this year by 1.9 percent and, quoting Richard again, “We should see far fewer closures and cutbacks among traditional media.”

European papers understand added-value

Monday, March 1st, 2010

Advertising Age takes a look at how European newspapers are charging for content online. “The consensus … is that a hybrid model is the best option for most businesses as publications seek to develop potentially lucrative relationships with paying customers without losing the volume that comes from offering free content.”

The top example: “Le Figaro’s approach, 14 months in the making, keeps the main newspaper content free but offers two other options at $10 and $20 a month. Premium users get access to in-depth information, special offers, twice-daily newsletters, roundtable discussions with journalists, the opportunity to see their own content on the home page of the site and a concierge service that can arrange everything from theater tickets to shirt cleaning.”

Premiums are key, the report says. “In 52 countries around the world, 71 percent told Nielsen that online content would have to be better than what is available free before they would pay for it, and 79 percent would not use a site that charges them if they can find the same information at no cost.”

Miami Herald puts tip jar back under the counter

Monday, February 22nd, 2010

The Miami Herald announced over the weekend it was ending a program begun in December in which it asked readers to donate to the newspaper.

“After evaluating two months of response, we’ve decided to end the program,” Elissa Vanaver, a company vice president and assistant to the publisher, said in the newspaper’s report. She would not say how much money the effort had raised.

Shortly after initiating the program, in which credit card forms linked at the bottom of articles on MiamiHerald.com and ElNuevoHerald.com enabled donations,  Executive Editor Anders Gyllenhaal said it had “elicited an encouraging steam of gifts, ranging from $2 to $55.”

Vanaver said when the program was launched in December and again this past weekend that The Herald has no plans to charge for content online. The newspaper does charge $2.99 for mobile applications that deliver sports content, its report said.

Newspaper pre-prints the next victim of online?

Thursday, February 18th, 2010

Two surveys suggest that newspapers’ pre-print inserts could go the way of classified advertising as online coupons grow in popularity, says Media Daily News.

Coupons.com –  which allows consumers to find coupons they want and print them out at home, download them to mobile devices, or transfer them to stores’ loyalty card accounts — says its digital coupon business grew 170 percent in 2009 compared to 2008, in terms of the volume of savings.

Meanwhile, a white paper released by the Newspaper Association of America and Kannon Consulting says newspaper inserts are in trouble, with big retailers like Sears demanding double-digit rate cuts and the CMO of J.C. Penney’s expressing concern that prepaid inserts don’t reach as many younger consumers. Media Daily News quotes from an analysis of the months-old proprietary white paper by the Poynter Institute’s Rick Edmonds.

The report, says Edmonds,  “warned that inserts, which account for half of retail advertising, are ‘under siege.’ The industry, notoriously pokey in providing return-on-investment metrics or in facilitating ease of placement, needs to tone up its act in a hurry, the report suggests.”

A Scarborough Research report last August said about 7 percent of U.S. households get their coupons from Web sites and about 8 percent get them via text messages or e-mail. In December, a report said spending on newspaper inserts was up 11.2 percent for the year.

In November, The News & Observer’s VP for Display Advertising cited a focus on selling pre-prints as one factor in the decision to discontinue publication of the company’s bi-monthly lifestyle magazine.

McClatchy’s Pruitt: online ad model working

Wednesday, February 10th, 2010

McClatchy CEO Gary Pruitt said Tuesday that deriving online revenue from advertising is working just fine and there’s no reason to move toward paywalls, according to Editor & Publisher’s account of the speech.

Pruitt gave the keynote address at the Borrell Associates Local Online Advertising Conference in New York City.

Pruitt is also OK with aggregators like Google and Yahoo, because they send plenty of traffic — 20 percent, he said — to McClatchy newspapers’ sites.

In fact, McClatchy credits its success in building online revenue to its alignments with several different Internet players including Yahoo, Cars.com and CareerBuilder,” E&P says. “Pruitt told the Borrell conference that online revenue in 2009 accounted for 16 percent of total revenue — up from 11 percent in 2008.”

“We are very comfortable with free content supported by advertising,” Pruitt said. “We don’t view it as fatally flawed. That said, if we could make ad revenue with paid products we would.”


More commercials likely for online TV

Wednesday, February 10th, 2010

A move by Nielsen, the television ratings giant, could result in online presentations of TV programs carrying just as many commercials as broadcast does, according to Advertising Age.

Nielsen’s new methodology to compile data that take into account viewing of commercials that run in a particular show, online or off, could be in place by September so it can be used for ad sales in February 2011.  “If this system were adopted en masse — and it’s not clear that it would be — online viewing might be crammed just as full of commercials as the more traditional TV-watching experience,” Ad Age says.

And, while online sites like Hulu and Disney’s ABC.com typically have few ads, “many TV executives say these methods don’t bring much, if any, profit — and therefore cannot continue.”

Newspapers get small share of political ads

Monday, February 8th, 2010

Newspapers can expect to see less than 8 percent of the $4.2 billion to be spent on political advertising in 2010, a new report from Borrell Associates says. That share comes out to $329 million.

Most will go to broadcast TV with 61 percent, or $2.6 billion, Editor & Publisher’s reading of the report says, followed by cable TV at a very distant second with a 9.1 percent share. Only 1 percent, or $45 million, of political dollars is expected to be spent on Internet ads — 73 percent more than in 2008.

Last year was relatively quiet on the political front, yet spending outpaced 2000 levels,” E&P says. “The recent Supreme Court ruling that allows corporations to now spend on politics caused Borrell analysts to bump up its forecast 10 percent.”

The Fitz & Jen blog charts the numbers for each medium.

Online newspaper readers shy from video ads

Friday, February 5th, 2010

Running a commercial before a video on your newspaper Web site is a good way to lose about 25 percent of your audience, a new study says.

TubeMogul, an online video research and analytics outfit, according to Media Daily News, “found that one-quarter of visitors who click on an online video link on a newspaper Web site will close or navigate away from the video window without watching the video if a pre-roll ad begins playing.”

The number is the same at magazines’ sites, but fewer visitors to broadcast media Web sites — about 11 percent — peel away, apparently because commercials are expected.

The general “quit rate” for online video links preceded by video advertising averaged around 17 percent.

TubeMogul observed online interactions with 1.8 million video streams over a two-day period, Media Daily says.

Paid-content system on its way

Wednesday, February 3rd, 2010

The Fayetteville (N.C.) Observer could be among the first newspapers to adopt a pay wall system called Press+ developed by entrepreneurs Steven Brill, L. Gordon Crovitz and their partners, according to The New York Times.

The Intelligencer Journal-Lancaster New Era of Lancaster, Pa., is “one of the first handful of news outlets to acknowledge in interviews that it intends, in the next few months, to start using the software system,” the NYT report says. The article mentions the Fayetteville paper and GlobalPost, a news site based in Boston, as “others interested.”

Initially the Pennsylvania paper “will charge only readers outside its immediate area and only for reading obituaries, with a little green Press+ logo next to each headline covered by the system,” the NYT says. “It will allow a reader to see a certain number of obituaries free before a box pops onto the screen demanding a flat fee to keep reading, but the paper has not yet decided what that number will be, or how much it will charge.”

“The first publishers planning to launch on the platform are currently integrating our software, in anticipation of offering paid access later this winter when our consumer-facing logo, Press+, will be presented to the public,” Brill and Crovitz say in a memo at paidcontent.org.

“The timing for these initiatives could not be better,” Brill and Crovitz continue. “Our industry is adapting, and it’s now clear that many sites, large and small, will be soon be charging their most engaged online readers for access. Studies show that readers will pay for distinctive brands and content. … In short, the question is no longer “if,” but “when” and “how.””

The Times points out that, “there are plenty of skeptics who say that charging (for online content) could be a short-lived experiment.”

Girl Scouts up to speed on marketing

Tuesday, February 2nd, 2010

Girl Scouts and their annual cookie sales have gone viral, says the Contra Costa Times.

Scouts are hitting the Internet, using Facebook, e-mail and texting in addition to staging rallies and setting up phone banks to run their cookie sales “as a serious business.” The Girl Scouts of Northern California has eight pre-written text messages that Scouts are encouraged to send to drum up sales of Somoas, Thin Mints, Tagalongs and five other cookie varieties.

There are also business card templates, door hangers, marketing plans and e-mail invites that girls can download through their council’s Web site.

While the girls are not allowed to sell cookies via e-mail or over the Internet, they are allowed to use the Internet to tell people they are selling — a tough distinction for the younger girls to grasp … ,” the newspaper says.

The Girl Scouts of Northern California council encompasses the Bay Area and coastal counties up to the Oregon border. It has 50,000 scouts, 30,680 of whom sold cookies in 2009.