Posts Tagged ‘projections’

Older readers moving to social media

Friday, January 22nd, 2010

Newspapers’ reliance on older readers may be yet another false assumption. A study by IBM’s Media and Entertainment group says older readers are moving to social media for news and information, just like younger adults and teens.

Readership of newspapers online fell by 10 percent in 2009, according to IBM’s white paper, with the greatest loss in the 18-24 age range, says Dorian Benkoil at Poynter’s E-Media Tidbits blog.  Use of digital media increased overall, led by older consumers, who accounted for the largest percentage increases in the use of social media.

“The implications are important for those in the news business, and illustrate that newspapers may have less time than they were counting on to figure out how to succeed online,” Benkoil writes.

Karen Feldman, global lead for the media and entertainment group and one of the survey’s lead authors, told Benkoil that “The only digital media category where I saw erosion year over year was online newspapers,” from roughly 64 percent in 2008 who said they had viewed a newspaper online, to 54 percent in 2009.

The study found that “the only group in which there was significant growth” in online newspaper readership “was people older than 55.”

But, if the rest of the study’s findings depict the evolution of consumers’ use of online resources, even the oldest readers are temporary customers on their way to social media.

Projection: 2010 looks strong for online ads

Friday, January 22nd, 2010

Online ad spending will have “a relatively strong year” while spending on traditional media will remain flat, says the Magna unit of the Interpublic Group.

The advertising and marketing services provider’s projections call for a 12.2 percent jump in direct online ad spending, 4 percent growth in national online ads and a 3.7 percent increase in local online ad spending, according to MinOnline.

U.S. advertising revenues will be flat this year, down just 0.1 percent from 2009, but when spending for the Olympics and elections are counted in,  the years sees a 1.4 percent rise in ad spending overall, the report says.

However, Magna’s projections were made before Thursday’s decision by the U.S. Supreme Court that removes restrictions on political ad spending by corporations (see below). The decision is described widely as opening the floodgates for spending.

Magazine publishers optimistic

Tuesday, January 19th, 2010

Magazine publishers Time Inc., Condé Nast and Hearst Magazines expect advertising to be “up or at least flat through March,” Crain’s New York Business says.

The report also says “advertisers that had been focused primarily on the Web are coming back to print. Automakers in particular have rediscovered magazines as they plan new model launches this year.”

Publishers Information Bureau says ad pages across the industry fell 26 percent in 2009, and ad revenue slid 18 percent.

Large retailers do better in print, study finds

Tuesday, January 5th, 2010

Large retailers get more for their money with print ads than they do on TV or online, a study conducted in the UK found, according to the Times of London.

In fact, print ads are more than twice as effective as television for large clothing stores, big grocery retailers, fashion retailers and department stores, Microsoft Advertising concluded.

The anonymous study participants included 24 of the top 100 UK companies in terms of media spending.

“The study recommended retailers increased online and print advertising budgets by 10 percent and decreased television budgets by that amount,” the newspaper said.

Journalism seen winning out online

Monday, December 21st, 2009

The New York Times’ David Carr sees hope in the evolution of online news media.

“Blogs and new-media sites are cartoonishly written off as places where people write up the soup they just ate, but in the past year, many sites have added muscle and resources to the pursuit of news,” he wrote in Sunday’s paper. “Everyone knows about the reporting assets and influence of Politico, but you know things have changed when Gawker, the attitudinous Manhattan media blog, is hiring the kind of reporters who pick up the phone. …

“And just as new media have absorbed the enduring values of traditional media — developing sources, making phone calls [as noted earlier] — so more established players are adopting the tools of the insurgency. For instance, traditional media outlets are not waiting for the much-hyped Apple tablet to land next year before coming up with content that might soar on the device.”

“The long-in-the-tooth technologies still have plenty of life in them,” he says, citing successes in newspapers, TV and even among laid-off journalists.

‘Freemium’ Web’s hedge against reliance on ads

Friday, December 18th, 2009

To reduce their dependence on online advertising, Web site owners are attracting visitors with free content and then selling them premium services or subscriptions, a model known as “freemium,” Bloomberg says.

“LinkedIn introduced a product last month that helps recruiting agencies scour the networking site for job candidates,” Bloomberg says. “In June, ESPN merged its online magazine with its Insider service, which costs $6.95 a month. Skype has added features such as voice mail and calling plans that allow users to dial land-line phones for a monthly fee.”

“U.S. consumers will spend $8.55 billion on Web content such as games, music and dating in 2010, up 13 percent from this year, according to Forrester Research Inc. …

“Spending for online content in the U.S. will increase 9.3 percent a year on average through 2013, reaching $10.8 billion, according to Cambridge, Massachusetts-based Forrester. … Ad sales will rise 17 percent a year on average to $47.4 billion in four years, the company estimates.”

L.A. journalists doubt newspaper will survive

Wednesday, December 9th, 2009

More than half of the former L.A. Times journalists surveyed by, well, themselves, say they expect their former employer to fold “and nearly as many think newspapers in general have been mortally wounded.”

The survey was conducted by The Journalism Shop, a Web site run entirely by former Los Angeles Times staff members. It calls itself “an easy-to-navigate site for finding highly skilled newspaper veterans interested in taking on freelance assignments.”

“Even if newspapers survive, several expected a much lower quality product,” the survey report says. “’Most papers will evolve into local rags with a heavy emphasis on entertainment and other “news you can use” and time-wasting blogs to keep people entertained,’ wrote a former male staffer, whose job was cut.”

“The poll was conducted among former Los Angeles Times staffers who are members of a support message group,” the site says. “Seventy-five out of 124 members responded.” Nearly two thirds said they’d like to remain in the news business.

McClatchy CEO optimistic

Tuesday, December 8th, 2009

Update: Gary Pruitt “said that advertising revenue is ‘finally, finally, improving,’ that all 30 of [McClatchy's] newspapers are profitable and that McClatchy expects to maintain, if not grow, cash flow in 2010,” Editor & Publisher reported after McClatchy’s presentation to the UBS Global Media and Communications Conference Tuesday morning.

***

McClatchy’s Gary Pruitt, a day after reinstituting employee raises (see post below), said Tuesday that the company expects revenue trends to continue to improve going into the first quarter of 2010.

Pruitt’s projection is that fourth quarter revenue wll be less-bad than it has been — “down in the low- to mid-20s percent range compared to down 28.1 percent in the third quarter and 30.2 percent in the second quarter.” Also, because of mass layoffs — “our focus on permanently reducing our costs” –  “we expect operating cash flow in the fourth quarter to grow compared to last year. Similarly, in 2010 we expect to at least maintain if not grow operating cash flow,” Pruitt said in a news release.

McClatchy management was to review the company’s business and strategies in a presentation at the UBS 37th Annual Global Media & Communications Conference at the Grand Hyatt New York Tuesday morning. The presentation is to be posted on its Web site.

Ad recovery won’t include print media

Friday, December 4th, 2009

A new forecast by Fitch Ratings says national broadcast TV, and then cable networks and large-market broadcast TV will benefit from an advertising recovery next year, but others won’t even match  2009 levels, according to Advertising Age.

“Fitch expects print mediums, namely newspapers, yellow pages and consumer magazines, to be down again off very easy comparable periods due to permanent shifts in advertiser sentiment and excess ad inventory that will plague the industry for years to come,” the magazine says. Radio will probably be flat and outdoor advertising “should begin a ’slow recovery’ later in the year.”

Fitch also predicts that pay walls for online content will be instituted and then abandoned in 2010.

Social networks, phones deliver more news, ads

Tuesday, December 1st, 2009

The increased use of mobile phones and online social networking to deliver news and advertising “will shape the newspaper industry in the years to come,” speakers at the World Newspaper Congress and World Editors Forum in Hyderabad, India, said Monday.

Because of the increasing popularity of social networking, such as Facebook and Twitter, newspapers are appointing social media editors, the Times of India said.

Spending on mobile advertising is slated to reach $3.33 billion in the U.S. alone by 2013, Martha Stone, director of Shaping the Future of the Newspaper Project, USA, told the forum.