From The Economist - full story here

Newspapers have escaped cataclysm by becoming leaner and more focused

Jun 10th 2010

“PRINT is going to live longer than people think,” asserts Mathias Döpfner, the boss of Axel Springer. Perhaps it will in central Europe. The publisher of Bild and Die Welt recently recorded the most profitable first quarter in its history. The profit margin on its German national newspapers is a startling 27%. The firm is expanding into Poland. If newspapers are in crisis, Mr Döpfner says, he likes crisis.

A year ago the mere survival of many newspapers seemed doubtful. It had become clear that the young, in particular, were getting much of their news online. Readers were flitting from story to story, rarely paying. Advertising too was moving online, but not to newspapers’ websites. Rather, it was being swallowed by search engines. The classified-ad market was ravaged by free listings websites such as Craigslist. A deep recession, received wisdom had it, would surely finish off newspapers, which have high fixed costs in the form of journalists and printing presses.

In some ways the pain proved even greater than analysts expected. The Newspaper Association of America reports that print and online advertising has fallen by 35% since the first quarter of 2008. Circulation has dropped alarmingly too. Yet almost all newspapers have survived, albeit with occasional help from the bankruptcy courts. American newspaper firms like McClatchy stayed mostly profitable even as revenues plunged (see chart). Some companies are now worth ten times as much as in the spring of 2009, although they remain far from pre-recession heights.

Steep cover-price rises have helped. But for the most part newspapers have cut their way out of crisis. In the past year McClatchy reduced payroll costs by 25%. Many publications closed bureaus and forced journalists to take unpaid leave. There have been clever adaptations, too. At Gannett, another American firm, 46 local titles now carry national and international news from USA Today, the firm’s national paper. A group of New Jersey newspapers jointly produces features and editorials. Bob Dickey, who runs Gannett’s community papers, says they have realised there is no need to work out what to say about the Gulf oil leak seven times.

Magazine advertising continues to be a vital ad medium, driving continuous business to companies with every ad they place. If you're going to buy magazine advertising, buy it the easy way. Some things to keep in mind when you're planning your next marketing campaign -

1. Magazine readership has grown over the past five years. (Source: MRI)
2. Average paid subscriptions reached nearly 300 million in 2009.
   (Source: MPA estimates based on ABC first and second half 2009 data)
3. 4 out of 5 adults read magazines. (Source: MRI)
4. Magazines deliver more ad impressions than TV or Web in half-hour period. (Source: McPheters & Company)
5. Magazine readership in the 18 to 34 segment is growing. (Source: MRI)
6. Since Facebook was founded, magazines gained more than one million young adult readers. (Source: MRI)
7. The average reader spends 43 minutes reading each issue. (Source: MRI)
8. Magazines are the No. 1 medium of engagement – across all dimensions measured. Simmons' Multi-Media Engagement Study find magazines continue to score significantly higher than TV or the Internet in ad receptivity and all of the other engagement dimensions, including "trustworthy" and "inspirational." (Source: Simmons Multi-Media Engagement Study)
9. Magazines and magazine ads garner the most attention: BIGresearch studies show that when consumers read magazines they are much less likely to engage with other media or to take part in non-media activities compared to the users of TV, radio or the Internet. (Source: BIGresearch Simultaneous Media Usage Study)
10. Magazines outperform other media in driving positive shifts in purchase consideration/intent. (Source: Dynamic Logic)

Interesting points relating to the IPad by Steve Smith of MIN Online in his column, Eye on Digital Media:

IPad Reality Check

Whether the tablet platform is in fact the game changer many publishers
want it to be, it is easy to let the glare of the iPad blind us
to some realities of the platform that are apparent to those of us who
have used the device extensively since day one.

1. The iPad will change your Web strategy. At a recent min Webinar
on magazines developing for e-books and tablets, I was surprised to see
that excitement for the iPad exposed the ongoing frustrations publishers
have with the Web. Low user engagement, brand dilution, poor monetization, and poor
design sense all seemed to characterize the experience of many magazines on the Web.
Condé Nast vp/editorial operations Rick Levine showed a chart comparing the monthly
time spent with Gentlemen's Quarterly in print, online, and in the iPhone app. For the
first three issues that GQ appeared on the iPhone, its users spent about 70 minutes per
issue, on par with the print GQ and about five times longer than time spent per unique
user at gq.com. If these new mobile screens take off, publishers will be rethinking and
perhaps scaling back the Web strategies they have been developing for years.

2. Not so fast. Apps now compete with the Web. One of the unanticipated consequences
of the tablet platform's larger screen is that full Web browsing is now much more viable
than it was on smart phones. The tablet format diminishes that rationale for an app and
so a publisher's branded magazine app will compete with its own Web site.
Entertainment Weekly has tried to recognize the divide by integrating a Web site
viewer with its good Must List app. USA Today engages the problem by re-engineering
its Web content so thoroughly into a better touch-driven experience in the app that
you don't bother hitting the brand on the Web.

3. The ads on the iPad suck. I am not sure why these haven't been raised yet. Most
of the early ad units in magazine apps rely almost entirely on the impact of the original
print ad or pull in a tv spot. There are very few consumer brand apps except for
a forgettable trifle from The Gap and a more ambitious athlete trainer from Nike. The
real opportunity for publishers with in-app advertising is to develop mini-apps for
clients that run within the media’s app and truly leverage the touch and multimedia
capabilities of the format.

4. Cost and standardization will be the choke points to adoption of tablet magazines.
Publishers appear to be digging in their heels over price and seem ready to
defy the loud consumer sentiment against high single-issue pricing. If "Tablet-ized"
magazines are going to keep "enhanced" pricing for "enhanced" iPad magazines, they
need to make a much better case for where they are adding the value.

Being on the iPad with some cool navigation and added videos or little spinning
twirly things does not earn a publisher multiples more than what a reader pays for a
subscription. Publishers need to start thinking about including tangible assets like
special subscriber-only utility apps or in-app games and puzzles. And speaking of
spinning twirly things...stop reinventing the wheel. It is irritating and ultimately
counterproductive to have readers learn a new interface for every digital magazine.
The bottom-line lesson that overarches all of the above is that publishers should not
mistake the Tablet app environment as a full break with the past. Users are bringing
certain expectations for pricing and usability that are informed by a decade of Web
experience. Magazine apps have to share a platform with the Web, and what your brand
does on the tablet platform will have to work in concert with print and Web strategies.
If you think that the iPad promises a simple "reset" of the digital relationship
between publishers and readers, then think harder.

Maybe it is just because of where I live (Connecticut) but this is a little bit hard for me to believe, primarily because so many local TV stations do such a poor job reporting the news, it is hard to imagine that consumers of news have an appetite for more. Full story here

Broadcast TV Stations Outpaced Newspapers in Interactive Sales in 2009

NEW YORK, April 20, 2010 -- Web sales growth at broadcast TV stations outpaced newspapers in 2009 as broadcasters gained ground against their principal in-market competitors and posted an 8.7 percent share of all local online advertising, according to a report released today by the Television Bureau of Advertising at a press breakfast at Gannett Broadcasting’s offices in New York. Total online ad revenue for stations hit $1.1 billion last year, a 10% increase over the previous year, and the report forecast that revenues would grow another 21 percent in 2010.

Jack Poor, VP – strategic planning at TVB, said, “In a year where the IAB reported flat internet revenues, the performance of local TV stations is quite stunning.”

“Benchmarking: TV Web Sites Defy Gravity” examines revenue sources, growth rates, site traffic and other interactive issues and offers benchmarking for stations in large, medium and small markets. The research was conducted by Borrell Associates, which tracks interactive advertising for more than 4,400 local websites in the U.S. and Canada through voluntary submission of data. This is the fifth year Borrell has conducted the benchmarking report for TVB. This year’s report focuses on data submitted by 573 TV stations.

Women Clip Most Coupons

Women Primarily Obtain Coupons
Coupons fit into the lives of male and female shoppers differently. They search for coupons in different media, redeem them in different channels, and use them to accomplish different shopping objectives. Across both gender groups, newspapers and direct mail/circulars hold the top spots for finding deals (62% and 58%, respectively). However, women are clearly more involved in clipping coupons, surpassing males in just about all coupon sources except mobile phones.

Men Use Tech for Planning
Interestingly, when it comes to technology and coupons, men start to become more involved in the shopping process with coupon, retailer, and brand websites coming in right behind newspapers as places where they actively seek out coupons. The increased interest in online coupons indicates that men who are seeking coupons online during their pre-planning and research stage of shopping are more open to marketing messaging if provided with the right amount of benefit.

In this case, the coupon would not serve as an awareness-raising vehicle or customer-acquisitions device but as a driver to CRM marketing programs, like frequent-buyer clubs and memberships.

Consumers Eye Coupon Convenience
Nearly three out of four shoppers (74%) report using coupons because they are convenient and useful, while 26% say coupons take too much effort to find and use. Older shoppers (50-plus years) use coupons often and are more likely to use them to buy familiar brands and products, yet a significantly higher amount (32%) report that coupons take too much effort to find and use.

Interestingly, shoppers are split when addressing the issue of whether coupons cause the brand decision or the brand decision drives the coupon search. Shoppers who report that coupons are “convenient and useful” are using them for items that they buy and re-stock often (e.g. paper products, cleaners, cereal).

For items that have a larger repurchase cycle (e.g., furniture, electronics, motorcycles), coupons may not be as useful to the shopper unless they receive them at precisely the right time when they are considering a repurchase or close to a repurchase point.

Full story here