WAN-IFRA

Shaping the Future of the Newspaper

Date

Tue - 21.05.2013


July 2007

Online video advertising spending will reach $775 million this year in the United States, with an 89 percent annual growth rate. It will continue to grow with at least 39 percent annually in five years, achieving $4,300 million in 2011, according to eMarketer.

However, with these high growth rates over five years, video advertising will still be a niche. It represents 3.6 percent of the total ad spend this year, and still less than 10 percent in five years. "Looking over the numbers, it is not difficult to see how even a small shift in TV ad spending will be a driving force in overall Internet ad spending gains. Video will be behind the wheel," said David Hallerman, eMarketer Senior Analyst.

Author

Erina Lin

Date

2007-07-21 07:26

Eighty-one percent of newspaper Web site readers have also read the printed newspaper in the last seven days, according to a new released study by Newspaper National Network LP and Scarborough Research.

Those crossover users have a strong affinity with both versions of the newspaper, the study found. Crossover users visit the newspaper Web site in order to:

  • Access breaking news (96%),
  • Find articles seen previously (85%),
  • Find things to do or places to go (72%).

“The study shows that the core newspaper reader now accesses his or her local newspaper across multiple formats, print and web, and is deeply engaged with both,” stated Jason E. Klein, President and CEO of the Newspaper National Network.

The study also indicated that 55 percent of Web-only readers are female, while only only 48 percent of the crossover readers are female. Web-only users cited the main reasons they use newspaper websites, including:

  • Accessing local news (84%),
  • Entertainment information (74%),
  • Food or restaurant information (58%).

The Web did not harm overall newspaper consumption, the study found, since 87 percent of crossover users said their time spent reading the printed newspaper has increased or remained the same.

Author

Erina Lin

Date

2007-07-21 07:23

U.S. advertisers consider their own Web sites to be the most effective online marketing tool, according to the “Annual Ad Spending Study” by Outsell Inc. E-mail and search marketing came in second and third.

The study showed the over 1,000 U.S. advertisers surveyed spent about 12 percent of the total 2007 advertising budgets on their own Web sites. Outsell also found that the advertising budget for search are slated to grow by 40 percent on average this year, but “small, medium, and large companies exhibit major differences in where they allocate their budgets and what strategies they find most effective,” said Leigh Watson Healy, Outsell's chief analyst.

For example, 58 and 32 percent of small firms with less than 100 employees ranked it effective for Google's and Yahoo's keyword research, respectively. For medium-sized firms with 100 to 1,000 employees, 75 and about 50 percent rated Google and Yahoo! effective, respectively. However, 63 percent of large companies with more than 1,000 employees think Google and Yahoo are effective.

Outsell indicated the greatest opportunities for online publishers lies on the medium-sized advertisers, as they are estimated to spend 63 percent more on Web advertising this year, rather than merely 14 and 19 percent for small and large companies, respectively.

Author

Erina Lin

Date

2007-07-21 07:21

The Audit Bureau of Circulation has announced it will begin offering combined print and Web readership data of U.S. Newspapers.

Web and print numbers combined will be much more positive than print alone; however, an emerging question is whether advertisers will buy into it. Usually advertisers are guided by circulation when they buy print, and they pay much more for print readers than for Web readers. So, although the total readership is up, will advertisers look at the figure, or just concentrate on merely print and online numbers, like they always have?

The result of combining Web and print readership for the current six-month period will be released Nov. 5.

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Author

Erina Lin

Date

2007-07-20 08:55

A Dow Jones board member could face civil charges in a U.S. Securities and Exchange Commission investigation of insider trading linked to News Corp.'s bid for the company.

David Li is chairman and chief executive of the Bank of East Asia. The bank received a “Wells notice,” about Li. The notice indicates the U.S. Securities and Exchange Commission is considering the recommendation to take action against him.

The SEC and the attorney general of New York State have been looking into suspicious trading of Dow Jones stock and options prior to the company's announcement it had received a $60 per share buyout offer from Rupert Murdoch's News Corp. May 1.

In a statement from the bank, Li denies any wrong-doing, stating that “if the commission does commence proceedings against me, I will defend myself vigorously.”

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Author

Leah McBride Mensching

Date

2007-07-20 08:53

The new Web site IOL Classifieds, launched this week, will give access to the collective classified advertising sections of all the newspapers in South Africa's Independent News & Media Group.

These papers include The Star, The Cape Times, The Cape Argus and The Mercury, as well as IOL's own service. The collective circulation of the group's newspapers reaches over 2.2 million print readers and 2.2 million unique online users.

The Web site is intended to capitalise on the group's assets.

“By using our special high-tech search engine, users will be able to find what interests them and is available locally in just a few clicks,” said Lawrence Brown, or IOL, in a BizCommunity article. “At the same time, those wishing to actually place an ad will be able to do so via our unique online ad-booking and creation platform, complete with secure online payment gateway.”

Author

Leah McBride Mensching

Date

2007-07-20 08:52

The Nepalese government will soon recognise and issue press passes to journalists working for online news sites.

The agreement was struck at a meeting between journalists at the Federation of Nepali Journalists, the Online Media Association and Ministry of Information and Communication officials.

Press passes are currently only issued to journalists working with newspapers, radio and television. The association said the meeting's outcome was an important step, which shows the government recognises online journalists as part of the mainstream media.

Author

Leah McBride Mensching

Date

2007-07-20 08:50

Google has bested Yahoo! and Microsoft in revenue earned per share in the second quarter of 2007, according to the white paper “Market Share Trends within the Engines, and Their Impact on Brand Marketers,” from SearchIgnite and RBC Capital Markets.

This report revealed that Google has a 76 percent market share, regardless of only 60 percent of ad impressions. Because of Google's continual tweaking of quality score algorithms and minimum bid requirements, its revenue per search keeps on growing. On the other hand, Yahoo! had 34 percent of searches among its network even though it held 18.3 percent of media spend in the second quarter this year.

Search engine market share is defined as the percentage of media spend. It has stabilised this year, since Google, Yahoo! and Microsoft could not make significant gains.

This study was conducted from January 2006 through June 2007, tracking more than 14 billion impressions and 185 million clicks on Google, Yahoo! and MSN across over 500 marketers.

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Author

Erina Lin

Date

2007-07-20 08:48

As part of its ongoing selling process, Trinity Mirror agreed Thursday to sell 14 regional newspapers in Berkshire for 10 million pounds.

The company will sell Berkshire Regional Newspapers, including its Reading Chronicle series, to a unit of the Scottish group Dunfermline Press.

The announcement follows Trinity Mirror's sale earlier this month of 25 newspapers in the company's southeast division. Titles in Dorset, Kent, Surrey and Sussex were sold to Northcliffe Media, a division of Daily Mail & General Trust, for 64.15 million pounds.

The group Archant is interested in snatching up Trinity Mirror's remaining titles in London and the southeast of England, especially the Essex-based Yellow Advertiser series.

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Author

Leah McBride Mensching

Date

2007-07-20 08:46

Korea has reached 90 percent high-speed Internet saturation in April this year with 14.3 million subscribers, according to the Ministry of Information and Communication, and the penetration keeps on growing.

This figure defied the idea the broadband penetration rate had already reached its limit a couple of years ago. Yet, an official at the Information Ministry said, that's not the case.

"The number gained about 70,000 a month this year on average, or upside of 400,000 in the first half alone. The overall figure is on pace to approach 15 million late this year," he said.

In and around Seoul, almost every household is connected to broadband service, with the combined penetration rate even over 100 percent.

Experts said the seamless increase of high-speed Internet was due to the emergence of the country's number three broadband operator LG Powercomm and other small-sized companies.

Author

Erina Lin

Date

2007-07-20 08:45

Coverage critical of the Niger government's handling of lethal attacks by armed nomadic Tuareg rebels in the country's north led authorities to close the private bimonthly newspaper Aïr Info beginning last month, for a period of three months.

The newspaper's director was detained Thursday by police as he attempted to relaunch the paper this week under the new name Info Aïr.

Ibrahim Manzo Diallo was questioned by authorities for 45 minutes. The newspaper is accused by Niger's state-run High Council on Communications of publishing articles “undermining the morale of troops,” according to a fax sent to Aïr Info, Diallo told the Committee to Protect Journalists.

Aïr Info was the only newspaper in the central town of Agadez, about 460 miles northeast of Niger's capital, Niamey. Communications council member Mamane Mamadou told CPJ that state regulators have also issued formal warnings to Niamey private weeklies Le Démocrate, L'Evénement, Libération, and Opinion for “directly reproducing news taken from the rebels' Web sites, without any professional treatment.”

CPJ Executive Director Joel Simon said closing the newspaper is “a crude attempt at censoring information about the Tuareg rebels,” according to a statement. “Niger has a history of reacting to criticism by silencing the messenger.”

Author

Leah McBride Mensching

Date

2007-07-20 08:42

Google Inc. announced Tuesday it is expanding its Print Ads program that will allow online advertisers to buy print advertisements in 225 U.S. newspapers. The programme is in general release now.

Google launched a limited test for the Print Ads program in November 2006, allowing advertisers to make offers for newspaper advertising inventory online in the same way they buy Web, radio or TV ad space.

“We started with roughly 70 daily newspapers, and now we have 225. Currently the network embodies more than 50 percent of United States daily circulation,” said Spencer Spinnell, head of advertising strategy for Google Print Ads. “With this enhanced publisher network we now believe that we're ready and we've just released the user interface, the platform, to hundreds of thousands of U.S. advertisers who already have an AdWords account.”

Separately, Yahoo! also announced yesterday it has increased its ad sales partnership with U.S. newspaper publishers to 17 chains covering 400 newspapers. This is up from 176 publications when the Yahoo! program began in November.

Author

Erina Lin

Date

2007-07-19 07:19

During the first half of 2007, mergers and acquisitions in the media industry have set a new record, according to figures compiled by the investment banking Jordan Edmiston Group.

From January to June 2007, the transaction value of mergers and acquisitions in the media industry achieved $76 billion, growing 78 percent from $43 billion in the same period last year. The number of media companies involved in these deals also rose from 355 at the first half of 2006 to 399 this year.

Online marketing and media services remain the major participants in these deals, making up 42 percent of the overall value, or $32 billion in transactions, according to the figures.

Major online deals announced during this period included Microsoft's buyout of aQuantive for $5.7 billion, Google's acquisition of DoubleClick for $3.1 billion, and WPP's buyout of 24/7 Real Media for $649 million.

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Author

Erina Lin

Date

2007-07-19 07:17

As Gannett Co. reported higher second-quarter profits Wednesday, helped by a gain due to selling several newspapers, its earnings excluding those sales fell, as advertising for the entire industry is migrating to the Internet.

The largest newspaper publisher in the country saw net income increase to $365.7 million, or $1.56 per share for the three months ending in June. In the same period last year, net income was at $310.5 million, or $1.31 per share. Excluding $73.8 million in earnings from the sale of newspapers and discontinued operations, profit was in line with the McLean, Virginia-based company's forecast, at $1.24, versus $1.28 a year ago.

Revenues, however, fell 3.4 percent to $1.93 billion.

Gannett, which own USA Today, stated a slump in advertising revenues, which fell 5.3 percent in the quarter, was mostly to blame for the drop in revenues. Ad revenues plummeted 7.7 percent in the company's U.S. newspapers, and 2.5 percent in its UK papers.

The company's newspaper results are part of an across-the-board decline in newspaper advertising that has been accelerating in the past several months, as readers and advertising are increasingly turning to the Internet for news and entertainment.

Author

Leah McBride Mensching

Date

2007-07-19 07:14

As competition from the Internet and other media has transformed the market, the rate of decline in newspaper advertising revenue is accelerating. This decline, which is causing newspaper stocks to plummet, has spurred restructuring and consolidation, and has affected Dow Jones's talks with News Corp. and the Tribune Co. sale.

A slump in advertising revenue that began last summer is accelerating this year, as total print and online advertising revenue is down 4.8 percent to $10.6 billion in the first quarter, compared to a year ago, according to the Newspaper Association of America.

In the first quarter, revenue for every major ad category – classified, national and retail – was down, writes the Wall Street Journal's Emily Steel. Classifieds declined the most, as spending dropped 13.2 percent in that category. Yet, writes Steel, this downturn is “not so much a result of competition from the Web as of economic woes affecting certain categories of advertisers.” Additionally, real estate classifieds have dropped along with the property market, and employment and auto classifieds are also in a slump. Financial newspapers are also being hurt by lowered technology advertising.

Author

Leah McBride Mensching

Date

2007-07-19 07:11

After months of negotiations, the Dow Jones & Co. Inc. board has voted in favour of a $5 billion buyout offer from Rupert Murdoch's News Corp. The deal will have to be approved by the Bancroft family, which controls 64 percent of Dow Jones' voting shares.

The 16-member board was not unanimous in its decision, but a “strong majority” voted to approve the deal, according to a source familiar with the matter.

“(The board) has determined that it would be prepared to approve, and recommend to the Dow Jones stockholders, including the Bancroft Family stockholders, a merger agreement,” Dow Jones executives said in a statement.

The Bancroft family is evaluating the offer, the company has said, and will meet Monday, according to reports by The Wall Street Journal, the flaship newspaper Dow Jones publishes.

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Author

Leah McBride Mensching

Date

2007-07-19 07:09

Digital content-provider Jupitermedia Corp. announced Wednesday it has bought Mediabistro.com, a community and job search Web site for creative industry and media professionals, for $20 million in cash.

The deal includes a two year earn-out that could net an additional $3 million.

Mediabistro.com was founded in 1999 by Laurel Touby, and is based in New York City. Funding for the acquisition was secured by closing a $115 million senior credit facility arranged by KeyBanc Capital Markets, according to a Jupitermedia statement.

The Web site includes job postings for educational courses, events, forums, original content, a premium subscription service and job postings for all areas of media.

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Author

Leah McBride Mensching

Date

2007-07-19 07:07

The Fresno Bee has announced it will outsource some of its advertising production jobs to workers in India.

The California newspaper, owned by McClatchy Company, will send seven of its 31 ad production jobs to India, and those currently holding the positions in Fresno will be terminated if they can not be placed in other jobs, said Ken Hatfield, a spokesman for The Bee.

The deal to hire seven people in India is with Express KCS LLC of San Jose, Calif., which has production facilities in New Delhi. Express also handles some production for at least five other California newspapers. The Indian workers will take over the jobs in September.

The move is meant to “serve our advertising customers more effectively, efficiently and economically while focusing our core business: producing relevant and compelling news and advertising information in our newspaper and on our Web sites,” said Ray Steele, publisher and president of the newspaper, in a statement.

Hatfield said that because India's workday happens during nighttime hours in California, it could speed up some production processes.

McClatchy is the third largest newspaper publisher by circulation in the United States.

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Author

Leah McBride Mensching

Date

2007-07-19 07:06

Broadband penetration has a strong correlation with household income, according to the “Broadband Access and Service in the Home 2007” study by Leichtman Research Group.

53 percent of U.S. households subscribe to a broadband Internet service at home. So far this year, broadband accounts for about 72 percent of all Internet subscriptions at home, compared with 60 percent last year.

The report indicated that broadband penetration remains strongly tied with household income, as 68 percent of households with an annual income over $50,000 have broadband, and only 39 percent of households with annual income under $50,000 get broadband service.

The study also found a positive relationship between household income and Internet subscription. While 92 percent of households with annual incomes above $75,000 subscribe to a Internet service at home, only 45 percent of those with less than a $30,000 annual income do so.

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Author

Erina Lin

Date

2007-07-19 07:03

Due to dropping cash flow and revenue, the Tribune Co. will run advertisements on the front pages of most of its daily newspapers. The move to increase ad sales breaks the company's tradition of keeping ads off the front pages of its largest dailies.

The newspapers will soon offer a 1.5-inch strip along the bottom of their front pages to select advertisers, said Scott Smith, publisher of the Chicago Tribune. He did not say when the ad placements would begin.

The Los Angeles Times, the company's largest newspaper, announced over the weekend it would be one of the papers to launch front-page ads. The paper is still determining how much the ads will cost, as well as guidelines for the ads and when the paper will start selling them, said David Hiller, Times publisher.

Smith and Hiller told the Chicago Tribune that editors at the two papers strongly resisted front-page ads, but as the company is still trying to close its $8.2 billion deal with Chicago billionaire Sam Zell, the pressure to reverse declining circulation and revenues is stronger.

“There is real demand (for front-page ads) that will turn into real revenue,” Smith stated in the Tribune article. “But we have to do it with high-quality standards. That's important to both readers and advertisers.”

Author

Leah McBride Mensching

Date

2007-07-18 11:07

The Mail on Sunday sold an additional 600,000 copies, due to its promotional giveaway of Prince's new album, the newspaper's managing director announced today.

Sunday's sale of at least 2.8 million copies was the most successful promotion the paper has had in its 25-year history, Stephen Miron said.

As data is still being collected, newspaper executives do not yet know if the recent sales surge will beat the most copies it has ever sold: 2,844,000 when the newspaper released a multi-edition issue after Princess Diana's death in August 1997.

In June, the paper's average circulation was 2,276,107. Sunday's print run was increased from its usual 2.3 million to 3,050,000, of which 25,000 copies were placed in HMV music stores, the first in-store promotion of its kind.

The promotion is believed to have cost the paper nearly 1 million pounds. That includes paying Prince 250,000 pounds for the license of his new album, Planet Earth, as well as printing and marketing costs.

Because all extra copies sold at the full price of 1.40 pounds, and advertising revenues benefited from the increase circulation, Miron said the promotion was “at worst cost-neutral,” and extended the paper's reach and brand exposure.

Author

Leah McBride Mensching

Date

2007-07-18 11:05

Google Inc. is planning a new search service for mobile users that will help them find and buy mobile content, such as ringtones and games, the Wall Street Journal has reported.

While Google has had the services for mobile users to search the Web, the search engine would like to become a portal for finding and purchasing mobile media content.

The company has been working with mobile phone content providers for several months to index their products and make them available on the mobile search. However, the plan has been delayed due to a series of technical issues, and the launch date for the service is not yet clear, according to people familiar with the matter, the Wall Street Journal stated.

Author

Erina Lin

Date

2007-07-18 11:02

The board of the Audit Bureau of Circulations has approved on Tuesday development of the new measurement tool Audience-FAX, which will combine newspaper readership and online audience estimates into ABC circulation reports.

“Beginning this autumn, newspapers using the tool will be able to report in-market print, online and net combined readership as measured by Scarborough Research. Monthly Web site unique visitors also will be reported from sources such as Nielsen // NetRatings, comScore Inc. or server-based analytic tools,” according to an ABC statement.

Stephen Hills, president and general manager of the Washington Post stated in the release the tool “combines the most trusted names in audience measurement to allow advertisers and agencies to understand more easily the wide range of products that newspapers offer in print and online” and that it will showcase “the expanding range of product offerings coming from daily newspapers.”

The audited information will also be available in a new industry database that Scarborough will create and host, and will be available to ABC members.

Author

Leah McBride Mensching

Date

2007-07-18 11:01

Google Inc. is offering search engine services for small websites for a discounted price starting from $100 per year, according a the company statement made today.

The service is targeted at millions of small-scale websites which do not have a search engine or are satisfied with the current features, said Nitin Mangtani, Google's product manager.

Google provides a significant discount for its Custom Search Business Edition. It starts at $100 per year with a 5,000 Web page search limit, to $500 annually with up to 50,000 Web sites. Comparatively, pricing for Google Mini, a combination of hardware and software Google introduced a few years ago, is a charge of at least $1,995 annually, according to the statement.

Author

Erina Lin

Date

2007-07-18 10:59


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