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Moderator Mike Blinder President, Blinder Group

Moderator Mike Blinder President, Blinder Group. 2.2 million dollars. 4.6 million dollars. 3.7 million dollars. 10.5 million dollars. In over 1300 sales calls. -> Training traditonal reps to “demystify” Web marketing “Dee Geeking” the medium

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Moderator Mike Blinder President, Blinder Group

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  1. ModeratorMike BlinderPresident, Blinder Group

  2. 2.2 million dollars 4.6 million dollars 3.7 million dollars 10.5 million dollars In over 1300 sales calls

  3. -> Training traditonal reps to “demystify” Web marketing • “Dee Geeking” the medium • Focusing the reps on the “eye balls” not the technology • So they can fold it into their daily sales routine

  4. Tacoma (WA) News TribuneCirc: 144,000 Projected to generate $1,000,000 new Online revenue Palm Beach (FL) PostCirc: 155,000

  5. Projected to generate $1,000,000 new Online revenue Grand Rapids/ Kalamazoo

  6. ModeratorMike BlinderPresident, Blinder Group

  7. Gary Meo Senior Vice President, Print & Digital Media Services Scarborough Research Does Integrated Selling Really Work? Do Integrate Selling Metrics Really Work? Editor & Publisher and Mediaweek 19th Annual Interactive Media Conference & Trade Show May 14-15, 2008 The Rio Las Vegas, NV

  8. We must change the way we think about, define and quantify our audience.

  9. Integrated Newspaper Audience A new print and online newspaper audience metric

  10. Agenda • Brief Scarborough overview • Why audience? • Integrated Newspaper Audience (INA) defined • Audience-FAX initiative • The evolution of INA • Summary/implications for newspapers

  11. Introduction to Scarborough Research • Comprehensive, syndicated annual survey of 81 U.S. markets • Annual sample of 220,000+ Adults (18+) Average local market samples -- 2,000 and 13,000 • Measures demographics, shopping/retail behavior, product consumption, entertainment/leisure, media usage • Newspaper audience ratings service in the U.S. for 34 years • Partnership between The Nielsen Company and Arbitron, Inc. • Accredited by the Media Rating Council (MRC)

  12. From Circulation to Readership to Audience • Audit Bureau of Circulations (ABC) established in 1914 • For 94 years, circulation has been the key metric used by advertisers to evaluate newspapers

  13. Why talk about Audience instead of Circulation? More accurate measure of newspaper reach People reached, not papers delivered Allows for the qualitative evaluation of the target audience Demographic, psychographic, consumer behavior, lifestyle, media usage Comparable to the way other media are evaluated TV and radio are bought and sold based on their audiences (not on the number of TVs and radios out there) Major emphasis of the newspaper industry to shift the focus to audience

  14. Newspaper Ad Revenue Down 7.9%in 2007 +18.8% • Revenue from ads in printed newspapers dropped 9.4% for the year, the biggest drop in any year since 1950. • Internet ad revenue on newspaper sites rose 18.8%. • Online ads accounted for just 7.5 percent of all newspaper ad revenue in 2007. -9.4% Source: Newspaper Association of America

  15. Where is the Growth?2008 Forecasts (% Change Over 2007 Estimates) Source: Robert Coen Presentation on Advertising Expenditures, December, 2007 Universal/McCann

  16. Local Online Advertising Growth • Borrell Associates: “Local online advertising," defined as search, ‘local banners,’ and video (classifieds are also in there), would reach $12.6 billion in 2008.” • Jupiter Research: "Local advertising will grow at a CAGR of 13% percent from 2007 to 2012, faster than will online advertising as a whole. Display and search advertising are leading the way, with CAGRs of 18% and 16%, respectively, during the next five years. Meanwhile, online local classified advertising, which is a relatively much larger and more mature market, will grow at a CAGR of 10 percent.” • Veronis Shuler Stevenson: “Local online advertising was worth $8.4 billion in 2007 and would be worth $19.2 billion in 2011.”

  17. Why Integrated Newspaper Audience (INA)? • Media companies – including newspapers – recognize that growth will come from their digital businesses • Internet advertising revenue at U.S. newspapers is growing at double-digit rates while print revenue is declining • Need for a new metric that demonstrates the value of the newspaper Web site audience (quantitatively and qualitatively) • Get the marketing community to start thinking about newspaper audiences beyond the daily printed paper

  18. Integrated Newspaper Audience Defined Five-day weekday cume OR Average Sunday OR Visited Web site past 7 days Past week print readership

  19. Integrated Newspaper Audience of Boston Globe Boston DMA Base = Boston DMA (4,788,972) Net unduplicated reach 5 Daily/1 Sunday Net Past 7-day audience Source: Scarborough Research, R2 2007 Boston

  20. Scarborough-ABC-NAA Audience-FAX Initiative • New initiative that launched in November 2007 • Integrates newspaper readership and online audience information into ABC circulation reports • Circulation statements will show: Print readership Online readership Net Combined Audience Web Site Usage • Provides advertisers and agencies with a more complete picture of a newspaper’s full presence and total market coverage

  21. Publisher’s Statement Prototype Paragraph 1 data remains unchanged.

  22. Publisher’s Statement Prototype Additions to bottom of page one.

  23. The Future for Integrated Newspaper Audience • Newspaper companies must grow audience beyond the daily printed paper and Web site • Development of niche printed products, specialty publications, targeted Web sites, direct mail and events • Use product mix of portfolio to develop advertising solutions that target specific audiences (boomers, young adults, Hispanics, working moms, job seekers) • Audience aggregation (footprint) measurement demonstrates the delivery of the product mix

  24. Print ClassifiedSections OnlineClassified Advertising LocalCommunityNewspaper Specialty Publication Newspaper Web Site Spanish Language Publication Audience Aggregation (Footprint) DAILY NEWSPAPER

  25. “All our companies are building an impressive portfolio comprised of many different products. In almost any market across this country, our products can frequently reach virtually any audience an advertiser desires. How vitally important it is that we get our message out about what a substantive footprint each of us has in our markets. How important it is to understand our customers' needs and to develop solutions across multiple platforms.” 2007-2008 NAA Chairwoman Susan Clark-Johnson, President, Newspaper Division of Gannett Co., Inc.

  26. INA Summary • The Internet is having a profound impact on traditional media audiences and advertising • Newspapers are growing audience with their Web sites • Integrated Newspaper Audience (INA) demonstrates the value of the combined print and Web site audience • INA is helping to offset the decline in Print audience • INA is evolving into Audience Aggregation (footprint)

  27. Overall Implications for Newspapers • Readership of the core printed paper is likely to continue to decline • The daily printed product may no longer be the core product for some advertisers • Develop targeted niche products and specialty Web sites • Position newspapers as part of a multi-media buy • Leverage local brand, local news, local relationships – because nobody can “do local” like the newspaper

  28. It is not necessary to change.  Survival is not mandatory.  ~W. Edwards Deming 

  29. Thank You Gary Meo 512-250-2206 gmeo@scarborough.com

  30. ModeratorMike BlinderPresident, Blinder Group

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