AP Media Editors

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AP Media Editors

• PAID CONTENT
• AND
• THE EMERGING NEW WORLD

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Just a thought to start.
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PAID CONTENT

• ID LIKE SOME OF YOUR MONEY!

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The Problem

• Is actually worse than that

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Cost is not really an issue
Van Westendorp Modeling One Market N 221
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Re-Inventing the value of news

• Now, THATs a challenge!

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But first, lets think about Audience.and where
that money is going to come from
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Compounding the Age Issue is Length of
Subscription
How long has your household subscribed to the
LOCAL DAILY? N 559
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Diverging Audiences
Last 7days
Last 30 days
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Audience Use
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Just how big is the there, there?
How many actual people visit your website? How
many people use your apps?
Print subscribers readers
Digital Audience
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The three flavors of audience will determine the
structure of local opportunity
Frequency and Loyalty will be the primary drivers
of opportunity.
Second Tier Prospects
Least Best Prospects
Top Tier Prospects
Incidental 3 or fewer visits in month Core 4
or more visits per month
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Case Study

Total Pageviews 610,000
User Sessions 230,000
Unique Visitors 98,000

Known Incidental (0 in prior 7 days) 24,760
4 Visitors 7,657
Total Core 32,417
Fly by 8,533
GRAND TOTAL 40,950

Local Pop (18) 155,918
Local Digital Audience 28,851
Extended Local Audience 9,232
Market Reach 18.5
Extended Local Reach 5.9

Max Circ 27,500

Print Readership 55,200
Extended Local Audience 9,200

Total Combined Audiences 64,400
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Computers now most common e-device, with mobile
coming on strong
Which of the following types of media and devices
do you own and use? Check all that apply. N
2,806
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Mobile revolution in active progress
On an average weekday (Monday-Friday) from which
locations do you usually access news and
information websites? (Check all that apply.) N
2,756
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Mobile
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That sound you hearis the rubber hitting the road
Cellphone Type
Standard cell phone without Internet access 18
Standard cell phone with Internet access 12
iPhone 34
Android-based smartphone such as Samsung, HTC, Motorola 26
Blackberry 2
Other "Smartphone" 6
Other 1
N (Single Market) 1,147
What type of cell phone do you personally own and
use?
Single Market N 1,245
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Lots of uses
Smartphone Uses  
Texting 78
Email 68
Sending photos/seeing photos 64
General Internet access 60
Mapping - Directions 60
Updating Facebook/Social Network 52
Music 46
Games (like Scrabble, Angry Birds, etc.) 45
Store locators 33
Watching general video (incl YouTube clips) 32
Researching product information/availability while shopping 30
Watching news video sports video 26
Coupons for discounts and rewards 25
Price comparisons while shopping 25
Reading or listening to books 22
Hobby apps 15
None of above 7
Other (please specify) 1
Single Market N 1,984
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LOTS of Technology Owned
Technology Owned
Wi-Fi on laptop or home computer 74
DVD Player 73
Laptop or Notebook portable computer 71
Digital camera 70
GPS locator for driving, hiking, camping, etc. 51
DirecTV, Dish Network (TV), ZoomTV, or other Satellite TV 42
Apple iPad or iPad mini 39
iPod or similar digital music device 38
Xbox, PlayStation, Wii, or other electronic game device 37
Internet-enabled TV 34
Sirius/XM Radio or other Satellite Radio 33
TiVo or other Digital Video Recorder 32
eReader such as Kindle from Amazon or Nook (not including Kindle Fire) 27
Kindle Fire eReader 19
Other Tablet (Not iPad or mini) 14
Apple TV 6
None of above 2
Single Sample Subset N 400
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Computer Uses
Computer Uses
Google Maps 72
Access YouTube.com 63
Use Pandora.com online music service 46
Access iTunes.com 43
Purchase books for reading on eReader/Tablet such as Kindle, iPad, etc., or smartphone like iPhone 40
Access online information like sports scores, headlines, stock quotes, etc. by cell phone or other mobile device 39
Instant messaging (IM) on computer 33
Subscribe to Netflix 32
Use computer video camera for live telephone calls (Skype or similar service) 31
Online Gaming (Angry Birds, Poker, etc.) 25
Purchase audio books for listening on computer, iPod, or other device 17
Use Hulu.com online video service 11
None of above 6
answered question 399
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News Content
General News Content Interests Response Percent
Top breaking stories 67
Local News 66
Local Weather 65
General state, regional, national, world news 37
Events 27
Local sports 22
Sale and shopping information 19
Business news 18
Traffic news 18
Professional sports (NFL, MLB, NBA, PGA, etc.) 16
College sports 15
Entertainment information (movies, TV, etc.) 12
Sample N 742
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Top Breaking News
Major National News Stories Last 12 Months Response Percent
Boston Marathon bombing 42
Bengahzi attacks in Libya 14
Syrian civil war 13
Superstorm Sandy 8
Edward Snowden revelations on NSA 5
Pope resignation/election 4
Egyptian events/Morsi Ouster 3
WikiLeaks/ Bradley Manning trial and revelations 1
Alex Rodriguez banned by Major League Baseball 1
San Francisco airliner crash 1
Quebec train derailing 1
None of the above 10
answered question 507
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Local TV is first source, then national news
sources.then Facebook?
22. How did you first hear about Q21? Response Percent
1. Local TV news station/Local TV station website 31
2. National Network TV News/Website 16
3. Facebook or other social network site 10
4. Cable TV News/Website 9
5. Radio/Radio station website 7
6. Word of mouth 4
7. Browser landing page on Google, IE/Bing, Yahoo, or other search engine 4
8. SMS/Mobile notice 4
9. Local newspaper/local newspaper website 3
10. Twitter 2
11. Email push alert 2
12. Other non-major media news website via computer 2
13. Text from friends 1
14. News search via iPad/tablet device 1
15. News search via smartphone 1
16. National newspaper/national newspaper website 0
Don't remember 3
Other (please specify) 1
answered question 454
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Getting more
And, after you heard about Q24, to which media did you first turn to find out more? Response Percent
Local TV news station/Local TV station website 51
Local newspaper/local newspaper website 23
Cable TV News/Website 4
News search via smartphone 4
National Network TV News/Website 3
Facebook or other social network site 3
Browser landing page on Google, IE/Bing, Yahoo, or other search engine 3
Word of mouth 2
Other non-major media news website via computer 1
Radio/Radio station website 1
Text to friends 1
Twitter 1
National newspaper/national newspaper website 1
News search via iPad/tablet device 1
Don't remember 4
Other (please specify) 1
answered question 391
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Paying for Content

• Most respondents report they do not pay for
  content those who do cited WSJ.com most often
• Respondents split evenly on ease/difficulty of
  replacing LocalSite.com news and information
• Other Internet and TV sites top list of possible
  alternative sources
• Respondents would look to other free sources
  before paying

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Site Visitors Value the Content from Print
edition of the Local News at LocalSite.com
40. In general, how valuable is it to you to be
able to access all of Local Local Print print
content online at LocalSite.com?
Sample Base All Respondents N 657
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But these Site Visitors report a higher value of
info at LocalSite.com
25. In general, how valuable do you think the
news and information posted at LocalSite.com is
to you?
Sample Base All Respondents N 657
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Four in ten think LocalSite.com content would be
easy to replace
26. If LocalSite.com stopped posting their news
and information to the Web, how easy do you think
it would be to find a replacement for that news
and information you are currently getting from
LocalSite.com?
Sample Base All Respondents N 657
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TV tops the switch to media, but print edition
is close second
27. What other media/sources do you think you
would use if news and information from
LocalSite.com were no longer available? Select
all that apply.
Sample Base All Respondents N 657
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TV also tops the Switch to Digital Media, but
other Internet follow
28. Which, if any, online sources would you be
most likely to turn to if LocalSite.com were no
longer available? Select all that apply.
Sample Base All Respondents N 657
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Resistance is high
33. If LocalSite.com began to charge a fee for
access to some or all of its content including
all its articles, blogs and multimedia, how would
this affect your LocalSite.com visiting behavior?
Sample Base All Respondents N 657
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Audience strategy
Key goals
Content verticals
Lifestyle Home Garden Food Dining Music Biking Bow
ling Crafts Pets
Shopping Deals Yard sales Swaps Craig
list Angie list Online mall




Local Nabe news Calendar Schools Crime Realty
Content Local news/blogs RSS/data/algo User
content Contact Social/mobile media Commerce Marke
tplaces Paid content Transactions
Family Schools Parenting Activities Senior
care H.S. sports Faith
And more
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Marketer strategy
Key goals
Product suite
Marketing CRM Scheduling Direct mail W/M
hosting SEO Social sites Rep mgmt Content Collater
al Pens signs
Ad sales Owned media Print Web Mobile Portals Thir
d party Local net SEM Social ads Legacy
Community Best practices News/blogs Social
media LinkedIn Marketplace PR blotter Swap
mart RFP exchange Forums
Analytics Planning Benchmarking Measuring ROI
analysis
Holistic Ad sales Marketing services Recurring Sel
l once, stick forever Efficient Self-service Pla
nning Creative Ordering Analytics




And more
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Key Data Summary

• Visitors at local newspapers sites have a
  preference for the Internet for news and are
  frequent users of both LocalSite.com and other
  news and information media
• Despite valuing LocalSite.com content, Visitors
  would seek other free access sites before signing
  up to pay
• Visitors favor a price for LocalSite.com
  monthly subscription access only 4.00 more than
  single day.
• Strong overall resistance to paid access
• Indicated price points are relatively low

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Implications

• Revenue modeling MUST be based on accurate
  numbers for local audience total audience.
• Opportunity modeling MUST be based on an correct
  understanding of audience behavior patterns.
• Price modeling must be done on a market-specific
  basis.
• Marketing modeling MUST have two major elements
• Addressing real audience objections to paid
• Describing meaningful and persuasive arguments as
  to why paying for access will bring profound and
  important user benefits.
• Both of these elements can only be correctly
  constructed based on direct feedback from
  audience members.

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Its about value.
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• You job, Media Editors, should you choose to
  accept it, is to lead your enterprises back to
  being relevant again.
• It wont be easy.
• But, it is possible.

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Thank you.

• Greg Harmon
• Borrell Associates
• 415 566 4348
• gharmon_at_borrellassociates.com