Newsonomics of Paywalls
NJL: The newsonomics of paywalls all over the world; http://j.mp/zXLEWR #News http://eicker.at/News2011
NJL: The newsonomics of paywalls all over the world; http://j.mp/zXLEWR #News http://eicker.at/News2011
PEJ: Online advertising on news sites is still not targeted, neither by context nor behavior; http://eicker.at/NewsAdvertising
For nearly every news organisation, Twitter has become a regular part of the daily news outreach; http://eicker.at/MediaTwitter
Tablets and news are a perfect match: Google and Yahoo are going to add more reader apps; http://eicker.at/TabletNewsReader
ATD: “Memo to Flipboard, as well as Pulse, CNN’s Zite and AOL’s Editions: You might want to make some room in the already-crowded news and social reader space, because you’re about to get some bigfoot company. – Next Wednesday, according to sources close to the situation, Yahoo will finally officially unveil its offering, called Livestand. – And perhaps as early as next week or soon after, Google will also weigh in with its version of the genre – code-named Propeller – which also might be the product’s name. Another moniker under strong consideration: Currents. As I have previously reported, Google Propeller is an HTML5 reader for the Apple iPad and Android – essentially a souped-up version of similar apps such as Flipboard, AOL’s Editions, Zite (which was just bought by Time Warner’s CNN) and Pulse. … Yahoo and Google PR declined comment.”
RWW: “Livestand is Yahoo’s take on the personalized reading app for tablets, which ousted CEO Carol Bartz announced earlier this year. Sources tell AllThingsD that the app is expected to be released next week. It was originally slated to be launched on iOS and Android during the first half of 2011. … More than Flipboard and Zite, Livestand looks and feels like AOL’s Editions app for iPad. … It’s a natural extension of Yahoo’s efforts to become a company that specializes, among many other things, in digital content. … Also in the pipeline is a project from Google, code-named Propeller. Less is known about how that app will look and function, but it’s generally understood to be the search giant’s answer to Flipboard, which Google unsuccessfully tried to acquire. … Even with the cross-platform advantage and enormous development resources behind it, products of this nature from Google and Yahoo could simply fail to catch on. The iPad has been in existence for nearly two years and applications like Flipboard, Zite and Pulse have proven very popular among consumers. To compete, the big players will need to offer something truly unique to readers, publishers and advertisers alike.”
VB: “The tablet readers from two of the Internet’s largest technology companies has the potential to disrupt a landscape that has previously been dominated by small, nimble companies such as Flipboard and Pulse. Google previously tried to buy Flipboard, which was valued at more than $200 million in April, which is still chump change for the search giant.”
pC: “Companies like Flipboard, AOL, Zite, and Pulse have found a lot of interest in their apps, which organize Web content through custom filters or by hooking one’s social-media feeds into the app. But given how new tablets still are to the vast majority of the population, and how as a result usage habits have yet to really settle into any established pattern, there’s still a lot of opportunity for both big companies and small startups to attract users.”
The tablet revolution: 11% of U.S. adults own a tablet, 53% get news on their tablet every day; http://eicker.at/TabletsNews
PEJ: “The Tablet Revolution – How people use tablets and what it means for the future of news – Eighteen months after the introduction of the iPad, 11% of U.S. adults now own a tablet computer of some kind. About half (53%) get news on their tablet every day, and they read long articles as well as get headlines. But a majority says they would not be willing to pay for news content on these devices, according to the most detailed study to date of tablet users and how they interact with this new technology. … The survey also finds that three-in-ten tablet news users (defined for this study as the 77% of all tablet users who get news at least weekly) say they now spend more time getting news than they did before they had their tablet. Just 4% say they spend less time while two-thirds (65%) spend about the same amount of time. … Whether people will pay for content, though, still appears to be a challenge, even on the tablet. Just 14% of these tablet news users have paid directly for news content on their tablets. Another 23%, though, have a subscription to a print newspaper or magazine that they say includes digital access. … The study also finds that these early users turn to the internet as their main source for news much more frequently than the public overall, and they have a strong preference for reading and listening to news rather than watching it-again much more than the population overall. Fully 71% of tablet users prefer reading and listening versus 45% of all U.S. adults. … Among the other major findings: The revenue potential for news on the tablet may be limited. Brand is important on the tablet. Substitution is already occurring to large degrees. Incidental news reading is prevalent on the tablet. Those who rely mainly on apps for news, 21% of all tablet news users, represent a kind of power news consumer. Word of mouth is a key component of tablet news sharing. When it comes to ownership, many see the tablet computer as more of a household device to share than as a strictly personal one.”
RWW: “Interestingly enough, 40% of respondents said they used the Web browser to access to news, compared to 21% who exclusively used apps. Many bigger publishers have made developing native apps a priority, believing that they will be easier to monetize than browser-based content. Indeed, some publications have seen an increase in readership after launching HTML5 Web apps than native applications could deliver. – How the native vs. Web app debate will shake out for brands generally is yet to be determined. For the time being, those that can afford should probably invest in building both. According to Pew’s research, 31% of tablet owners use both native and Web apps to consume news.”
pC: “Either way, there is still the overall problem: only 14 percent of tablet users surveyed have paid for news on their tablets. Companies that combine app or online subscriptions with print subscriptions have been able to attract another 23 percent of tablet users to their products, but there is obviously a long way to go.”
VB: “When it comes specifically to news consumption, the results are a mixed bag for media outlets. Yes, tablet owners love consuming news and they gobble it up on the browser and news applications. But, much like the hordes of regular Internet users, tablet owners don’t want to pay for the news they consume on their iPads and Android tablets. A disappointing 14 percent of tablet owners surveyed have paid for news specifically for the tablet. Among those who haven’t already put money down, 21 percent said they would consider paying $5 a month for news while 10% said they would pay $10 a month for news on the tablet.“
Pew: How people learn about their local community. Topics, Newspapers, TV news, Internet; http://eicker.at/Localisation
Pew: “Contrary to much of the conventional understanding of how people learn about their communities, Americans turn to a wide range of platforms to get local news and information, and where they turn varies considerably depending on the subject matter and their age… Most Americans, including more tech-savvy adults under age 40, also use a blend of both new and traditional sources to get their information. Overall, the picture revealed by the data is that of a richer and more nuanced ecosystem of community news and information than researchers have previously identified.”
Pew: “The local news and information environment is changing in ways that most people believe makes it easier for them to get the specific information they want about their communities. More than half of Americans (55%) say it is easier today to get the local information they want than it was five years ago. … Top Popularity of Different Local Topics: Weather (89%), Breaking News (80%), Politics/Campaigns/Elections (67%), Crime, Arts/Cultural events, Local Business, Schools/Education, Community/Neighborhood events, Restaurants/Clubs/Bars, Traffic/Transportation, Taxes/Tax issues, Housing/Real estate, Government activities, Job openings, Social services, Zoning/Building/Development”
Pew: “The survey indicated that newspapers play a far more complex role in the civic life of communities than many Americans believe. … Younger adults, age 18-29, were especially unconcerned. Fully 75% say their ability to get local information would not be affected in a major way by the absence of their local paper. … [W]hen asked about specific local topics and which sources they rely on for that information, it turns out that many adults are quite reliant on newspapers and their websites.”
Pew: “Local TV (which for the purposes of this survey includes both televised broadcasts and local television websites) is the most popular source for the two topics that almost everyone is interested in – weather and breaking news.”
Pew: “The internet has already surpassed newspapers as a source Americans turn to for national and international news. The findings from this survey now show its emerging role as a source for local news and information as well. … Among the 79% of Americans who are online, the internet is an even more significant source for local news and information. Looking just at this group, the internet is the first or second most important source for 15 of the 16 local topics examined.”
Pew: “Two other factors seem to drive people to the internet when it comes to getting information about local subjects: mobile connections via smartphones or tablet computers and participation in the digital environment by sharing or creating local material themselves.”
Pew: “In addition to the three biggest media platforms – newspapers, television and the internet – the local news and information ecosystem involves a complex mix of other sources as well. And for several local topics, citizen-based systems such as word of mouth (which does not include online social networking), print newsletters and bulletins, and the local government itself make appearances as sources that some residents rely upon.”
Facebook redesigns its news feed for more relevance: resistance is futile; http://eicker.at/FacebookNewsFeedRelevance
Facebook: “Starting today, it will be easier to keep up with the people in your life no matter how frequently or infrequently you’re on Facebook. … Now, News Feed will act more like your own personal newspaper. You won’t have to worry about missing important stuff. All your news will be in a single stream with the most interesting stories featured at the top. If you haven’t visited Facebook for a while, the first things you’ll see are top photos and statuses posted while you’ve been away. They’re marked with an easy-to-spot blue corner. … Ticker shows you the same stuff you were already seeing on Facebook, but it brings your conversations to life by displaying updates instantaneously.”
Guardian: “‘Lame,’ snarks Brandi Genest Weeks on the Facebook blog. ‘Quite frankly I don’t want Facebook deciding who is most important in my life. I want my news feed to just go chronologically and if I want to hide posts from someone, I will. Stop changing. You’re becoming MySpace and I left there for a reason.’ – Ouch. And 845 people ‘Liked’ Brandi’s comment. Almost 500 disgrunted Facebook users concurred with Fiona Robinson, who blasted: “NOOOO! I STILL want ‘most recent’ at the top like it used to be, so we have the OPTION of seeing what has been posted most recently instead of what Facebook deems a ‘top story’. This is total garbage. … Once the ticker is populated with my friends’ Spotify tunes, Vevo videos or Wall Street Journal stories, then I’m interested. How about you?”
RWW: “Whenever Facebook launches a major re-design, there is a user outcry. Partly that’s because Facebook is known for its clumsy and confusing design, partly it’s because people are resistant to change. This time round though, the main issue is that Facebook is trying to be something it is not: a newspaper. … Don’t get me wrong, I applaud many of the changes that Facebook has recently made and is about to make. … Lists for friends, media sharing, filtering information that you see on your homepage through the Subscribe button. All of those are features that enhance Facebook’s core purpose: to be asocial network. And just as importantly, all of those features are directly controlled by the user. Not by Facebook’s software.”
GigaOM: “The repeated use of the term ‘newspaper’ makes it obvious that Facebook wants this new feature to be about more than just seeing updates from your friend’s birthday party – and it could become especially interesting when combined with another new Facebook feature: the launch of the ‘Subscribe’ service, which allows users to follow and get updates from people or sources they are not friends with, in much the same way that Twitter does. Facebook has been promoting that feature as a way to stay connected to what celebrities and journalists are doing, and it seems likely that many of those items could wind up on the top of your ‘personal newspaper‘ thanks to the news feed changes.”
GigaOM: “The new updates show that Facebook is still in the midst of the ‘launching season’ CEO Mark Zuckerberg first discussed in June, when it announced a new video chat feature with Skype. With the company’s f8 developer conference coming up this Thursday, something tells me that Facebook still has a few more big announcements up its sleeve.”
AF: “Lest any of us mistake the redesigned news feed and official ticker launch as Facebook giving away the goods before the f8 developers conference this week, Schact said that the company has plenty of other things to announce at the annual event on Thursday. – Of course, users of Facebook will likely grumble about the changed formatting and then decide they like this layout when the next one comes through – that happens every time the site revamps its layouts.”
2D codes, like barcodes or QR codes, are adopted fast: 14M Americans scanned codes in June 2011; http://eicker.at/2Dcodes
Wikipedia: “A barcode is an optical machine-readable representation of data, which shows data about the object to which it attaches. Originally, barcodes represented data by varying the widths and spacings of parallel lines, and may be referred to as linear or 1 dimensional (1D). Later they evolved into rectangles, dots, hexagons and other geometric patterns in 2 dimensions (2D). Although 2D systems use a variety of symbols, they are generally referred to as barcodes as well. Barcodes originally were scanned by special optical scanners called barcode readers, scanners and interpretive software are available on devices including desktop printers and smartphones.”
Wikipedia: “A QR code (abbreviated from Quick Response code) is a specific matrix barcode (or two-dimensional code) that is readable by dedicated QR readers, smartphones, and, to a less common extent, computers with webcams. The code consists of black modules arranged in a square pattern on a white background. The information encoded may be text, URL, or other data. Common in Japan, where it was created by Toyota subsidiary Denso Wave in 1994, the QR code is one of the most popular types of two-dimensional barcodes. The QR code was designed to allow its contents to be decoded at high speed.”
ComScore: “…found that in June 2011, 14 million mobile users in the U.S., representing 6.2 percent of the total mobile audience, scanned a QR or bar code on their mobile device. The study found that a mobile user that scanned a QR or bar code during the month was more likely to be male (60.5 percent of code scanning audience), skew toward ages 18-34 (53.4 percent) and have a household income of $100k or above (36.1 percent). … ‘QR codes demonstrate just one of the ways in which mobile marketing can effectively be integrated into existing media and marketing campaigns to help reach desired consumer segments,’ said Mark Donovan, comScore senior vice president of mobile. ‘For marketers, understanding which consumer segments scan QR codes, the source and location of these scans, and the resulting information delivered, is crucial in developing and deploying campaigns that successfully utilize QR codes to further brand engagement.’”
VB: “What this means for marketers and other decision-makers today is that QR codes, while rapidly evolving and gaining in adoption, are still far from being a mainstream technology. As a tool for reaching a diverse audience for a range of goods and services, QR codes have not yet arrived. Nevertheless, their popularity is growing rapidly – one report from QR company Jumpscan estimates a 1200% increase in QR code scanning during the last six months of 2010. … Around 58 percent of scans occurred while users were at home, with an additional 40 percent of users saying they scanned codes while in retail stores. As previously mentioned, traditional magazines and newspapers led the pack of QR code sources, coming in at 49.4 percent of user responses. Around 35 percent of respondents said they scanned codes on product packaging.”
RWW: “[I]t is still very early in the adoption of technologies capable of reading QR codes. This June, smartphone adoption in the U.S. was up 8% over the preceding three months, but there are still 155 million American mobile phone users who don’t have smartphones at all. The number of people unable to scan QR codes is more than 10 times the number of QR code users in comScore’s data. It’s still very early to draw conclusions about how this technology will impact the Web and its users.”
SPR: “I’m not saying don’t use QR Codes. There are a variety of applications where an element of utility, instant gratification or discovery makes perfect sense and a QR Code can be the best path to that goal – assuming your audience falls into the smart phone user/scanner profile. Don’t forget to track and analyze how the codes are being used.”
AdAge: “The spread of 2-D barcodes and icons through magazines hasn’t been matched by independent data on whether readers actually use them – until now. – Four percent of readers who noted ads with 2-D barcodes in the first half of this year actually took out their phones and snapped a picture at least once, new research from GfK MRI Starch Advertising Research has revealed. … Here are the best-performing magazine ads with 2-D barcodes in the first half of this year.”
HAD: “How to put your logo in a QR code – I’ll fully admit I geeked out a little, but in the process I figured out some of the theory behind embedding logos in QR codes. … For this ‘how-to,’ I’m going to walk through the process of modifying a Version 6 QR code.”
Beta620, a new home for experimental online publishing projects from NYT developers and readers; http://eicker.at/NYTbeta620
NYT: “At The New York Times, our software engineers, journalists, product managers and designers are constantly striving to create new and innovative ways to present news and information and interact with our readers. Yet it’s often difficult to try out new inventions on the world’s largest newspaper Web site. That’s why we created beta620, a new home for experimental projects from Times developers — and a place for anyone to suggest and collaborate on new ideas and new products.”
AdAge: “The New York Times has introduced its long-delayed Beta620, a public beta testing site where web surfers can experiment with new products that could eventually take root on NYTimes.com. … ‘It’s a place that gives a permanent home to the tradition of innovation,’ said Denise Warren, senior VP and chief advertising officer at the New York Times Media Group as well as general manager at NYTimes.com. ‘And it invites our community in to help us formulate an opinion about the innovation and the new products.‘ … The Times’ public beta site has come along just a few weeks after Google said it would wind down its own Google Labs page, which showcases a very wide range of ideas, in an effort to prioritize core products and put ‘more wood behind fewer arrows.’ … The Times believes its public beta site is perhaps different because the projects being tried there bear on its core digital product, The New York Times Online.”
Nieman: “‘It’s all about spurring innovation – coming up with ideas that no one has thought of before, and having a place for them,’ says Marc Frons, the Times’ CTO for digital operations. And not just innovation, but ‘continuous innovation.’ The hope is that, in highlighting experiments as they evolve – and in providing a shared space for shaping their evolution – beta620 will be a place where developers, designers, readers, journalists, and pretty much anyone with an interest in the Times can engage in an ongoing conversation about its future. And about, specifically, the tools that will shape that future. … With beta620, the Times is taking the lessons of end-user innovation and applying them to the process of development, rather than simply the products of it. It’s trying to make experimentation something that’s open and interactive – rather than, Frons says, ‘something that’s cordoned off in the ivory tower.’”
RWW: “The Times has recognized the importance of open data for several years now, and the launch of their API in 2008 was an important step for the struggling news industry, which must now rely on the rest of the Web to make the most of its wealth of data. The Times has put considerable effort into properly categorizing its content for the open Web, and now it has begun to open its software development to the public, too. Some Web citizens have even taken to redesigning NY Times Web products without being asked. – As of now, only NYT developers can display projects on beta620, but the site has set the tone for a public forum on the future of the Times’ technology, so that could certainly change.”
GigaOM: “Can a newspaper think like a startup? New York University journalism professor Jay Rosen said on Twitter that the launch of beta620 is a turning point for the newspaper company because it means the media giant now has an ‘openly experimental newsroom.’ In an inaugural post on the new site, meanwhile, NYT staffer Joe Fiore said the company hopes it will become a place where Times developers ‘interact with readers to discuss projects, and incorporate community suggestions into their work.’ … But can a company whose financial status is still less than stellar really devote much time or resources to something like beta620? The New York Times may be a digital leader, but the reality is that the vast majority of its revenue comes from the printed product it has been manufacturing for a century and a half, because that contains the advertising that is its bread and butter – and even though many see the paywall as a success, its contribution to the bottom line remains relatively minuscule. Will the Skimmer or the NYT’s take on instant search make a difference? That seems unlikely.”
pC: “Right now, the projects on Beta620 are submitted by employees only, though anyone can comment on them or provide suggestions for improvement. Eventually, the NYT will open the site up to allow outside individuals and developers to submit their own proposals. At the moment, the best outsiders can do is send along recommendations for what the NYT R&D technology staff should be working on.”
PEJ, Who Advertises on News Sites and How Much Those Ads are Targeted: “A new study of advertising in news by the Pew Research Center’s Project for Excellence in Journalism finds that, currently, even the top news websites in the country have had little success getting advertisers from traditional platforms to move online. The digital advertising they do get appears to be standard ads that are available across many websites. And with only a handful of exceptions, the ads on news sites tend not to be targeted based on the interests of users, the strategy that many experts consider key to the future of digital revenue. – Of the 22 news operations studied for this report, only three showed significant levels of targeting. A follow-up evaluation six months later found that two more sites had shown some movement in this direction, but only some, from virtually no targeting to a limited amount on inside pages. By contrast, highly targeted advertising is already a key component of the business model of operations such as Google and Facebook.”
PEJ, Who is Placing Ads? – “Who is buying ads on news sites? The answer reveals part of the trouble the news industry is having findings its way in the new marketplace. Across these 22 news sites, the biggest single advertiser is the news organization itself or its parent. Ads promoting the organization’s own products, known as ‘in-house ads’ in industry terms, accounted for 21% of the online ads studied – more than any category. … The magazine websites studied here (time.com, newsweek.com, economist.com and theatlantic.com) ran the largest percentage of in-house ads, fully 50% overall, from economist.com at 40.1% on the low end to time.com at 56% at the high end. In the print version of these magazines, by contrast, 10% of the ads were promoting the magazine or its company (Time magazine 11%, The Economist 13%, Newsweek 4%, and The Atlantic’s print edition contained no self-promoting ads). – Newspapers contained the second-highest level of self-referencing advertising, 21% of the Web-based ads versus 9% of their print ads. … For these print-related outlets, though, the heavy reliance on self-promoted ads could reflect two different factors. First, the newspaper industry still relies on its print product for the vast majority of its ad revenues. At the end of 2010 (the latest data available) fully 88% of overall newspaper revenue came from the print product versus just 12% from the Web. … Another phenomenon could be the inability of the industry to draw advertisers-and thereby ad revenue-to their online space.”
PEJ, The Financial Industry: “The second biggest category of advertising online was one that played a fairly small role for news in legacy platforms, the financial industry. Ads for financial products or services accounted for 18% of all Web ads captured, more than triple that of the next biggest category, toiletries and cosmetics (5%). And on more than half of the sites, 12 out of 22, financial ads ranked first-above self-promotion. … These numbers stand in contrast with the small role financial advertising plays in most of the legacy platforms studied. Only magazines contained more financial industry advertising in their original platform than online.”
PEJ, Targeting: “The customization or targeting of ads based on audience data is one of the newer ways to serve advertisers interests-helping those selling goods to reach consumers perceived to be the most likely to be interested in and thus to act on their ads. In targeted advertising, in other words, the ads one person gets will differ from what another person receives, depending on their online purchase history, location and/or personal habits, even if they click on the same website at essentially the same time. … Overall, only a handful of sites exhibited high levels of targeting. A few more had a moderate level of targeting. Most showed no signs of targeting at all. … Overall, just three of the 22 sites exhibited high levels of targeting, defined here as at least 45% of the ads were different from one user to the next. … One question that emerges is whether targeting has more or less natural appeal on some websites than others. In other words, do national sites with their larger and more diverse audience pools lend themselves more naturally than smaller sites to the benefits of ad targeting? … Finally, on a few sites, there was evidence of another method of targeting-not according to users but according to news story. On a number of occasions, there was a close relationship between the content of the story and the ads displayed.”
PEJ, Use of Discount Sites/Coupons: “About half of the sites studied, 16 of the 22, carried some discount/coupon advertising. But on only five did discount ads make up more than 10% of all the ads studied. For the most part, sites that created their own discount programs tended to rely on these ads more. … Among nationally oriented sites, Yahoo News carried the greatest percentage of discount/coupon advertising, 15% of the ads studied. The majority of these were from the national services Groupon and LivingSocial. – The other two sites with the highest use of discount advertising, the Toledo Blade and Los Angeles Times, have created their own daily deal operations to compete with the national companies. … These were the only two sites in our sample that had tried their own daily deal style business, but they are certainly not alone. Various papers now have their own Groupon-like services…”
PEJ, Format: “That leaves banner ads, classifieds, video and rich media as the four main kinds of ads news sites can offer advertisers. – Banner ads, the oldest form of advertising on the internet, make up the second largest percentage of ads on the internet (24% of total online advertising revenue). Going forward, most market analysts expect banner ads will represent a smaller portion of online advertising than search, but the category is still expected to grow. For instance, eMarketer predicts that banner ads will increase from $7.6 billion in 2011 to $11.7 by 2015, a bright spot for the news online. … Across these 22 news sites, that same tendency toward banner ads emerged; static banner ads made up nearly half (46%) of all the ads on news websites. Some differences in the style of ads used did emerge-mostly according to the legacy media genre, though individual sites did at times stand apart from their media brethren. … The Washington Post, on the other hand, relied on banner ads for just 18% of the ads studied. Instead, the site used sponsored links far more than others, 66%. Two other national papers, USA Today and the Los Angeles Times, also used sponsored links more than static banner ads.”