Banners: 24% of Total Ads Revenue
Banners make up the 2nd largest percentage of ads online: 24% of total online ads revenue; http://eicker.at/NewsAdvertising
Tagged: Revenue Toggle Comment Threads | Keyboard Shortcuts
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Gerrit Eicker
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Gerrit Eicker
Newspaper Revenue: Still From Print
88% of overall newspaper revenue comes from the print product versus just 12% from the Web; http://eicker.at/NewsAdvertising
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Gerrit Eicker
Social Media: Rival for Advertising Revenues
Social media is an additional distributor of content, but also rival for advertising revenues; http://eicker.at/NewsMedia2012
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Gerrit Eicker
News Consumption: Online vs. Print
Online news consumption continues to grow, surpassed print newspapers in ad revenue and audience; http://eicker.at/NewsMedia2011
Gerrit Eicker
State of the News Media 2011
Pew: 8th annual report on health and status of American journalism; State of News Media 2011: http://eicker.at/NewsMedia2011
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Gerrit Eicker
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Plumber Stoke
Its true. This is what most printing companies were worried about a decade ago. How has this affected the development of new printing technology… esspecially for newpapers ?
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Gerrit Eicker
Well, there’s eInk, eReaders with different screen technologies, publication systems etc. pp. – Anyway, personally I do not believe in a recovery of “print”. At least not in developed countries. Print’s got a hype around the world, but not where electronic devices have taken over…
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Gerrit Eicker
Social Payday
McKinsey: Companies using the [Social] Web intensively gain market share, margins; http://eicker.at/Payday (via @netzoekonom)
Gerrit Eicker
IT Transparency and Business Value
Gartner: IT organisations face disruptive change in 2011 due to transparency, need to drive business value; http://eicker.at/1v
Gerrit Eicker
Google Editions: Ready to Launch?
WSJ: Google is in final stages of launching its eBook retailing venture, Google Editions; http://eicker.at/GoogleEditions
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Gerrit Eicker
WSJ: “In recent weeks, independent booksellers, which are expected to play a big role in Google Editions, began receiving contracts from their trade group. Several publishers said they were exchanging files with Google – a sign that it is close to launch, publishers say. … Google Editions hopes to upend the existing e-book market by offering an open, ‘read anywhere’ model that is different from many competitors. … Key details of Google’s e-book project remain unanswered. Foremost is what percentage of revenue Google will share with independent bookstores and other retailers. … Google says it is on a mission to reach all Internet users, not just those with tablets, through a program in which websites refer their users to Google Editions. … The strategy of not having its own e-reader device could actually give Google a competitive advantage, says Brian Murray, CEO of News Corp.’s HarperCollins Publishers Inc. … Google’s launch, which publishers cautioned has been delayed before and could be delayed again, comes at a pivotal moment in the digital books transformation.”
TC: “So it’s no surprise that Google is jumping into the fray with the long-awaited Google Editions service, set to launch by the end of the year in the U.S. and first quarter of 2011 internationally. But between Kindle, Barnes & Noble, Kobo, iBooks, and independent publishing services like Amazon’s DTP and the unfortunately-named Pubit, is there room for another player? Not that that’s ever stopped anyone from trying – but I think in this case it may be that Google brings something new to the table: decentralization. … The advantages of not having to go through, for instance, Amazon, when selling your book, are hard to quantify. But the notion that an author will be able to place a widget on their own page, and have the book-buying transaction be self-contained rather than being transferred to Amazon, is significant. … The Google Editions news comes on the heels of a major announcement by Google, the Authors Guild, and the Association of American Publishers, to the effect that they’ve worked out their long-running issues and will be cooperating on the service.”
VB: “Google is working on an affiliate program that will let website owners earn revenue by recommending ebooks on Editions, and it’s also partnering with independent booksellers to share revenue from their websites. It’s unclear how much revenue Google will share with affiliates or booksellers, but I suspect it will have to be more than the 10 percent Amazon offers its affiliates for Kindle ebook sales. … Google is positioning the ebook store as an extension of Google Books, its plan to scan the roughly 150 million books ever published worldwide. The book scanning project is currently about 10 percent complete, according to Google executives.”
TNW: “Several things excite me about Google getting into publishing. First is that they aren’t going to be tied to a physical ereader. They are starting off from the perspective of distributing content. Which is how it should be. But that independence might come at a price: adoption. … Here is the bottom line. I’ve always seen ebooks as a boon for authors and publishers who can adapt to them. I’m not saying paper books are going anywhere (though for me they keep going in drawers), I’m saying that ebooks allow authors to offer books to a large audience while keeping costs low with lower print runs. If the ebook sells better than the paper one, well don’t print as many of the paper ones. – Yes, not everyone will be able to take advantage of this and Google Editions might wind up like Google Wave and Buzz, but I think that in the last few months we’ve seen more interest in epublishing not less and I think this interest is going to turn into success for Google.”
Gerrit Eicker
Old Media: Trust is King
Shapiro: Old media is not dead, reinventing to take the best of what it was with the best of what is coming; http://eicker.at/r
Gerrit Eicker
Facebook Credits Expansion
Facebook is expanding Facebook Credits to more developers, adds new payment options; http://eicker.at/FacebookCredits
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Gerrit Eicker
Facebook: “Our goal with Facebook Credits is to give people that use Facebook an easy, convenient and trusted way to buy premium items in games and applications, while creating unique opportunities for developers to build successful, sustainable businesses. … We’ve seen a great demand for Facebook Credits since we started testing in May 2009 and expanded the beta in February this year. Facebook Credits are now used in more than 200 games and applications on Facebook from more than 75 developers. … We’ve been listening and working closely with developers to build out Facebook Credits. In addition to offering payments in 15 currencies, we’re introducing new ways to earn and pay for Credits, such as MOL points in Asia and gift cards through Target in the U.S.”
VB: “Facebook has teamed up with social monetization firm PlaySpan to expand its reach to more users around the globe for its Facebook Credits virtual currency. … Now, beyond using credit cards, users will be able to choose from 20 new payment options via PlaySpan’s Ultimate Pay service, allowing for more international purchases. Since credit cards aren’t used in every country, PlaySpan offers more payment options that are used in certain regions. That expands the reach of Facebook games – and the ability to make money from them through credits purchases – to a wider audience. – The PlaySpan payment options will roll out in the coming months, supplementing current payment systems such as credit cards, mobile phone payment services, and PayPal. Through Ultimate Pay, some of the new options include prepaid cards such as PaySafeCard, Wallie-card in Europe, MyCard and Gash cards in Taiwan, and other regional payment services.”
IF: “Deb Liu, a product marketing manager for Facebook Credits, said that a universal currency will encourage users to spend more on digital goods because they won’t have to switch between different currencies offered by separate games. – ‘Users don’t want to go in one game and question buying currency because they have to think about it for the next one,’ she said at the Virtual Goods Summit in San Francisco. ‘That’s a tax on our ecosystem, in terms of the mental energy needed to make a purchase.‘”
AF: “The additional payment options make it easier for developers to expand their international reach and attract a broader set of people, since not everyone has access to credit or debit cards or PayPal. Developers using Facebook Credits won’t have to do anything to offer these new payment options – they’ll appear automatically based on the user’s location. – Facebook did not say whether the upgrade meant Credits are now out of Beta development, but it’s clear that this is an area of focus for the company. Facebook gets a 30% share of the revenue from Credits and with the explosive popularity of social games on the site, it’s an attractive and growing new source of revenue. Facebook has reportedly been exerting pressure on game developers to switch to Credits and recently the biggest player in the sector, Zynga, agreed to do so.”
GigaOM: “The big selling point of the program is that users now have one consistent and unified place to buy virtual currency for almost all social games, which means many of them will have Credits on hand next time a game asks them to pay for something. Liu said developers across the board are seeing 5 to 10 times the number of conversion rates for players who have already bought and stored credits. She said more than half of today’s Facebook game experiences now include Facebook Credits as an option.”
The state of the U.S. news media improved in 2010, at least in comparison with a dismal 2009. Newspapers were the only major media sector to see continued ad revenue declines, down 6.4%. (After our report was published, the Newspaper Association of America released its final tally and put the drop at 6.3%.) But as online news consumption continues to grow – it surpassed print newspapers in ad revenue and audience for the first time in 2010 – a more fundamental challenge to journalism also became clearer. The news industry in the digital realm is no longer in control of its own future, according to the State of the News Media report from the Pew Research Center’s Project for Excellence in Journalism.
Online, news organizations increasingly depend on: independent networks to sell their ads, on aggregators and social networks to deliver a substantial portion of their audience, and now, as news consumption becomes more mobile, on device makers (such as Apple) and software developers (Google) to distribute their content. And the new players take a share of the revenue and in many cases, also control the audience data.
“In a world where consumers decide what news they want and how they want to get it, the future belongs to those who understand the audience best, and who can leverage that knowledge with advertisers,” said PEJ Director Tom Rosenstiel. “Increasingly that knowledge exists outside of news companies.”
These are some of the conclusions in the eighth annual State of the News Media report, which takes a comprehensive look at the health and status of the American news media: This year’s study includes detailed looks at the eight major sectors of media. The special reports this year include a survey about the role of mobile technology in news consumption and the willingness of people to pay for their local newspaper online, a look at emerging economic models in community news and a study of how the U.S. newspaper business is faring compared with other nations.
The Who Owns the News Media database allows users to compare companies by various indicators, explore each media sector and read profiles of individual companies. And in the Year in the News Interactive, users can explore PEJ’s comprehensive content analysis of media performance based on 52,613 stories from 2010.
Among the study’s key findings:
Mobile has already become an important factor in news: Nearly half of all Americans (47%) now get some form of local news on a mobile device, according to a new survey in this year’s report, produced by PEJ with Pew Internet and American Life Project in partnership with the Knight Foundation. As of January 2011, 7% of Americans reported owning some kind of electronic tablet, nearly double the number four months earlier. But the movement to mobile doesn’t guarantee a revenue source. To date, even among early adaptors, only 10% of those who have downloaded local news apps paid for them.
Online outpaces newspapers: Fully 46% of people now say they get news online at least three times a week, surpassing newspapers (40%) for the first time. Only local TV news is a more popular platform in America now (50%). In another milestone, more money was spent on online advertising than on newspaper advertising in 2010: Online advertising overall grew 13.9% to $25.8 billion in 2010, according to data from eMarketer. While eMarketer does not offer a print ad revenue figure, we estimate the newspaper took in $22.8 billion in print ad revenue in 2010. (We estimate online ad revenue at newspapers to be about $3 billion.)
Online news hires may have matched newspaper cuts for the first time: Large national online-only news operations began to get into the creation of original reporting in a significant way in 2010. AOL hired nearly 1,000 employees, over half of whom went to the new local news venture Patch.com. Bloomberg Government expects to number 150 journalists and analysts by the end of 2011, doubling Bloomberg’s Washington bureau and Yahoo added several dozen reporters across news, sports and finance. These hiring increases appeared to have compensated for the 1,000 to 1,500 job losses the study estimates the newspaper industry suffered in 2010.
More grim news for newspapers: The newspaper sector endured another year of revenue and audience declines. Advertising revenues fell by roughly 6.4% in 2010 from the year before. Weekday circulation fell 5% and Sunday fell 4.5%. Seven of the top 25 newspapers in the United States are now owned by hedge funds, which had virtually no role in the industry a few years ago. Many of these new owners are turning to other outsiders to turn the business around. One potential silver lining is the finding that 23% of Americans said they would pay $5 a month for an online version of their local paper if the print version were to perish.
Every media sector is losing audience now except online: For the first time in at least a dozen years, the median audience declined at all three cable news channels. CNN suffered most with median prime-time viewership, falling 37% in 2010; Fox lost 11%, and MSNBC 5%. In aggregate, the median viewership fell 13.7% across the entire day in 2010. Prime-time median viewership fell even more, 16% to an average of 3.2 million, according to PEJ’s original analysis of Nielsen Market Research data. Daytime fell 12%.
Local TV wins 2010 revenue race: Among traditional media, local TV may have had the best year financially. Revenue rose 17%, exceeding projections, thanks in part to a 77% increase in auto advertising and a record $2.2 billion in political advertising for the midterm elections. And, to boost audience, local TV has added newscasts at 4:30 AM in 69 cities; more than double the startups in that time slot a year ago. Nonetheless, when adjusted for inflation, average station revenue has still dropped by almost half in the past nine years.
AM FM radio listening may be on the brink of a major change – and decline: Radio has remained among the most stable media platforms, largely because AM and FM remained the primary listening format in automobiles. That may be about to change. Toyota is about to put online radio in all its models and Pandora has made an agreement with Pioneer that would include its online radio service in the cars of at least six additional auto manufacturers by the end of 2011. Meanwhile, Audio’s foray into HD radio seems to be failing. Only 31% of Americans have even heard of it and the number of stations converting to HD dropped substantially in 2010.
The report is the work of the Pew Research Center’s Project for Excellence in Journalism, a nonpolitical, nonpartisan research institute: The study is funded by The Pew Charitable Trusts and was produced with the help of a number of collaborators, including Rick Edmonds of the Poynter Institute, Deborah Potter of Newslab and a host of industry readers.