News from the information industry

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June 2015 Newsletter

USA TODAY: "WE'RE ALMOST GONE!"

  Yesterday, as part of an Internet Week New York panel entitled, "The Future of Media", USA TODAY's editor-in-chief, David Callaway, was quoted as saying that the newspaper could stop publishing as a daily print product in the next "five or six years".
  I guess it's not surprising. And it's not surprising simply because print media is on the downswing. That's the excuse of losers.

Why publishers relying on audiences instead of ads for revenue

  The economics of the press are changing from an advertising-dominant revenue model to one in which the audience is the primary revenue source. This is not a new business model for news publishers, but one that was used successfully prior to the era of national print advertising.
  Before the growth in print advertising revenue about 100 years ago, newspapers received most of their revenue from their audiences, and they likely will again as print advertisers move to digital media. Publishers leading in the transition to the new digital-centric business models, including the Financial Times, The Economist, and The New York Times, all have more audience revenue than advertising revenue.

The great devaluation of the American daily newspaper

  James Dolan surprised many casual observers of the flailing newspaper trade when he suggested he might bid on the for-sale New York Daily News-and offer a dollar. But the dollar is a good proxy for the familiar question mark, as in who the hell knows what a newspaper property is worth these days.
  While Jeff Bezos paid $250 million for The Washington Post, John Henry paid only $70 million for The Boston Globe. Down the coast, the once-dominant Tampa Tribune went begging-Warren Buffett rejected it outright when he bought the rest of the Media General papers in 2012-until a private buyer agreed to pay a paltry $9.5 million, less than a Tampa Bay mansion would go for. In hypercompetitive New York City, a money-losing daily isn't worth a lot.

Chevrolet Puts Colorado Video Ads in Magazines

  Ever wonder how long it will be until we're watching movies or television programs inside our favorite magazines? Wonder no more; that day is here.
  According to Automotive News, as part of a new advertising strategy, Chevrolet is placing video ads inside magazines that subscribers can watch from the comfort of their home, workplace, airport or wherever they happen to be.

Is publishing disruption a race to destruction? 

  Players in the music and video industries failed to adapt when digital disruption hit and, as a result, have failed to survive. The same could happen in the publishing industry.
  But in their efforts to try and squeeze traditional print publishing paradigms into bits and bytes, publishers have missed a fundamental element for financial viability in this new people-powered planet. They've missed the "consumer-isation" of the communications gravy train, and like many industries before them, they need to do a serious about-face and face their audience up close and personal, or, frankly, perish.

10 Things You Need to Know Now About Programmatic Buying

  The advertising industry is on a march toward automation. Plenty of advertisers today are buying digital ads without speaking to a single human at a media company, and print and TV ads might not be far behind. Automated, or programmatic, buying is growing not only because it makes ad transactions more efficient but because it can make them more effective, as long as the right data is applied.

Digital Publishing: Generation Right Now 

  I don't know if you've noticed, but millennials are everywhere. We hear a lot these days about the 80 million or so people born after 1980 and before 2000, but America's largest generation are often dismissed in newsrooms as being disengaged and "newsless."
  Unfortunately, add the dismissal of millennial readers to the list of things newspapers have gotten wrong in the past 20 years. Since this generation is expected to spend $200 billion annually by 2017 in the U.S. alone, it could be a costly mistake for newspapers still struggling to adapt to the times.

To bring in digital advertising revenue, media companies must provide audience

  With advanced technology, publishers can now meet their advertiser partners' demands for a larger audience through the use of smaller traffic bases.
The recipe for a healthy business usually involves meeting demand with steady supply. But sometimes, high demand outgrows a limited supply, creating a premium. This is something that certain parties in the media world have thrived on, and it's how you end up charging US$4.4 million for a 30-second television spot during the Super Bowl.
  Today, advancements in advertising technology make it so that publishers with smaller traffic bases can still meet their advertiser partners' demands for a larger audience. By utilizing third-party data and programmatic buying platforms, these publishers can extend their audience to other Web sites, helping their advertising partners reach the precise audience they're chasing, but at an increased scale.

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Study: Apps not on SMB radar

  Don't look for small businesses to push budget dollars into developing their own apps. That's the takeaway from a new Clutch study which shows that while about 15% of SMBs have a dedicated app and 18% are considering app development, nearly half (40%) say they 'are unlikely' to create a dedicated app for their business.

Successful business marketing is many-layered process

  "I thought word-of-mouth and Facebook would be sufficient to grow my business, but I was wrong. What should I do?"
  Traditional media advertising still works, but many small businesses quit too soon. It takes several exposures before a potential customer will notice an ad, much less take action. Good radio jingles have helped many small businesses grow. A print ad appearing in the same location several weeks in a row can lead to recognition and action. With the proliferation of cable channels, TV ads can be bought for less than ever before. But make sure your ads will reach your target audience.

Publishers are treating email newsletters as a platform of its own

  Publishers are scrambling to figure out their platform-publishing strategies, eyeing opportunities on Facebook, Snapchat and beyond.
  But many are already treating email newsletters, often used a way to lure people back to publishing sites, as platform-like publications themselves, designed to be read entirely in email without readers having to click through to the host's site. That means creating content specifically for the email experience, often more conversation and text heavy than standard email newsletters that act as reproductions of websites.

Mobile news on the rise as print decline continues

  For news publishers, it's a mobile world.
More readers are coming from mobile devices than computers for 39 of the top 50 digital news sites, influencing publishers' decisions on a wide range of editorial and advertising strategies, said a new Pew Research Center study released Wednesday.
  Growth in mobile ad spending outpaced all other platforms, explaining publishers' determination to tailor their content for the small screen. Mobile ad spending rose 78%, accounting for 37% of all digital ad spending.


 

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