The Future of Legacy Media
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1 Collaborative Workshops in India, 2014 The Future of Legacy Media Looking Back to See into the Future
2 Hello, I m Zella Bracy Business development, Tru Measure (a McClatchy company) Digital revenue manager for strategic initiatives, The McClatchy Company 18 years of digital newspaper experience All Presentations and other material will be posted on
3 Today s Agenda Review of the landscape of U.S. legacy media in past five years Dive into the realities of U.S. newspapers; learning from realities Look forward to the future of revenue by reviewing the trends and forecasts
4 Financial Recap: 2008
5 2008 We Lost Our Grip News organizations/websites are no longer final destination Search is predominant News is shifting from a product to a service No single or finished news product anymore Vanishing classified advertising U.S. recession likely doubled losses
6 Lessons Learned Humility Importance of monetizing traffic Concentrate on local news Reinvent the newsroom with fewer staff Bloggers/citizen journalism have role Should be paying attention to predictors
7 2009 Bleak financial news Newspaper ad revenues have fallen 23 percent in the last two years. Half of all classified advertising revenue is gone Focus on technology
8 2009 Status update Some newspapers are in bankruptcy Others have lost 75 percent of their value 1 out of 5 journalists working for newspapers in 2001 are gone Innovations are ongoing Micropayments in discussion
9 Lessons Learned Concentrate on converting audience Revenue strategies must evolve Use technology rather than fight it Institutional collaboration Innovation must continue
10 2010 What now? Newspapers ad revenue, including online fell 26 percent during the year This brings total loss over the last three years to 41 percent 80 percent of traffic to news and information is concentrated at the top 7 percent of sites 59 percent of Internet users now use social media
11 2010 What now? Print-based operations still fund 90 percent of newspaper industry Estimated that newspaper industry lost $1.6B in annual reporting and editing capacity since 2000, roughly 30 percent Rick Edmonds of The Poynter Institute
12 Lessons Learned Print operations alone cannot fund operations Paywall/thresholds are being tested Digital operations must grow Social media will play a role Cutbacks affect old and new media Mobile usage is growing
13 Newspaper Newsroom Decline Source:
14 2011 Safe? Estimated 1,000 to 1,500 more newsroom jobs were lost Newsrooms are 30 percent smaller than in 2000 yet new hires came from outside traditional media New journalism complexities come new technologies 47 percent of Americans get their news from a mobile device About 36 newspapers have moved to paid content with niche content sites succeeding Source:
15 Lessons Learned Data is king (still) Listen to what consumers want Advertiser and reader Deliver the news the way they to read it Local online ad spending is key Work with technology
16 2011 Revenue winners Local news / Local ad revenue Deal of the day programs Ad exchanges Revenue through tablet subscriptions
17 2012 Losses in print advertising outpace digital gains by a 10-to-1 factor Loss of half of ad revenue since 2006 industry wide Losses in circulation continue When circulation and advertising revenue are combined, the U.S. newspaper industry has shrunk 43 percent since 2000 Digital subscriptions are growing Yet, because of the growth in digital subscriptions, circulation revenue rose 5 percent overall
18 Newspaper Circulation Source:
19 2012 Technology is winning Five technology companies accounted for 68 percent of all online ad revenue Mobile adds to news consumption Social media key
20 2012 Revenue winners Associated Press/media companies partner to service aggregators News companies create digital ad sales networks Digital media agencies are born Paywall subscription model E-commerce Transactions Event marketing Commercial printing Commercial delivery
21 Lessons Learned Digital subscriptions Circulation revenue matter of survival Metered model working Revenue will come from many sources Data matters technology is winning share Consumer data is key Digital revenue share should grow
22 2013: Paid Digital Content Source:
23 2013: Mobile Device Revenue Source:
24 2013 Banner ads Display advertising is still the primary revenue stream Available inventory continues to drive down prices Video ads More demand than inventory Social media 72 percent of U.S. adults say they get their news from friends and family then 63 percent seek out the news stories Most (77 percent) link to full news stories 15 percent get most of their news through social media sites Source:
25 2013 Sponsorship ad category is growing Native ads (advertorials) Pre-prints Account for 25 percent of print ad revenues Source:
26 2013 Digital Marketing Agencies Localedge Hearst Propel Gatehouse impresslocal McClatchy Trulocal Seattle Times Many others
27 Financial Recap: 2013
28 Lessons Learned Share is in decline Pay attention to how media is being consumed React with appropriate business model Reinvent the newsroom with fewer staff Paid content working Cost control key to management
29 The Next 5 Years More disruption ahead but revenue is leveling off 20 percent of total ad revenue will be digital ROP should increase Pre-prints will decline Classified slight decline Home delivery will decline to fewer days
30 The Next 5 Years US vs. THEM
31 Who Are We? Legacy-centric Tied to print Digital ideas treated as a product extension rather than a new venture Revenue growth will slow or stop Market share will decline due to competition Cost containment will continue
32 Who Should We Be? Multimedia serve local readers and advertisers Separate digital divisions Smaller digital initiatives within the organizational structures of legacy properties Able to pursue new revenue streams
33 Trends Paywalls Local advertising Digital marketing agencies Proof in ROI performance Event marketing Native advertising Targeted digital advertising Mobile ad network
34 Summary A look back A reality check A view into the future What did we learn?
35 Thank You Are there any questions?
36 Research Revenue-Profile-2012.aspx Revenue-Profile-2012.aspx Borrell Associates, The Future of Legacy Media, With 5 years of digital disruption ahead, what happens next? Industry paper, January 2014
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