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#MarketBriefing: ‘80% of digital revenue comes from your loyal audience’

June 20th, 2012 | No Comments | Posted by in Business, Paid-for content

Eighty per cent of a typical news site’s digital revenue comes from their loyal, returning audience, those the publisher has an email addresses for, with 20 per cent of revenues coming from flyby users.

But 80 per cent of traffic comes from the flybys who generate the minority of the revenue.

The statistics, which are unlikely to come as a great surprise to many publishers, were shared at today’s ‘audience revenue tools for online publishers’ conference by Matt Shanahan, SVP strategy for Scout Analytics, one of the data tools discussed at the event.

Shanahan talked of the positives and negatives of revenues from print versus digital.

He said the main difference is that print is based on “distribution” whereas in digital, publishers get paid for “usage”.

Outlining the negatives of shifting to digital, Shanahan said publishers can expect “to chop in half” revenues. Meanwhile, there is a need to sell more ads, he said.

One of the many positives, Shanahan said, is that with analytics “you know what people are reading”.

Shanahan therefore encourages publishers to focus on analytics and to segment the audience by revenue. Scout Analytics calls it “revenue-weighted behavioural segmentation”.

A publisher should:

  • Look at what editorial is generating the most ad revenue
  • Ask ‘can readers be converted to subscribers?’
  • Look at what usage profiles have most event revenue potential
  • Look at audience development and what sources have the highest lifetime value

He says those who dig into the data in this way can “grow revenues by 200 to 500 per cent”.

“An anonymous audience is an anchor,” Shanahan said, explaining the value that comes when a publisher has an email address for a reader.

He showed statistics to demonstrate how a registered audience will “always be much smaller in number” but showed how they generate far more revenue for the publisher.

Shanahan said that “even if you have a registered user it doesn’t mean they come everyday”. But if you have their email address, you still get to market to them.

And loyal readers have the same conversion rate as those who do visit the site every day, he said, when marketing daily deals by email, for example.

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Google recruits BBC head of development and rights

August 17th, 2010 | No Comments | Posted by in Online Journalism, Search

Google has again recruited from BBC staff as part of attempts to encourage online publishers to make more of the media giant’s news platform, this time hiring the broadcaster’s head of development and rights Madhav Chinnappa.

According to a report by paidContent:UK, the position is likely to centre on improving relations between Google News and newspaper publishers as many continue to question the value of the site to them – as demonstrated in a debate at the Frontline Club last week, attended by another former BBC recruit Peter Barron, who previously edited Newsnight but now heads up Google’s communications and PR department.

It’s a new post, and a sign Google is increasingly keen to dampen increasing scepticism, from some newspaper publishers, regarding its attitude to content, and instead come to amicable arrangements.

See the full post here…

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Increase in UK online display advertising activity, says Nielsen

June 4th, 2009 | 1 Comment | Posted by in Advertising

Online display advertising activity in the UK has increased year-on-year despite the current economic climates, figures from Nielsen Online for the first quarter of 2009 are suggesting.

The number of display advertisers, the number of individual campaigns and the number of ad creatives used all rose by 21 per cent compared with stats for the same period last year.

Over 5,900 advertisers ran online display ad campaigns in Q1 2009 with a monthly average of 11,000 campaigns.

“Whilst other media have suffered in the amount of advertising they attract, online continues to thrive. Although advertisers are probably getting more bang for their buck through falling online advertising rates, the strong increase in the level of display advertising activity is reason enough for online publishers and media owners to be optimistic about the year ahead – particularly if the retail and finance sectors continue their heavy activity,” said Alex Burmaster, communications director, online, in the report.

In the news and information sector, OMNIsport was the most active advertiser in online display advertising.

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The Register: Dutch news portal sued over Google page summary

June 2nd, 2009 | No Comments | Posted by in Editors' pick, Legal

Milijoenhuizen.nl, a Dutch network of user-edited news portals, has reportedly been successfully sued by car dealing firm Zwartepoorte for a Google-generated page summary (via 24Oranges blog).

A judge ruled that the ‘snippet’, which occured in the results of a search for ‘Zwartepoorte’ and ‘bankrupt’, may or may not give the false impression that the car dealer has gone bankrupt.

“To create the snippet, Google algorithms pulled both the ‘Zwartepoorte’ bit and the ‘bankrupt’ bit from the Miljoenhuizen.nl page. But they weren’t side-by-side on the page – as the ellipses indicate. That’s often how Google does things. If you Google two separate words, it shows you that each search result contains both of them,” explains the Register.

The site has reportedly removed the page.

Crucially, as the Register points out, the car dealer chose to sue the website not Google. (Interestingly now when you search for the same terms on Google blogs and news sites reporting the case appear in the results with the same snippet).

It’s a worrying precedent for online publishers – are there ways to prevent Google from summarising pages in this form?

Full post at this link…

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The new news subscription system from Journalism Online: what the web says

So here’s the story, from a range of open-to-all sources:

[as told by the AFP]: “Three veteran US media executives teamed up and launched a company designed to help ailing US newspapers and other publications make money on the web by charging readers for news.”

[as told by the AP]: “Three media veterans plan to bundle the internet content of newspaper and magazine publishers into a subscription package that will test web surfers’ willingness to pay for material that has been given away for years.”

[as told by Jeff Jarvis]: “…[F]ormer online publisher Steven Brill, former Wall Street Journal online exec Gordon Crovitz, and former cable exec Leo Hindery had teamed up to to create a company to enable news companies to huddle behind a wall and charge for their content.”

[as told by its founders]: “Citing ‘the urgent need’ for a comprehensive, immediate plan to address the downward spiral in the business of publishing original, quality journalism, experienced journalism and media industry executives Steven Brill, Gordon Crovitz, and Leo Hindery today announced the formation of Journalism Online, a company that will quickly facilitate the ability of newspaper, magazine and online publishers to realize revenue from the digital distribution of the original journalism they produce.”

[as told by Gawker]: “Now he’s [Steven Brill] launched Journalism Online Inc, whose goal is to make it easy for technologically-challenged newspaper companies to sell online subscriptions and individual stories.”

A sample of what else is available outside the wall on the launch:

  • The first part of an interview with paidContent – Staci D. Kramer reports: “The biggest surprise so far? Brill says that every publisher they’ve met with has asked about picking up an equity stake.”
  • Mark Potts’ blog post titled ‘Herding Cats’: “I think the whole online subscription idea is harebrained and doomed to failure, and I’ve ranted about that more than enough,” he writes.
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IHT.com: Microsoft to seek new standard for protection of media site content

November 20th, 2008 | No Comments | Posted by in Editors' pick

In an attempt to ‘redefine’ the ‘often testy’ relationship between online publishers and search engines, Microsoft plans to work with European media owners to protect and profit from copyrighted material online, IHT reports.

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Daylife targets online publishers with new multimedia service

October 14th, 2008 | 6 Comments | Posted by in Multimedia

The software engineering company behind Sky News’ recent online revamp, Daylife, has launched a new product aimed at online news publishers.

Sky used Daylife’s products to create topic pages of related multimedia content called ‘in depth’ pages.

The new Daylife Enterprise API will similarly let publishers re-purpose blog posts, text, data and audio-visual content in new ways online.

How does it do this? The service will collect this content and then create feeds which the publisher can put to use a variety of ways – as per their request.

For example – the Enterprise API was trialled by the Washington Post to create picture galleries from the Beijing Olympics – searchable by sport and country – and to accompany its US presidential campaign coverage.

Daylife took all the incoming photos from Post photographers around these subjects and made them available to the paper as an API, ready for use to create new pages on its website.

Utilising existing content in this way can be a success in terms of web traffic – making sites a more attractive prospect for advertisers, says Daylife CEO Upendra Shardanand.

As part of the product, publishers can make these content feeds open to the public and third-party developers – a feature which Shardanand hopes will lead to more collaboration on news content between publishers and users.

“In terms of e-commerce and advertising there’s been so much innovation in the last 10 years online, in comparison there’s not been so much in news,” he told Journalism.co.uk.

“How do you innovate if you don’t do software? I don’t know what the next best concept is but a service like ours can be shared.”

Publishers should not dismiss outsourcing this work, says Shardanand, after all it’s not their job and with the amount of content they have available would be extremely time consuming – the company has over 200 machines running to process the content. It’s not for free, but licences are decided on a customer-by-customer basis.

Instead, he told us, the aim is to get the most value out of the content that publishers are already producing for both online and other editions – such as the photos taken by WaPo staff – by doing the backend work for them.

Crucial to the success of the project will be the say that publishers have over what is done with their content – something which Shardanand is keenly aware of.

“These have to be content portals that are still customised and match your brand and voice,” he says.

“It wouldn’t work if the editors couldn’t do exactly what they want. Advertisers wouldn’t value it either.”

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UK media sign up for new Virgin and Perform video player

September 1st, 2008 | 1 Comment | Posted by in Uncategorized

e-Player, a new ‘multi-channel video player delivering sports highlights and video clips’, is to be used by a raft of UK media organisations, Sinead Scanlon writes for Journalism.co.uk.

ITV Sport, Telegraph Media Group, the Daily Mail, News International, Trinity Mirror, Evening Standard, Metro and Bauer are all set to deploy the player, which has been developed by Virgin Media and sports and entertainment company Perform, a press release on the launch said.

The player will be free for the media groups and will provide sports highlights and updates from UK football and European leagues, as well golf, tennis and rugby clips. Advertising revenue will be shared between Virgin and Perform and the media sites, based on the amount of traffic generated to the videos.

“We have secured distribution with many of the highest traffic, most respected online publishers in the UK, making e-Player the most exciting online video advertising proposition in the market,” said Oliver Slipper, joint-CEO of Perform.

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Growing effect of online advertising in US, OPA study suggests

August 28th, 2008 | No Comments | Posted by in Journalism

Online advertising is going to overtake radio in the advertising market, MediaGuardian reported today.

Richard Wray’s article stated that while Carat – part of the Aegis marketing empire – had reduced its forecasts for the global advertising markets for 2008/9, it also said online advertising will continue to grow, overtaking radio as the third most popular advertising medium after TV and newspapers and magazines.

MediaGuardian’s report is interesting to look at in the light of statistics made available last week by the Online Publishers Association (OPA).

The US-based figures suggest that ‘consumers on all three types of local media sites – newspapers, television stations and magazines – are more likely to take action after viewing a local advert than visitors on all other local content sites’.

As part of the OPA study, JupiterResearch surveyed 2,069 US online consumers ‘who qualified as Local Online Content Users, by currently using online yellow pages, newspaper, TV, magazine, city guides, user review sites, portals or classifieds for local information.’

Here’s the breakdown:

Per cent of consumers taking action after viewing local adverts

  • Local Newspaper Site: 46%
  • Local Television Site: 44%
  • Local Magazine Site: 42%
  • User Review Site: 39%
  • Portal: 37%

Click here to view the full report and follow this link for the press release.

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NYTimes.com: Google’s Knol could compete with online content publishers

August 13th, 2008 | No Comments | Posted by in Editors' pick, Online Journalism, Search

Google’s recently launched online encyclopedia Knol is causing concern among other online publishers, who fear the company’s business as a search engine could come into conflict with its new ‘content publishing’ venture. Google maintains that it is not creating content – posts to Knol are signed and edited by individual users – but acting as a ‘conduit’ on the web.

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