Tag Archives: online opportunities

InPublishing survey: ‘Behind the turnover figures, the industry is essentially still in profit’

The publishing industry is in ‘remarkably robust’ health, according to a new survey of 187 companies – encompassing 911 consumer magazines, 855 B2B magazines and newsletters, 413 newspapers (both regional and national) and a total of 1,056 individual websites.

The survey, which was a joint project between Wide Area, Wessenden Marketing and InPublishing magazine, suggests a slide rather than plunge in industry turnover – partly a result of ‘headcount reduction and ruthless cost control, where marketing budgets in particular have suffered’.

“Online growth is clearly outstripping print revenue trends; circulation revenues are performing better than advertising sales; and subscription sales better than retail copy sales. ‘Other revenues’ (which include reader offers, events & services, as well as contract publishing) are showing medium growth, behind online, but ahead of print revenue streams,” the survey suggests.

This is an extensive piece of work, well worth a read (you’ll need to register), and includes sub-sections dealing with:
Online opportunities and threats
Website profitability and costs
How publishers are planning to ‘manage the future’

Some key findings from the report are below:

  • 59 per cent of those surveyed have under 10 per cent of their turnover coming from online/digital activities;
  • Online revenue streams are showing the most growth with paid-for online content, classified online and display advertising ranking above print revenue streams;
  • 20 per cent of publishers surveyed are looking to grow staff numbers, while 54 per cent will hold steady;
  • Online, the highest threat publishers are facing is a lack of resources/focus/knowledge e.g. not having the skills in-house to adapt to new technologies or resources to develop online offerings;
  • Cutting costs and overheads and developing more innovative, multimedia advertising strategies are seen as the most critical tasks for publishers going forward.

WAN Amsterdam: How a regional newspaper in Austria hopes to make half its revenue from digital by 2011

In the last session of the WAN/World Editors Forum 11th Readership Conference the speakers looked at shaping the future of the newspaper (information courtesy of WAN conference updates).

While Karen Wall, assistant managing director of Metro in the UK, focussed on good old print, arguing that the free newspaper model was growing, Christian Ortner the editor-in-chief of the regional newspaper Vorarlberger Nachrichten, in Austria, took the WAN audience through his newspaper’s decision to become the ‘Yahoo for local search’ in their area.

“Today Google has taken over search,” said Ortner. “Down to the small restaurant, Google is serving the local market.”

But he believes that “what happened in search need not happen for local news, services, parties, classifieds, restaurants, videos and other content.”

Vorarlberger Nachrichten Online is now aggressively pursuing online opportunities, forecasting that half its revenue will come from its digital platforms by 2011.

Here’s what the paper is developing, as told by Ortner:

  • 17 citizen forums, which connect active citizens at the community level. “Politicians and journalists are also members of the list. The citizens’ ideas are picked up by the newspaper reporters, who try to communicate and solve the problems. VN now generates thousands of new and dedicated ‘freelance journalists.'”
  • ‘MyVillage’ hyperlocal websites, which deliver fresh and useful information to the users about their immediate neighbourhoods. The strategy for the online platform calls for lots of micro-sites on niche topics.
  • Video, video, video, from a variety of sources – local reporters, news agencies and the users themselves. “What works for YouTube can also be successful locally.”
  • A ‘mobile journalist’ team covering breaking news, with videos and photos. The ‘mojos’ focus on ordinary people and local stories.
  • A multi-brand strategy that focuses on target groups: “We believe the online upside is greater than the print downside.”