The New Audience Metric

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The New Audience Metric Combining print-Web
readership for the true newspaper audience
ANJ, São Paolo 30 August 2006 Martha Stone World
Association of Newspapers
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The New Audience Metric

• The Agenda The New Audience Metric
• Overview of metric Problem and Solution
• Industry implementation in USA
• Potential for Brazil market
• How agencies use the NADBase
• How media companies are implementing new,
  profitable multimedia campaigns using the market
  data

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The new audience metric The problem

• Newspaper circulation or newspaper readership
  numbers are no longer the true measure of the
  newspapers reach in a marketplace
• Marketshare is shrinking for most of the worlds
  newspapers
• Young and affluent audiences are among the most
  elusive to the newspaper industry, but are strong
  users of new media
• The current audience metrics for newspapers dont
  account for the many channels on which the
  newspaper content and brand are published,
  including online and mobile

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The new audience metric A solution

• The Newspaper Association of America last October
  launched an initiative called the NADBase, the
  Newspaper Audience Database, with Scarborough
  Research and Nielsen/Netratings

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The new audience metric A solution

• Readership is the most comparable measure of the
  value of newspapers, and it is critical that the
  newspaper media be able to report information on
  consumers of all ages and across the full
  portfolio of print and digital products that we
  distribute every day,
• --- NAA CEO John Sturm.

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Web Adds To Newspapers Daypart Reach
Reach for Newspapers Web vs. Newspapers alone
75
46
44
44
39
17
12
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Source OPA, Day in the Life
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Readership vs. circulation The objectives

• Objective 1. Show advertising agency buyers the
  power of newspapers reach into the marketplace,
  using combined print and digital media audience
  statistics together.
• Objective 2. To show media buyers how well print
  competes with TV in reaching the audience. The
  readership metric is more comparable to
  viewership because it counts eyeballs
• Objective 3 Show how significant young and
  affluent audiences expand when adding the
  newspapers digital audiences

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Readership vs. circulation The objectives

• Objective 1. The NADBase Projects main
  objective is to show advertising agency media
  buyers the power of newspapers reach into the
  marketplace, using combined print and digital
  media audience statistics together.

Weekday Average 7-day
Print/ Net Paid Weekday
30-day Web Circulation Readership
Audience Atlanta J-C 351,999
1,001,120 2,391,101 Chicago
Tribune 586,122 1,638,704
3,448,688 San Diego U-T 314,279
766,768 1,477,532 Tampa Tribune
212,608 501,569
1,172,500 Washington Post 678,799
1,750,865 3,162,423
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Readership, circulation, online audience in Brazil
2005 Brazil newspaper 6,789,000 circulatio
n Brazil newspaper 5 to 10 times
Readership circulation Estimate Online
exclusive perhaps 2 to 15 of readership
audience Audience

Source ANJ, NAA, Scarborough
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Readership vs. circulation The objectives

• Objective 1. The NADBase Projects main
  objective is to show advertising agency media
  buyers the power of newspapers reach into the
  marketplace, using combined print and digital
  media audience statistics together.
• The Online Exclusive Audience represents between
  2 percent and 15 percent of the U.S. newspaper
  audience, according to Scarborough
• Brazillian newspapers likely would achieve
  similar online audience reach using similar
  methodology

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Brazil Ad Spend
7.ba) Advertising expenditure per medium
(national currency, in current prices)  

• Objective 2 To show media buyers how well print
  competes with TV in reaching the audience. The
  readership metric is more comparable to
  viewership because it counts eyeballs

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Latin America Ad Share by Medium, 2005
Zenith Optimedia
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Latin America Internet market
Internet Advertising and Access Spending Market
by country (USD million)
Largest markets in Latin America Brazil US 2
billion (45 of total spending) Argentina US
983 million Mexico US 817 million
Source PricewaterhouseCoopers LLP, Wilkofsky
Gruen Associates
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Latin America Internet marketInternet Household
Penetration by country ()
Top 3 Latin American countries by internet
penetration Brazil 44 Argentina
21 Venezuela 19
Source PricewaterhouseCoopers LLP, Wilkofsky
Gruen Associates
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Brazil Internet marketTotal Internet spending
and penetration in Brazil

US million
Penetration ()
Source PricewaterhouseCoopers LLP, Wilkofsky
Gruen Associates
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The New Audience Metric The objectives

• Objective 3 How significant young and affluent
  audiences expand when adding the newspapers
  digital audiences

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Reaching younger audiences, market by market

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Reaching more affluent audiences, market by market

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Building the new metric The stakeholders

• The NAA determined that three groups of
  stakeholders needed to be a part of the New
  metric development plan
• The advertising agencies, major retailers
• The media companies
• The research metrics companies

• The NAA created executive groups to lead the
  development for the initiative
• Executive Advisory Council agency and retailer
  ad executives
• Newspaper Audience Leadership Committee (NALC)
• Nine major media company executives and 2 NAA
  executives
• NALC Technical Committee Business development
  execs
• Scarborough (print) and Nielsen/Netratings
  (online)

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The New Audience Metric The outcome

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CampaignRF Demonstrating Newspaper Exclusive
Reach
Newspaper Exclusive reach is the same as TV
overall reach
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Using the metrics, market by market
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Using the metrics, market by market
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Using the metrics, market by market
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Using the metrics, market by market
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Using the metrics, market by market
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Multiple Core Products by Target Audience
The Arizona Republic
Advertising Products
Republic Magazines
La Voz Publishing
Azcentral.com past week
7 day Arizona Republic
1,206,620
Community Republic
943,250
756,200
289,870
176,970
1,845,500
553,900
SOURCE SRBI Phoenix Market Study 2005
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Reaching Advertisers Best Prospects with Best
Vehicle
Time before a vehicle purchase decision
Source CNW Marketing Research, Inc. 2005
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Boston Globe Matching Products to Objective
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Tampa Tribune Print-Web-TV ad packages

• Tampa Tribune has has steadily made 6
  million-plus per year in incremental advertising
  sales cross-media advertising department
• Packages are targeted at big and small companies.
  Smaller advertising can pay just 8,000 USD for a
  TV spot, Internet spot and full-page color
  newspaper page
• 4You, a multimedia health package, became
  instantly popular (rate card, right)

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Multimedia Advertising

• NordJyske is one of the most integrated
  cross-media advertising operations in the world
  print, Web, TV and radio
• NordJyske, in the north of Denmark, employed
  cross-media advertising strategy in 2001 to
  compete in a crowded marketplace
• Revenues have grown 33 percent from 2002 to 2005
• The percentage of revenue from the newspaper has
  shifted from 65 percent to 35 percent, as new,
  lucrative revenue streams have been added

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Multimedia Advertising

• Zero Hora in Brazil has steadily grown their
  cross-media advertising operation since 2001
• RBS Group and its largest newspaper, Zero Hora,
  have successfully integrated events to their TV,
  radio, print and online multimedia advertising
  offerings
• Events are projected to make 5.41 million USD in
  2006
• The number of events tied to print, Web and TV
  advertising campaigns has grown from 12 in 2001
  to 84 in 2006

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Multimedia Advertising

• New York Times and NYTimes.com advertising staffs
  merged in January 2006
• The 240-member print, and the 30-member Web sales
  teams were combined and cross-trained in
  intensive, four-hour modules for the first six
  months of 2006
• The reasons for the integration is advertising
  demand and higher incremental revenue
• The duplicated reach of print and online is 16
  percent. The selling proposition is to extend the
  reach and frequency for advertisers, according to
  VP of advertising, Alyson Racer

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Obrigada! Mstone_at_wan.asso.fr