Vail 06

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Vail 06
What Well Cover This Afternoon State of the
IndustryThe Future of CirculationPower of
OneSingle Copy Buyer Study 06
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Vail 06
Newspapers 06
FOR IMMEDIATE RELEASE                             
                                       April 19,
2006  NAA RELEASES ABC FAS-FAX ANALYSIS Online
Audience for Newspaper Web Sites Sets Another New
Record in First Quarter 2006 Newspapers are
implementing circulation marketing strategies
that deliver the most value to advertisers and
make economic sense, such as home delivery and
retention programs that result in less subscriber
turn-over, Sturm said. The focus also is on
total audience, and we are now starting to see
the positive impact that publishers innovations
and strategies to broaden their audience online
are having on our audiences and
readership. According to new data released today
by NAA, the online audience for newspapers hit
record levels in the first quarter of 2006, with
more than one in three of all Internet users
visiting a newspaper Web site over the course of
a month.
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Vail 06
Newspapers 06
FOR IMMEDIATE RELEASE                             
                                       June 23,
2005  NEWSPAPERS ARE SUCCESSFULLY LEVERAGING THE
INTERNET TO GROW OVERALL READERSHIP
BASE Newspapers successfully attracting 18-34
year olds with their websites   New York
Scarborough Researchreleased an analysis of
Integrated Newspaper Audience, a new
measurement that combines the audience of
traditional printed newspapers with the audiences
of their websites. The analysis found that
newspaper websites are contributing significant
numbers of readers who do not necessarily read
the printed publication, resulting in large
audiences overall. The audiences for newspaper
websites tend to be younger than those of the
printed newspaper, demonstrating that young
adults are interested in and engaged with
newspaper content.  
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The Value of Newspaper Media Opt-In Advertising

• Where the advertising is a destination, not a
  distraction.

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Telling our Story
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The Value of Newspaper Media Opt-In Advertising

• Where the advertising is a destination, not a
  distraction.

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Contributors Committee Members
The Process

• Robert Bolone, Vice President/Circulation The
  Columbus Dispatch
• Chris Blaser, Vice President/Circulation San
  Francisco Chronicle
• Vince Casanova, Vice President/Circulation
  Tribune Publishing Company
• Rosie Cassidy, Director/Circulation Operations
  Technology, Gannett Company Inc.
• Chris Christian, Vice President/Circulation The
  Kansas City Star
• Ken Cogswell, Circulation Director Kalamazoo
  Gazette
• Barbara Cohen, President and Founder of Kannon
  Consulting
• Harry Davis, Vice President/Circulation
  Austin-American Statesman
• Arden Dickey, Vice President/Circulation Knight
  Ridder
• Nancy Green, Vice President/Circulation Lee
  Enterprises
• Mark Henschen, Circulation Director North
  County Times (Escondido, California)
• Jerry Hill, Circulation Director St. Petersburg
  Times
• Sandy MacLeod, Vice President/Strategy
  Implementation Human Resources
• The Toronto Star
• Kathy Michalak, Vice President/Circulation The
  Press Enterprise
• John Murray, Vice President/Circulation Marketing
  NAA
• John Newby, Circulation Director The Dispatch
  (Moline, Illinois)
• Gayle Pryor, Vice President/Circulation Media
  General, Inc.
• Robert Rubrecht, Director/Circulation Marketing
  NAA

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Development of the Project
The Process

• Collection, Dissemination and Study of Data
• Key Resources
• Demographic and Media Usage Data
• NAAs Horizon Watching
• NAAs Circulation Facts,Figures andLogic
• Scenario Planning Session w/ Kannon Consulting
• Consensus Building Session Review of
  Deliverable
• Input From NAA Circulation Federation Board of
  Directors
• Final Draft and Publication The Future of
  Circulation A Look at the Present and Long Term
  Outlook of Newspaper Circulation

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The Future of Circulation
Goal
Actionable Recommendations
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Produced by NAA in 1996
CIRCULATION IN THE YEAR 2006
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Power Ideas From the Past
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Address specific delivery and leveraging the
distribution network
Power Ideas From the Past

• Distribution Centers ? (gt25k)
  1996 24.2 2004 75 2010 ?
• Adult Carriers? 1996 51 2004
  81.4 2010 ?
• Deliver Other Newspapers?
  1996 17.1 2004 40.5 2010 ?

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Increased role for single copy,retail marketing
Power Ideas From the Past

• Newsracks Sales as a Per Cent of Total Single
  Copy 1996 43 2004
  33 2010 ?
• Bar Codes
  1996 49 2004
  86 2010 ?
• Scan based trading
  2004 55 / 3
  accounts 2010 ?
• Dedicated merchandisers

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Single Copy
Customer Service, Distribution and Single Copy

• Third Party
• - College Readership Programs

• New Locations
• Sams Club, Costcos, Gyms, Preschools etc.
• Increased Scan Automation
• Additional Foreign Language Products

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Focus on subscriber profitability, smart
acquisition and retention
Power Ideas From the Past

• Telemarketing 1996 59 2004
  41 2010?
• Accept Recurring Credit Card Payments 1996
  30.2 2004 88 2010?
• Recurring payment plans well beyond 15

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Focus on subscriber profitability, smart
acquisition and retention
Power Ideas From the Past

• Average Cost of Acquiring a New Subscriber
• 1996 19.25
• 2000 28.20
• 2002 30.42
• 2004 42.00
• 2010 ?

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Focus on subscriber profitability, smart
acquisition and retention
Power Ideas From the Past

• Direct Marketing, New Forms of Face to Face
  Sales
• Retention Programs Applied Technology
  

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Focus on subscriber profitability, smart
acquisition and retention
Power Ideas From the Past

• Value added Programs
• Leveraging Online Assets
  

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Focus on subscriber profitability, smart
acquisition and retention
Power Ideas From the Past
Customer Interaction Applied Technology

• IVR for Incoming Calls 1996 19 2004
  35 2010?
• Offer Customer Service on Online? 1996
  0 2004 78 2010?
• Less than 20 Offer Real Time Interactive Service

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Focus on subscriber profitability, smart
acquisition and retention
Power Ideas From the Past

• Home Delivery
• 15 are 18-34s
• Single Copy
• 30 are 18-34s

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Emphasis on readership/audience
Power Ideas From the Past
Power Ideas From the Past

• NADBASE for total reach of print/online
• Online paid print niche
• non sub productsREACH
• ABC for preprints
• Reader Profile Service
• Readership behavior score (RBS)

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Theres a war going on...Between the people who
are trying to do something and the people who are
trying to keep them from doing something wrong.
The Future of Circulation
Bill Creech, Retired Gen.
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Drivers of Change Impacting Newspapers
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If you dont like change, youre going to like
irrelevance even less.
The Future of Circulation
Eric Shinseki, Chief of Staff, US Army
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Readers
Drivers of Change Impacting Newspapers
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Readers
Drivers of Change Impacting Newspapers

• Older, more diverse
• Boomers 4 in 10 by 2010 over 45 - best
  readers, control more money, 50 is new 30!

• Demographics and lifestyle drive down readership
• Growing Hispanic population prefers to
  read
• Spanish newspapers, younger people
  spend time with other media

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Readers
Drivers of Change Impacting Newspapers

• Consumer access to internet 7 in 10 use in
  2005
• Other media steal time/change habits satellite
  radio, DVRs, MP3s, blogs, podcasts, Tivo

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Readers
Drivers of Change Impacting Newspapers

• Readers want specific content targeted to their
  interests
  Arizona Republic - 100 products,
  aggregating audience, use research, doable
  anywhere

• Free content is changing the business model
  
  Free content on websites, free pubs, Craigs
  List

• Newspapers respond with suites of new free and
  niche products Corner
  News, Metro, Quick, RedEye, Examiner, Express,
  House to Home, VOW, Bluffton Today

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Advertisers
Drivers of Change Impacting Newspapers

• Traditional advertisers - department stores and
  auto changing Consolidations moving ads
  to regional, national buys away from local ads
  into other media
• Target marketing challenging newspaper revenue
  models and streams increased zoning,
  moves to direct mail, cable TV and internet
• ROI metrics replace mass audience approaches

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Advertisers
Drivers of Change Impacting Newspapers

• Classifieds moving to online and paid to free
  like Craigs List Targeted marketing
  programs and database intelligence collection
• Audiences with specific interests sought by
  marketers

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Competition
Drivers of Change Impacting Newspapers

• Advertiser targeting driving direct mail , cable
  TV, internet use
• Internet spending accelerating
• Craigs List and Monster impact classified
  revenues
• Internet/24 hour cable source for national news

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Regulation
Drivers of Change Impacting Newspapers

• State and Federal regulations will continue to
  change the subscription and distribution models

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Regulation
Drivers of Change Impacting Newspapers

• Acquisition model shifting to retention/CRM
  model
• Distribution model increasingly challenged by
  independent contractors, unions and litigation

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Technology
Drivers of Change Impacting Newspapers

• VoicePort
• Exact Target
• PriceLine.Com Model
• Combined Call Center
• Sliceable/diceable Upgraded audience databases
  G2, Astech Maxx, MSGs MMS, others

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Newspapers Moving Towards 2010
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Customer Service
Customer Service, Distribution and Single Copy

• Self-service at the website payments, EZPay,
  starts/stops, vacations, NIE contributions, email
  transaction confirmation, added value programs

Requested products Unbundling of TV Book
Orange County, CA
Unbundling of Business/Stocks
Austin American Statesman
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Distribution
Customer Service, Distribution and Single Copy

• Additional Niche Products
• Neighborhood, Home, Health, Lifestyle,
  B2B, Real Estate

• Print Product Delivery
• 40 of newspapers deliver other newspapers
  

• Household Specific Delivery
• Competitors Combining Resources

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Single Copy
Customer Service, Distribution and Single Copy

• 3rd Party
• - College Readership Programs

• New Locations
• Sams Club, Costcos, Gyms, Preschools etc.
• Increased Scan Automation
• Additional FREE Foreign Language Products

PURSUIT OF THE OCCASIONAL READER
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Single-Copy Buyer Study 2006
An NAA / MORI Research Study
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Single-Copy Buyer Study 2006

• Comparing 2001 and 2006Overview Implications
• Demographic Information The Purchaser
• Profile By Purchasing Patterns
• The Decision to Buy
• Promotional content factors influencing
  purchasing
• Motivation, Preference and The role of
  Convenience
• Pricing and perceptions of value
• Spending by single copy buyers at grocery c-
  stores

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Single Copy Buyer Study 06

• The Seven Sites
• The Hartford Courant
• Dayton Daily News
• The Oklahoman
• The Sacramento Bee
• The Florida Times-Union, Jacksonville
• The Frederick News-Post
• The Reno Gazette-Journal

Total sample 5152 Adult Purchasers
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Single Copy Sales Channels

• Convenience Stores
• Grocery Stores
• Drug Stores
• Restaurants
• Mass Merchandisers
• Others

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Single-Copy Buyer Study 2006
Demographic Information
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Single Copy Purchasers
Weekdays Sundays Men 61
38 Women 39 62 18-34 31
37 35-54 46 44 55 23 19

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Single-Copy Buyer Study 2006
Profile By Purchasing Patterns
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NAA Single Copy Buyer Study 06
50 of weekday single copy buyers purchase 5 or 6
issues per week
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Monday-Saturday Issues Purchased in an Average
Week
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Single-Copy Buyer Study 2006
The Decision to Buy
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NAA Single Copy Buyer Study 06
Almost half 48 of Occasional Buyers were
influenced to buy the weekday newspaper by Front
Page, Price or Promotion
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Decision to purchase made before or after seeing
the newspaper by frequency
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Promotional Influence on Purchasing Decision
Today (Weekday)
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NAA Single Copy Buyer Study 06
Do point-of-purchase promotional displays
influence the decision to buy the newspaper?
Daily18 to 34 - 3235 to 54 - 2155 - 13
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Usual Influence of the Front Page by Frequency
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Single-Copy Buyer Study 2006
Motivation, Preference and The role of
Convenience
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NAA Single Copy Buyer Study 06
More than half 58 of Occasional Buyers Pick the
Check-out Line as the Best Location
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Single-Copy Buyer Study 2006
Summary
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NAA Single Copy Buyer Study 06
Summary

• Focus on the Occasional Reader
• Casual Readers Acquire Newspapers
  in a manner that fits their lifestyle
• Single Copy Purchasers are influenced by
• Front Pages
• POP Displays
• Convenient Locations
• The Newspaper must be
  Compelling Relevant
• Promotion is critical

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Audience Development and Consumer Marketing
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A Few Considerations
Audience Development and Consumer Marketing

• Focus primarily on print
• Bullish not Bearish on the industry
• Ignore current ABC limitations

• Keep an open mind
• Remember this is about the future
• Accept brutal realities
• Challenge the Status Quo

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What will be our Currency?
Audience Development and Consumer Marketing

• Counting copies will not be enough.
• Tracking readership may not be enough
• Measuring total reach is where we are headed!

• Whats driving the change?
• Single Copy reductions
• Free distribution publications
• Free content
• Advertiser demands

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Toronto might be your future
Audience Development and Consumer Marketing
Free
Online
Paid
craigslist
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Weekday Readership - Paid versus Free
DailiesNADbank 2001-2005 Toronto CMA Adults 18

Total Reach
2,098,700
1,967,700
2,006,800
2,060,700
1,972,300
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Readership is Here to Stay
Audience Development and Consumer Marketing

• Why it is more important to measure Readership
  than count Circulation.
• Readership provides a truer picture of a
  newspapers total audience.
• Circulation represents a smaller portion of the
  reach of a newspaper (Toronto Star 3 readers
  per copy)
• Readership provides complete audience profiles.
• Key data required for strategic planning as well
  as media planning and buying.
• Readership levels the playing field versus other
  media.
• Audience is where the game is viewers,
  listeners and readers.
• Readership estimates are available for content
  readership across media vehicles.
• Combined reach of newspaper content can be
  measured for print and the Internet.
• Readership acknowledges pass-along and free
  distribution.
• In an era of putting the content wherever the
  readers are, readership captures the now
  valued non-paid audience.

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Challenge the Status Quo
Audience Development and Consumer Marketing

• Are we even measuring the right thing?

Good Reader?
Bad Reader?
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The Future Perhaps
Audience Development and Consumer Marketing
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A Future Measurement Model Perhaps

2.34
2.30
1,535,000
1,554,200
2,250,000
2,275,000
69.1
67.5
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Audience Development and Consumer Marketing
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Committee Recommendations / Next Steps
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1. Begin Hiring Training Skill Sets
7 Recommendations

• Experts in Sophisticated Marketing

-- Analysts for understanding data,
script writing and ROIs on circulation
projects.

• Technology Customer Insight

--Hire People who can make us more effective and
efficient.
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2. Upgrade Database Technology, Content and
Applications
7 Recommendations

• Circulation will have to be successful in
  adapting to new database marketing technologies
  and initiatives

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3. Improve Metrics
7 Recommendations

• Three New Major Types of Metrics
• Audience Measurements
• 2. Resource Allocation
• 3. Advertiser ROI

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4. Share Accountability
7 Recommendations

• Must Share Accountability for Readership and
  Circulation throughout the Organization

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5. Re-Build Infrastructures
7 Recommendations

• Must Revamp Systems
• Reengineer Processes
• Broaden Distribution Efforts

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6. Focus on Marketing Promotion
7 Recommendations

• Promote the Value of the Newspaper

• Must Promote the Total Newspapers Portfolio

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7. Build Multi-Platform Readership
7 Recommendations

• Grow Audience and Readership Both
  Online and Print Cross Promotion

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1. Begin Hiring Training Skill Sets
7 Recommendations
2. Upgrade Database Technology, Content and
Applications
3. Improve Metrics
4. Share Accountability
5. Re-Build Infrastructures
6. Focus on Marketing Promotion
7. Build Multi-Platform Readership
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A Final Thought
Audience Development and Consumer Marketing

• Somebody has to do something, and its just
  incredibly pathetic that it has to be us.

Jerry Garcia of the Grateful Dead
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NAA Circulation Priorities Projects
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Questions Discussion
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Thank You. Pick up Your Complimentary Copy Today.