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June 18 2013

14:08

Data-Hungry Mail Online Mulls Original-Video Move

CANNES – Look out, world. Having quickly become the planet’s most-visited newspaper website, Mail Online plans to ramp up its digital video offering beyond its core categories of entertainment, lifestyle and breaking world news.

“We’ll continue to expand the types of video programming we’re deploying,” the title’s global chief marketing officer Sean O’Neal told Beet.TV in this interview during this week’s Cannes Lions advertising conflab. “We’re even looking at doing more original programming. We do think that’s an opportunity.”

London-based site publisher A&N Media has surprised industry watchers by turning its famously right-leaning UK mid-market tabloid Daily Mail into a segment-beating phenomenon. Having formed editorial teams in New York and LA two years ago, Mail Online has become a phenomenon, with roughly 50 million unique monthly web visitors, according to comScore.

O’Neal says reasons for the success are threefold:

  1. “It has been completely operated independently. Martin Clarke, our publisher, started it up very entrepreneurially and built a purely digital publishing business.”
  2. “Unlike a newspaper, you can print as much content as you like.”
  3. “We’ve got great technology. We’re very data-oriented. Within minutes of publishing a story, we actually have enough feedback to know whether that story is going to be a winner or a loser.”

Now he is planning to add video content marketing opportunities to an advertiser line-up that already includes pre-roll spots.

For a deep-dive behind Mail Online’s strategy, see the publisher’s easy-to-read recent investor presentation.

December 07 2011

21:41

The rise of local media sales partnerships and 19 other recent hyper-local developments you may have missed

In this guest post Ofcom’s Damian Radcliffe cross-publishes his latest presentation on developments in hyperlocal publishing for September-October, and highlights how partnerships are increasingly important for hyper-local, regional and national media in terms of “making it pay”.

When producing my latest bi-monthly update on hyper-local media, I was struck by the fact that media sales partnerships suddenly seem to be all the rage.

In a challenging economic climate, a number of media providers – both big and small – have recently come together to announce initiatives aimed at maximising economies of scale and potentially reducing overheads.

At a hyperlocal level, the launch on 1st November of the Chicago Independent Advertising Network (CIAN), saw 15 Chicago community news sites coming together to offer a single point of contact for advertisers. These sites “collectively serve more than 1 million page views each month.”

This initiative follows in the footsteps of other small scale advertising alliances including the Seattle Indie Ad Network and Boston Blogs.

These moves – bringing together a range of small scale location based websites – can help address concerns that hyper-local sites are not big enough (on their own) to unlock funding from large advertisers.

CIAN also aims to address a further hyper-local concern: that of sales skills. Rather than having a hyperlocal practitioner add media sales to an ever expanding list of duties, funding from the Chicago Community Trust and the Knight Community Information Challenge allows for a full-time salesperson.

Big Media is also getting in on this act.

In early November Microsoft, Yahoo! and AOL agreed to sell each other’s unsold display ads. The move is a response to Google and Facebook’s increasing clout in this space.

Reuters reported that both Facebook and Google are expected to increase their share of online display advertising in the United States in 2011 by 9.3% and 16.3%.

In contrast, AOL, Microsoft and Yahoo are forecast to lose share, with Facebook expected to surpass Yahoo for the first time.

Similarly in the UK, DMGT’s Northcliffe Media, home to 113 regional newspapers, recently announced it was forging a joint partnership with Trinity Mirror’s regional sales house, AMRA.

This will create a commercial proposition encompassing over 260 titles, including nine of the UK’s 10 biggest regional paid-for titles. Like The Microsoft, Yahoo! and AOL arrangement, this new partnership comes into effect in 2012.

These examples all offer opportunities for economies of scale for media outlets and potentially larger potential reach and impact for advertisers.  Given these benefits, I wouldn’t be surprised if we didn’t see more of these types of partnership in the coming months and years.

Damian Radcliffe is writing in a personal capacity.

Other topics in his current hyperlocal slides  include Sky’s local pilot in NE England and research into the links between tablet useand local news consumption. As ever, feedback and suggestions for future editions are welcome.



 

June 30 2011

14:00

The newsonomics of the British invasion

Editor’s Note: Each week, Ken Doctor — author of Newsonomics and longtime watcher of the business side of digital news — writes about the economics of news for the Lab.

With the United Kingdom one of the countries suffering the economic doldrums more than the U.S., maybe it’s no surprise that we’re witnessing a British online invasion. In short order, the Guardian, Mail Online, and the BBC, among others, are targeting American eyeballs and wallets in the urgent search for growth.

With Independence Day (from you know who) upon us, and memories of the Beatles’ assault on America rapidly fading into history, let’s look at the newsonomics of this new invasion. It tells us reams about the precarious states of news companies. As they scrape for revenue in the traditional home markets, and transition from print or broadcast to digital, they’re looking for new digital revenue building blocks.

The arithmetical imperative is crystal clear: The huge audiences that the distance-defying Internet has given UK news companies has not yet, largely, been accompanied by huge, even significant, pots of revenue.

Companies like the Guardian have seen this phenomenon: A third of its traffic comes from the U.S., a third from the UK, and a third from elsewhere. I’ve heard that tale widely, from the pre-wall Times, the Telegraph, and the FT, among others. When we first spotted big numbers for UK publishers among U.S. audiences, a lot of people attributed it to George W. Bush, whose cowboy policies alienated some Americans from American media, the idea went, delivering them into the hands of the more trustworthy Brits. But the big U.S. population — a population five times greater than the UK’s — is, W or no W, is still embracing non-national news sites. Maybe the math is fairly simple: We’ve got about a third of the English-reading people in the world, so serving up a third of the audience makes some sense.

While America provides the audience, it doesn’t provide much revenue for most UK news companies. The Guardian derives all but a couple of points of digital revenue from its home market — leaving two-thirds of its audience, in the U.S. and elsewhere, effectively un-monetized. That’s largely true of the other UK-based general news dailies, with the Financial Times much more effective at driving print and digital revenue in the U.S., and the Wall Street Journal, conversely, having figured out how to drive non-U.S. revenue as well. Both, in addition to The New York Times’ long-established sales operations in Europe, are the exceptions that prove the rule about foreign market digital monetization.

As the Guardian, BBC, and Daily Mail plan new offense, each reacts to its woes back home.

The Guardian is in danger of running out of cash within three to five years, at its current trajectory, Guardian CEO Andrew Miller said plainly in mid-June. So he’s leading a top-to-bottom reappraisal of the outfit’s 190-year-old enterprise. On the examination table: a restructuring of the entire company, reducing the number of pages in the six-day-a-week print paper; rethinking (under digital innovator and Guardian editor Alan Rusbridger‘s leadership) what readers expect in print and what online; upping its re-commitment to its open platform strategy led by Matt McAlister; doubling its digital revenue (which currently stands at 17 percent of its total revenue); and getting more money out of the U.S. market.

The Guardian’s U.S. plan includes the deployment of a revitalized editorial staff under Guardian vet Janine Gibson, and a re-strategizing of ad sales in the States. The Guardian’s new plan follows on a failed one, the Guardian America plan, tried and abandoned over several years. The new idea: Don’t put an American face on the trusty Guardian; keep the British face, but offer more British perspective on and from the U.S. The thinking: The Guardian’s very Britishness is why American readers come to its site.

For the Daily Mail, it’s about finding growth in a national news business (Associated Newspapers) that struggled toward revenue break — even last year, even as its parent, the diversified, global DMGT (events, B2B publishing, and institutional investment products), produced £320M in profits.

Mail Online, of course, is the new darling of those who religiously follow Big Numbers. It has surpassed HuffPo to claim the #2 unique visitor trophy globally, behind the New York Times, and a few days ago claimed 77 million global uniques, about a third of those from the U.S. The outlet’s rocket fuel is a heady mix of tabloid gossip fodder, great SEO, aggressive mobile productization, and, now, expanded commercial and editorial staffs in New York and L.A.

The BBC, funded by household TV licenses back home, has seen significant public funding cutbacks and staff reductions, buffeted both by UK politics and by the deep recession. While in the UK, the BBC can’t sell advertising, it can do so outside its home territory. Consequently, it has placed a first big target on the U.S., where it now claims about 18 million uniques.

The BBC’s American build-up is well underway. Herb Scannell, ex of Viacom, and Ann Sarnoff, ex of Dow Jones, joined to head up BBC Worldwide America as president and COO, respectively, last year. Seven weeks ago, Nick Ascheim, ex of the AP and The New York Times, became senior vice president for digital media. Back in 2008, ad veteran Mark Gall began building out the BBC Worldwide America ad sales team, focusing on multi-platform (BBC America TV  + BBC.com) revenue.

Ascheim identifies two major initiatives, as BBC.com — the BBC’s first separate-from-the-mothership website — tries to leverage and build on its found audience. One is video — a core strength of broadcaster BBC, which dominates much of online news video in Britain with its iPlayer — and the other is feature verticals, building beyond the Travel section that BBC built out, with its Lonely Planet acquisition, last year.

Let’s take a quick look at what it will take for the new invasion to be successful, doing a little handicapping of these three entrants:

  • Ad revenue: All the newbies face hyper-competition in the world’s most competitive digital marketing marketplace, one built both on the seemingly paradoxical tricks of leveraging long-term buyer/seller relationships and satisfying the dreaded “23-year-old” media buyer, one who may never have heard much about these foreign brands. Here, give a big lead to the BBC. It’s got a couple of years’ head-start on U.S. sales, and the brand that is most recognizable — and it can sell multi-platform, TV, and digital. Mail Online has a tough effort here, with comparatively little brand recognition and the suspicion that its pageviews are less-than-premium, more TMZ than NYT. The Guardian has a good story, but a history of failed ad attempts, including a Reuters network deal that fizzled. For all three of them, breaking through the noise — and providing more actionable audience analytics — is key.

    Beyond the sales infrastructure, these companies have different experiences monetizing their UK traffic, and that informs what may happen in the U.S. Compare the digital ad revenue per unique visitor for the Guardian and the Mail Online, and we see a differential of four-to-one, in the Guardian’s favor. (The BBC doesn’t break out digital ad revenue well enough for comparison.)

    The Guardian took in £37.5 million in digital revenue in 2010. Using the December ABCe number of 39 million uniques, each unique is worth about £.96, or $1.53 at today’s exchange rates.

    For the Mail, I extrapolate about £16 million in digital revenue for last year. Using the March (aligning with its reporting period) ABCe unique number of 66 million, I figure each unique visitor is worth about £.24, or 38 American cents, to the Mail.

    That’s a 4x greater yield for the Guardian than Mail Online, relating to some combination of brand, sales packaging, and engagement beyond simple unique visitor metrics. How much would/could that differential carry across the sea?

  • Brand: It’s clear that both the BBC and the Guardian have real brand meaning among certain news followers, but it ‘s not clear how growable the brands are. Are they second or third reads, or can they break through top-of-mind? Yes, they may both believe that Americans want a Brit take on things, but just how much of one do they want? Mail? Online? Wasn’t that the one with Meg Ryan? Does having a dot.com domain make a big difference? BBC and Mail have them; the Guardian doesn’t.
  • Digital circulation: That’s a big N/A — not applicable. The Guardian has been one of the most outspoken proponents of “open,” and while that doesn’t equate with free, it’s a close cousin. As the outlet moves away from print, it faces a huge question of where it is going to get “circulation” money. In the short-term, in the U.S., look for Guardian to try app or niche vertical reader revenue streams. The BBC’s news play is high-end mass and free, while Mail Online plies the pop free market.
  • Video: Hands down, the BBC has the edge here. Ascheim talks about adding new original U.S.-produced video to the riches of what BBC produces daily. In a coming 4G world, video may be BBC.com’s major point of differentiation in the States.
  • Mobile: Consider this the wild card. As mobile, especially the tablet, reshapes what we think is true about news reading “The newsonomics of the missing link“), it re-levels the field. So newer entrants, like all three of these invaders, can establish new habits for readers. Mail Online is already attributing 15 percent of its UK uniques to its new iPhone app. Guardian’s Eyewitness iPad app has seen a half million downloads and good sponsorship money from Canon. BBC has seen more than two million downloads of its BBC.com iPad app. As new habits form for iPad news reading, listening, and watching, these new contenders all have new shots at the American audience.

It could well be we’re reaching the end of the line for a much-cited quote often attributed to Churchill: ”England and America are two countries separated by the same language.” Well, he or G.B. Shaw may have said it, but marketers believe the differences are becoming more minor. It’s not just news people who grok the revolutionary economics in re-using and redistributing the same content you’ve already paid for; both Netflix and Hulu are moving to license more Brit TV for the same reason. In strong part, the new Brit invasion is just a re-stating of the produce-once, distribute-many core digital principle. In this case, though, it’s produce-once, (profitably) distribute overseas as well.

Image by Andy Helsby used under a Creative Commons license.

April 20 2010

09:42

paidContent:UK: Why Mail Online is staying free

Publisher of the Mail Online, the Daily Mail & General Trust (DMGT), has shared some of its executives’ slide show presentations from an investor day.

The presentations explain on why the online paper is staying free, and not going down the the Times Online route.

You can download the slides here, or find paidContent:UK’s excellent summary at this link. The group says that while charging for niche and mobile might work:

MailOnline – uniquely among UK newspaper sites – is now big enough to make the advertising model pay.

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December 16 2009

10:08

FT.com: Daily Mail owner to launch 15 iPhone apps

Daily Mail and General Trust (DMGT) will launch 15 applications in Apple’s iTunes store over the next six months.

Apps for Mail Online, Metro.co.uk and six other properties are expected to go live early next year. All will be free to download and supported by advertising.

Full post at this link…

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December 09 2009

09:10

MediaGuardian: DMGT records second highest ever profit

Interesting to note amidst a backdrop of job cuts and industry crisis talks that the newspaper industry is still a business – and sometimes still a big money one.

In its annual report released yesterday, publishing group Daily Mail & General Trust announced an operating profit for 2009 of £278 million.

The group’s businesses now make up 73 per cent (£203 million) of this operating profit, with newspaper publishing only accounting for 27 per cent (£75 million). Compare this to 1996 when DMGT’s newspapers made up 86 per cent of this figure.

“My father made a decision some 15 years ago to diversify the group away from the UK newspaper market into other media less dependent on newspapers, advertising and the UK. Given what has happened in the last year, that decision has proved to have been inspired. From next to nothing then, our B2B businesses have this year contributed nearly three quarters of the group’s profit, with over 60 per cent of our profits coming from outside the UK. While some of the diversification has been more successful than others, in total it has been a well executed expansion, largely into the United States, graveyard of so many UK company expansion plans,” said group chairman Viscount Rothermere in a statement.

Full story at this link…

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