metro users 2014 industry challenges and opportunities through the eyes of an ad guy
TRANSCRIPT
Metro Users 2014
Industry Challenges and Opportunities through the
Eyes of an Ad Guy
The
Story
POLITICO
PrintPOLITICO’s newspaper is as vibrant and prosperous as ever. Why? Put simply, members of Congress and their staff still read it voraciously, as they await votes or sit through committee hearings and floor debates
who reads politico?With the largest distribution of any Capitol Hill news publication, POLITICO distributes over 35,000 copies of its newspaper five days a week when Congress is in session. Copies go to:House & Senate | Federal Agencies | White House | Supreme CourtLobbyists | Special Interest Groups | Think Tanks | Media Companies | Wall Street160 Vending Boxes and 100 Starbucks Locations in the D.C. AreaDelta and American Airlines Shuttle Locations at DCA and LGA
Audience Fragmentation Affecting Everyone
Source: Nielsen
In 1983, the M.A.S.H final episode was viewed by
121.6 million or 52% of the population.
This year’s Super Bowl was viewed by 111.5 million or
only 35% of U.S. population
Source: 2013 (r2) Scarborough USA Database
Newspaper Audience
Today newspapers still reach 153 million or 63% of U.S. adults
in an average week
Sources: Nielsen, U.S. Census Bureau
22 million view the evening news 6:30-7 pm on the three big
networks COMBINED out of 317 million people in the U.S.
Evening News
Source: 2014 Scarborough Report (r1)
1.8 million of Tampa Bay DMA adults every Sunday read a newspaper out
of 3.6 million adults
Newspaper Audience
Our Audience is Telling Us
More than half (56%) ALWAYS use the printed product compared to the
newspaper’s other offerings
Source: 2014 RAM Engagement Study
56%
9%
5%
4%
4%
3%
3%
The majority of readers (63%) are reading the printed product in some form every day
Source: 2014 RAM Engagement Study
0
10
20
30
40
50
60
70
Daily 5-6 days aweek
2-4 days ofweek
One day aweek
Less thanone day a
week
Never
63%
11% 13%
5% 4% 3%
Readers continue to spend more time with the Sunday product than any other day of the week
Source: 2014 RAM Engagement Study
0%
5%
10%
15%
20%
25%
30%
35%
40%
Less than10 minutes
10 to 15minutes
16 to 30minutes
31 minutesto 1 hour
More than 1hour
Do not read
10%9%
5%
21%19%
9%
31%
28%
21%
34%
23%24% 25%
6% 6% 6%
14%
9%
Monday-Friday Saturday Sunday
Readers still feel that the newspaper updates them on things they want to know and that it
is part of their habit
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
None of these
I lose myself in the pleasure of reading thisnewspaper
Read the newspaper makes me feel like abetter citizen
This newspaper has columns and features thatgive me good advice
I use the advertising information to be a bettershopper
It's my civic responsibility to keep informed onissues and happenings around me
Reading this newspaper gives me somethingto talk about with others
Read this newspaper makes me more a part ofmy community
The coupons and ads save me money
It's a habit/Been doing it a long time
This newspaper updates me on things I try tokeep up with
Source: 2014 RAM Engagement Study
73%78%
62%
67%
53%49%
45%49%
41%47%
40%47%
35%34%34%
41%30%
38%26%
34%
4%3%
2014 2013
Newspapers are still considered a more reliable source over other media
0% 10% 20% 30% 40% 50% 60% 70%
Friends and Family
Magazines and Periodicals
Online or Digital Media
Television
Radio
Newspaper (Print, Digital or E-editions)
Source: 2014 RAM Engagement Study
16%63%
17%
25%53%
8%
30%53%
36%40%
32%45%
6%
50%24%
4%
8%
5%
Sometimes reliable Usually reliable Always reliable
Local News continues to be the most looked at content
Source: 2014 RAM Engagement Study
Total Men Women
Local News 83%
National/International News 68%
Features-Arts & Entertainment 63%
Coupons 61%
Editorials/Opinions 55%
Medical & Health Information 55%
Local News 81%
National/International News 69%
Sports – Pro 64%
Politics 60%
Business 60%
Features-Arts & Entertainment 56%
Local News 86%
Coupons/Advertising Inserts 71%
Features-Arts & Entertainment 70%
National/International News 67%
Special Features and Sections 63%
Medical & Health Information 62%
Most readers still feel they get good value from the money they pay for the newspaper
Source: 2014 RAM Engagement Study
0%
10%
20%
30%
40%
50%
60%
Outstanding Good Fair Poor
29%
22%
49%51%
18%
23%
3%5%
2013 2014
Where is the Money?
Local Media Five-Year Forecast
U.S. $Billions
Source: BIA/Kelsey’s U.S. Local Media Forecast (2012-2017)
$120.0
$125.0
$130.0
$135.0
$140.0
$145.0
$150.0
$155.0
2012 2013 2014 2015 2016 2017
$132.7
$136.6
$139.5
$145.2
$148.8
$132.5
Local Ad Market Less Dominated by Traditional Media
2012 and 2017 U.S. Local Media Revenues
2012
Direct Mail
Newspapers
Television
Radio
Online/Interactive
Yellow Pages
Out-of-Home
Cable
Magazine
*ERPM
Mobile
Source: BIA/Kelsey’s U.S. Local Media Forecast (2012-2017)
$132.5 Billion
2017
Direct Mail
Newspapers
Television
Radio
Online/Interactive
Yellow Pages
Out-of-Home
Cable
Magazine
*ERPM
Mobile
$148.8 Billion
27.0%
17.0%
15.7%
8.2%
5.8%
5.5%5.1%
2.4%1.2%
0.9%
25.0%
11.9%
15.2%11.5%
10.6%
3.7%
6.0%
6.0%
2.0%
2.0%
6.1%
11.2%
Steady Shift Toward Digital Media
Source: BIA/Kelsey’s U.S. Local Media Forecast (2012-2017)
17.4% 19.4% 21.3% 23.7% 25.5% 27.6%
82.6% 80.6% 78.7% 76.3% 74.5% 72.4%
Traditional Online/Digital
Metro Comparative Report through Q1
• Retail (4.2%)
• National (2.2%)
• Automotive (20.6%)
• Real Estate (4.3%)
• Employment (15.3%)
• Classified (10.5%)
• Total Advertising Revenue (7.1%)
• Total Newspaper Revenue (3.5%)
Customers Are Telling Us……
• ROI
• Dark Cloud over our Industry
• Pressure to Move Towards Digital
• Branded Edition Abuse
• Opt-in Program Abuse
• AAM Confusion
Stand Your Ground
Our Enormous Assets
• Brand Identity
• We Generate Most of the Content
• Thud Factor
• Feet on the Street
• People Actually Want Our Ads!
Innovative Revenue Growth
Video
• While TV holds the largest share of ad spending
worldwide, online video is becoming a viable
alternative……
TV and Video Viewing Habits are Changing
Source: AYTM Market Research May 2013
Among Internet Users who Have a Cable TV Subscription
May 2013
60%Cable TV
23% Had in past
17% No
With rising online video viewing, nearly one-fourth no longer have a cable TV
subscription
Online Video Offers Better Engagement Opportunities
Pay Per Lead Program
Pay Per Lead Program
• 11,152 calls in past 12 months
• 214 calls per week
$500,000 in New Money!
Source: Call Source Report
Native Ad Content
Digital Services
Extension Selling
Don’t Look Past The Obvious
• Know who is on your Media Kit
• Implement an ISS Team
• B-2-B Marketing
How You Can Help
• Address Specific
• Products to Households