News Without Paper? New Opportunities

for Print Brands in Digital Media

WAN-IFRA America Latina JACK GRIFFIN SANTIAGO DE CHILE APRIL 25 - 26, 2012

My Journey

2

1.  North American Newspapers: A Cautionary Tale

2.  Digital Transformation

3.  Newspaper Industry Reinvention: Ten Ways Ahead

4.  Five Questions for Innovators

3

Our Agenda Today

Circulation Declines in U.S. and Europe

4 Source: NAA

U.S. Newspaper Ad Revenues Down by Half

5

U.S. NEWSPAPER ADVERTISING REVENUE (US$ MILLIONS)

2005 - 2011

Source: NAA

A Shrinking Industry

6

Cost Cutting – Catching a Falling Knife

7

U.S. newsrooms are more than 25% smaller than they were in 2007.

Equity Value Destruction

8

$3.5 Billion

$200 Million

A new medium is never an addition to an old one, nor does it leave the old one in peace. It never ceases to oppress the older media until it finds new shapes and positions for them. – Marshall McLuhan,

Understanding Media, 1964 ”

“

9

1961 2011

10

Digital Transformation

7 Billion People as of November 2011

(and growing!)

77% Connected by mobile devices

5.3 Billion at the end of 2010; U.N. Telecommunications Agency, http://www.itu.int 11

A Connected, Mobile World

10.8 33.7

60.7 81.5

95.1 105.1 60.2

90.1

106.7

119.9

133.0

148.6

71.0

123.8

167.4

201.4

228.1

253.7

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2010 2011 2012 e 2013 e 2014 e 2015 e

Mil

lio

ns

of

Un

its

U.S. Ownership of Devices by Year

SmartPhone

Tablet

Source: Forrester Research 2-12 for Tablets; eMarketer 12-11 for SmartPhones e = estimate

U.S. Smart Mobile Devices Will Top 200 Million in Use in 2013

MORE THAN 250% INCREASE 2010-2015

12

13

Newspaper Industry Disrupters

Source: CoRise, October 2011 14

Facebook Google

Apple Amazon

Four Centers of Digital Gravity

15

68% of All Online Advertising in 2011

16

Search — “You Find It”

17

Social — “It Finds You”

# REGISTERED USERS

2 BILLION 150 MILLION

500 MILLION 10 MILLION

• 133 million Americans are active users; 750 million worldwide

•  Latin America is the fastest-growing region

• U.S. users average 26 minutes/session vs. 3.5 minutes for newspaper sites

• $4 billion in 2011 ad revenue

• By 2015, will account for 20% of all digital display ads (Source: PewCenter)

• Moving aggressively into local – zip codes – and mobile

18

19

Social=Search as Source of Traffic

Source: Hitwise

•  First for-profit online news organization to win a Pulitzer Prize for reporting

•  #2 news site on the web (Source: Comscore)

•  Aggressive use of facebook connect: 7 of the top 20 political stories shared on facebook in 2011 came from the Huffington Post (Source: facebook)

20

News Without Paper

21

News Without Paper

•  Non-profit devoted to reporting and publishing investigative journalism “with moral force”

•  Winner of two Pulitzer Prizes in two years, including first for an online news organization

•  90+ media partners who publish particular stories exclusively

•  Twitter=118,000; facebook=30,000

22

Social Changes News

23

Social Changes the World

24

25 25

1.  Paid Digital Content

2.  Mastering Mobile

3.  User-generated Content

4.  Social Media & Aggregation

5.  Targeted Digital Advertising

6.  E-commerce

7.  Marketing Services

8.  Online & Mobile Video

9.  Deals & Digital Coupons

10. Events

26

1. Paid Digital Content

27

2. Mastering Mobile

28

3. User-generated Content

29

4. Social Media & Aggregation

30

5. Targeted Digital Advertising

31

6. E-commerce

32

7. Marketing Services

33

8. Online & Mobile Video

34

9. Deals & Digital Coupons

35

10. Events

36

1.  Culture: Have I established a culture of innovation?

2.  Capital: Am I investing enough in the digital future of my company?

3.  Capabilities: Do I have the right people in the right jobs?

4.  Costs: Is my cost structure sustainable?

5.  Competition: Who is my REAL competition?

Empirical Questions

EmpiricalMedia.com

THANK YOU

WAN-IFRA America Latina

Text FOLLOW JackGriffinEMA to 40404

37