DirecTV customers will be able to bundle their video and high-speed Internet services, no matter where they live in the United States, through new agreements with satellite broadband providers ViaSat and Hughes.
DirecTV will offer Excede by ViaSat and Hughes' HughesNet Gen4 next-generation satellite broadband services, with speeds of over 10 Mbps to customers living in mostly unserved and rural areas later this year. This new offering, coupled with already available triple-play bundles with Verizon, AT&T, Century Link and other telco providers, means that any DirecTV customer in the U.S. will now be able to get bundled pricing.
Customers who sign up for satellite broadband through DirecTV will be able to take advantage of certain special offers beginning later this year. More details on the offers and marketing plans will be made available closer to launch.
"We look forward to offering every single DirecTV customer access to fast, affordable broadband options through DirecTV, no matter where they live," said Oswin Eleonora, senior vice president, Emerging Markets, DirecTV. "With greatly improved capacity and speeds, satellite broadband services provided by ViaSat and Hughes will fully support our customers' connected home experience, enabling them to access a host of features like YouTube, Pandora, social TV apps, and more than 7,000 VOD titles."
Viacom: Social TV Must Offer Content, Communication, Comments
Viacom has unveiled the results of a new study exploring the social TV phenomenon through the lens of the viewer. While fairly nascent, social TV and co-viewing trends represent a shift in TV viewing from what Viacom calls a “lean-back” to a “lean-forward” experience. If there is a takeaway for advertisers, it is that those “behind the scenes” streams, additional scenes and blooper reels that networks run on their websites are pretty valuable ad real estate.
Viacom finds that viewers engage in an average of seven different types of social TV activities – online or offline – on at least a weekly basis. The most common activities include watching TV with others (85%), searching for supplemental content (61%) and viewing TV show clips on social networks (58%). The new research reveals that consumers engaging in social TV activities "C's the moment" primarily by communicating, consuming content and checking comments.
The two-phase study involved 24 ethnographies in Boston and San Diego with VMN viewers aged 13-52 that engage in social TV activities on at least a weekly basis. National online surveys were conducted with over 1,500 VMN viewers aged 13-54. When asked what social TV means to them, the most commonly reported words were "interactive," "friends" and "Facebook "or "Twitter." The leading source of discovery of social TV services is through search (38%), followed by social networks (26%) and ads run on shows (22%).
"One of the main goals of this research was to understand how to inspire social TV activity among our audiences," said Colleen Fahey Rush, Executive Vice President and Chief Research Officer, Viacom Media Networks.
Content
Content is king for social TV users. Viewers want something special from their social TV services rather than commoditized content that can be found through online searches. The number one request for content is full-length episodes (88%), followed by sneak peeks of new episodes (75%), and behind-the-scenes extras (71%) and highlight clips (71%).
The majority of TV socializers are interested in rewards with real value, like free merchandise or signed cast photos. When putting aside the material aspect, virtual rewards offer an emotional pay-off, described as being similar to the feeling when 'liked' on Facebook. Trivia and casual games related to a show are of greater interest if they offer some kind of reward. Real fans want to have their knowledge and skills tested, and expect the game to be challenging.
Communication
Communicating is a top priority for social TV users. Many respondents described cobbling together unique communication systems to interact with different social circles while watching a show. "When I'm watching Jersey Shore, I have Facebook chats with 10 friends and I'm texting a dozen people, and I can be on the phone to my best friend," said one participant.
There is no one-size-fits-all in terms of chat options. Of those interested in chat features, 56% prefer communicating through the social TV app/service, 53% through Facebook, 50% through individual or group texts and 38% through Skype or Apple FaceTime. For those that use check-in services, 71% check in to a show to let their friends know and 64% check in to let other fans of the show know. Check-in services are a unique way of communicating viewing activities while simultaneously encouraging others to tune-in and join a shared experience.
Smartphones dominate the use of social TV apps at 82%, trailed by tablets at 18%. For services that are delivered via HTML websites and associated apps, 52% of usage occurs on smartphones or tablets, followed closely by desktop or laptops at 48%.
Comments
Social TV users check comments about their favorite shows for a variety of reasons. Comments provide a different point of view, can pick up on something a viewer may have missed on their own and most importantly, create a direct connection between fan and show. "I love reading Daniel Tosh's tweets while watching Tosh.0. It gives the show a whole other dimension," said one survey respondent.
Not all sources of comments are equally valued. The number one source viewers want to hear from is a show's cast and crew, followed by the people they know. Audiences are sensitive to the quality of comments from a show's cast and crew – they look for authenticity and prefer the star(s) to be in character.
Social TV Users "C's the Moment" During Live Viewing
"Viewers C's the Moment" reveals that live TV show viewing unlocks the real value of social TV services and co-viewing activities. Features relating to communication, content and comments are twice as likely to be used during live than time-shifted viewing. Social TV enthusiasts reported feeling "left out" of the conversation if they missed a live airing.
One respondent said, "I'm most likely to engage with Social TV networking when it's live. So when a new show comes on, I'm very likely to check-in just before the show, see comments from other people, [and] make my own comments during the show as well."
Social TV activities also increase directly after a live show, when viewers can access exclusive content like sneak peeks without interrupting the live viewing experience. "I go to the website and watch the director's cut…after it airs as I like the extra scenes. I like to feel that I am getting something extra and it extends the show," said a participant.
Social TV can also help foster show discovery. Features like check-ins, viewer comments and shared video clips help viewers discover shows, incentivize them to watch and encourage them to join the live conversations.
ESPN Upfront: Heavy on Digital, Authentication, New Films, Advertiser Value
ESPN presented its annual upfront yesterday, with a heavy emphasis on authentication, apps and delivering advertiser value. While the networks struggle to create social TV experience, CNN will likely be the first to make it a norm.
At the same time, ESPN Films announced that it will resurrect its 2010 hit series of sports-oriented films 30 for 30.
As Ad Age reports, Eric Johnson, ESPN's exec VP-multimedia sales, promised advertisers more targeted reach through its digital properties including the espnW platform for female sports fans; a new ESPN radio app for both the iPhone and iPad; ESPNFC, a global soccer destination; and a partnership with Twitter that will start with the NBA Finals.
Johnson claimed as well that with the Watch ESPN authenticated TV Everywhere app (introduced last year), ESPN now reaches 40 million homes, a number it expects to double before 2013.
Of course, few networks have the budget of ESPN, and "Modern Family" fans are hardly as rabid as NBA fans. But ESPN sets the bar for cross-media convergence.
30 for 30 Vol. II
ESPN Films has announced the return of the Emmy-nominated and Peabody Award-winning 30 for 30 film series. As with the first series, which included collaborations with acclaimed filmmakers such as Peter Berg (“Kings Ransom”), Barry Levinson (“The Band That Wouldn’t Die”), Ice Cube (“Straight Outta L.A.”) and Academy Award-winner Barbara Koppel (“The House of Steinbrenner”), ESPN Films will once again partner with a wide array of filmmakers to tell inspirational sports stories. 30 for 30 Vol. II is scheduled to premiere in October.
“30 for 30 was conceived as a finite collection and when the original series ended in December of 2010 with ‘Pony Excess,’ we had underestimated the strength of the connection fans had made between sports documentaries and the 30 for 30 brand,” said Connor Schell, vice president of ESPN Films. “We’re proud to have created a brand that has become synonymous with quality sports storytelling and we see value in bringing back a second collection of 30 films.”
In addition to a second slate of 30 feature-length documentaries, ESPN Films will broaden its scope to support a whole new crop of stories with the creation of 30 for 30 Shorts – a 30-part digital short film series. 30 for 30 Shorts will be similar to the feature-length films in that each piece will represent a specific point of view of the filmmaker and will be a reflection of how they blend the narrative with their own visual style. Beginning in September, a new short film will debut monthly on Bill Simmons’ Grantland.com. A 30 for 30 Short entitled “Here Now” about Pete Rose is currently online as preview of the series.
Volume II of 30 for 30 will have a much more defined multimedia component through closer integration with Grantland.com by featuring filmmaker podcasts with Bill Simmons, topical oral histories, in-depth features and more. Each feature-length film and digital short will be complemented with a long-form written piece on Grantland.com that deepens the experience with additional context.
Films scheduled to air as part of 30 for 30 Vol. II include:
- “Benji” about 17-year-old NBA prospect Ben Wilson whose life was tragically cut short;
- “Broke,” a documentary about pro athletes sucked into bad investments, stalked by freeloaders, saddled with medical problems;
- “Bo Knows,” another documentary about the marketing of pro athletes like legendary sports figure Bo Jackson;
- “The Season of Their Lives,” about the 1982-83 North Carolina State Wolfpack basketball team.
Social TV Via Twitter
ESPN announced a strategic collaboration with Twitter that it believes offers fans and advertisers unique, interactive programs around major sporting events, beginning with the upcoming NBA Finals. The effort will be promoted across Twitter, ESPN networks, ABC and ESPN’s broad array of digital assets, including ESPN.com and ESPN Mobile.
Each program will be co-created by ESPN and Twitter, beginning with GameFace – the first effort, which will be focused on the NBA Finals. GameFace will be seamlessly integrated throughout the live ABC broadcasts and ESPN’s NBA Tonight programming with a dedicated Twitter hashtag #GameFace.
Fans will be encouraged to tweet photographs of their “game face” throughout the finals. At the conclusion of each game, NBA Tonight analysts will highlight the competition and reveal the best photographs on-air. The best photos will also be featured in a photo gallery on ESPN.com/NBA.
“Working together, ESPN and Twitter are giving marketers a clear and powerful way to link on-air and online social conversations around sports,” said Joel Lunenfeld, Twitter’s Vice President of Global Brand Strategy. “It’s the first time advertisers can engage the audience around ESPN’s premier content across screens and where the conversation is happening on Twitter.”
Added Ed Erhardt, president, ESPN Global Customer Marketing and Sales, “Advertisers and marketers have been asking for meaningful opportunities that tap into the power of social media. We know fans use ESPN and Twitter as their main source for content and connectivity. By taking that scale and combining it with the passion of sports fans, this program answers the value equation of social media while providing a new way for fans to engage with ESPN.”
On Twitter, #GameFace will be supported through Twitter’s Promoted Products suite (including a Promoted Trend during the Finals), and the experience will be plugged on the @NBAonESPN Twitter handle.
ESPN Radio
The latest version of the ESPN Radio app for iPhone, iPad and iTouch provides both live and on demand content, and includes a new feature that allows fans to build their own sports stations. Versions for Android and Windows 7 smartphones are slated to launch later this summer.
“This latest version of the ESPN Radio App builds on our promise to deliver the best sports audio content across any device,” said Marc Horine, Vice President, ESPN Digital and Print Media. “With this update, fans now have complete control over their listening experience as the app provides the functionality to customize specifically by sports, teams and athletes they care most about.”
Beginning today (May 16), fans can download the premium version of the app at no cost for a limited time. After that, for a one-time fee of $4.99, fans can access the full experience of the app, complete with the new personalization features and enhancements. The premium app will continue to give millions of ESPN Radio listeners access to live radio streams from more than 35 ESPN Radio stations, fan favorite shows like “Mike & Mike in the Morning,” “The Herd” with Colin Cowherd, “Waddle & Silvy” (Chicago) and “The Michael Kay Show” (New York), plus select play-by-play broadcasts, live scores and text messaging.
ESPN Radio launched its first app in September 2009 and has since been one of the top paid sports apps in the marketplace. Additionally, it was named Best Radio App by Radio Ink Magazine at the Digital Convergence Awards in May 2011. The ESPN Radio App is available from the App Store on iPhone, iPad and iPod touch or at www.itunes.com/appstore.
CEA: Consumers Use HDTV Like An iPad
As video consumption increases and viewing devices vary, consumers are still using televisions most often to watch video, according to The Evolving Video Landscape study released by the Consumer Electronics Association (CEA). So should ad buyers take back those digital dollars they robbed from TV budgets? Not necessarily. Consumers are increasingly using televisions like iPads, for social media, music and web browsing.
Consumers are watching more video than they have in the past, across a variety of platforms. One-third of U.S. adults online (34%) say they watch more video content today than they did a year ago. Viewing of television video programming is up 28%, with consumers citing convenience and the appeal/variety of programming as the top factors for increased viewing. Viewing of content on portable devices has also increased, with 40% watching more on those devices today than a year ago.
Many consumers (66%) who are watching video content on television are simultaneously using other consumer electronics (CE) devices. This behavior is more prevalent among younger consumers, as 85% of 18- to 24-year-olds and 70% of 25- to 34-year-olds multitask with another device while watching video on a television. U.S. adults online report watching some type of video content an average of 3.2 hours a day, five days per week.
Televisions continue to be the most commonly used device for watching video but other devices are gaining in popularity. HDTVs are the most prevalent devices used for video viewing, used by two-thirds (66 percent) of U.S. adults online. Computers are also commonly used to watch video, with 62 percent using a laptop to watch video and 55% using a desktop. One-third (33%) of consumers are using their smartphones to watch video content, and 17% are using their tablets.
“Consumers are watching more video than they have in years past and they are seeking devices and technologies that deliver a quality video and audio experience,” said Shawn DuBravac, CEA’s chief economist and director of research. “However, younger consumers accustomed to multitasking are defining new video behaviors as they watch video content across multiple platforms, on their own schedule, all while interacting socially on their devices with their friends.”
Televisions have also emerged as a device that can do more than just play video. Among consumers using televisions to watch video content, nearly half (47%) also use their sets for other purposes. One in three (34%) consumers who use a television to watch video also use their set to listen to music, and one in five (21%) uses a television to listen to audio. Usage also varies by age and the type of display owned. Younger consumers, those under age 25, rely on their TVs more for music, social media, going on the Web and communicating. Consumers with Internet-enabled TVs use their displays in a number of ways as well: 47% listen to music, 28% use social media, 26% surf the Web and 23% view photos.
Future television purchases will be based on better picture quality and larger screen sizes as consumers will continue to seek the latest innovations in the market. Almost half (48%) of consumers planning to purchase a TV in the next 12 months will be replacing an aging, obsolete or broken set. However, half (51%) desire improved picture quality in a new display and half (50%) want a larger screen size. One in four (24%) consumers with intentions to purchase a TV over the next year expect to purchase a 3DTV; 21% plan to purchase an OLED display; and a quarter of consumers (25%) plan to purchase an Internet-enabled TV. While stated purchase intentions do not always translate to transactions, the study clearly shows many consumers have their eyes fixed on newer TV technologies.
“Easy access to the Web makes TVs more versatile, allowing us to stay connected, informed and entertained,” said DuBravac. “In the future, new technologies, like OLED and 3D, will continue to improve the viewer experience, and Internet-enabled sets will fulfill consumers’ desires to be connected.”
The Evolving Video Landscape Study (April 2012) was conducted between February 22 and March 2, 2012. It was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please cite any information to the Consumer Electronics Association (CEA)®. The complete study is available free to CEA member companies at members.CE.org. Non-members may purchase the study at the CEA Store.
The Broadcast-Over-The-Web War Gets Serious
All of the major TV broadcasters hate the idea of bypassing televisions, but some of their local affiliates love the idea.
All major TV broadcasters have joined forces to fight Aereo, “an upstart company backed by Barry Diller that seeks to distribute stations online to paying customers,” as Hollywood Reporter describes. If Aereo successfully fends off the lawsuits, then Aero will retransmit broadcast programming online (and charge for it) without paying retransmission fees.
Broadcasters see it as a slippery slope. As Matt Bond, executive vp content distribution at NBCUniversal, told a New York federal court on Wednesday, it makes no sense for cable systems or satellite broadcasters to pay for NBCU content: They need only follow the Aereo example and snag it for free. (Aero uses an individual antenna to do so.) Bonds declared that "I know for a fact that cable companies have already considered such a model." Bonds and his opposite numbers at rival networks foresee impaired retransmission negotiations with cable and satellite providers, and lost ad dollars.
At the same time, local station owners are actively working with technology startups that want to broadcast their content to tablets and smartphones, reports USA Today. "It's watching TV in your car or on the train," Colleen Brown, CEO of TV station owner Fisher Communications told USA Today. "There will be a time when consumers don't care how they get TV."
USA Today names Aereo alongside new ventures Syncbak, Dyle and Mobile500 as providing mobile digital TV technology for consumers looking to cut the cable cord.
Mobile500 Alliance is a joint venture of 50 TV station companies (Fisher Communications included, and Brown chairs the alliance), which plans to release an antenna and iOS app this summer to allow iPhone and iPad users to receive local TV broadcast signals. The content will be free, but the antenna will cost $50 to $100.
Thus far,other companies that aimed to deliver TV via Internet (including Filmon, Ivi.tv and iCravetv) have been blocked by lawsuits: But none was backed by a heavyweight like Barry Diller, or by a consortium like the Mobile500Alliance.
More on this as the story evolves.
Newspaper Sites Competing With In-House and Reader Produced Video
Newspaper websites have been weak on the rich media content that attract visitors. But a select few are venturing into over-the-top broadcasting, producing video on par with their TV competitors, reports Diana Marszalek of TVNewsCheck. The websites for the Denver Post, Boston Globe, the Twin Cities’ StarTribune, SeattleTimes and Louisville’s Courier-Journal are all moving into in-house-produced video content. And they are attracting talented journalists, like DenverPost.com’s Anne Herbst, a national Edward R. Murrow award winner.
“The good news from my perspective is that content is king, not the medium any longer,” said Radio Television Digital News Association (RTDNA) Chairman Kevin Benz in an interview with TVNewsCheck. That enabled the StarTribune.com, a newspaper website, to win regional Emmy awards. A Boston.com (the Boston Globe website) video series on the late Senator Ted Kennedy was similarly up for a national Emmy.
And content drives traffic: StarTribune.com enjoyed a 297% increase in videos played from April 2011 to April 2012, though the paper did not detail how that translated into dollars. Presumably, it is a strong case-builder for display advertising.
Local papers will not have quite the budgets the manpower or budgets to become ersatz TV stations, but they can meet the trend halfway. Digital First Media last week announced that it would launch 12 new community newsroom projects, to build upon the success of the Newsroom Café launched by the Register Citizen in Torrington, Conn. The Café was an experiment that led to the Register Citizen being named the 2011 Innovator of the Year by the Associated Press Media Editors.
All of its Denver outlets, including The Daily Camera, dailycamera.com, BuffZone.com and BoCoPreps.com in Boulder, Colo., are planning a variety of community engagement approaches, including enabling local residents to upload video they shoot of sporting events, or of recording sessions for local bands in the “Camera Garage studio.”
That content will not have the quality of, for example, a story produced by Herbst for DenverPost.com; it will lean more toward the iReports on CNN.com. But in time, it should be a boon to newspapers that rely in display, search and targeted ads.
Comcast Joins “TV Everywhere” Race With ESPN App
Five months after Comcast announced it, its Xfinity TV subscribers now have access to its ESPN gateway to streaming sports and news. Comcast is offering an authenticated app (iOS only, for now) to access WatchESPN.com.
As paidContent describes, this will double the number of households with access to WatchESPN to 40 million. The app gives the viewer more targeted choices than, for example, XfinityTV.com or the Xfinity TV app, by allowing sports fans to select individual programs from across the ESPN network. Still, it is integrated with the Xfinity TV app, which enables viewers to set up remote recording.
But can you advertise on it? Not yet, but soon. LostRemote interviewed Amy Phillips, the Senior Director of Communications at ESPN, who said “We initially stripped out ads but are introducing more and more advertising into streams [but] we’re working with advertisers and agencies to explore those opportunities.”
They will have to, to stay in line with ESPN President John Skipper’s pledge to maintain broadcaster value. Skipper in February commented that the channel will not use digital platforms to draw viewers away from cable and satellite. “We don’t cannibalize ourself, we use those platforms to cross-promote,” with mobile alerts and fantasy game applications, among other offerings. So perhaps ESPN is speaking with its existing advertisers for upsells and cross-media packages.
Right now there are no social features, so it appears the app is in its infancy, design-wise and business-wise.
ANA, 4As Tell Marketers: Up To You To Fight Online Piracy, Counterfeiting
The Association of National Advertisers (ANA) and the American Association of Advertising Agencies (4A’s) yesterday released a Statement of Best Practices that encourages all marketers to take affirmative steps to address the serious problems of online piracy and counterfeiting.
The associations released the Statement at a meeting of the International Anti-Counterfeiting Conference in Washington, DC. The Statement specifically advises marketers to include language in their media placement contracts and insertion orders to prevent ads from appearing on "rogue sites" dedicated to infringement of intellectual property rights of others. In addition to the ANA and 4A's, the Statement is supported by a key industry partner, the Interactive Advertising Bureau (IAB).
Bob Liodice, ANA’s President and CEO, stated: “Marketers must have confidence that their ads are not unintentionally providing financial support or otherwise legitimizing ‘rogue’ Internet Web sites whose primary purpose is to steal the intellectual property of America’s innovators and creators.” Liodice noted that “ads for iconic and trusted brands can lend inadvertent legitimacy to the illicit business models and can mislead consumers into believing that these ‘rogue’ Web sites are offering authentic products and complying with the law.”
Addressing online piracy and counterfeiting has been a strong priority for both the White House Office of the Intellectual Property Enforcement Coordinator (IPEC) and the Congressional International Anti-Piracy Caucus. They have urged ANA, the 4A’s, IAB and other industry groups to play an active role in this fight. The Best Practices Statement supports this critical need by encouraging all marketers to take affirmative steps to avoid placement of their ads on "rogue" Web sites. “The deceptive practices of these ‘rogue’ Web sites are unfair both to consumers and the companies that invest vast resources to establish brand integrity,” said 4A’s President-CEO Nancy Hill. “Combatting online piracy and counterfeiting is a key priority for the entire business community and we look forward to continuing to work with the White House, Congress and all of our industry partners on this important issue.”
Randall Rothenberg, IAB President and CEO, stated: “Protecting the availability of quality, original content is vital to the health of the Internet. IAB remains committed to combating online piracy and through our Quality Assurance Guidelines program we will continue to develop a more secure digital supply chain. We appreciate the initiative by ANA and the 4A’s and look forward to working with our marketer and agency partners to find effective business solutions that can choke off revenue from these criminals.”
Liodice concluded: “We strongly urge all marketers to discuss this matter with their ad agencies and media buyers to stress your company’s commitment to combatting online piracy and counterfeiting. The entire Internet ecosystem must come together to address this problem."
New “NBC Politics App” For iPad, iPhone
NBC Politics today launched a new app for iPad and iPhone that brings users inside the 2012 election with a collection of videos, reports, and interactive tools, graphics and games from the best team in politics.
NBC promises a seamless advertising experience through Zumobi’s new rich media mobile ad platform. Through the Zumobi Brand Integration (ZBi) platform, NBC Politics offers brands an immersive advertising experience that is "organic and complimentary to the app design." The NBC Politics App is sponsored by Nissan and Liberty Mutual Insurance. The app is available for free from the App Store.
The NBC Politics App "delivers the power of NBC News’ political reporting right to your fingertips – anytime, anywhere," NBC said in a statement, and from trusted journalists like David Gregory, Chuck Todd, Andrea Mitchell and the network’s deep bench of correspondents and contributors. NBC News
NBC Politics is now available on-air on NBC News, online at NBCPolitics.com and on mobile with iPad and iPhone, offering users a multi-platform experience of the political landscape. “With all eyes on the 2012 election, the NBC Politics App delivers the best political content and reporting – wherever you are. This all-access, easy-to-navigate resource puts the full power of NBC News in your hands, from the top headlines and stories to innovative features that allow serious political junkies to dig even deeper,” said David Gregory, moderator of NBC News’ “Meet the Press.”
“We’re excited about offering this interactive, up-to-the minute experience for the depth of our political coverage this election season,” said Jennifer Sizemore, msnbc.com general manager and editor-in-chief. “The expertise of the NBC Politics team is the essential ingredient for this app, which is another entry in our strategy to give our audience what it needs, wherever and whenever it needs it.”
The NBC Politics App features Include:
- Video: Agenda-setting interviews and reports from “Meet the Press with David Gregory,” “The Daily Rundown with Chuck Todd,” “Andrea Mitchell Reports,” and NBC News’ entire line-up of trusted news broadcasts and platforms
- Battleground Map: an interactive map that gives users the tools to test potential electoral vote outcomes. How do different state election outcomes add up to 270 electoral votes needed for victory? Users can test out different scenarios, play along with NBC News political experts and create personalized outcomes with the chance to see their map on-air or online.
- Tip Sheet: A round-up of the day’s most memorable, must-know moments and headlines
- Live Election Results: Real-time results as they unfold.
- Candidates: Details about each presidential candidate through in-depth profiles and headlines related to each candidate
- Share: A feature to share articles on Facebook and Twitter and to follow @NBCPolitics for the latest updates and exclusive reports
Digital-First Strategies Deliver for Publishers, Advertisers
Three years ago, the Christian Science Monitor “began a jump-in-the-deep-end version of digital transformation,” describes the Poynter Organization. The daily newspaper went to a weekly print edition, maintaining daily news online. If that sounds like a surrender, guess again: The Monitor garners about 42 million page views a month and 8 to 10 million unique visitors, which is five times what it was before the transformation. Plus, ad revenue and content sales have grown more than 50% for the fiscal year closing April 30, “The best we’ve done financially since 1963,” writes editor John Yemma.
What the Monitor did which, for example, the New York Times and Wall Street Journal have not, is to largely surrender its print edition—a gamble, but a strategy that has worked arguably as well as the NYT and WSJ strategies. And it placed more of an emphasis upon online advertising.
The challenge for the Monitor is somewhat like that of the Corporation for Public Broadcasting: It is funded largely by endowments (The First Church of Christ, Scientist for the Monitor, government and corporate endowments for CPB). But endowments expand and contract, and have not held the Monitor above water any more than they hold up public broadcasting, else there would be no semiannual “pledge drives” on public television. “You might see the systematic decrease of our longstanding subsidy as similar to the erosion of print ad revenue at a locally based newspaper,” wrote Yemma.
And like newspapers, the Monitor is going digital, treading water until the digital strategy pays off. The Monitor has an operating budget of $18.6 million, and is down $4.5 million for this fiscal year, and budgeted for $3.3 million next: but it counts on the digital transformation to turn it around by 2017. (“Trading print dollars for digital dimes,” as Digiday describes the dilemma.) And those dimes are coming from high-end brands like Infiniti and Nokia.
Quit Crying Over Print
Digiday summed up the challenge by digital to print media: “$40 billion evaporated with little likelihood of return [but] rather than waste more time pointing fingers, publishers need to get on with figuring out what’s next.” For years, the news industry depended upon classified ads which Google, Facebook and Craigslist now own. “This market dynamic continues to move so quickly that its last owner, Yahoo, has already faltered into a lesser tier.”
The solution for publishers is, simply, to carve a niche and own the distribution. “A marketplace where buyers have multiple channels to reach the same audience only leads to a race to the bottom.”
The Monitor is somewhat like the Huffington Post—it is the demographic that differs. Both have a distinct audience, Scientologists (among others) for the Monitor, a younger-and-progressive skewing demo for HuffPo. Both endeavor to provide high-end first-hand content: Both have global and U.S. correspondents monitoring world events, the campaign trail, the Supreme Court, tech, science, and the environment. And the Monitor wins the occasional scoop: CSM on April 9 covered the reversal of immigration from Mexico, hitting the presses a week before a Pew report confirmed the trend. But HuffPo was a digital-only product that never had to throw off the shackles of a print edition and make the transition to digital.
Both Monitor and HuffPo skew to an educated late 30s-early 40s wage-earning demographic—a sweet-spot for digital reading. That’s what works for them: They meet the readers.
Similarly, Penton Media’s Technology Media Group in February announced that, in response to audience and marketer demand, it would transform all of its brands to all-digital beginning this month. “We conducted research amongst our audience and advertisers and found that they were really looking for an enhanced digital experience and were becoming less reliant on print magazines,” said Peg Miller, Penton technology market leader. Miller noted that the Penton audience is largely one of IT professionals and developers working in a digital environment. Penton had double-digit gains in digital edition subscriptions FY 2011-2012, and “We’re finding that our audience prefers to learn about technology through multiple channels – whether it be printed words, videos, audio, screencasts and in-person events.” Penton Technology Media Group brands include Windows IT Pro, SQL Server Pro, DevPro, System iNetwork and The VAR Guy, among other titles.
Penton is hardly stepping raiding Monitor or HuffPo’s readerships: but the lesson is the same. Successful publishers meet the readers where they are and with a unique value proposition. And that in turn means value for advertisers.