A canyon has formed between newspapers companies that are gaining share in the digital space and those losing it. The following findings are based on those publications that have shown significant growth in their digital operation:
- Most are selling “solutions” to advertisers, not just banners on their own websites. These include deal-of-the-day programs, email advertising opportunities, targeted banners, contests, ads delivered through networks to other sites such as Yahoo, Facebook or Google, mobile text offerings, etc.
- They have a sales force dedicated exclusively to selling online products. Even the smallest newspapers have at least one online-only salesperson. Some have more than two dozen.
- They have clear and aggressive revenue goals – often not incremental.
- Their local interactive manager typically reports directly to the publisher, not to the editor or sales manager.
- They view the web as a platform to go beyond what’s in the printed newspaper and give a greater voice to the community, extend deadlines and compete with other media. The web has allowed suburban and community newspapers to compete more heavily with metro newspapers, radio and television when it comes to in-depth coverage.
These conclusions represent just some of the findings detailed in the recently released Local Online Media Benchmarking Revenue Survey, prepared by Borrell Associates for SNA members. This is the ninth year Borrell Associates, Inc., has conducting surveys on local online ad revenue. This report analyzes Web revenues for 896 daily newspapers and 625 weekly newspapers participating in the surveys, as well as that of 3,304 other non-newspaper local competitors in the online space. In all, the analysis in this report examined 4,825 local Web properties in the U.S. and Canada.
This very detailed report covers category specific online revenue associated with streaming audio/video, e-mail programs, paid search, mobile applications and percentage of revenue derived from banner and pop-up ads. This report also addresses staffing and budgeting issues affecting digital operations throughout North America. In addition, the report takes a close look at competitive media in the local market. These competitors include pure-plays like Groupon and Autotrader.com, as well as local radio and television stations.
Looking ahead, Borrell expects that growth in targeted display and video advertising – along with opportunities in mobile advertising – will help propel newspaper companies’ online revenues to $6.2 billion in 2015. This will amount to a 13.4 percent compound annual growth rate over the next five years.
The Local Online Media Benchmarking Revenue Survey is available at no cost to SNA members. Simply email sna@suburban-news.org and a copy will be emailed to you.
SNA encourages everyone to register for the follow-up Webinar presented by Gordon Borrell on Thursday, June 23, 2011.
Gordon BorrellStart Date/Time: Thursday, June 23, 2011, 2:00 PM Eastern Time
Gordon Borrell, CEO of Borrell Associates, Inc. will review the report and walk through the various daily and weekly findings at newspaper online operations in the U.S. and Canada.
How To Register for the Webinar
- SNA Interactive Media Alliance (IMA) Members: FREE, Email sna@suburban-news.org
- SNA Members not part of IMA: $39, Click here to register
- SNA Non-Members: $89 (includes the Benchmarking Local Online Media: 2010 Revenue Survey, a $395 value), Click here to register
Note: If you have any questions regarding registration, please let us know: sna@suburban-news.org or 888-486-2466.