By Al Cupo, VP, Operations, SNA
Gordon Borrell
Sandy Martin
Gordon Borrell, CEO and Sandy Martin, Analyst, Borrell Associates, spent time last week with SNA members during a one-hour webinar titled: Mobile & eReader Opportunities. Several important issues were addressed including content and revenue strategies for online (web sites), mobile phones, tablets and eReaders. Each of these digital options continues to present both challenges and opportunities for community publishers – different than those of major metro and national publications.
Take online for example…while a paid content model may work for large national brands with wide-reaching breaking news the suggestion from Borrell Associates is for community publishers to continue providing their local news for free. The thinking is that while a small percentage of readers would be willing to pay for local online news the majority of people still prefer their local news in print and would be discouraged from visiting a paid site. Borrell was quick to suggest that newspapers publish only a sample of their content – not a wholesale dump of the paper – online, and that community publishers establish a registration process for all users as a way of tracking and eventually monetizing their extended online reach.
The same can also be said for mobile when it comes to the delivery of local editorial content – limit content to breaking local news and sports stories and keep it free.
That doesn’t mean you should walk-away from mobile; not by a long-shot. Borrell recommends using available technology to develop a mobile revenue strategy that focuses on local advertising programs and specifically mentioned the new shopping site zip2save.com* as a potential partner. Sites like zip2save provide a turnkey approach for initiating and monetizing a local mobile business strategy that benefits readers, advertisers and local publishers in a matter of days – not years.
Along with a mobile strategy all publishers also need to be thinking about the impact eReaders and tablets will have on their future business – especially the delivery of local advertising. While not having a strong impact just yet (only 5% of households currently have an eReader device**) the writing is on the wall for future revenue growth as this technology and usage develops. The fact is, mobile devices like the iPad are considered ‘leisure devices’ and show substantial spikes in traffic patterns on weekends; this combined with the fact that by 2015 all portable devices like the eReader and laptop computers will be mobile ad capable presents an opportunity for marketers to reach their customers when and where they are most likely to be making buying decisions.
Consider the following research:
3% of newspaper readers have eReaders (Scarborough 2010)
53% of eReader users read the newspaper (Scarborough 2010)
34% of eReader users use the device for reading a Newspaper (Tech Crunchies 2010)
This research tells us that while the actual number of newspaper readers with eReaders is relatively small the percentage of those people reading a newspaper with the device is strong. Borrell believes these numbers will continue to be a ’moving target’ for the next several years and that eventually all newspaper content – both editorial and advertising - will be available through some type of mobile device; it’s just a matter of time. The strategy is to start the process now to avoid playing catch-up in the not so distant future.
SNA will be addressing this and many other issues affecting the community publishing industry at the SNA Publishers’ and Advertising Directors’ Conference next month in Philadelphia, September 21 – 24. The theme of this year’s event is: Multiple Platforms. Maximum Revenue – Bringing Together Print, Web & Mobile.
Visit the Fall Conference Page for the complete program and registration information.
Borrell Associates presents a Local Mobile Advertising Conference in Dallas, September 27 – 29. Contact Borrell Associates for additional information:
info@borrellassociates.com
phone 757.221.6641
www.borrellassociates.com
*zip2save.com is a national site, searchable by town and zip code. zip2save
aggregates a mix of local, regional and national electronic circulars, deals and coupons and makes them available to the user in their local community. Contact Al Bonner for more information: 785-856-0421 or al.bonner@zip2save.com
**The NPD Group, 2010 Consumer Technology Household Online Penetration Study.