The Big Picture

The Big Picture 2008

Journalism, audience and advertising on the Web

Anthony MoorDeputy Managing Editor/Interactive

The Dallas Morning [email protected]

Agenda• The birth of the Semantic Web • Our promiscuous, ‘help me’ audience• Journalism as a service, not a product• Advertising decouples from news• Discussion

Web 1.0: The good old daysWeb 1.0

(1993-2003)

Audience Geeks

Unit of Content

Page (article)

State Static (HTML)

Architecture

Client/Server

Engagement

Read(Britannica online)

Ad Distribution

A few large sites (DoubleClick)

Search Boost

Domain name speculation (Netscape)

Web 2.0: The interactive WebWeb 1.0

(1993-2003)

Web 2.0 (2003-2010)

Audience Geeks Everyone

Unit of Content

Page (article) Data (mashup, widget)

State Static (HTML) Dynamic(XML, Ajax, RSS)

Architecture

Client/Server Web services (syndication)

Engagement


Write/Contribute (Wikipedia, Flickr)

Ad Distribution


The entire Web (Google AdSense)

Search Boost


SEO (Google)

Web 3.0: The data-driven WebWeb 1.0

(1993-2003)

Web 2.0 (2003-2010)

Web 3.0 The Semantic Web

Audience Geeks Everyone •Data powers the Web•Automated mashing up of personalized content•Intelligent-agent driven assembly and interactivity

Unit of Content

Page (article) Data (mashup, widget)

State Static (HTML) Dynamic(XML, Ajax, RSS)

Architecture

Client/Server Web services (syndication)

Engagement


Write/Contribute (Wikipedia, Flickr)

Ad Distribution


The entire Web (Google AdSense)

Search Boost


SEO (Google)

Source: Chicago Tribune

Audience Trends• Our newspaper.com audience is

aging

The newspaper.com audience is aging

Source: Belden Associates, ‘Be Web Now’


aging• The online public is relying on social

networks and collaborative filtering to edit the news

Growing use of social networks

• Membership in online communities doubled in only three years

• 54 percent of online community members log into their community at least once a day

• 71 percent of members say their community is very important or extremely important to them

• Fifty-six percent report meeting online counterparts in person

• 25% of bank and brokerage customers use social networks1

Sources: USC Annenberg School, 2008 Digital Future Project; 1Forrester (Feb. 2008)

Social networks exchange news

Social networks exchange news

Social networks recommend sites

Social networks recommend sites

Social networks collaboratively edit

Social networks collaboratively edit


aging• The online public is relying on social


• Brand promiscuity is the norm

An audience of ‘fly bys’

Source: 2006 McKinsey survey of 2,100 US Customers

Audience Trends• Our newspaper.com audience is aging• The online public is relying on social


• Brand promiscuity is the norm• They expect us to be where they are,

not to go where we are

“If the news is that important, it will find me.”

– The words of a college student, as recalled by Jane Buckingham, founder

of Intelligence Group, a market research company Source: New York Times, Mar. 27, 2008

Source: 2006 McKinsey survey of 2,100 US Customers

Access is more important than quality

Info sought from newspaper.coms

Source: NAA Digital Edge report, 2006

Any news content 96%

Breaking news 74%

Local or community news

73% (Women higher)

Weather 63%

Local entertainment information

55% (Women, 18-54s)

National or international news

46%

Sports scores or information

46% (Men)

Political coverage 30% (Men, 55+)

Lifestyle info (fashion, etc.)

30% (Women, 18-54s)

Financial/investment info

12% (Men)

Info sought from dallasnews.com

Source: dn.com online survey, Dec. 2007

1. Breaking national news 2. Breaking local news during the

workday 3. Breaking local news in the evening

and overnight 4. Breaking crime news5. Breaking local news on the weekend 6. Crime map in my city and zip code 7. More frequent updates to the home

page during the day 8. Morning email newsletter with the

top 10 local stories happening today 9. Breaking sports news during the

workday10.Weather maps, radar, alerts



• Brand promiscuity is the norm• They expect us to be where they are, not

to go where we are• They want us to help them get things done

Q&A site visits are exploding• U.S. visits up 118% in

2008• Up 889% over two years

Dallas audience asks for help

• Watch my back– Watchdog journalism– Local crime and safety news (mapped to

neighborhood)

• Watch my wallet– Local bargains and ‘best of’– Resources to solve everyday problems– Personal financial advice– Business news and analysis

Source: Dallas Morning News survey, Dec. 2007

Dallas audience asks for help

• Watch out for me and mine– Local green and health news– Tips for helping kids do better

academically– Weather news, maps and info– Product recalls

• Keep a watch on my neighborhood– News briefs from my part of Dallas– Neighborhood coverage

Source: Dallas Morning News survey, Dec. 2007



• Brand promiscuity is the norm• They expect us to be where they are, not to

go where we are• They want us to help them get things done• They’re watching more video

Video use continues to grow

• Various studies show video use up and frequency is up• Total video audience

– Leichtman: 14% of all adults watch at home weekly, 4% daily

– Pew: 74% of online adults watch at home or work, 19% daily

• Most popular categories– News is #1 (except for 18-29 year olds who prefer comedy)– Comedy– Movies/trailers– Music videos

Source: State of the News Media, 2008

Audience Trends: Implications?

• Our newspaper.com audience is aging• The online public is relying on social


• Brand promiscuity is the norm• They expect us to be where they are, not to

go where we are• They want us to help them get things done• They’re watching more video

Journalism Trends• News is shifting from being a product

– the Web site – to becoming an always-on service – help me get something done

Source: State of the News Media 2008

Home pages emphasize service

News is a feed – like electricity

Data centers provide utility

Mobile becomes a lifeline

Business info goes actionable

If you help watchdog, we help you

Journalism Trends• News is shifting from being a product

– the Web site – to becoming an always-on service – help me get something done

• News Web sites are no longer final destinations


Audience visits via the side door

• SJ Merc: Two-thirds of its audience comes from aggregators1

• Dallasnews.com: 61% of visits entered somewhere other than the home page (Jan. 08)

Source: 1The Bivings Report

Press becomes ‘press sphere’

Source: Jeff Jarvis, Buzzmachine

A story is a point on a news timeline

Source: Jeff Jarvis, Buzzmachine

Journalism Trends• News is shifting from being a product –

the Web site – to becoming an always-on service – help me get something done

• News Web sites are no longer final destinations

• User-generated content doesn’t replace the story, it becomes part of the news process


We’re not getting ‘articles’ from users

• TIKK president earns 8th degree black belt (by himself – a karate studio owner!)

• Grand Hyatt DFW Ranks #19 in Dallas Business Journal Best Places to Work Survey (by the Haytt’s PR company!)

• Botox...Not Just for Wrinkles Anymore! (need we say more?)

Seeding Cit J sites works better

Five part-time posters and moderators

The 1% rule• Of 100 people online, one will create

content, 10 will "interact" with it (commenting or offering improvements) and the other 89 will just view it

• 50% of all Wikipedia article edits are done by 0.7% of users

• You Tube "creator to consumer" ratio at just 0.5%

Source: guardian.co.uk (Jul. 2006)

Crowdsourcing aids reporting

Beat blogging shows promise

• Pro-am journalism • Users provide insight, ‘stubs’ of

information, that pros polish

“News becomes a collaborative and cumulative work in progress pieced together by multiple contributors, rather than a media-certified byproduct carved in press plates and fixed in time.” – Carl Sessions Stepp, AJR

It’s reporting with a network

“This is still about managing relationships. Reporters are naturals at that - but not usually in an online environment. A beat reporter needs to go where the people are, meet them on their own turf, or provide a space where they can be comfortable.” -- David Cohn, BeatBlogging.org

Journalism Trends• News is shifting from being a product – the Web

site – to becoming an always-on service – help me get something done

• News Web sites are no longer final destinations• The prospects for user-generated content

appear more limited than initially thought• Media companies are broadening the definition

of journalism to include helping users navigate through content from others


News sites link out

Inline links offsite increase

NYTimes.com: We ‘edit the Web’

Journalism Trends: Implications?

• News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done

• News Web sites are no longer final destinations• The prospects for user-generated content

appear more limited than initially thought• Media companies are broadening the definition

of journalism to include helping users navigate through content from others


Advertising Trends• Display advertising has plateaued

Ad Spending

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2006 2007 2008 2009 2010 2011

Search

Display Ads

Classified

Rich Media/Video

Lead Generation

E-Mail

Sponsorships

Source: eMarketer, Oct. 2008

Advertising Trends• Display advertising has plateaued• Locally, video and search advertising

are where the growth is

2012: Video ads, paid search dominate local

E-Mail Ads

Banners & Listings

Banners & Listings

E-Mail Ads -

Paid Search Paid Search

Online Video -

Online Video

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Mil

lio

ns

Lo

ca

l On

line

Ad

Sp

en

din

g

Online Video $371,000,000 $5,000,000,000

Paid Search $1,837,000,000 $5,865,000,000

E-Mail Ads $233,000,000 $1,302,000,000

Banners & Listings $5,272,000,000 $2,140,000,000

2007 2012

$2,000 29%

$10,865 76%Total

$7,713

Total$14,307

Source: Borrell Associates Inc. Feb. 2007

NAA: The big money is in advertorials

• Longer-form “infomercial”• One to two minutes about an

advertiser’s product or service.• Already used in the real estate

industry to provide video walk-though tours of homes for sale


are where the growth is• Small spenders are where the big

local dollars are

Self-service advertising

Business directories



local dollars are• News and advertising are decoupling

Search engines suck up the dollars

• Google, Yahoo, AOL and MSN accounted for 57% of net online ad dollars in 2006

• Top 10 sites received 70%• Advertising on news/current events

sites grew 9% while others grew faster• Growth rate down from 2005


Advertising Trends: Implications?

• Display advertising has plateaued• Locally, video and search advertising


local dollars are• News and advertising are decoupling

Discussion

http://www.slideshare.net/ajmoor