Younger, Jennifer: lighntning talk, Digital Preservation: Aggregated, Collabo...
Paid online Content: Trends, best practices and strategies that fit
1. PAID ONLINE CONTENT
Trends, best practices and strategies that fit
Michigan Press Association
Jan. 26, 2013
Presented by Mike Jenner
Missouri School of Journalism
University of Missouri Missouri School of Journalism
2. 3 THINGS
YOU NEED TO KNOW
University of Missouri Missouri School of Journalism
3. 1. HALF the country‘s
dailies are now charging
Paid content is no longer a trend.
It‘s a movement.
University of Missouri Missouri School of Journalism
4. Half the country‘s dailies now charge
• An RJI survey
of 458 daily
publishers last
summer Yes
47% No
showed that 53%
47 percent
were requiring
online users to
pay
0% 0% Source: 2012 RJI Publishers Confidence Index
University of Missouri Missouri School of Journalism
5. Half the country‘s dailies now charge
• Since
then, the
numbers have
Yes
climbed to a 50%
tipping point. No
50%
0% 0% Source: 2012 RJI Publishers Confidence Index
University of Missouri Missouri School of Journalism
6. Smaller papers have led the way
• 59% of dailies under 5,000 circulation
• 53% of dailies between 5,001 and 10,000
• 46% of dailies between 10,000 and 50,000
• 26% of dailies with circulation over 50,000
University of Missouri Missouri School of Journalism
7. Groups have seen the light
• Gannett: 71 of its dailies • Media News-Digital First
• McClatchy • Gatehouse
• Tribune • Schurz
• Media General • Swift
• Lee • Wick
• Cox • Pioneer
• Scripps • New York Times
• Morris
• Dow Jones
University of Missouri Missouri School of Journalism
8. Why this matters to the industry
• Basic economics: Supply and demand
• Widespread paid content is bringing a badly
needed scarcity to a glut of news
• It straightens out an illogical business model
University of Missouri Missouri School of Journalism
9. Why this matters to the industry
It makes an important statement:
Your content has value
regardless of platform.
University of Missouri Missouri School of Journalism
10. 2. Reduced page views
don‘t hurt revenues
Sites have so much unsold inventory, the only
losses in ad sales are pennies in remnant banners.
University of Missouri Missouri School of Journalism
11. When paywalls go up…
• Page view declines range between 5-40 percent
• Most sites have an inventory glut — many more
page views than needed to present paid ads
• Only remnant and ―value added‖ avails are lost
• Paid content quickly covers any lost ad revenue
• I know of no site that‘s seen a net revenue
loss, even those seeing 40 percent fewer page
views
University of Missouri Missouri School of Journalism
12. 3. Your loyal readers will
support your efforts to charge
They want you to succeed.
University of Missouri Missouri School of Journalism
13. They want you to survive and thrive
• Loyal readers are the biggest supporters of paid
online content, even in markets where they are
asked to pay more for access to online news.
• In Cape Girardeau: Less than 2 percent of
home delivery subscribers opted out. Yet less
than 40 percent established digital accounts!
University of Missouri Missouri School of Journalism
14. 4 BENEFITS
OF A PAID MODEL
University of Missouri Missouri School of Journalism
15. New revenue: Straight to the bottom line
• Revenue increases will depend on market size
and pricing
• It‘s no silver bullet
• Case studies show how pricing affects revenue
University of Missouri Missouri School of Journalism
16. Your site will become more valuable
to your advertisers
• More local, more quantifiable
• You know who your customers are and what
they‘re seeing on your site.
University of Missouri Missouri School of Journalism
17. Quality of reader comments improves
Longtime reader to Andy Waters after the
Columbia Daily Tribune launched its paid model:
“Thank you for cleaning up the comments!”
University of Missouri Missouri School of Journalism
18. Online users are no longer freeloaders.
They‘re customers.
University of Missouri Missouri School of Journalism
19. 2 DISADVANTAGES
OF A PAID MODEL
University of Missouri Missouri School of Journalism
20. 1. Your online users are no longer
freeloaders — they‘re customers
Up until now, if they had a complaint, making
them happy might not have been your highest
priority.
After all, you were giving it all away for free.
Now, they‘re paying customers.
University of Missouri Missouri School of Journalism
21. 2. You‘ll hear some negative
comments when you launch
• Expect story commenters to object
• The wave of opposition will be loud — but thin
and short-lived
• Plan in advance to counteract it
• Thoughtful explanation to readers
• Sustained marketing effort
• Focus on your value proposition
University of Missouri Missouri School of Journalism
22. 2 CASE STUDIES
• Columbia Daily Tribune
• Augusta Chronicle
University of Missouri Missouri School of Journalism
23. • 20,000 average weekday circulation
• Ownership: Family
• Launched December, 2010
• Metered model
• Built it in-house
University of Missouri Missouri School of Journalism
24. ColumbiaTribune.com
launched paid content
on Dec. 1, 2010.
• Advertising-only model
was not generating
revenue growth
• Wanted to eliminate
incentive to stop buying
print edition
• New revenue stream
University of Missouri Missouri School of Journalism
25. How does it work?
• Metered model – 10 free/mo.
• Online-only: $8/mo.
• Print subscribers: $1.50/mo.
• Premium: All local content
(photos, video, news, sports,
blogs, obits, etc.)
• Free: Everything else (section
fronts, wire, weather,
contests, classifieds, etc.)
• Only subscribers can
comment
University of Missouri Missouri School of Journalism
26. One year after launch
• 3,000,000 PVs/mo (still most popular in market)
• Total unique visitors up; local audience up 7%
• More than 9,500 paying – 60% conversion to
bundle
• Local advertising unaffected – Non-issue for
advertisers
• In first month, subscription revenue three times
lost ad revenue
• Few objections from readers – Quality journalism
at stake
University of Missouri Missouri School of Journalism
27. • 55,000 average weekday circulation
• Ownership: Morris
• Launched December, 2010
• Metered model
• Thoughtful strategy, methodical rollout
University of Missouri Missouri School of Journalism
29. A thoughtful, deliberate rollout
Core belief: Placing a value on the content is more important than
any penny we‘ll collect.
Strategy: Put toe in the paid-content water to learn. Set stage for
mobile/app paid content strategy. Use flexibility of model to experiment.
Start up: Introduction of page threshold phases in December 2010.
Rollout: Lots of communication with the market.
University of Missouri Missouri School of Journalism
30. A thoughtful, deliberate rollout
• An editor‘s column
• A publisher‘s column
• Online FAQ
• Anonymous comment interaction
• Media response and comment
• Phone calls
• Newsroom mindset: Let‘s give ‘em something
worth paying for
University of Missouri Missouri School of Journalism
31. What the Chronicle told readers
―We go beyond the button-pushing journalism
some bloggers and copycat online sites offer.‖
From Editor Alan English‘s column:
―How much would you pay to have your favorite
journalist or columnist‗watchdogging‘City Hall?
Would you buy him or her a cup of coffee each
month?‖
University of Missouri Missouri School of Journalism
32. What Alan English told readers
―The value goes beyond access. You support the
local journalism that includes:
• Bio-testing local waterways, revealing problems and
getting them attention.
• Battling for public records.
• Celebrating local heroes and honoring fallen soldiers.
• Checking the safety of your roadways and bridges.
University of Missouri Missouri School of Journalism
33. What Alan English told readers
• Reviewing policies and hiring practices at city hall.
• Raising awareness and donations for breast cancer.
• Championing better government.
• Leading coverage of ASU's national championship.
• Convening a roundtable of local health care CEOs to
learn the impact of reforms.
• Rallying charitable giving at Christmastime.
University of Missouri Missouri School of Journalism
34. Editor Alan English asked readers:
―Who else does this as often
as your local newspaper?‖
University of Missouri Missouri School of Journalism
36. 1. Make your site worth paying for
Charging generates revenue to help pay
for journalism, but you now have to make
your digital edition good enough to expect
readers to actually pay for it.
University of Missouri Missouri School of Journalism
37. 1. Make your site worth paying for
This means:
• Your site needs to work.
• It looks like it was put together with a
modicum of care.
• You‘ve added value to the content.
University of Missouri Missouri School of Journalism
38. Product differentiation
Product differentiation
• Your site should be different from your
print edition.
• Play to the strengths of digital: add value
that only digital allows you to add
University of Missouri Missouri School of Journalism
39. What this means
• Deeper, richer stories: documents & data
• Sight, sound & motion
• Context
• Interactivity
• Links to archived content
• Engagement/community
University of Missouri Missouri School of Journalism
40. 2. Go with ―opt out,‖ not ―opt in‖
Give print subscribers the option of not
choosing a digital membership — but
assume they will want to do so.
University of Missouri Missouri School of Journalism
41. 3. Choose a meter over a hard wall…
University of Missouri Missouri School of Journalism
42. 3. Choose a meter over a hard wall…
• Keep your site search-engine friendly
• Encourage discovery
• Some see value in a porous ―wall‖
University of Missouri Missouri School of Journalism
43. 3. …but keep your meter tight
• Most early adapters started loose and began
to tighten
• The Augusta Chronicle began by giving
everyone a free buffer of 100 views
• Within 6 months, they‘d tightened it to 10
University of Missouri Missouri School of Journalism
44. 3. …but keep your meter tight
35 Surveyed dailies’
monthly meter settings
30
Percent of papers
25
20
15
10
5
0
Less 5 10 15 20 25 and
than 5 up
Free stories per 30 days
University of Missouri Missouri School of Journalism
45. 4. What to keep inside / outside the wall
OPEN ACCESS: RESTRICT ACCESS:
• Breaking News • Unique local content
• Section fronts • News
• Wire • Sports
• ―Commodity news‖ • Photos
• Weather • Obits
• Contests • Ability to comment
• Classifieds
University of Missouri Missouri School of Journalism
46. 5. Don‘t be afraid to ask for real money
It is possible to charge too little.
Don‘t be afraid to ask readers to pay.
University of Missouri Missouri School of Journalism
47. Mike Jenner
Missouri School of Journalism
jennerm@missouri.edu
Cell: (573) 808-4785
University of Missouri Missouri School of Journalism
Notas del editor
….from a small but vocal group. That wave of negative comments seems to subside rather quickly.The value proposition on digital content begins a new relationship with our new and next-generation customers.
As I mentioned before, now they are customers, not just drive-bys.
Slide shows — graduations, ball games, county fairs — PDFs of lawsuits, county ordinances, city and county budgets, Powerpoint presentations by the city manager