Latest Trends in Monetizing News Websites

Webinar by Tatiana Repkova
Founder
© Tatiana Repkova 2014
Monetization of news websites: The latest trends

Content
A. Monetization models
•Local, regional and national news websites
•Niche news websites
B. Big data
•How to apply Big Data to monetize news websites

Local, regional and national
news websites

In 2011, a local newspaper Hallingdølen
launched the first paywall in Norway.
One subscription → 4 platforms

The best local newspaper in Norway (2013, for the third time in the last 7 years)
Population of the Hallingdal valley: ≈ 20,000
Printed copies: 9,320 (end of 2013)
Editions: 3 times a week
Format: half-Nordic, stitched copies
Owner: 40 local shareholders in the valley of Hallingdal
Technological solution: Saxotech, creating news with different content from one system
blog.wan-ifra.org
blog.visiolink.com
enc.newsroom.de
editorandpublisher.com

One subscription → 4 platforms
•The same content on all platforms (except video)
•Subscribe and get access to all platforms, or do not subscribe and get nothing
•Paywall only gives access to the home page
•Subscription gives access to all four platforms:
paper edition
Web (website and e-newspaper on the website)
tablets
cell phones
blog.wan-ifra.org
norway.gr

Other sources of revenue
•Sales of single copies of the paper (PDF) or a single page (PDF),
through the newsstand:
•Video ads - and - a combination of video ads and paper ads (testing)
blog.wan-ifra.org
buyandread.com

Trends and results (2013):
•Circulation: -1.4% in the last two years (all Norway: up to minus 8% in the last two years)
•Traffic: close to the level before the implementation of the paywall
•More subscribers
•More page views
•Individual users remain on the site longer and view more content
•More advertisers
•Revenues higher, profit fell, but:
•Bonus for each employee of the newspaper: NOK20,000 (USD 3,300) in 2013
newsinenglish.no

“Men, women, children, youth, elderly and immigrants. They are all a part of the newspaper.” “We are looking for the everyday-stories all the time. We have to make our readers visible and lift them up in all aspects of life.” “In practical journalism this means that we write about people. People who the readers know or can indentify with.”
Bjarne Tormodsgard
Editor-in-chief
blog.wan-ifra.org

“We started a video project in November 2011.”
“Since then the journalists have made more than 600 videos. They last from 15 seconds to 90 minutes. Mostly of them last from 45 – 90 seconds.”
“All our journalists write, take photos and make videos.”
9 journalists, 1 photographer,
2 designers
Bjarne Tormodsgard
Editor-in-chief
blog.wan-ifra.org
enc.newsroom.de

Comparison of 4 local and regional newspapers in Norway

Hard paywall
The Grupo Reforma in Mexico
implemented a hard paywall in 2002:
kbridge.org
reforma.com

•Charging online subscribers 20% less than a paper subscription
•Traffic shrunk by 30%; it took one whole year for it to return to its original level
•5,555 new users per year
Hard paywall
The Grupo Reforma in Mexico
implemented a hard paywall in 2002:
kbridge.org
reforma.com

In 2011
• Online subscribers: 50,000
• Daily circulation: 300,000
kbridge.org
reforma.com

In 2011
• Online subscribers: 50,000
• Daily circulation: 300,000
In 2013
• A digital-only subscription for up to four devices
• A paper subscription, including access for up to six devices
• Print advertising still commands a dramatic premium over digital ads
kbridge.org
reforma.com

Metered paywall
Folha, São Paulo, Brazil
implemented in 2012
kbridge.org

•Initially charging only for tablet and mobile phone apps, but in June 2012 they included their website
•45,000 new digital subscribers during the first year
Metered paywall
implemented in 2012
kbridge.org

•Initially charging only for tablet and mobile phone apps, but in June 2012 they included their website
•45,000 new digital subscribers during the first year
In 2013
•21 million unique visitors per month
•> 270 million pageviews
•Every article by Folha is read by a lot more people than 30 years ago
Metered paywall
implemented in 2012
kbridge.org

Metered paywall
implemented in 2012
kbridge.org
•20 free articles per month while the homepage, cultural schedule and a site for children remained free
•After reaching the 20 article limit, readers would have to register some information, then they would have an additional 20 articles before they had to pay

Metered paywall
implemented in 2012
kbridge.org
•20 free articles per month while the homepage, cultural schedule and a site for children remained free
•After reaching the 20 article limit, readers would have to register some information, then they would have an additional 20 articles before they had to pay
•In March 2013, the limit was lowered by half to 10 free and an additional 10 after registering.
•Unlike the New York Times model, which does not count pages accessed via links from social media towards the monthly limit, Folha does not make this distinction.

Three paywall models
Paywall = a system that prevents Internet users from accessing webpage content without a paid subscription.

Three paywall models
Paywall = a system that prevents Internet users from accessing webpage content without a paid subscription.
1) Hard paywall
2) Soft paywall → the metered paywall
3) Fremium model (free + premium for paying users)
en.wikipedia.org

1) Hard paywall Requires paid subscription before any online content can be accessed: The Wall Street Journal, The Times News sites with hard paywalls succeed if they:
•Provide added value to their content
•Target a niche audience
•Already dominate their own market
netnewscheck.com
en.wikipedia.org

netnewscheck.com
en.wikipedia.org
Allows users to view a specific number of articles before requiring paid subscription (any article, as long as the user has not surpassed the set limit): The NYT, March 2011: 20 free articles a month, April 2012: 10 free articles

netnewscheck.com
en.wikipedia.org
3) Fremium model
Free access to selected content, while keeping premium content behind a paywall.
2) Soft paywall → the metered paywall Allows users to view a specific number of articles before requiring paid subscription (any article, as long as the user has not surpassed the set limit): The NYT, March 2011: 20 free articles a month, April 2012: 10 free articles

netnewscheck.com
en.wikipedia.org
“After more than two years of promoting the freemium model, we now know that metered paywalls are simply more effective,” Rado Bat’o, Piano Media’s head of marketing and analytics
3) Fremium model
Free access to selected content, while keeping premium content behind a paywall.
Allows users to view a specific number of articles before requiring paid subscription (any article, as long as the user has not surpassed the set limit): The NYT, March 2011: 20 free articles a month, April 2012: 10 free articles

Different sections of your content
have different monetization potential
Piano Media, Slovakia

Charging most effective for:
Specialized sections (finance, lifestyle, health, cars, hobbies, …)
Specialized coverage (business data - tables, charts, analyses, series of markets, …)
Unique content (local/hyperlocal news, sports, reviews, obituaries, columns, …)
Exclusive content from behind the scenes (editorial sources, chat online with journalists, …)

Charging also effective for:
Data

Charging also effective for:
Data
•In Kenya, The Star is experimenting with charging premium text messaging rates for SMS-based health apps
•Essentially using value- added data as a revenue source
•Supported by Code4Kenya, a branch of Code for Africa
ijnet.org

Q&A from a readership survey, emailed to subscribers of Gjesdalbuen and Jærbladet hyper-local newspapers before their Web sites were transformed to paid content models:
redactor.in.ua
What subscribers
of hyper-local newspapers in Norway want

•Which content in local newspapers is the most important? Current events, local information and sports news.
redactor.in.ua
What subscribers

•Due to what content will you remain digital subscribers in the future? “The same, only more.”
redactor.in.ua
What subscribers

•Due to what content will you remain digital subscribers in the future? “The same, only more.”
How to succeed:
Loyal readers
Content serving the local community needs
redactor.in.ua
What subscribers

Analysis techniques and industry best practice help determine the real potential
Piano Media, Slovakia

Niche
news websites

Robert Niles
Author
knightdigitalmediacenter.org
amazon.com

Robert Niles
Author
amazon.com
1)Identify a community need
2)Find people who will pay you to meet that need

Robert Niles
Author
“The trick is, you need to find an ongoing community need or pain that you can help alleviate – but not too completely or quickly! If you fix their problem completely, there goes your audience!”
amazon.com

Robert Niles
Author
“The trick is, you need to find an ongoing community need or pain that you can help alleviate – but not too completely or quickly! If you fix their problem completely, there goes your audience!”
“The big mistake that a lot of people from journalism backgrounds make is that they frame stories in terms of issues (like the environment or education), not needs.”
amazon.com

Gloucestershire, UK
Founded in 2007 by James Fyrne and his wife Michelle in her father's garage
Local news website focused on the arts and culture
themediabriefing.com

Gloucestershire, UK
Users: It attracts 82,000 users each month and sends out newsletters to 23,000 people. Each visitor views an average of 4.2 pages. YouTube channel has racked up 8 million views.

Gloucestershire, UK
Users: It attracts 82,000 users each month and sends out newsletters to 23,000 people. Each visitor views an average of 4.2 pages. YouTube channel has racked up 8 million views.
Staff: Three full-time editorial staff, one full-time and one part- time sales, one full-time developer and one part-time. All content is written by trained journalists.

Financials:
On target to make £250,000 in revenue in 2013, and £100,000 in profit.

Financials:
On target to make £250,000 in revenue in 2013, and £100,000 in profit.
Revenue streams:
•90 percent of revenue comes from advertising, sponsorship, classifieds and banner ads.
•Pricing ranges from £50 for a single classifieds listing to £18,000 for a year-long sponsorship.
•It also licences content such as video reports for anywhere between £500 and £1,500.

“Our main competitors are radio, Northcliffe and Archant. As long as we are considered part of that advertising pie.”
“Because advertising in those competing media is relatively expensive, we represent good value, (but) we don’t want to replace, we just want to be in the mix.”
James Fyrne Publisher

Social enterprise in York, UK
Set up in 2011 with £2,000 by Stuart Goulden in his bedroom.
“… for the generation who will never read their local newspaper”

An online and print publication designed to fill the gaps left by regional media

An online and print publication designed to fill the gaps left by regional media
It works closely with charitable and community causes and is focused not just on attracting an audience, but on its impact on the community.

Financials:
£100,000 pledged in ads revenue (January 2, 2013), the founder was aiming for £250,000 revenue in 2013.

Financials:
£100,000 pledged in ads revenue (January 2, 2013), the founder was aiming for £250,000 revenue in 2013.
Revenue streams:
90% from commercial trading, advertising and branded content in print and online (unlike most social enterprises)
Looking to bid for the York local TV licence and considering launching a "curated community" for local independent businesses

Staff: Three full-time editorial, a designer, two film makers. Also have paid interns. Goulden is the only sales person. They also have an open newsroom and take content from hundreds of contributors - most of whom are unpaid.

Staff: Three full-time editorial, a designer, two film makers. Also have paid interns. Goulden is the only sales person. They also have an open newsroom and take content from hundreds of contributors - most of whom are unpaid.
“Everyone says print is dead. It’s not if you can do something new and better.”
“There’s still (marketing) money being spent. Think really hard and long about where the gap is.”
Stuart Goulden
Founder

How to apply Big Data
to monetize news websites

What does Big Data look like?
radar.oreilly.com
Input data for large information systems:
•Chatter from social networks
•System web server logs
•Satellite imagery
•Broadcast audio streams
•MP3 music
•Web content
•Scans of government documents
•GPS trails
•Financial market data
•Etc……….

Big Data is data that …
… exceeds the processing capacity of conventional database systems. The data is too big, moves too fast, or doesn’t fit the structures of your database architectures.
To gain value from this data, you must choose an alternative way to process it.
Within this data lie valuable patterns and information, previously hidden because of the amount of work required to extract them.
Big Data doesn’t have to be scary; you just have to know how to break it down in small chunks and then use it accordingly.
radar.oreilly.com
inma.org

“You can measure practically anything in the age of social media, but if you don’t know what you’re looking for, collecting mountains of data won’t yield a grain of insight.”
amazon.com
What are we looking for?
Lutz Finger
Entrepreneur, author:

amazon.com
Lutz Finger Entrepreneur, author:

amazon.com
Lutz Finger
Entrepreneur, author:
•Ask the Right Question
•Use the Right Data
•Define the Right Measurement The ‘ask the right question’ is the hardest part.

1) A data audit
Go throughout the organization and look in all of the nooks and crannies for what kind of data you have. It could be data that is just lying around and has more importance than an organization might normally think it does.
So what to do
to use Big Data in media companies?
foliomag.com
Frank Cutitta
CEO, the Center for Global Branding

1) A data audit
2) Find data-minded people …
… that really look at data in a much different way than traditional publishers and media people do.
So what to do
foliomag.com
Frank Cutitta

1) A data audit
2) Find data-minded people …
… that really look at data in a much different way than traditional publishers and media people do.
3) Look very closely at your sales organization …
… to see if they’re in a position to do data-driven sales. (What will be the expense of transforming your sales organization in order to match the different types of sales you do as opposed to traditional media sales?)
So what to do
foliomag.com
Frank Cutitta

What you can do right now:
3 ideas

1)Editorial content
We have to approach our content strategy as our data strategy. Every piece of content is a data indicator.

1)Editorial content
inma.org
Frédéric Filloux General Manager for Digital Operations
Les Echos, France
Important phases for editorial in today’s media companies:

1)Editorial content
inma.org
Frédéric Filloux General Manager for Digital Operations
Les Echos, France
Tag your content, all of it. Without tags, content is dead. The article is the new entry point. Semantic footprint is the real value of the content.

1)Editorial content
inma.org
Frédéric Filloux General Manager for Digital Operations Les Echos, France
Tag your content, all of it. Without tags, content is dead. The article is the new entry point. Semantic footprint is the real value of the content.
Use this semantic as a lingua franca to link content in the broader ecosystem, including social media (Twitter).

2) Use social media to gather valuable marketing information

Google Analytics has significantly widened its interface in the last two years, to include social media measurement. It allows users to set up segments to gauge the success of specific social campaigns.
socialmediatoday.com

Facebook Insights offers a wealth of data on your audience.

Facebook Insights offers a wealth of data on your audience.
Discover what your visitors really think. Visitors are what they click, not what they say.

3) Contact data

Only 15-20% of the audience will leave the registration site if they have to provide contact information.
So 80-85% of the audience will not leave.
Worthwhile to ask them for their contact data.
Scott Stines Email Marketing Specialist focused on increasing revenue and audience at a lower cost
inma.org
3) Contact data

Only 15-20% of the audience will leave the registration site if they have to provide contact information.
So 80-85% of the audience will not leave.
Worthwhile to ask them for their contact data.
Scott Stines
Email Marketing Specialist focused on increasing revenue and audience at a lower cost
inma.org
3) Contact data
“Death to the anonymous audience.
Know your audience – and your customer – and succeed!”

Таtiana Repkova
Founder
mediamanagersclub.org
trepkova@mediamanagersclub.org
Skype tatianarepkova
Twitter @trepkova
Thank you for attention!
You are invited to join our Skype discussion/brainstorming about new business models and new sources of revenues: Thursday, December 18, 2014 from 3 to 4 p.m. UTC/GMT+1 How to join?
1)Please add me to your Skype contacts and I will call you then.
2)If you cannot join us by Skype, send me your questions, ideas, thoughts, tips, recommendations by email until December 17, 2014.
3)You will get a summary of the Skype discussion by email.
4)Feel free to share this presentation with your colleagues and friends.

Join our ongoing discussion
about media sustainability:
http://www.wsis-community.org/pg/groups/3098727/global-community- for-media-sustainability-gcms/

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