ViewPoint
July 2009

The Taos News
The Taos News
Taos, NM

The Taos News is a paid weekly newspaper published for the local area that reports the news of Taos County and the Moreno Valley. The Taos News presents objective viewpoints on important issues and allows reasonable space to those with differing views. Features include arts & entertainment, restaurant reviews, horoscope, classifieds, and more. The Taos News is available for pick up on the corner with street vendors and on racks in businesses throughout the local area.

La Jolla Light Coastal Group
Mainstreet Media Group
La Jolla, CA

La Jolla Light Coastal Group is comprised of five weekly newspapers and websites reaching San Diego's most affluent markets. All five newspapers are direct-mailed to the six zip codes in San Diego County where the median home price exceeds $1 million. In print weekly and online daily, news coverage is hyper-local, focusing on community news, information, and personalities. From the romantic seaside towns of La Jolla, Del Mar and Solana Beach to the burgeoning legal and tech centers of Carmel Valley and the winding roads of Rancho Santa Fe, these five distinct newspapers and websites provide the content related to the places readers call home.

Raleigh Metro Magazine
Metro Inc.
Raleigh, NC

Metro Magazine is a content-driven city/regional publication covering a 22-county region that includes Raleigh, the Research Triangle, and Eastern North Carolina. From the Triangle to the Coast, Metro is the cure for Bored Life Syndrome.

It's Not the Size of an Ad, It's Where You Put It That Counts

While contrasting content is popular among many marketers, relevance is the more effective strategy, according to newly released data from Condé Nast in conjunction with research firm McPheters & Co.

Indeed, ads running on websites with related content were 61% more likely to be recalled than ads running on sites with unrelated content, according to a recent study conducted in collaboration with CBS Vision using McPheters & Co.'s AdWorks methodology.

Recall of particular ads varied by the type of sites on which they were viewed. Social networks, along with shopping and food sites, generated the highest recall levels of 29% to 39%.

"Targeting by site yields important benefits for advertisers," said Scott McDonald, Condé Nast SVP of Research. Search and portal sites, meanwhile, generated the lowest recall levels, according to the study.

Of note, there were large differences in recall by type of product advertised. "While we have long known that context is important for print advertisers, we welcome proof that the same is true online," said Drew Schutte, SVP and Chief Revenue Officer for Condé Nast Digital.

"These results reinforce the importance of a marketer being associated with category-specific websites with established brands," Schutte added.

In the analysis, each of some 400 ads for which recall was measured was associated with the websites in which they appeared. Ads were segmented by whether they appeared on websites with related content. Recall of ads was measured among Internet users who were directed to surf the Internet at will for 30 minutes.

According to data released earlier in the year by Condé Nast and McPheters & Co., nearly two-thirds (63%) of banner ads were not seen by web users. Respondents' eyes "passed over" 37% of the Internet ads and "stopped" on slightly less than a third, McPheters found.

In contrast to online ads, TV and magazine ads generated a strong propensity to be seen and recalled, according to the research.

Full-page, four-color magazine ads were determined to have 83% of the value of a 30-second television commercial, while a typical Internet banner ad has 16% of the value.

© 2009 MediaPost Communications

Third-Party Audits Needed for Trade Show & Events

by Jennifer Armor

Currently, only 1% of the trade shows in the U.S. provide exhibitors with third-party audits. Show management claims that this is because trade show exhibitors are not asking for audits.

According to Lee Knight, editor-in-chief of Exhibitor Magazine, the problem is an industry-wide joke. "For the most part, exhibitors talk, talk, talk about the need for audits but never actually ask organizers to provide them. And on the rare occasion they do ask, organizers simply reject their requests, and that is the end of it. Instant acquiescence. No repeat requests. No demands. No line in the sand. No outrage. No retaliation. No response of any kind that would suggest the exhibitor's original request actually mattered."

There are several reasons why it is important to audit a trade show or event:

1) to have confidence the audience numbers are accurate
2) to maintain consistency in how the numbers are audited
3) to ensure your show objectives are realistic and achievable
4) to budget and plan effectively

The audit itself is a fairly simple process. The auditing company samples the show's registration database and contacts attendees to validate attendance and demographic data. The auditing company then prepares a standardized report indicating the show's qualified attendance and demographic figures.

In 2001, CEMA (Computer Event Marketing Association) was the first to endorse standardized audits for the technology trade show industry. In 2003, approximately two-thirds of all major IT trade shows conducted independent audits.

Dave Brull, Director of Membership and Marketing at the Trade Show Exhibitors Association, said, "People don't understand audits." But he was quick to add that an independently audited show can be a useful tool for determining the demographics of attendees. "It gives a true understanding of what a show is and who is walking through the door. An independent audit is very useful."

While verified attendance figures and accurate demographics are primary benefits, audits provide numerous ancillary benefits to exhibitors, allowing them to plan more effective programs, to better allocate their budgets, to meet the needs of their audience, and to better measure the effectiveness of their programs.

But show organizers aren't going to adopt trade show audits without a good reason. Knight is positive that the industry can find a solution. "To change all that, exhibitors need to demand transparency. When that does not work, build coalitions. Get colleagues in other companies involved. Present ultimatums with financial consequences, ones that will drive your needs to the top of the organizer's priority pile. Get tough, get unreasonable and get results."

According to a key finding from a survey conducted by Forrester Consulting Services for American Business Media, companies are planning to exhibit at fewer shows next year and will be more selective. Since face-to-face events are the most expensive among media buys, exhibitors will require verified attendance data from the show organizers on which to formulate their budgets and strategy.

Mobile Phone Advertising Potential

Every month, cell phone users are upgrading to better cell phones equipped with mobile browsers. Today there are 3 billion mobile phone subscribers with another 1 billion more expected by 2010. Mobile advertising represents a viable way for publishers to monetize the content they share on consumers' web-enabled mobile devices.

The exploding mobile ad market—which is projected to hit $10 billion to $15 billion by 2011—are enabling companies to spread their marketing message across traditional newspapers, the Internet, and now, mobile phones.

The Kelsey Group recently said that local mobile advertising revenue is expected to reach more than $3.1 billion by 2013, while local advertising across newspapers, magazines, and other traditional mediums will fall. Local mobile search is set to dominate this trend, making up more than half of mobile advertising, and over 35 percent of all searches by 2013.

Newspaper publishers will see multiple revenue and measurement opportunities from advances such as this in mobile marketing, including the ability to receive compensation for commerce-enabled ads that run on their websites, and the ability to measure the effectiveness of their mobile ad campaigns.

Most importantly, these advances are forcing newspapers to rethink their readership and how to best deliver the goods. Publishers need to understand how to publish their material on small screens, build interactivity into stories, and run a network that allows sales people to sell ads on pages.

Where Do the C-Level Execs See Advertisements?

Google and Forbes Insights Thursday will release findings from a study that examines the type of content C-level executives might consume, and where they find it online.

Google—along with Forbes Insights—conducted the study after service companies, such as Accenture, IBM, FedEx, General Electronic, Siemens, and UPS came to Google asking for help to reach C-level executives at large corporations. They wanted to know if these high-level executives spend time on the Internet, and if they do, what type of content they might consume.

Stereotypes may have C-level executives delegating research to others, but the study reveals that 53% prefer to search the web and locate information themselves. Sam Sebastian, Director of Local and B2B Marketing, says easy-to-use tools and personal accountability may have something to do with C-level executives taking personal responsibility to research information themselves. "That might be signing and authorizing financial statements," he says. "They are taking much more personal responsibility."

And while executives are also more likely to click links from content than ads, the less intrusive the ad, the more likely they are to follow the link. For example, 86% said they occasionally or frequently click on linked words from web articles and content, 58% click on paid search listings in search engine results, 53% click on website banner ads, and 37% click on pop-up or other interruptive ads from websites.

More than four in ten—41%— of executives under age 50 say they will frequently click on paid search listings, compared with 6% of those 50 or over. A similar split occurs with website banner ads, with 34% of those under 50 clicking frequently, while just 2% of those age 50 or over who say they do.

Executives were also asked to rate the value of different online and offline information sources. Across the board, search engines were considered more important than other options for locating information, including interacting with colleagues. Eighty-seven percent rated general search engines as very valuable, followed by guidance from colleagues at work, 77%; guidance from personal networks, 65%; links from online content, 58%; subscription search engines, 54%; and guidance from outside advisors, 53%.

Marketers looking to catch the eye of C-level executives might have a better chance with video than text if they are under age 50. Thirty-three percent of C-level executives under age 50 reveal that they view work-related videos daily on business-related websites, compared with 11% of those age 50-plus. This will increase as the next generation of CEOs, CFOs, and COOs move in.

"Today, you might not reach a bunch of CEOs and CFOs with blogs, RSS feeds, or Twitter, but these online tools will be mainstream as the next crop move in during the next couple of years," Sebastian says. "We will see many enter that camp in another 24 to 36 months, and it will have a huge impact on the way companies reach these executives."

Forbes Insights, along with Google, surveyed 354 U.S. company executives with annual sales exceeding $1 billion during March and April this year. In the one-on-one interviews, 47% held C-level titles. The remaining 53% held senior-level titles, including EVP, VP, and Director.

© 2009 MediaPost Communications

Smaller Newspapers Feel the Squeeze

While they are still better off than their big-city counterparts on average, smaller newspapers are also feeling the effects of the economic downturn and Internet competition, according to a long-term study from the Inland Press Association.

The study's findings temper the optimistic view evinced by many publishers in smaller markets, who take pains to distinguish their properties from the big metro dailies.

Over five years ending in 2008, newspaper profitability fell across the board regardless of size, the Inland study found. This included large drops at newspapers with circulations of 25,000–50,000—one of the segments that was supposed to be faring better than the big metro dailies.

If this trend continues, bankruptcy and sale or closure could follow for scores of newspapers, as the plague afflicting big metro dailies infects smaller markets.

Their fate will largely be determined by indebtedness, which has proved the bane of big publishers, especially with the global credit crunch. Like any other small business, small newspapers without a lot of debt will be in a much better position to weather an extended downturn than those that borrowed extensively to replace printing presses, buy real estate, or acquire other newspapers.

In the future, any discussion of the fortunes of small newspapers will have to specify how small.

While the 25,000–50,000 cohort may be suffering, newspapers with circulations under 15,000 did see revenue grow over the last five years—albeit just 2.4%. While only a modest increase, that's a lot better than the newspaper business overall, which saw total revenues decline 22% from 2004–2008, according to the Newspaper Association of America.

Many small newspapers are on the auction block for record low prices, according to Cribb, Greene & Associates, a brokerage that handles mergers and acquisitions for daily and weekly publications. Many such newspapers can currently be had for a price equal to somewhere between just four and eight times their earnings before income tax, depreciation and amortization (EBITDA), according to John Cribb, the brokerage's managing director.

That's a big discount from just a few years ago, when prices equal to 10–14 times EBITDA were more typical. Cribb said ad revenues at smaller papers are typically down 10% to 15%, noting: "Certainly, these are ugly numbers compared to what newspapers are used to, but they are not disastrous. This is not the financial condition of an industry that is failing."

© 2009 MediaPost Communications

Events Calendar

National Society of Professional Journalists Conference
August 27 – 30, 2009
Indianapolis, IN
www.spj.org

National Federation of Press Women
September 10 – 12, 2009
San Antonio, TX
www.nfpw.org

Alberta Weekly Newspaper Association 2009 Annual General Meeting & Convention
September 10 – 12, 2009
Edmonton, AB
www.awna.com

Laredo Group: Intelligent Selling of Internet Advertising – Level I
September 14, 2009
New York, NY
www.laredogroupseminars.com

Laredo Group: Intelligent Selling of Internet Advertising – Level II
September 15, 2009
New York, NY
www.laredogroupseminars.com

Pacific Northwest Newspaper Association 89th Annual Meeting
September 16 – 18, 2009
Seattle, WA
www.pnna.com

2009 Midwest Newspaper Summit
September 17, 2009
Dubuque, IA
www.newspaperevolution.com

Niche Digital Conference
September 21 – 22, 2009
Minneapolis, MN
www.nichedigitalconference.com

OMMA Global: New York
September 21 – 22, 2009
New York, NY
www.omma-expo.com

SNA Fall Publisher's & Advertising Director's Conference
September 22 – 25, 2009
Kansas City, MO
www.suburban-news.org

Ad Con
September 23 – 25, 2009
Seaside, OR
www.orenews.com

NNA 123rd Annual Convention and Trade Show
September 24 – 26, 2009
Mobile, AL
www.nnaweb.org

Independent Free Papers of America
September 24 – 26, 2009
Chicago, IL
www.freepaperconference.com

Society of News Design
September 24 – 26, 2009
Buenos Aires, Argentina
www.snd.org

UC Berkeley Media Technology Summit
September 29 – October 1, 2009
Google Campus, Santa Clara, CA
www.journalism.berkeley.edu/conf/google

If you have an event that you would like to announce, please send your information
to e-newsletter@verifiedaudit.com.

Hispanic Consumers More Positive, Receptive to Marketing

According to custom, week-by-week data from Experian Simmons reported by Univision Communications, 34% of Hispanics are optimistic about their finances in the coming year vs. 25% of non-Hispanics, and 29% of Hispanics are more positive about the U.S. economy in the coming 12 months vs. 21% of non-Hispanics. The report reveals consumers' reaction to today's economic climate from a total market and Hispanic consumer perspective.

Ceril Shagrin, Executive Vice President, Corporate Research, Univision Communications, observes that "The volatility of the current recessionary economy has created a need for more current week-by-week data...(to) capture changes in consumer behavior and purchasing patterns..." allowing marketers to take an in-depth look at real-time information...for a better understanding of the impact on consumers.

The results indicate that while the overall consumer mindset is increasingly negative, Hispanics are more optimistic in the period following the "meltdown," vs. the time prior to September 29, 2008:

• 29% of Hispanics are more positive about the U.S. economy in the coming 12 months vs. 21% of non-Hispanics
• Hispanics average consumer confidence rating is 11% higher than non-Hispanics, and has remained constant since 2005, while non-Hispanics confidence rating has declined

Study results show contributing factors to why Hispanics are less affected by today's economic climate:

• Only 45% of Hispanics have/use credit cards vs. 71% of non-Hispanics
• Hispanics are 44% more likely to use cash to pay bills than non-Hispanics (Index 156 to 91)
• Hispanics are almost 2x as likely to rent their home as non-Hispanics (44% vs 23%), and are less likely to be impacted by the high percent of mortgage foreclosures

The findings highlight Hispanics as a key target consumer for advertisers:

• Hispanics are consistently more frequent shoppers than non-Hispanics (34% vs 29%)
• Twice as many Hispanics are willing to pay for branded prescriptions as non-Hispanics (31% vs 15%)
• Hispanics are 38% more likely to buy from an advertiser than non-Hispanics (Index 131 to 95)

Mediaweek writes that Hispanics are more willing to pay for branded prescriptions than non-Hispanics, and that advertising carries a lot of weight with Hispanics, who enjoy TV spots and remember touted products when shopping. Hispanics are 38 percent more likely to buy from an advertiser than non-Hispanics, seeing it as a source of information, not a nuisance. Univision notes that one casual dining space advertiser saw a sales lift of 23% by targeting Hispanics.

Read more

© 2009 MediaPost Communications

Tips & Techniques: Other Non-Qualified

Other Non-qualified circulation is defined as copies that are not distributed to readers during the normal course of distribution. Examples of non-qualified circulation include:

• Advertising/agency copies
• Office copies such as sales, file, archives, and tearsheets
• Tradeshows, conventions, and special events

All publications must have a minimum number of non-qualified copies in circulation for normal business activity and cannot have 0 non-qualified copies.

The total number of non-qualified copies a publication has can be calculated by subtracting the total number of qualified copies from the total number of copies printed. For example:

Please do not "back" into your non-qualified by deducting a set number of office copies from your total printed and assuming the rest of your copies are qualified.

Tradeshow/special event distribution is generally not considered qualified circulation. However, it can be footnoted on your Audit Report to allow advertisers to know that your publication has bonus distribution.

If you have questions about non-qualified circulation, please contact Verified at 415-461-6006.

Please send comments and story ideas to e-newsletter@verifiedaudit.com or contact us at:

Verified Audit Circulation
900 Larkspur Landing Circle, Suite 295
Larkspur, CA 94939-1758
415.461.6006
415.461.6007 fax