This Month's Features: Verified Would Like to Welcome... Reminder: Verified Has Moved! Leaked New York Times Internal Digital Report Newspaper Business Model Evolves, Takes Advantage of Market Changes Events Calendar Print Revenue Highest, But Digital Driving Growth For B-to-Bs Tips & Techniques: How to Prepare for your Audit |
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![]() Verified Would Like to Welcome...
![]() Reminder: Verified Has Moved!
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Larkspur Landing Circle, Suite 230 Our phone and fax numbers will remain the same. Please update your records and send all future correspondence to our new address. ![]() Leaked New York Times Internal Digital Report
The report focuses on the new wave of digital competitors such as the Huffington Post and BuzzFeed, for the most part ignoring legacy competitors. Nieman Journalism Lab staffers Justin Ellis, Caroline O'Donovan and Joseph Lichterman, read through the lengthy report and picked out the highlights.
![]() Newspaper Business Model Evolves, Takes Advantage of Market Changes According to recently released preliminary data by the Newspaper Association of America, circulation revenue for U.S. newspapers recorded a second consecutive year of growth, rising 3.7% to $10.87 billion in 2013. Overall, total revenue for the multiplatform U.S. newspaper media business amounted to $37.59 billion in 2013, a slight decline from $38.60 billion in the previous year. Proceeds grew in digital advertising, direct marketing and newly developing sources, while income from traditional print advertising channels declined. This trend, says the report, reflects an industry evolving its business model by taking advantage of developments in technology, consumer behavior and advertiser interest to grow audience and diversify its revenue stream. "Newly-developing and other sources," those outside of advertising and circulation, generated about 8% share of revenues, growing 5% year-over-year to $3.15 billion. The new sources include digital agency and marketing services (up 43%), event marketing (+5%), e-commerce (-4%), commercial printing (+4%), distribution of other products to consumers (-2%) and income from royalties, licensing, rental, waste and scrap sales (+3%). Key findings from the study include:
Revenue outside of advertising and circulation, from newly-developing and other sources, accounted for just over 8% of total newspaper media revenue, says the report. Digital agency and marketing services, which some newspapers established in 2012 and others launched in 2013, jumped 43%. Event marketing dollars rose 5% while e-commerce earnings slipped 4%. Dollars gained from commercial printing increased 4%, while revenue from distribution of other products to consumers dipped 2%. Other revenue activities, such as income from royalties, licensing, rental, waste and scrap sales, climbed 3%. N.B. NAA projections are based on a broad sample that includes public and private company data collected on a confidential basis. Data is normalized for a 52-week reporting period in both years. MORE INFO ABOUT THE NAA PROJECTIONS © MediaPost Communications 2014
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Retail MarketPlace 2014 Conference AABP
Summer Conference 2014 MPA
Magazine Chew on This Lunch Series 2014
ISWNE Conference Investigative
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![]() Print Revenue Highest, But Digital Driving Growth For B-to-Bs According to the FOLIO 2014 B-to-B CEO Survey, print advertising accounted for 52.5% of total revenue last year, higher than it was in 2010 at 52.4%. That's actually more surprising when you look at what's been expected from print advertising on a year-by-year basis, says the report. In each of the last five surveys, respondents have underestimated the following year's revenue from print. Last year, for example, the group thought print advertising would make up 49.5% of total revenue in 2014, three percentage points less than what it turned out to be. The gap between expectation and reality has run anywhere from less than 1% to more than 6% since 2010, but always lower. Digital media, while growing, has seen the opposite effect. B-to-B media CEOs are consistently overrating its revenue potential; last year, by 3.7%. Eight percent of those surveyed invested $500,000 or more in technology last year, while 44% crossed the $25,000 mark, both 5-year highs. Just 9% didn't make significant investments in tech. A majority of those investment dollars are aimed at bolstering digital media capabilities through upgrades to websites, CMSs, webinars, social media and video, claims the report. A quarter of the CEOs surveyed say they're planning to add digital media staff in 2014. It's a different story with print. Respondents' companies will not make anything more than a minimal investment in print products this year. A quarter of them will shift resources away from ink and paper. Digital's growth potential has been consistently and overwhelmingly labeled the fastest-growing part of respondents' businesses since 2010. Digital media has also been the most profitable piece of business over that period, reliably generating margins above 16%. Not surprisingly, CEOs are expecting digital media to continue driving growth in 2014. More respondents are expecting increased revenue there than from any other source, but their enthusiasm has been tempered. Revenue forecasts are close to 3% lower than they were last year. There's evidence that B-to-B media company CEOs are now turning to a new golden goose: live events. As a percentage of total revenue, event earnings have ticked up 2% in each of the last two years, even though expectations have called for less than half of that growth (events made up 12.2% of total revenue in 2014). One-third of respondents also claimed live shows as one of their fastest-growing business segments last year, only trailing digital media. Profit margins have been above 17% since 2011. Companies have more events on the way, says the report. Of changes anticipated for 2014, 46% of respondents say they're planning on launching a new event, up from 32% last year and almost double the next most commonly anticipated change, the launch of a digital startup. Additions to event staffs highlight the emphasis even further, with a quarter of the companies surveyed planning to add event professionals in 2014, with a third of the respondents calling creating live events one of their top 3 priorities for the year, says the report. According to a new series of questions aimed at tablet and mobile publishing for the 2014 survey, companies have rolled out a responsive design site, a dedicated mobile site or both, with the crowd evenly split between two main options: 39% have opted for responsive design; 36% have developed sites specifically for mobile. There's a significant difference in mobile strategy between companies generating at least $5 million in revenue and those falling below that threshold though. Mobile adoption is almost universal for large publishers now (only 7% say they haven't opted for a responsive or mobile site yet), while more than 40% of smaller publishers have stuck with desktop-only sites to this point. Looking ahead, 85% of the CEOs surveyed think they're headed for revenue increases in the next 12 months, another 5-year high, compared with just 12% who think earnings will stay flat and 1% who believe they're headed for a downturn. Finally, companies are looking to spend as well, with 69% saying they'll add staffers in 2014, a high point compared with previous surveys. | MORE INFORMATION © MediaPost Communications 2014
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