How Is the Newspaper Industry Trying to Save Itself?

HOW IS THE Digital Ad (2009 - 2010) Newspapers have traditionally supported themselves largely through traditional display and classified print advertisements. But as the industry's ad revenue has dropped by more than half over the past few years, it is gradually moving toward new profit models. +20% - Revenue +14% +13% +19% ON TH E RISE Change in digital ad revenue NEWSPAPER INDUSTRY The Pew Research Center's Project for Excellence in Journalism surveyed hundreds of newspapers and more than a dozen larger media companies to explore the various ways papers are trying to monetize the web market. DIGITAL AD REVENUE GROWS WHILE CIRCULATION OVERALL LESS THAN 25,000 25.000 - 49,000 50,000+ PRINT SEES A LOSS Change in print ad Trying to Save Itself? More than a decade after most newspapers first launched websites, digital ads continue to become a larger share of overall newspaper revenue. -3% revenue -7% -10% -9% DISPLAY ADS RULE ONLINE, TOO Percent of digital advertising revenue 50% 26% 2% 4% 8% DISPLAY OR BANNER ADs DIGITAL CLASSIFIED ADS VIDEO ADS OTHER TARGETED ONLINE ADS Increasing Display and banner ads Digital classified ads Video ads Targeted online ads share BUT TARGETED ONLINE ADS ARE Stay about the same 78% 8% 14% 72% 19% 9% 88% 12% 93% 7% EXPECTED TO BLOW UP Executives at more than 90 percent of U.S. newspapers believe ads targeted based on individual users' demographics or online activity are poised to become the largest share of digital ad revenue over the next year. Decreasing share *Expectation of change within the next year by percentage of newspapers participating in the study. 2010 2011 Daily deal offerings are becoming a much bigger part of newspapers' ad revenue, particularly at smaller publications. MOBILE ADS OTHER NEW AD 7% NO Although mobile ads bring in a tiny fraction of all newspaper digital ad revenue, their slice of the pie increased nine-fold between 2010 and 2011. Approaches Percent of digital ad revenue Percent of digital ad revenue Fresh ad formats are being tested as sources of possible revenue. 1% 5% >1% 6% DAILY DEAL SITES Having witnessed Groupon's massive success, the vast majority of newspapers surveyed have launched their own daily deal offerings. 93% YES 0.9% OVERALL LESS THAN 25,000 0.1% Have you started your own daily deal offering? 6% 0% 4% 4% 25,000 - 49,000 50,000+ 2010 2011 SOURCES: PEW RESEARCH CENTER'S PROJECT FOR EXCELLENCE IN JOURNALISM, JOURNALISM.ORG, EMARKETER.COM A COLLABORATION BETWEEN GOOD AND COLUMN FIVE