Monthly Archives: April 2013

Paywalls: The future of the press or a barrier for digital progress

Last month, the global pricing study by Simon-Kucher & Partners showed that 90 per cent of online content would likely be held behind a paywall in the coming years, while 27 per cent of media companies said that they expect a significant shift in profit margin increase over the same three year period.

This outlook is likely to see the end of the ‘free for all’ online culture with two thirds of media companies expecting fees to be introduced for most of the content available online.

It comes as no surprise that after a successful trial for their international users that the Telegraph Media Group are set to launch their metered paywall around content for The Daily Telegraph and The Sunday Telegraph.

Non- subscribers will still be able to access 20 articles a month for free, followed by a £1.99 per month charge. The full

Online content goes behind a paywall

source: ereleases.com

digital pack, which includes tablet editions, costs £9.99 a month.

If they wish to read more then they will be able to choose between two digital subscription pages:

• The Telegraph web pack offers unlimited access to the paper’s online content, plus access to its smartphone apps, for £1.99 per month (or £20 per year).

• The full digital pack, which also includes access to the Telegraph titles on tablet devices plus loyalty club membership, will cost £9.99 a month (or £99 per year).

This metered model is favoured by newspapers across the US – notably at the New York Times – and Canada. It is also employed in Britain by the Financial Times, but the Telegraph becomes the first general newspaper in the UK to introduce it.

By contrast, The Times and Sunday Times site is protected by a full paywall, restricting all access to users unless they pay for a subscription.

Both titles have continued to see a drop in their online readership since the paywall came into force with many blaming their strict subscription policy for this in favour of the metered model.

Not long after, The Sun also announced its plans to introduce a paywall in the second half of 2013.

This will coincide with the launch of its debut Premier League football video highlights being made available on the site from 17 August.

But the question must be asked are The Sun readers an audience who would adapt well to this new change, even with the access to Premier League matches?

Simon Fox, chief executive of Trinity Mirror has said that his publishing group will not place any of its content behind a paywall, choosing instead to expand the reach and quality of his publications.

Lord Rothermere, chairman of DMGT, has said that the MailOnline will also remain free, but the media wing of his business is experimenting with the launch of the Daily Mail Plus. Where by although certain aspects of the site will remain free of charge, users will have to pay for premium content.

The paywall is inevitable for the future of press consumption, as digital media becomes ever more the preferred method of access to the news. We believe NewsInt will watch their competitors success or otherwise with the metered approach and may well review their business model.

Jaguar is going digital

Jaguar has put digital advertising at the forefront of its efforts to target a younger, more vibrant audience. The creation and use of viral movies and other mobile media platforms are at the centre of this campaign to target the ‘enlightened elite’.

The new activity forms a part of the campaign to promote Jaguar’s new sports car, the F-Type. The F-Type is Jaguar’s first two-seater vehicle since the iconic E-Type of the 1960’s. As with the E-Type, Jaguar is looking to promote its reincarnation to a younger well healed audience.

Jaguar is Going Digital

Source: marketingweek.co.uk

Promotional activity for the F-Type will focus around a short 12-minute movie featuring Homeland star Damian Lewis, the short movie called Desire was created by Brooklyn Brothers and Ridley Scott Associates. Desire will prominently feature the F-Type being driven by Damien Lewis throughout in various action scenes.

The video content will form a large part of the campaign to position the F-Type range and the Jaguar brand as a purchase consideration to a younger audience than it has traditionally had in the past.

Further digital elements are to be introduced to the F-Type campaign following the culmination of the Sundance Film Festival in April, where Jaguar will be screening Desire. These elements will include TV adverts that can be scanned using the mobile app Shazam as well as activities that utilise AR (augmented reality).

Jaguar’s utilisation of digital activity shows that even well established luxury brands still see the potential in using social networking and viral videos to target a relevant audience.

With the F-Type ranging from £60,000 to £80,000, it remains to be seen whether a social media campaign such as Jaguar’s Facebook activity will increase sales of the vehicle, when one considers that 49% of social network users are aged 15-34.

The term ‘enlightened elite’ would suggest that Jaguar is trying to target a specific group of social media users who are young aspirational businessmen and women and have the means to purchase a product such as the Jaguar F-Type.

Although these individuals are a small percentage of social media users, they are well connected with other like minded individuals, therefore the ability to share videos and posts with friends could lead to a very effective targeting campaign for Jaguar.

Digital ad spend in the UK reaches record highs, surpassing the £5 billion mark in 2012 alone!

Research from the Internet Advertising Bureau has revealed a growth in digital advertising in the UK, with mobile accounting for 10% of all digital revenue in 2012.

Digital ad revenue reached an annual high of £5.42 billion last year, a record 12.5% year on year high, mobile advertising was responsible for approximately £526 million, revealing a growth of 148%!

With an increase in Smartphone ownership expected to reach 75% by end of year 2013, it is no surprise that mobile advertising has grown by an astonishing 1,601% up to £13million, even without EE’s 4G prevalent network which will only be made readily available to the majority of operators this autumn.

Mobile Advertising 2013

source: http://images.ientrymail.com/

It is also expected that the majority of search clicks in 2013 will come from mobile devices, with the prediction that mobile advertising “will undoubtedly be a billion pound medium within a few years”. Mobile has reached a milestone as marketers are becoming more attuned to the ‘always connected’ nature of consumers, who expect to engage with content wherever they are. This has resulted in advertisers encouraging consumers in all industries, to invest in integrated campaigns across online and mobile. As Anna Bartz from PwC, said: “The advertising market is shifting toward storytelling and integrated campaigns which give greater prominence to video and display formats with a higher degree of interactivity with the target audience”.

With the likes of social media sites such as Facebook, and with them recently unveiling plans for a Smartphone which it claims will “make the social network the home of Android devices, as it looks to expand its mobile advertising offering”,  it is no wonder that social media has contributed to this astonishing high turnover in digital advertising. With mobile advertising increasing from £265 million to £328.4 million in 2012, meaning that in only 3 years social media revenue has quadrupled at 383%.

Last but not least, video ad revenue is responsible for 12% of all online and mobile display advertising with an overall £160 million revenue, which has helped contribute to such a high digital ad spend in 2012.

The top five display advertising sectors in 2012 are as follows; finance (15%), entertainment and media (13%), retail (12%) and technology (9%).