Tag Archives: digital

News Corp Reports Revenue Decline

News Corp, the publisher of newspapers including The Times and The Sun, has reported a 2.8% decline in revenues for the quarter ending 30th September 2013 with a decline in advertising being blamed for the decrease.

In the first quarter since News Corp was split into a highly successful entertainment company and a less profitable publishing business earlier this year, the latter’s net income rose from a loss of $83 million last year to a profit of $38 million. However, year-on-year annual sales actually fell from $2.13 billion to $2.07 billion, falling short of the $2.18 billion total predicted by analysts, according to data compiled by Bloomberg.

Source: www.advanced-television.com/

The news division, whose portfolio includes titles in the US, the UK and Australia, saw advertising fall 12 percent and revenues from circulation and subscription decrease by 6 percent with the Australian papers accounting for the largest decline (a 22% drop in sales).

In response to the results, Robert Thompson, News Corp’s chief executive, was keen to highlight that the company is in a period of transition with the brands’ evolution into digital content providers key to its future: “Our first quarter as the new News was the beginning of a journey in the digital development of the company. We […] are transforming our publishing operations longer-term into multi-platform businesses [and] we are even more convinced the company will thrive as the company becomes more digital.”

Paid websites represent a key part of this strategy – it is now three years since The Times and Sunday Times websites went behind a paywall with The Sun following suit earlier this year. While it has been a controversial approach at odds with that of the highly successful Guardian and Daily Mail sites, News UK argue that the indisputable reduction in visitors is compensated for by the quality of the data they have on their subscribers and, therefore, the level of targeting which they can offer advertisers. However, from Four’s point-of-view, this reduced traffic makes it difficult to reach a sufficient number of people on more niche areas of the site relevant to our clients, such as the Property section.

In addition, News UK has identified the iPad and tablet apps as central to a strong digital offering, with increased functionality and a wider range of creative advertising solutions being planned for 2014. With Tesco’s £119 Hudl tablet tipped to be a strong seller this Christmas, we believe that a presence on apps will become increasingly important to many of our clients in the coming months.

Can Twitter Work as an Ad Medium?

On its first day as a public company Twitter was valued at £19bn. Following its successful stock market launch, Twitter now needs to prove to investors that it can effectively grow its revenue; one medium through which it would do this is advertising.

Source: www.mediatel.co.uk

There are 230 million users globally on Twitter, 76% of which access Twitter on a mobile device. Therefore advertisers are extremely interested in utilising mobile ads. In response to this, Twitter is introducing a new set of targeting capabilities for mobile devices.  Now all advertisers can segment audiences on iOS and Android by operating system version, specific device, and WiFi connectivity. This helps advertisers reach the users most important to them, for example mobile app developers can target users with the necessary operating systems, prompting a new download or re-engagement through an app card. This is something that has previously been successfully operated by Facebook, the main rival of Twitter.

Telco companies can now also promote loyalty and rewards to users on their specific devices. All marketers can focus campaigns on users with device models that are indicative of demographics which align to their campaign goals.

Furthermore there is now the self-serve ad platform to be used by small businesses across the UK. Anyone with a Twitter account and a credit card can now buy promoted tweets and promote accounts; targeted through keywords or interests and followers.

In addition to this, the new segmentation reporting gives advertisers better insights in to the OS versions and specific devices of users engaging with their general campaigns.

Source: www.theguardian.com

So will Twitter be an effective advertising platform? Despite the many advantages of using advertising on social media, the juxtaposed dangers were suitably demonstrated last month on Facebook, when a video showing a human decapitation appeared without warning. This was a disaster for advertisers sharing this content on the same page. Clearly, regulation of content is a difficult and controversial issue to tackle. Twitter has its own pitfalls for companies, for example companies are being warned about Twitter ‘trolls’; who can harm the company’s reputation with unprovoked criticism.

Now that images are allowed, ads appearing in Twitter are much more prominent. This does change the experience for the user. As Twitter pushes for more advertising there is the potential for a backlash from users as they are inundated with adverts. Plans were revealed to widen its advertising to target “every business on the planet”. Although this is brilliant news for small/medium businesses, this may not sit well with some users. Therefore a fine balance needs to be reached to avoid the over-saturation of adverts, on Twitter feeds, driving its users away.

Digital Ad Spend at an All-Time High

According to the latest IAB Digital Adspend report, advertisers have spent a record six-month high of £3.04 billion online. British consumers spend a staggering one in every 12 minutes online, equating to 43 hours a month!

Fuelled by smartphone ownership reaching 68% of the population in June 2013, mobile advertising now accounts for 14% of all digital ad spend, which grew like-for-like by 127% to £429.2 million in the first half of the year, almost double that for the same period in 2012.

Total mobile display advertising, which includes video, increased like-for-like by 195% to £105.5 million in the first half of 2013 and for the first time, consumer goods has doubled its share in a year to 26.8%.

Another online first, the consumer goods sector overtook entertainment and media, as the biggest spender as a mobile display advertiser, and finance as the biggest spender on the digital display advertising platform.

Research also shows that the tablet ad spend for the first half of 2013 was around the £10.5 million mark, up from approximately £2.4 million for the first half of 2012. This increase in ad spend could be a result of the increase in tablet users – almost one in three consumers in the UK will be using a tablet this year, according to research from eMarketer.

By 2017, the eMarketer estimates that more than half of the UK population will use a tablet device regularly.

One explanation for such a radical increase is the increasing availability of low-end tablet alternatives. Last month, Tesco announced the launch of its own brand tablet, called Hudl, which will retail at £119, a mere quarter of the cost of Apple’s iPad!

Another reason for such an increase could be that as audiences are more accustomed with going online via mobile devices, they are becoming more ‘adjusted’ to using tablets, with the majority of tablet owners still in the 25-54 age range.

UK Tablet Users

Source: www.emarketer.com

Combined Print and Digital Readership Available for the First Time

This week saw the NRS PADD release its first ever set of combined Print and Digital Data, allowing publishers to measure audience reach across all or their media channels. In the past media buyers, media owners and other interested parties, had been able to calculate their print and web based readership separately, but had no means of calculating their total unduplicated combined reach.

Overall, the figures indicate that rather than losing readers, publishers are in fact reaching more readers on more platforms than ever before through multiple channels. The decrease of readership in print should not be viewed as a negative as it can only be seen to be increasing their readership through other media, such as; website, mobile phones, iPads and tablets.

The data comprises average monthly data taken over a yearly period between April 2011 and March 2012. It does not include users who access national newspaper titles via Apple iPads or tablets.
The Sun, not surprisingly, was the most read UK national newspaper with an overall readership figure of 17.8 million over the month; print only figure of 14.5 million, web figure of 1.7 million for thesun.co.uk and 1.6 million people read both the print version and website.

Following closely behind, The Daily Mail has a total of 16.4 million readers; 9.6 million print only, 4.7 million online only and a duplicated audience of 2.2 million. The Daily Mail and Mail on Sunday have a combined reach of 18.5 million readers.

Third-placed overall was the Daily Mirror with an overall readership of 11 million readers, split between 9.1 million print readers, 1.9 million online readers and a duplicated readership of 400,000.
The Guardian was next with an overall readership figure of 11.2 million, split between 6.4 million online readers, 4.8 million print readers and a duplicated readership of 2.25 million.

The Guardian just pipped the Telegraph, which had an overall readership figure of 10.5 million, split between 5.3 million online readers, 5.2 million print readers and a duplicated readership of 1.7 million.

The Times, meanwhile, whose website is behind a pay wall, reported a website readership figure of only 295,000, which was dwarfed by rival quality newspaper websites. Overall, The Times brand reported a figure of 5.74 million, made up of 295,000 website readers and 5.52 million newspaper readers. This is a long term business model for News Int. but they must be disappointed with the level of growth of paying subscribers.

Combined Print and Digital Readership Figures

Source: Mediatel

Tabloid and mid-market titles follow the same trends by having a higher print readership and a much smaller online audience, with the exception of The Mail brand which reported a monthly figure of 6.82 million (April 2012), undoubtedly the highest figure amongst mid-market websites.

The Metro, for example, has one of the largest print audiences of 10.7 million (April 2012) but still has a long way to go in order to compete in the online market with a reported readership of 1.6 million (April 2012).

In terms of the qualities, some show the online-only audience making up the majority of a title’s readership. The Guardian has around 2.5 million print only readers, 4.9 million online only readers and 1.5 million people reading both the print version and the website offering.

This title has always lead the way in online offering but the monetising of this offering remains a challenge that other publishing houses also struggle with.