The Big Picture 2008 Journalism, audience and advertising on the Web Anthony Moor Deputy Managing Editor/Interactive The Dallas Morning News

Agenda The birth of the Semantic Web Our promiscuous, ‘help me’ audience Journalism as a service, not a product Advertising decouples from news Discussion

Web 1.0: The good old days Web 1.0 ( ) AudienceGeeks Unit of Content Page (article) State Static (HTML) ArchitectureClient/Server EngagementRead (Britannica online) Ad Distribution A few large sites (DoubleClick) Search BoostDomain name speculation (Netscape)

Web 2.0: The interactive Web Web 1.0 ( ) Web 2.0 ( ) AudienceGeeksEveryone Unit of Content Page (article) Data (mashup, widget) State Static (HTML) Dynamic (XML, Ajax, RSS) ArchitectureClient/ServerWeb services (syndication) EngagementRead (Britannica online) Write/Contribute (Wikipedia, Flickr) Ad Distribution A few large sites (DoubleClick) The entire Web (Google AdSense) Search BoostDomain name speculation (Netscape) SEO (Google)

Web 3.0: The data-driven Web Web 1.0 ( ) Web 2.0 ( ) Web 3.0 The Semantic Web AudienceGeeksEveryone Data powers the Web Automated mashing up of personalized content Intelligent-agent driven assembly and interactivity Unit of Content Page (article) Data (mashup, widget) State Static (HTML) Dynamic (XML, Ajax, RSS) ArchitectureClient/ServerWeb services (syndication) EngagementRead (Britannica online) Write/Contribute (Wikipedia, Flickr) Ad Distribution A few large sites (DoubleClick) The entire Web (Google AdSense) Search BoostDomain name speculation (Netscape) SEO (Google) Source: Chicago Tribune

Audience Trends Our newspaper.com audience is aging

The newspaper.com audience is aging Source: Belden Associates, ‘Be Web Now’

Audience Trends Our newspaper.com audience is aging The online public is relying on social networks and collaborative filtering to edit the news

Growing use of social networks Membership in online communities doubled in only three years 54 percent of online community members log into their community at least once a day 71 percent of members say their community is very important or extremely important to them Fifty-six percent report meeting online counterparts in person 25% of bank and brokerage customers use social networks 1 Sources: USC Annenberg School, 2008 Digital Future Project; 1 Forrester (Feb. 2008)

Social networks exchange news

Social networks recommend sites

Social networks collaboratively edit

Audience Trends Our newspaper.com audience is aging The online public is relying on social networks and collaborative filtering to edit the news Brand promiscuity is the norm

An audience of ‘fly bys’ Source: 2006 McKinsey survey of 2,100 US Customers

Audience Trends Our newspaper.com audience is aging The online public is relying on social networks and collaborative filtering to edit the news Brand promiscuity is the norm They expect us to be where they are, not to go where we are

“If the news is that important, it will find me.” – The words of a college student, as recalled by Jane Buckingham, founder of Intelligence Group, a market research company Source: New York Times, Mar. 27, 2008

Source: 2006 McKinsey survey of 2,100 US Customers Access is more important than quality

Info sought from newspaper.coms Source: NAA Digital Edge report, 2006 Any news content96% Breaking news74% Local or community news73% (Women higher) Weather63% Local entertainment information55% (Women, 18-54s) National or international news46% Sports scores or information46% (Men) Political coverage30% (Men, 55+) Lifestyle info (fashion, etc.)30% (Women, 18-54s) Financial/investment info12% (Men)

Info sought from dallasnews.com Source: dn.com online survey, Dec Breaking national news 2.Breaking local news during the workday 3.Breaking local news in the evening and overnight 4.Breaking crime news 5.Breaking local news on the weekend 6.Crime map in my city and zip code 7.More frequent updates to the home page during the day 8.Morning newsletter with the top 10 local stories happening today 9.Breaking sports news during the workday 10.Weather maps, radar, alerts

Audience Trends Our newspaper.com audience is aging The online public is relying on social networks and collaborative filtering to edit the news Brand promiscuity is the norm They expect us to be where they are, not to go where we are They want us to help them get things done

Q&A site visits are exploding U.S. visits up 118% in 2008 Up 889% over two years

Dallas audience asks for help Watch my back –Watchdog journalism –Local crime and safety news (mapped to neighborhood) Watch my wallet –Local bargains and ‘best of’ –Resources to solve everyday problems –Personal financial advice –Business news and analysis Source: Dallas Morning News survey, Dec. 2007

Dallas audience asks for help Watch out for me and mine –Local green and health news –Tips for helping kids do better academically –Weather news, maps and info –Product recalls Keep a watch on my neighborhood –News briefs from my part of Dallas –Neighborhood coverage Source: Dallas Morning News survey, Dec. 2007

Audience Trends Our newspaper.com audience is aging The online public is relying on social networks and collaborative filtering to edit the news Brand promiscuity is the norm They expect us to be where they are, not to go where we are They want us to help them get things done They’re watching more video

Video use continues to grow Various studies show video use up and frequency is up Total video audience –Leichtman: 14% of all adults watch at home weekly, 4% daily –Pew: 74% of online adults watch at home or work, 19% daily Most popular categories –News is #1 (except for year olds who prefer comedy) –Comedy –Movies/trailers –Music videos Source: State of the News Media, 2008

Audience Trends: Implications? Our newspaper.com audience is aging The online public is relying on social networks and collaborative filtering to edit the news Brand promiscuity is the norm They expect us to be where they are, not to go where we are They want us to help them get things done They’re watching more video

Journalism Trends News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done Source: State of the News Media 2008

Home pages emphasize service

News is a feed – like electricity

Data centers provide utility

Mobile becomes a lifeline

Business info goes actionable

If you help watchdog, we help you

Journalism Trends News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done News Web sites are no longer final destinations Source: State of the News Media 2008

Audience visits via the side door SJ Merc: Two-thirds of its audience comes from aggregators 1 Dallasnews.com: 61% of visits entered somewhere other than the home page (Jan. 08) Source: 1 The Bivings Report

Press becomes ‘press sphere’ Source: Jeff Jarvis, Buzzmachine

A story is a point on a news timeline Source: Jeff Jarvis, Buzzmachine

Journalism Trends News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done News Web sites are no longer final destinations User-generated content doesn’t replace the story, it becomes part of the news process Source: State of the News Media 2008

We’re not getting ‘articles’ from users TIKK president earns 8 th degree black belt (by himself – a karate studio owner!) Grand Hyatt DFW Ranks #19 in Dallas Business Journal Best Places to Work Survey (by the Haytt’s PR company!) Botox...Not Just for Wrinkles Anymore! (need we say more?)

Seeding Cit J sites works better Five part-time posters and moderators

The 1% rule Of 100 people online, one will create content, 10 will "interact" with it (commenting or offering improvements) and the other 89 will just view it 50% of all Wikipedia article edits are done by 0.7% of users You Tube "creator to consumer" ratio at just 0.5% Source: guardian.co.uk (Jul. 2006)

Crowdsourcing aids reporting

Beat blogging shows promise Pro-am journalism Users provide insight, ‘stubs’ of information, that pros polish “News becomes a collaborative and cumulative work in progress pieced together by multiple contributors, rather than a media-certified byproduct carved in press plates and fixed in time.” – Carl Sessions Stepp, AJR

It’s reporting with a network “This is still about managing relationships. Reporters are naturals at that - but not usually in an online environment. A beat reporter needs to go where the people are, meet them on their own turf, or provide a space where they can be comfortable.” -- David Cohn, BeatBlogging.org

Journalism Trends News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done News Web sites are no longer final destinations The prospects for user-generated content appear more limited than initially thought Media companies are broadening the definition of journalism to include helping users navigate through content from others Source: State of the News Media 2008

News sites link out

Inline links offsite increase

NYTimes.com: We ‘edit the Web’

Journalism Trends: Implications? News is shifting from being a product – the Web site – to becoming an always-on service – help me get something done News Web sites are no longer final destinations The prospects for user-generated content appear more limited than initially thought Media companies are broadening the definition of journalism to include helping users navigate through content from others Source: State of the News Media 2008

Advertising Trends Display advertising has plateaued

Source: eMarketer, Oct. 2008

Advertising Trends Display advertising has plateaued Locally, video and search advertising are where the growth is

2012: Video ads, paid search dominate local Source: Borrell Associates Inc. Feb. 2007

NAA: The big money is in advertorials Longer-form “infomercial” One to two minutes about an advertiser’s product or service. Already used in the real estate industry to provide video walk- though tours of homes for sale

Advertising Trends Display advertising has plateaued Locally, video and search advertising are where the growth is Small spenders are where the big local dollars are

Self-service advertising

Business directories

Advertising Trends Display advertising has plateaued Locally, video and search advertising are where the growth is Small spenders are where the big local dollars are News and advertising are decoupling

Search engines suck up the dollars Google, Yahoo, AOL and MSN accounted for 57% of net online ad dollars in 2006 Top 10 sites received 70% Advertising on news/current events sites grew 9% while others grew faster Growth rate down from 2005 Source: State of the News Media 2008

Advertising Trends: Implications? Display advertising has plateaued Locally, video and search advertising are where the growth is Small spenders are where the big local dollars are News and advertising are decoupling

Discussion