Earlier this year, RealMatch President Terry Baker presented a state of the industry view of the newspaper publishing industry to an exclusive team of insiders. His insights show an industry in great transition – though this should be no surprise to anyone. One of the main takeaways was that newspapers are creating local digital marketing agencies, which service everything from advertising to website building to classifieds. This shift of bringing classifieds into the digital era is one that is helping newspapers generate more traffic and revenue in the face of declining revenue due to circulation losses.
Enjoy the slideshare below for a high level view of what is going on in the newspaper publishing industry.
The first thing to recognize are the major trends, outlined in the slide below.
Digital is obviously changing everything – from subscription to digital marketing to even major market consolidation. And yet, despite the narrative that newspapers are dying, reach is greater than ever, last year garnering nearly 180 million adult unique users on local and national newspapers’ digital sites.
To break this reach down even further, consider this:
- More than nine in 10 men (93%) and women (92%) ages 25-44 who were online in August 2015 engaged with newspaper digital content.
- The newspaper digital audience grew more than twice as fast as the overall internet audience for age groups 18-24, 25-34 and 35-44.
- Half of the newspaper digital audience is composed of those who use only mobile devices (smartphones or tablets) for their newspaper digital content
- Eight in 10 of the newspaper mobile audience use smartphones exclusively for access.
Perhaps the biggest shift in the newspaper world is the revenue driven from circulation is now greater than revenue from advertising:
But one area that everyone is worried about is ad-blocking!
- 47% of internet users use some form of ad blocking (Reuters Institute – June 2015)
- 55% in the 18-24 year old demo.
- 16% of ALL US traffic adblocked at start of 2015 – 20% now (Adobe)
- Global loss of ad revenue to adblocking – $21.8 billion (Adobe)
- AdBlock Plus averaging 2.3M global downloads A WEEK for 2 years.
- Higher income users more likely to adblock (their time is more important to them)
- Adblocking effecting your analytics tags
- CBS Interactive – 5%-40% of pageviews ad-blocked across 20 properties
Two trends that may be related are the rise of local digital marketing agencies and major marketing consolidation. Recently, Nucleus Marketing Solutions was announced, while at the same time, one of those partners is making offers to buy out another. But this trend did not start with Gannett and Tribune, as you can see in the images below:
So what does this all mean?
Newspapers are hungry for new revenue streams. While this should not come as a surprise, one area that newspapers are successfully recouping losses is online recruitment advertising. As the job advertisement becomes more similar to a hybrid of native advertising and an SEM result, job ads are the prime content for a newspapers audience. Whether in New York, Philadelphia, Eastern Tennessee, or numerous places across America, newspapers are using their local influence to help employers and job candidates find each other.