New research from Ketchum and USC Annenberg among Internet users (18+) in the USA shows the mixed media use and the dominant position of TV and local news. The table shows the evolution over the last three years.
After three months of intense meetings, interviews and research the French government published the recommendations to support print media in France. In the context of the growing importance of online news and the economic situation of the print media "Etats Genereaux de la Presse Ecrite" was created. This Conference worked on four aspects of the print media business: the journalist function, the industrial process, print media and Internet and print media and society. Earlier this month the group presented its conclusion in the "Livre Vert". On the basis of these recommandations President Sarkozy decided to give all 18 year old French a free newspaper subsription of one year. The French government is also to double its advertising budgets spent in print media to 40%. Other measures have also been announced. Together with the ban on advertising on public broadcast television, the French have put together robust measures to support the print media.
Earlier this year I wrote about the correlation between the sales of e-books and hard copy books. The well-know New York Times technology columnist and "Missing Manuel Book" - writer David Pogue wrote in June an article on the this subject. His perspective has to do with copyright and pirated use of e-books and fits the discussion that creative work will sooner or later become freely available via the Internet. Paul Krugman wrote an interesting but much discussed article on this model already used by the Grateful Dead.
In considering free e-books Pogue refers to three possible relations that might exist: giving away e-books for free will boost sales of the print edition, selling e-books is the only legitimate way to buy electronic versions and e-books will kill income of printed books. Pogue refers to two interesting variables: the awareness of the author (less-known authors supposedly benefit more from the free exposure and attract new readers of the printed version), and the genre of the book (do you read science-fiction on a screen?). One of the people who reacted to the story was Kevin Kelly who suggested to have a test with one of Pogue's books. His prediction is that his e-books will not be duplicated as much as imaged and elevate, or at least not depress sales of the print version. Pogue's publishing company started the test this month and I'm curious to see whether the results will confirm what the National Academies Press concluded earlier this year.
Newspapers are probably the biggest losers of the growth of the Internet. Advertisers shift to the cheaper and more accountable Internet advertising possibilities and readers value the speed and the interactivity of Internet news. Zenith Optimedia expects that by 2010 newspapers will take 23,7% of all ad spend (in 2006 this was 28,4%). By contrast, the Internet will represent 13,6% in 2010 (6,8% in 2006). Research among 250 newspapers in the USA shows the paradox newspapers are facing. The Internet offers them a platform to compete with television and radio in bringing video news and generate the related (lower) advertising revenues. On the other hand providing news for the Internet places heavy burdens on the quality of the journalistic work. Andrew Keen has written an excellent book on what he calls the Cult of the amateur. The web does not allow for in-depth, high quality news analysis. Integrating editorial teams for the paper and the web version of the newspaper has been the first step newspapers have taken. But the future of these already downsized teams depends on the capacity to attract advertising money for the web-based newspaper.
The contradiction in this situation is that Google, the exponent of the Internet, demonstrated the value of newspaper advertising in conjunction with Internet advertising. Media are connected: newspaper ads drive consumers to the web. The Google research showed the effectiveness of newspaper advertising but also the effectiveness of the combination: of those who researched a product they saw in the newspaper, 67% did so online.
Advertising budgets will continue to be in transition between the different media untill there is a new equilibrium. However I'm not expecting to happen to newspapers, what MTV believed to happen to radio when they aired at their launch the clip "Video killed the radio star".
It might seem a contradiction but the Internet doesn't offer enough quality sites to advertise! Despite the millions of sites and billions of pages advertisers will not be able to buy space on their favourite sites. In the USA the contextual inventory on car sites was already sold out before the year started. Web pages can't take a lot more ads as they are already cluttered. McKinsey last year reported that 96% of banner ad spendings is concentrated at sites that represent only 30% of traffic. This also applies to video ads and paid search. Lack of space is a phenomenon unknown to the print industry. The Spanish Vogue of last year with over 1000 pages is a great demonstration of the print industry capabilities.
For the first time consumers in Europe are spending more time online than reading magazines and newspapers. Research shows that consumers in the UK, France, Germany, Italy and Spain are devoting more time online (4 hours/week) and watching TV ( 12 hours/week). Time spend on reading print remains at 3 hours/week. These data will force marketers to rethink communication strategies.
The Museum of Media History produced a view of the impact of the internet on newspapers and media consumption in general. The short movie shows in a dramatic way the impact of technology on the gathering, making and distribution of the news.
