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May 2014 Newsletter

A Growing Number of E-Commerce Sites Are Moving Into Print 

Digital-to-print seems counterintuitive. So why are they doing it?
Ask any lifestyle magazine publisher how they're making up for declining print revenue, and chances are they'll mention e-commerce. But while countless publishers are struggling to drive dollars via online shopping, there's a growing number of e-commerce companies moving in the opposite direction.
In recent months, customers of online-only retailers like Rent the Runway, JackThreads and Birchbox have received catalogs-yes, those old-school, printed booklets-in their mailboxes, while flash sale site One Kings Lane has been sending out "magalogs" combining decorating tips with photographs of rooms populated by the site's ever-changing inventory. 

The Free-Marketing Gravy Train Is Over on Facebook

Over the past several months, Facebook has been reducing the organic reach of Pages. A recent study found that companies' posts dropped from reaching 12% of their followers in October to just 6% by February

Facebook and its popular Pages platform have been a cornerstone of most companies' social-media marketing strategies for years. But if the brands, organizations and celebrities that use Pages want to continue to reach Facebook's 1.23 billion monthly users in the future, they're going to have to pay up. 

Glen Taylor: How I bought the Star Tribune, and what I paid

Taylor - who also owns the Minnesota Timberwolves and Taylor Corp. - confirms how much he paid for the Star Tribune ($100 million), his winding path to acquisition, and dickering with bankers over the $75 million in debt the paper will likely carry.

Americans spent 43.4 percent of media time online.

It's finally happened.
Last year Americans spent more time with digital media than any other medium, for the first time ever.
A new report from eMarketer finds that U.S. adults spent 43.4 percent of their major media time with digital devices in 2013, up from 38.5 percent in 2012.
Digital outpaced television, which declined from 39.2 percent of media time in 2012 to 37.5 percent last year. 

Millennials more influenced by digital ads, but pay more attention to traditional ones

Millennials are known as a digitally savvy group, but does that mean that they view traditional ads as less effective? According to polling by Adroit Digital, many millennials don't. When the January 2014 study asked US millennial smartphone users about the effectiveness of digital vs. traditional advertising, 36% said that digital ads were more effective; however, the percentage of those who said they were equally effective was close behind, cited by 28% of 18- to 33-year-olds.  

US Newspaper Revenue Trends in 2013 (infographics)

US newspaper cross-platform media revenues shrank by 2.6% year-over-year in 2013 to $37.6 billion, reports the Newspaper Association of America (NAA), as growth in new revenue streams failed to make up for declines in traditional print advertising. Print ad spend continued to account for the bulk of total revenues, but fell by 8.6% and now represent only 46% share of total revenues. The results also show that newspapers are failing to keep up with online advertising's overall revenue gains.

Mobile Grabbing Our Time, Print Ads Take the Ad Dollars

According to eMarketer's latest forecast of time spent with media by US adults, while mobile may be grabbing a growing share of time spent with media, "advertising dollars are following behind slower than one may expect." 

In fact, US advertisers will spend just 7 cents per US adult per hour spent on mobile this year, vs. nearly $1 for print.
 Print still commands the majority of ad spend - despite losing in terms of absolute time spent with media at double-digit rates each year since at least 2011. In 2014 alone, American adults time spent with print is projected to drop nearly 19%. 

Internet Radio Changing Consumer Habits

A new report from BIA/Kelsey shows Internet Radio is changing consumer listening habits and industry economics are starting to follow. New technologies such as Interactive Audio Ads are emerging to take advantage of voice-activated consumer engagement and conversion opportunities. The Internet Radio Revolution Has Arrived outlines how changes driven by platforms, services, audiences and advertisers are reinventing audio.

For the last several years, I've been regularly posting charts like the one above showing the history of US newspaper advertising revenue back to 1950, based on quarterly and annual data from the Newspaper Association of America. Those charts have been noteworthy for several reasons.

First, more than any of the hundreds of charts and graphs that I've created and posted on Carpe Diem over the last seven years, the newspaper ad revenue charts have received the most attention by far. 

10 Dying U.S. Industries: Newspaper publishing is one of them

The recession has caused the failure of some formidable companies, Lehman Brothers and Circuit City among them. Not only individual businesses have suffered, however. The economic woes of the last decade have preyed upon entire industries.

In a new report entitled "Dying Industries," by Toon Von Beeck, research firm IBISWorld identifies 10 U.S. industries that have experienced severe, possibly irreversible drop-offs over the past decade, today remaining stuck in the decline phase of their business cycle. 

What our customers have to say....
 

A quick follow up to a productive week...

 

Mr. Joe Mathes  Delta Online/Rev 1 Up!  606 Fremont St.  Kiel, WI 53042 

 

Dear Joe:
 
This is a quick follow up to the productive week you spent with our sales team at the end of February.
 
I was impressed on several fronts: The revenue you generated for our newspapers while you were here; the fact that you clearly did your homework on our newspapers, rate structure, and our niche in the Seattle market; and the fact that you and Pam worked so well with our sales team.
 
You immersed yourselves in the project and kept us focused. Your efforts have helped us realize a model that will sustain online revenue growth into the future.
 
On top of all that, you were nice people to partner with. Thanks again.
 
Sincerely,
 
Mike Dillon  Publisher  Pacific Publishing Co.  Seattle, WA 

 

Pacific Publishing site

 
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