Public Relations & Social Marketing Insight
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Public Relations & Social Marketing Insight
Social marketing, PR insight & thought leadership - from The PR Coach
Curated by Jeff Domansky
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Reuters Report: Paid Subscriptions a Bright Spot In a Landscape Where Digital Ad Revenue Disappoints

Reuters Report: Paid Subscriptions a Bright Spot In a Landscape Where Digital Ad Revenue Disappoints | Public Relations & Social Marketing Insight | Scoop.it

The consistent refrain for publishers in the digital age is that everyone is still trying to figure out what can work, from platforms to advertising to workable, sustainable models. But as the path to enlightenment remains covered in fog, possibly smog, the effects of the digital era’s inscrutable disruption are being felt. The clearest recent illustration was last week’s crop of layoffs from outlets new and old: HuffPost, Vocativ, Time, the Los Angeles Times.


The Reuters Digital News Report for 2017 reifies some of the trends good and bad cropping up in various organizations’ earnings reports and elsewhere, offering glimpses of what to try next, where to double down and what to avoid.


One of the more obvious findings, and one we’ve all likely memorized by now, is that the growth of digital revenue has not been enough to offset the loss of print revenue.


Subscriptions have been picking up some of that slack....

Jeff Domansky's insight:

Digital subscriptions are up but will they keep paying?

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Despite subscription surges for largest US newspapers, circulation, revenue fall for industry overall

Despite subscription surges for largest US newspapers, circulation, revenue fall for industry overall | Public Relations & Social Marketing Insight | Scoop.it

Following last year’s presidential election, some major U.S. newspapers reported a sharp jump in digital subscriptions, giving a boost to their overall circulation totals. The newspaper industry as a whole, however, faced ongoing challenges in 2016, according to new Pew Research Center analysis.


Yearly financial statements show that The New York Times added more than 500,000 digital subscriptions in 2016 – a 47% year-over-year rise. The Wall Street Journal added more than 150,000 digital subscriptions, a 23% rise, according to audited statements produced by Dow Jones. And the Chicago Tribune added about 100,000 in weekday digital circulation, a 76% year-over-year gain, according to its filings with the Alliance for Audited Media (AAM), an organization that verifies many daily newspapers’ circulation figures.


But these gains did not translate into circulation growth for the industry overall. A Pew Research Center analysis of data from AAM shows that total weekday circulation for U.S. daily newspapers – both print and digital – fell 8% in 2016, marking the 28th consecutive year of declines. (Sunday circulation also fell 8%.) The overall decline includes a 10% decrease in weekday print circulation (9% for Sundays) and a 1% decline in weekday digital circulation (1% rise for Sundays).


Total weekday circulation for U.S. daily newspapers fell to 35 million, while total Sunday circulation declined to 38 million – the lowest levels since 1945. (For more information on how these totals were calculated, see our fact sheet.)...

Jeff Domansky's insight:

Some major newspapers reported a sharp jump in digital subscriptions, but the industry as a whole faced ongoing challenges in 2016 according to Pew Research.

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At 'Washington Post,' Tech Is Increasingly Boosting Financial Performance

At 'Washington Post,' Tech Is Increasingly Boosting Financial Performance | Public Relations & Social Marketing Insight | Scoop.it

When I started my career at The Washington Post in the late 1990s, the newsroom wore a dusty, outdated look as if it were paying homage to its legendary past. The Post of today occupies an updated building on D.C.'s renowned K Street, in modern, glass-walled offices with a Silicon Valley aesthetic.


This is the Post after Jeff Bezos, the Amazon CEO and e-commerce visionary, bought it in 2013. Since then, the paper's business and technology has almost outshone its award-winning journalism.


Before Bezos, the Post was losing revenue and its losses were widening, as it struggled to find income to replace its decline in print ads. The Post is now privately owned and doesn't discuss specific figures, but says revenue and profits are up, as subscribers grow and digital ad revenue increases. Its monthly Web traffic has grown 56 percent, to 78.7 million over the past two years, according to ComScore.


That reflects its journalism, but it also reflects big changes under the hood. Under Bezos, the newspaper has transformed its operations, from how it writes headlines and chooses photos, to how it generates ad dollars....

Jeff Domansky's insight:

Revolution: The newspaper struggled amid declines in print ads, but under Amazon's Jeff Bezos, it has transformed its operations, from how it writes headlines and chooses photos to how it generates ad dollars.

Peter Miller's comment, June 16, 2017 12:56 AM
Great post... Very Informative.
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What If the Newspaper Industry Made a Colossal Mistake?

What If the Newspaper Industry Made a Colossal Mistake? | Public Relations & Social Marketing Insight | Scoop.it

What if, in the mad dash two decades ago to repurpose and extend editorial content onto the Web, editors and publishers made a colossal business blunder that wasted hundreds of millions of dollars? What if the industry should have stuck with its strengths—the print editions where the vast majority of their readers still reside and where the overwhelming majority of advertising and subscription revenue come from—instead of chasing the online chimera?

 

That’s the contrarian conclusion I drew from a new paper written by H. Iris Chyi and Ori Tenenboim of the University of Texas and published this summer in Journalism Practice. Buttressed by copious mounds of data and a rigorous, sustained argument, the paper cracks open the watchworks of the newspaper industry to make a convincing case that the tech-heavy Web strategy pursued by most papers has been a bust. The key to the newspaper future might reside in its past and not in smartphones, iPads and VR. “Digital first,” the authors claim, has been a losing proposition for most newspapers....

Jeff Domansky's insight:

Readers continue to leave print newspapers, but they’re not migrating to the online editions. What if almost the entire newspaper industry got it wrong?

 

In my opinion, newspapers were ripe for disruption because printing on dead trees was economically unsustainable and technology offers better reach -- when done right. The entire value proposition changed and like the music industry, newspapers reacted too slowly to the digital realities.

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