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Power Users 2006 An Engaged Audience for Advertising and News. Federation Members Presentation May 2006. Power Users 2006. The 2006 sites AZCentral.com Boston.com CJOnline.com Cleveland.com DelawareOnline.com KnoxNews.com MySanAntonio.com Sacbee.com TBO.com

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Power users 2006 an engaged audience for advertising and news

Power Users 2006 An Engaged Audience for Advertising and News

Federation Members Presentation

May 2006


Power users 2006
Power Users 2006

  • The 2006 sites

    • AZCentral.com

    • Boston.com

    • CJOnline.com

    • Cleveland.com

    • DelawareOnline.com

    • KnoxNews.com

    • MySanAntonio.com

    • Sacbee.com

    • TBO.com

    • TwinCities.com

  • Interviews

    • 1,501: Phone Interviews

    • 9,576: News sites

  • Fielded in Dec. ’05 – Jan. ’06

In this presentation…

  • Overview

  • Online Audience & Habits

  • Online Interests

  • Local Online Marketshare

  • Online Advertising

  • Online Commerce

  • Online & Print Interplay

  • Recommendations

    Note: Full written report can be downloaded at digitaledge.org


Comparisons weighting

Methodologies

Online Newspaper Users

Online pop-up survey

10 sites, chosen by NAA

Average of 950 interviews per site

Fielded Dec/Jan 2005-2006

General Internet Users

21-minute telephone survey

Random-digit dialing

Used Internet during past month

Weighting

Online

Data balanced across markets and balanced by gender

General/Phone

Weighted to census estimates & a recent national MORI study for age, gender, ethnicity & census zones

Comparisons & Weighting

  • Respondents


Legend key

“NP site”

Online pop-up survey on newspaper (NP) sites; users on an “average day”

“Non-users”

Phone survey

Did not use a newspaper Web site in the past 6 months (49% of general Internet users)

“Past 6 mo. users”

Phone survey

Used a newspaper Web site in the past 6 months (51% of general Internet users)

Legend Key


Overview

Using a different analytical strategy than the 2002 and 2004 surveys, we mostly compare “average day” NP Web site users with non-users, defined as those who have not visited in the past 6 months.

Newspaper Web site users remainPower Users: Compared to non-visitors, they are younger, more affluent, and more engaged.

NP Web site audience continues to grow but at an uneven rate—“yesterday” visits growth accelerated since 2004, but past week or past 6 month growth slowed.

Overview


Overview cont d

Broadband connections increased both at work and at home, increasing the volume of Internet usage.

NP site visitors spend much more time online than non-visitors, and the morning hours remain prime time.

News is still the main driver to the Internet for NP Web site users but also a limiting factor: Non-users are much less interested in local news.

NP Web site users are more likely to participate in online activities, such as blogging, consumer reviews, banking, etc; they are more engaged online than non-users.

Overview (cont'd)


Overview cont d1

NP Web site users are more likely to own portable electronic devices.

Internet users generally are more interested in receiving news alerts than advertising on electronic devices. NP Web site users are more interested than non-users in news alerts.

For local news and entertainment, NP Web sites are challenged on the local front by local TV station Web sites, even among their own users

Google continues to gain in local news, and information and entertainment, and Yahoo! and MSN also are strong competitors, especially among non-users.

Overview (cont'd)


Overview cont d2

Usage of interactive services from NP Web sites is modest, especially for headlines to handhelds, RSS feeds or podcasts.

News content is the main driver to newspaper Web sites, but ads and interactive and multimedia features are also important to many users.

Print newspapers declined somewhat but remains the primary source of advertising for both groups; the Internet increased since 2004.

Online research, shopping and buying increased from 2004, especially among non-users of NP sites.

Overview (cont'd)


Overview cont d3

NP sites remain a bit player as a destination among consumers who seek shopping and advertising information online. Store sites and search engines presently own this category.

Online private party selling increased since 2004. eBay dominates, followed by craigslist; NP sites are well behind.

The interplay of print and online newspapers is mixed: Readership by NP site visitors is unchanged but remains below that of non-users. Readership by non-users declined.

Overall, NP site users just as likely to be reading print newspapers more often as less often than before, but this varies by market. Other traditional media have lost audience.

Overview (cont'd)


Overview cont d4

About 6 in 10 NP Web site users sometimes read the online version instead of the print, and 4 in 10 say they sometimes read the online version as well as the print version (many do both)

Reasons for reading the online version instead of the print include convenience, timeliness, and no cost.

The main reason cited for reading both versions is that each provides unique value to the user.

Overview (cont'd)



Profile of a power user

Who uses newspaper Web sites? version

91 percent recently shopped online

89 percent recently bought online

90 percent are employed

71 percent are online daily @ work

63 percent check news daily

70 percent frequently bank online

64 percent recently checked classifieds online

68 percent have home broadband

52 percent have college degrees

Profile of a Power User

  • Mean age: 39

  • Income: $73,000

  • Hours online/week: 19

Base: Online respondents


Newspaper web site visiting by internet users
Newspaper Web Site Visiting by Internet Users version

  • Growth of NP Web site audience among past 6-month and past 7-day users has continued but at a slower pace.

  • The visited yesterday growth rate, however, has accelerated.

  • There remains enormous room to grow: 49% of Internet users have not visited an NP site in the past 6 months, and 43% of past 6-month users have not visited in the past week.

NA

%

Base: Telephone respondents


Frequency visit newspaper web sites
Frequency Visit Newspaper Web Sites version

The frequency of visiting NP Web sites increased since 2004 among all Internet users.

Base: Telephone respondents


Demographics part 1
Demographics version (Part 1)

NP Web site users on average continue to be younger, more affluent, and more educated than other users of the Internet.

’06 Mean Age (NP site users): 39.1’06 Mean Age (Non-users): 42.7

Gender

Age

’06 Mean Income (NP site users): $73,200

’06 Mean Income (Non-users): $65,900

HH Income

Education

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Demographics part 2
Demographics version (Part 2)

NP Web site users are much more likely to be employed and white-collar workers than other Internet users.

Own or rent

Employment/ Occupation*

Family status

Race/ Ethnicity

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Internet usage time online
Internet Usage: Time Online version

NP site visitors continue to spend twice as much time online as other Internet users. The average time online for both groups continues to grow very slowly.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Internet usage connections
Internet Usage: Connections version

  • NP site visitors are much more likely than other Internet users to have broadband access at home and at work. Broadband has increased dramatically since 2004 for both groups.

  • Broadband users are generally more active online. For example, home broadband users are more likely to use Internet services and to check nearly all of the content measured in this survey.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Internet usage where go online most often

NP Web site users are far more likely than non-users to cite work as the location where they go online most often.

NP Web site users access the Internet more frequently than other Internet users both at home & at work.

Internet Usage: Where Go Online Most Often

(*Note: Other locations not shown)

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Internet usage dayparts

Respondents noted what times they are work as the location where they go online most often.most likely to go online. NP Web site users continue to be especially active in the morning (from 8 a.m. to 11 a.m.). NP Web site users are going online a bit more frequently in the evening than recorded in 2004—perhaps due to greater access to broadband at home.

Internet Usage: Dayparts

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Online interests

Online Interests work as the location where they go online most often.


News content accessed several times monthly
News Content Accessed work as the location where they go online most often.Several Times Monthly

NP site visitors use the Internet in general for various types of news far more often than non-users. News priorities are different for the two groups: For non-users, weather is easily the most important online topic, but local news is relatively much less important.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


News content accessed daily
News Content Accessed work as the location where they go online most often.Daily

For many NP site users, checking news is a daily habit.Only 7% of non-users check local news on a daily basis.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Online services used several times monthly
Online Services Used work as the location where they go online most often.Several Times Monthly

NP site users are becoming quite active with interactive online functions. Usage of podcasts/RSS feeds anywhere on the Internet is still modest, a limiting factor for their use from NP sites.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Online services used several times weekly
Online Services Used work as the location where they go online most often.Several Times Weekly

  • Men are more likely than women to read blogs/visit chat rooms or forums, download podcasts/RSS feeds, read or post reviews, or trade stocks online.

  • Users who access mostly from home are more likely to read blogs, post comments or post photos

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Online services used daily
Online Services Used work as the location where they go online most often.Daily

Interactive services for most users are things to do on an occasional basis rather than every day.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Ever access entertainment information online
Ever Access Entertainment Information Online work as the location where they go online most often.

NP site users are far more likely than non-users to get leisure-related info online, especially event calendars, dining out/nightlife, and entertainment news. Interest in travel info confirms high demand for travel advertising space on many sites.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Portable device pd ownership

NP Web site users are much more likely than other Internet users to own a portable electronic device. Among the items measured, the two groups are close only on gaming devices.

Portable Device (PD) Ownership

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Interest in receiving information ads on pds

Both groups are more interested in receiving news than advertising on PDs such as laptops or mobile phones. NP site users are much more interested than non-users in news, but only marginally more in advertising.

Interest in Receiving Information & Ads on PDs

News or Event Info

Advertising & Product Offers

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 mont(Very or somewhat interested)


Local online marketshare

Local Online Marketshare advertising on PDs such as laptops or mobile phones. NP site users are much more interested than non-users in news, but only marginally more in advertising.


Used internet in past 6 months for
Used Internet in Past 6 Months For… advertising on PDs such as laptops or mobile phones. NP site users are much more interested than non-users in news, but only marginally more in advertising.

Non-users are about one-half as likely as non-users to go online for local news or entertainment information. Among non-users, usage of the Internet is up 13 points from 2004 for local news and 8 points for local entertainment.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Sources used for local news info past 6 mos

– Google advertising on PDs such as laptops or mobile phones. NP site users are much more interested than non-users in news, but only marginally more in advertising.as local news source grew from 2004 among both NP site users and non-users. – Yahoo is stable among NP site users and up among non-users. – MSN is down slightly among NP site users and is up among non-users. – AOL is stable from 2004 among NP site users and down among non-users. – Non-users in 2006 use national sites more than local media sites for local news, though they are more likely to use local media sites than in 2004.

Sources Used for Local News & Info Past 6 Mos.

NA

Base: Online respondents who got local news online in past 6 months; Telephone non-NP Web site users who got local news online in past 6 months


Sources used for local entertainment and things to do

Google is up from 2004 as a source for local entertainment information among both groups; Yahoo is up slightly, but MSN and AOL are about the same as in 2004. Non-user visiting of local media sites doubled compared with 2004 data. Non-users are more likely than NP site users to visit national sites.

Sources used for Local Entertainment and Things To Do

Other sites mentioned include:

NP site: Fandango, MovieFone, city sites, other venue/entertainer sites, ISP homepages (e.g. Comcast)

Non-users: Other venue/entertainer sites

NA

*Unaided response

Base: Online respondents who got ent. info online in past 6 months; Telephone non-NP Web site users who got ent. info online in past 6 mos.


Np web site services used in past 6 months
NP Web Site Services Used in Past 6 Months information among both groups; Yahoo is up slightly, but MSN and AOL are about the same as in 2004. Non-user visiting of local media sites doubled compared with 2004 data. Non-users are more likely than NP site users to visit national sites.

The potential appears greater than current usage of interactive services from NP sites. Interest scores for headlines and alerts on phones and PDA’s are about double the level of usage.

Base: Online respondents


Duration of np web site visit

There is little difference between frequent and occasional NP site visitors in the length of their visits. Almost half of each group’s visits typically are less than 10 minutes. This is not surprising: Users are selective in content checked, and they have to fit the visit into the rest of the day’s activities.

Duration of NP Web Site Visit

(Typical amount of time spend at site during each visit)

NP Site

Mean: 16.4 Median: 12.1

Past 6 mo. users

Mean: 16.8Median: 11.6

Base: Online respondents who visited before today; Telephone respondents who visited a NP Web site in the past 6 months


Content used when visiting np web sites
Content Used When Visiting NP Web Sites NP site visitors in the length of their visits. Almost half of each group’s visits typically are less than 10 minutes. This is not surprising: Users are selective in content checked, and they have to fit the visit into the rest of the day’s activities.

Interactive and multimedia services & features are almost as important as classified ad content. National or international news draw much less than local or community news.

Base: Online respondents


Online advertising

Online Advertising NP site visitors in the length of their visits. Almost half of each group’s visits typically are less than 10 minutes. This is not surprising: Users are selective in content checked, and they have to fit the visit into the rest of the day’s activities.


Use internet for shopping advertising info
Use Internet for Shopping & Advertising Info NP site visitors in the length of their visits. Almost half of each group’s visits typically are less than 10 minutes. This is not surprising: Users are selective in content checked, and they have to fit the visit into the rest of the day’s activities.

NP site users are much stronger users of the Internet in general for shopping and advertising.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Use np web site for shopping advertising info

– While many NP site users use the Internet for shopping and advertising information, usage of NP sites for this information lags. – The biggest gaps are with online purchasing, travel, comparison shopping, and checking store hours or locations. The smallest gaps are with homes or apartments and downloading coupons.

Use NP Web Site for Shopping & Advertising Info

Base: Online respondents


Primary source for local advertising

– Overall, print newspapers decreased while the Internet increased.– Among NP site users, local newspaper Web sites increased slightly from 2004; they are unchanged among non-users.

Primary Source for Local Advertising

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Advertising that influenced a purchase in the past year

Three-fourths of NP Web site visitors were influenced by the Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Advertising That Influenced a Purchase in the Past Year

For technical reasons the results for newspaper Web site users are taken from the telephone survey rather than the pop-up survey.

Base: Telephone respondents who visited a NP Web site yesterday; Telephone respondents who did not visit a NP Web site in the past 6 months


Online commerce

Online Commerce Internet in their purchasing in the past year—a far higher level than among non-site visitors.


Researched or shopped online

Past 6 Months Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Researched or Shopped Online

NP site users research and shop online more than non-users, but the gap has narrowed. Researching and shopping among both groups have increased since 2004.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Made a purchase online

Past 6 Months Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Made a Purchase Online

The same trend holds for making purchases as for shopping and researching. NP site users are much more likely to make purchases online than non-users, but the gap has narrowed somewhat in 2006.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Items shopped for online

Past 6 Months Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Items Shopped for Online

– The biggest gaps between NP site visitors and other Internet users are with home supplies or furniture, DVD or videocassettes, travel arrangements, and phones.

– They are closest on vehicles, sporting goods, games or toys, and auto parts.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Items purchased after shopping online

Past 6 Months Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Items Purchased After Shopping Online

Purchased Online

Purchased Offline

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Online sources use most often for shopping researching
Online Sources Use Most Often for Shopping & Researching Internet in their purchasing in the past year—a far higher level than among non-site visitors.

A trend from 2004 continues: disintermediation. Shoppers are more likely to go directly to the source for product information (store Web sites, sites via Google). NP Web sites are struggling in the shopping arena.

For technical reasons the results for newspaper Web site users are taken from the telephone survey rather than the pop-up survey.

Base: Shopped online: Telephone respondents who visited a NP Web site yesterday/today; Telephone respondents who did not visit a NP Web site in the past 6 mos.


Amount spent online

Past 6 Months Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Amount Spent Online

More evidence of the attractiveness of NP Web site users: they spend more online than non-users.

NP site:

Mean: $1,500Median: $1,060

Non-users:

Mean: $1,280Median: $720

Base: Made a purchase online: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Amount spent offline after researching online

Past 6 Months Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Amount Spent Offline After Researching Online

NP site users also spend significant money in stores after shopping online.

’06 NP site users:

Mean: $2,570Median: $1,640

’06 Non-users:

Mean: $1,910Median: $660

Base: Made a purchase online: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Sold anything online

Past 6 Months Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Sold Anything Online

Though relatively few people sell items online, the numbers increased in 2004 and 2006, probably at the expense of print venues.

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Online sites used to sell items
Online Sites Used to Sell Items Internet in their purchasing in the past year—a far higher level than among non-site visitors.

National sites challenge NP sites because they don’t constrain sellers (and buyers) to a single market.

Other sites mentioned include:

NP site: Half.com, Other auto sites, personal/work sites, organization/specialty sites

Non-users: Half.com, Other auto sites, Personal sites

*Small base

Base: Sold something online: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Checked local web site for classified listings
Checked Local Web Site for Classified Listings Internet in their purchasing in the past year—a far higher level than among non-site visitors.

Past 6 Months

Classified verticals attract users on an occasional basis who are not much interested in editorial content.

’06 Non-users

’06 NP site users

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Online print interplay

Online & Print Interplay Internet in their purchasing in the past year—a far higher level than among non-site visitors.


Local print newspaper readership acquisition

Weekday & Sunday readership changed little among NP site users, but down significantly among non-users compared to 2004. Subscriptions are up slightly from 2004 for NP site users & down among non-users.

Local Print Newspaper Readership & Acquisition

(*Read weekday or Sunday paper)

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months


Interaction between print online newspaper usage

While over one-half of NP site users say they have gone online instead of reading the print version, many also say they go online and read the print newspaper.

Interaction Between Print & Online Newspaper Usage

Base: Online respondents


Reasons use np site instead of print
Reasons Use NP Site Instead of Print online instead of reading the print version, many also say they go online and read the print newspaper.

– NP site users access the online version instead of print primarily because online is convenient, free and more timely. – Groups that index higher than average are noted below

--18-34s, Men

--Women, 18-34s

--18-34s

--Men, 18-34s

--Men

Base: Online respondents (58% use Web site instead of print)


Reasons use np site in addition to print

– NP site users access the online version online instead of reading the print version, many also say they go online and read the print newspaper.as well as the print version because both offer convenience and provide intrinsic, platform-specific value.– Groups that index higher on these items are noted below.

Reasons Use NP Site in Addition to Print

--Men

--Age 55+

--18-34s

--Home users

--Men, 18-34s

Base: Online respondents (43% use Web site in addition to print)


Print online duplication trend

Past 7 Days online instead of reading the print version, many also say they go online and read the print newspaper.

Print & Online Duplication Trend

For the past 7 days, the proportion of dual users has increased while print exclusives have decreased.

Base: Telephone respondents


Media usage since accessing newspaper sites
Media Usage Since Accessing Newspaper Sites online instead of reading the print version, many also say they go online and read the print newspaper.

(*Asked about specific local market NP online)

Note: Does not display “Don’t use” & “Don’t know”

Base: Online respondents who visited before today; Telephone respondents who visited a NP Web site in past 6 months


Recommendations

Newspaper Web sites’ strength is news, especially local news, and to some extent classifieds. Newspaper sites, however, are not a destination for retail shoppers. This is a major problem for the industry, and significant improvement will require study, experimentation and investment.

To better compete with store Web sites and search engines, newspaper sites need a more functional local search--not only for shopping information, but for all things local.

Newspaper sites need to develop more effective ways to display retail advertising.

Recommendations


Recommendations1

Local TV station Web sites are significant local competition, aided by constant promotion from newscasts. Newspaper Web site promotion is spotty in comparison.

Interactive services on newspaper sites have modest, but growing, audiences that merit further investment.

RSS feeds are poorly understood by consumers generally but offer great potential for solidifying audience relationships. Consider new ways of describing, promoting or even naming this function.

Recommendations


Recommendations2

eBay has nationalized classifieds, and Craigslist has changed the cost structure for local classifieds. Newspaper Web sites likely will have to experiment with free ad categories that can be upsold in order to compete long term.

Audio and video functionality appeals to a niche segment of the newspaper Web site audience—especially among young adults and those who log in at night. This is ample reason for further investment.

Finding ways to monetize editorial content remains an urgent industry problem, especially given the weakness in retail advertising revenue.

Recommendations


Thank you

Thank You! changed the cost structure for local classifieds. Newspaper Web sites likely will have to experiment with free ad categories that can be upsold in order to compete long term.

Download the full written report at digitaledge.org

Brent StahlMORI [email protected]


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