digital versus traditional newspapers

Digital versus traditional newspapers

On this point, if companies in the press sector are aware of consumers' perceptions, as well as the influence of the reasons for reading newspapers over their perceived substitutability of the two mediums, this could enable publishers to progress with the differentiation of the services offered via the two media and achieve a better fit with reader preferences. In fact, the main aspects that justify digital newspaper reading should be considered by management personnel in this type of news medium, in order to potentiate its use; in fact, journalistic firms could find a new source for its development by taking advantage of the internet possibilities. Readers would thus perceive these services as complementary products meeting the same generic need (obtaining current information), but with varying objectives and features for use. Specifically, reading the printed version of a newspaper may be more relaxing for the eyesight than reading the digital version, and the former method may be preferred when the reader has more time available or is interested in reading a major part of the newspaper's content. Alternatively, reading a digital version may be preferred if what the reader is looking for is a brief overview of the day's news, if the individual is looking for the latest update of a news item that has not been published in the printed version, or if what is wanted is one or two specific items of information.

Moreover, journalistic firms should make efforts in the analysis and knowledge of readers' needs. This could be easier to do using the electronic channel because it is possible to track users' behaviour on a website. In any case, the knowledge of readers' needs and goals could be a starting-point for developing marketing strategies. Thus, firms would offer to readers what they want at any given place and moment.

Definitively, the offer of a digital newspaper should provide substantially different features from that of the printed version of the same paper, in such a way that the two products are clearly differentiated and fit more closely the preferences of different consumer groups. Logically, this differentiation of form should be based on the different peculiarities or advantages provided by these media.[1]

Impact of the Newspaper size

The newspaper size has impacted the reading habits of customers in the following ways [2]-

1. There is a long-term, decades-old trend from larger formats to smaller formats among paid daily newspapers. In the abstract, readers prefer compact formats.

2. A major part of that trend, country by country, is the divorce of compact format from a sensational style of journalism and design.

3. Format communicates something to the consumer market. Typically, broadsheets are more attractive to men, older people, the highest end of the social structure, and the 'establishment.' Tabloids and micro formats tend to attract women, the middle market, younger people, and the aspirant.

4. It is easier to launch a new compact format than convert from larger format for reasons of advertising, history, and internal objections to change.

5. This is a global story only insofar as international tales like this one are more easily communicated today than ever before. For all practical purposes, newspaper format is a national story with many local nuances.

Print Revenue Models

In a recent column published by the New York Times, Michael Kinsley, former editor of Slate – an online magazine that tried and failed to convince consumers to pay for it – concurred with the folly of Isaacson's suggestion that newspapers charge their consumers. Kinsley noted that those economics do not even work in print, much less online, wryly observing that the paper on which newspapers are printed is worth more than what the publications charge consumers-meaning they would make more money selling paper with 'nothing printed on it'.

So the future of newspapers and other print media isn't to charge consumers, but to figure out ways of attracting as many as possible to read their content for free, and to find other ways to make money from that. [3]

The first and most obvious way is something they already do: sell advertising. The problem is that they are not able to attract advertising budgets comparable to what they garnered from their print publications. This has more to do with the legacy of print and online costs per thousand – known as costs per mille (CPM) – than it does with the inherent differences in the value of their content, or their audiences, online. Online CPMs simply started out being cheaper, and more efficient, than print's. That gap will ultimately close, but it will come more from print CPMs growing more efficient than from online CPMs becoming more expensive.

Conventional CPMs allow advertisers to reach consumers on a far more targeted – indeed, an addressable – basis. The effective CPMs for doing that are much greater than any mass media model; they are more akin to direct selling and commerce models that pay based on performance. So there is a big economic shift taking place before their eyes, yet most major publishers don't even see the opportunity in

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They don't see it because it is a different model for them. Either they don't understand it, or they are afraid of the implications.

THE WAY FORWARD

I recently talked to Bill Holiber and Brian Kelly, respectively president and editor of US News & World Report (USN&WR), one of the three news-led weeklies, along with Time and Newsweek that dominated the news publishing business during the formative years of my media life.

They are embracing new forms of revenue generation that go beyond traditional branded display advertising sales, and are adopting the kind of lead generation and commerce models that other publishers might look down on because of their crass commercial nature. Why?

Because the display advertising business is also dying for news-led weeklies and because they understand the ability of their publication to generate revenues using the in-market potential of the readers they attract.

So, when a reader links from USN&WR's listings of college campuses to a university's, or an education commerce site, they get a piece of the action. If a reader links from USN&WR's directory of hospitals or healthcare services to a medical facility or a health insurance plan, the same thing happens.

I cannot tell you if Holiber and Kelly will be successful, or if their model will prove to be sustainable, but I do give them credit for trying, and for not wasting time rearranging some deckchairs.

Secondary Research about Indian Newspaper industry

|India |2004 |2005 |2006 |2007 |2008 |2009 |

|Annual Newspaper Circulation Year-on-Year Growth (%) | |17.3 |15.4 |6.2 |4.6 |1.5 |

|Annual Newspaper Circulation(in '000 copies) |133087 |156165 |180172 |191344 |200057 |203156 |

|Consumer Expenditure on Newspapers, Magazines, Books and|12784.6 |14949.5 |17395.8 |20718.1 |24767.4 |31037.4 |

|Stationery(Rs million at current prices) | | | | | | |

As is observed from the above table, the year-on-year growth of newspaper circulation has been continuously decreasing from 17.3 in 2005 to 1.5 in 2009. That apart, the consumer expenditure on Newspapers, Magazines, Books and Stationery has been steadily increasing at a faster rate. [4]

Secondary Research about Mint

[i]Mint is a business newspaper from HT Media Ltd, launched in collaboration with The Wall Street Journal on 1 February 2007. It is a premium business news publication aimed at decision makers and policy makers of the country and it is the first newspaper in India to be published in the Berliner format. The current Editor of the newspaper is R. Sukumar.

Style

The design of the Mint newspaper is geared towards presenting business and financial information in a compact format. The format itself was designed by Mario R. Garcia, who has also been associated with the re-design of the Wall Street Journal.

Features

Along with the print edition, Mint also has specialised online and mobile editions which can be accessed at "www.livemint.com". Livemint.com is among the fastest growing news websites in India and it attracts more than 1.5 million readers every month, majority of whom are decision makers in leading business organizations across the world.It is widely considered to be the most comprehensive and technically evolved news portal in the country that has introduced many multimedia enabled engagement platforms which give its readers the opportunity to express their point of view and interact with Mint's editors and columnists.

The weekend edition of the publication is called "Lounge" and it features columns on travel, fashion, arts, personal technology, parenting, and health.

Differential Pricing of Mint across cities

Mint follows a differential pricing across the different cities in India. With the launch of the Chennai edition on July 13,2009, Mint can now boast of a national presence that includes major cities such as New Delhi, Mumbai, Bangalore, Chandigarh, Pune and Kolkata. The following is the pricing of Mint:[ii]

|City |Price(Rs.) |

|New Delhi |3 |

|Kolkata |3 |

|Chennai |3.5 |

|Mumbai |2 |

|Bangalore |3.5 |

|Pune |2 |

| | |Mumbai, Bangalore, Pune | |

|Readership IRS |7.57 lakhs |1.59 lakhs |1.48 lakhs |

|Cover Price per day WD | | | |

|Key Editorial Features and Emphasis| | | |

Latest Readership pattern across the business dailies

According to the Indian readership survey report of 2009, ET leads the pack of the English Business dailies with 7.57 lakh readers. After the round 2 of the IRS 2009 the results were as follows:[iv]

[pic][v]

According to IRS 2009 Round 2 data, two out of the five business dailies whose numbers have been released show a decline in readership. The Economic Times which has been the country’s leading business daily has maintained a very significant lead in the sector. But the publications average issue readership (AIR) has dropped by 3.32 per cent. From an AIR number of 7,83,000, ET is down to 7,57,000 in this round.

Mint, which follows in the number two spot though after a significant gap, has seen a 9.14 per cent drop in its AIR. From 1,75,000, Mint now has a readership number of 1,59,000. This round also has the number of Business Standard. It may be recalled that BS had raised issues with the IRS data a few rounds back, subsequent to which, its numbers were not published by the IRS. In this round, BS is at an AIR number of 1,48,000.

The Hindu Business Line has seen a growth of 9.73 per cent. From 1,13,000, the publication is at 1,24,000. The Financial Express has seen no change in its numbers from the previous round, which is at an AIR of 38,000.

The complete report of all the English dailies in the country can be found in Appendix 1.

Best Business Newspapers in India

According to a voting done on India PR blog on ‘Let’s rate the media’ survey, 382 responses were received and out of that 300 were valid responses. The study was conducted by Palin Ningthoujam, who is Genesis Burson Marsteller's Digital Strategist and is the founder of India PR Blog. According to this research the following results were obtained[vi]:

1. Newspaper with the most number of in-depth/intelligent articles:

Winner: Mint

Ever since its launch, Mint has always positioned itself as a newspaper that analyzes developments in the financial worlds and presents them in a way that is easy to understand to the reader. It has also put focus on coming up with more in-depth feature stories than providing short news bytes.

[pic]

2. Newspaper with the most number of inside stories/or spicy bits of companies

Winner: The Economic Times

The Economic Times, as we know, has come out with stories that have created many crisis like situations for many of our clients. Exclusives, inside stuffs – the kind of things the journalists out there always seem to be after.

[pic]

3. Newspaper with the best predictions of economic trends/ business houses

Winner: The Economic Times

It is interesting to note how The Economic Times has swallowed up a majority of the pie on this question and the above. No wonder this is India’s largest circulated financial daily.

[pic]

4. Newspaper providing the widest gamut of news coverage

Winner: The Times of India

Some people have questioned that why include the dailies like The Times of India among the financial dailies. Our take was that these dailies today come up with sections of 8-10 pages of business news that have become financial newspapers in themselves. But perhaps the widest gamut of news coverage might not be limited to only business news here.

[pic]

5. Newspaper which has the maximum number of journalists who are very professional in their approach

Winner: The Hindu Business Line

The Hindu Business Line, as we know, is one of those newspapers that puts journalism ethics above anything else. The staff is also superb, based on personal experiences- knowledgeable, intelligent, helpful, modest.

[pic]

Online Marketing Strategy

Mint’s online marketing tool is Facebook. While Mint has two groups for its readers in facebook – Mint and Livemint Radio with a big fan following, it has a minor presence in Orkut.

In Facebook, while the Mint group targets its news listeners, the Livemint Radio group is for the followers of its radio product. Mint perfectly utilizes the various features of facebook like Wall, Info, Photos, Videos, Boxes, Video, Discussions and Note. Mint uses the Wall of facebook to give the headlines of the latest news which is elaborated in the Note of facebook. The group has special videos of news reporting in the Videos section, conducts opinion polls in the boxes section and special pictures of its newspaper in the Photos section.

|Attribute |Mint |ET |BS |Financial Express |

|Facebook - Number of fans |1337 |1935 |560 |27 |

|Orkut - Number of members |196 |5491 |475 |42 |

|Twitter – Number of followers |2615 |4415 |589 |65 |

Orkut is the most visited social networking site in India with more than 12.8 million visitors, followed by Facebook with 4 million visitors. However, the Year-On-Year growth has been 81% for facebook and 150% for facebook. Facebook is gaining popularity at a very fast rate in India through its aggressive marketing. The bigger presence of Mint in Facebook as compared to Orkut seems to indicate that the marketing strategies of Mint are in the right direction. Further, it is observed that Mint is strongly marketing itself even in Twitter, ahead of BS and Financial Express.

Appendix

1.[vii]

[pic]

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[1] Flavian, C. & Gurrea, R. (2009) Digital versus traditional newspapers: influences on perceived substitutability, International Journal of Market Research,

Vol. 51, Issue 5, 2009

[2] McMullan, D. (2004) Does Size Matter For Newspapers? , International Newsmedia Marketing Association, Ideas Magazine, January 2004

[3] Madese, J. (2009) New Print Revenue Models, ADMAP Magazine March 2009, Issue 503

[4] Euromonitor International from World Association of Newspapers

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[i] http://en.wikipedia.org/wiki/Mint_%28newspaper%29

[ii] http://sify.com/finance/mint-set-to-refresh-chennai-newspaper-market-news-news-jhnn6wahhfi.html

[iii] http://www.ravidixit.com/History-of-Print-media-financial-dailies-in-India.htm

[iv] IRS report 2009

[v] http://www.exchange4media.com/IRS2/2009/IRS2fullstory_band.asp?news_id=36517&tag=32579§ion_id=41

[vi] http://www.indiaprblog.com/2008/10/best-business-newspapers-in-india.html

[vii] http://paidcontent.org/images/editorial/_original/irs-english-newspapers-o.jpg

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