Newspaper Multiplatform Usage Qualitative Research Report Presentation to: April 2012 CONFIDENTIAL AND PROPRIETARY Copyright 2012 by Frank N. Magid Associates, Inc. Any duplication, reproduction, or usage of this document or any portion thereof without the written consent of the firm is prohibited. © 2012 Frank N. Magid Associates, Inc. Objectives Primary Objective Secondary Objectives 1 Deepen understanding of multiplatform news consumption overall and identify newspaper brands’ unique benefits within the news media consumption landscape For each newspaper consumption platform, identify key usage and engagement drivers, differentiating features, quality signifiers and perceived benefits Understand consumers’ perceptions of and expectations for advertising when engaging with daily local newspaper content © 2012 Frank N. Magid Associates, Inc. Methodology Nine 1 hour and 40 minute mini-groups (three per market) were conducted with participants who met the following criteria: − Ages 21-60, with groups broken by age – 21-34, 35-49 and 50-60 − An even mix of males and females − Read a local daily newspaper in print at least once a week (2/group could read once a month or less) − Access a local daily newspaper on either a smartphone or iPad more than once a week − Use a smartphone or iPad daily to access Internet − No relevant industry employment − Household income above $40,000 per year Groups were conducted in: Denver − Washington, D.C., on November 2, 2011 Washington, D.C. − Austin on November 8, 2011 − Denver on November 10, 2011 Austin Susan Kresnicka of Frank N. Magid Associates moderated the sessions. As is the case with any qualitative research, these focus groups were conducted among a limited and specific sample. As such, the findings contained in this report should be used for directional purposes only. 2 © 2012 Frank N. Magid Associates, Inc. Key Findings – News Consumption Throughout the Day © 2012 Frank N. Magid Associates, Inc. Newspaper Readers Consume Newspaper Content on Multiple Platforms Throughout the Day… Especially on Weekdays Typical Weekday Newspaper Content Consumption Upon Waking 4 Breakfast A.M. Commute Start of Work Day Breaks/ Lunch P.M. Commute Errands Evening Before Sleep © 2012 Frank N. Magid Associates, Inc. Weekends Yield Lower, Less Vigilant News Consumption Overall, But Higher Print Use Less frequent, less patterned consumption − Some make a conscious decision to take a “mental break” from the news on weekends − Others simply consume less because they are active, engaged in other activities Fewer platforms − Smartphones for top headlines dominate while out and about − iPad and print for more relaxed news reading sessions − Some Sunday morning TV news shows – e.g., “Meet the Press” Print as ritual, relaxation − More prevalent among older readers, but carried on by some younger readers, too − Associated with total setting – coffee, couch, blankets, no rush − Sales, coupons and circulars prove key drivers 5 © 2012 FrankPlatform N. Magid Associates, Inc. Multiplatform Newspaper Readers Seek Information Throughout the Day From a Set of ‘Go-to’ News Brands – Mix of TV, Radio, Print and Online News Brands TV Online Local TV News Radio Newspaper Local Daily Newspaper 6 © 2012 Frank N. Magid Associates, Inc. Key Findings – Daily, Local Newspaper Platforms © 2012 Frank N. Magid Associates, Inc. Print – Emotional Experience, Circulars/Coupons Among the Best Things About Reading the Paper in Print Key Equities Strong emotional attachment to the reading experience − Reinforces connection with heritage (familial, cultural) − Associated with relaxation − Grounded in the tactile Most trustworthy − Permanence of print demands higher quality, better editing, greater accuracy − However, some younger readers consider print less current, and therefore less trustworthy Key Drawbacks “Bad for the environment” Engagement Relatively deep Bulky, awkward to use for some − Read with greater focus Ink on hands − Consume more full articles than on other platforms Requires more time to read; opportunity to relax/slow down Isn’t always available (as opposed to smartphone) Requires another platform to search/follow up for more info Difficult to share with others Articles jump to other pages, sections Perceived as offering deeper reporting Associated with less intrusive, more useful advertising − Ads can’t pop up, take over or expand to cover the content − Circulars, coupons considered useful and relevant 8 © 2012 FrankPlatform N. Magid Associates, Inc. Website on Computer – Best for Search, Worst for ‘Intrusive’ Ads Key Equities Encourages search, exploration, connections to new information − Easy to do with full keyboard, multiple tabs Always fresh, up-to-date Key Drawbacks “Intrusive” advertising can undermine the reading experience Can be difficult to see/skim full range of content available Engagement Moderate − Skimming headlines, reading first few paragraphs − Easy to become distracted, follow links/searches to new articles/sites Easy to share info with others – and type a message to accompany it Provides anytime access to previous articles, archives Offers a record of how stories unfold 9 © 2012 Frank N. Magid Associates, Inc. Smartphones’ Anytime, Anywhere News Keeps Readers Informed On the Go, but Offers a Suboptimal Reading Experience Key Equities Key Drawbacks Keeps news at the reader’s fingertips throughout the day Small screen makes it difficult to read Provides something to do during down times during the day, especially when waiting Slow – articles spread over multiple pages; have to reload every time Offers constant access to local news that may affect the reader during the day Difficult to search for further information Ads can be difficult to close; take up a disproportionate share of the visual real estate Engagement Shallow − Mainly skimming headlines, reading first few paragraphs − Easy to get distracted by ads, small screen; need to expand font repeatedly − Often used for squeezing news in between other activities, with limited time and concentration to begin with Platform of last resort for reading the newspaper, yet far better than nothing 10 © 2012 FrankPlatform N. Magid Associates, Inc. The iPad Makes Reading the Newspaper Fun and Convenient Key Equities Makes reading the newspaper fun − Mimics print newspaper in novel, satisfying ways (especially page-turning) − The platform itself elicits a “new toy” enthusiasm for users Key Drawbacks Lack of keyboard makes typing awkward for some − Limits their desire to search − Discourages sharing news because typing a corresponding message seems arduous Engagement Moderate − Deeper engagement because the experience is enjoyable, mimics print − But articles seem truncated to some readers − Users tend to associate the iPad with passive consumption and relaxation rather than purposeful tasks and work “Small enough to carry, big enough to see.” Provides easy-access video, audio 11 © 2012 FrankPlatform N. Magid Associates, Inc. Newspaper Apps Offer Optimized Web Experiences, Greater Sense of Trust Those who frequently use news apps develop strong loyalties to them, finding the experiences apps provide to be: − “Smoother,” “less clunky,” “more seamless” and generally more intuitive − “Faster” – less waiting for screens to load; some information cached for immediate access − “Less cluttered,” “streamlined” visually Some news app users also feel a greater sense of trust within the confines of the branded app experience − Expect to avoid the behaviorally targeted, highly intrusive, potentially electronically dangerous advertising they associate with websites − Believe the brand bears responsibility for creating a desirable experience within the “walls” of its app environment, including avoiding intrusive, “obnoxious” advertising “I would trust an ad most if it’s within The [Washington Post] app on an iPad. … It would have the biggest effect on me because The Washington Post is taking responsibility for the app. On The Washington Post website, I could be receiving an ad from anywhere.” – 21-34-year-old, Washington, D.C. 12 © 2012 FrankPlatform N. Magid Associates, Inc. Key Findings – Advertising and the Daily Local Newspaper © 2012 Frank N. Magid Associates, Inc. Readers Retain and Sometimes Even Welcome Advertising When They Can Choose It and Find Value in It CONTROL Selecting the stores, brands, products and categories from which they receive advertising Choosing how they experience advertising – upfront, interspersed, etc. Opt-in ad platforms VALUE Discounts, sales, coupons, special offers and giveaways from brands/products they are interested in Local deals Loyalty program points/credits − E-mail Charitable donations − Social networking Even a good laugh − The print newspaper 14 © 2012 Frank N. Magid Associates, Inc. Circulars and Coupons Drive Interest in the Print Paper and Readers Seem Poised to Welcome Analogous or Improved Online Versions Circulars and coupons considered primary benefits of the print paper Few recall seeing digital circulars/weekly ads in digital forms of the newspaper, but many receive these ads by e-mail or visit retailers’ websites to view them Most readers express strong interest in a section of the digital paper that aggregates these ads, especially if it … − Offers enhanced functionality • Comparison shopping tools • Product locater • Links with discounts automatically applied − Allows the reader to choose which brands’ ads to view − Reduces unpleasant advertising experiences • Intrusive advertising in content areas • Overabundance of e-mail ads − Offers an incentive for viewing it (e.g., discount on purchased products, reward system) − Includes exclusive local and time-sensitive deals − Maintains the brand-bounded experience of the traditional circular 15 © 2012 Frank N. Magid Associates, Inc. Susan Kresnicka Executive Director skresnicka@magid.com © 2012 Frank N. Magid Associates, Inc.