Content Rules – How to Win Frank N. Magid Associates, Inc. CONFIDENTIAL AND PROPRIETARY © 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. Who We Are Frank N. Magid Associates, Inc. is a leading research based consulting firm that: 2 Helps companies understand consumer-relevant product needs and values Provides practical, best-in-class operational direction Informs clients with key insights to anticipate market trends © 2012 Frank N. Magid Associates, Inc. Our Expertise 3 We are the market share leader across media industries: We also do substantial business in these industries: Consumer Electronics Consumer Packaged Goods Retail Healthcare Financial Services Sports Travel and Transportation Local Television Cable and Broadcast Networks Cable and Satellite Distribution Television Production Internet Gaming Mobile Movies Publishing Tablets © 2012 Frank N. Magid Associates, Inc. Our Newspaper Experience 4 © 2012 Frank N. Magid Associates, Inc. The Newspaper of the Future 5 Magid believes that newspapers can leverage their unique and valued brand attributes and the voids in local markets to fulfill local media and advertising needs. Magid has developed a disciplined, multi-phased process of ideation and consumer-based validation research to design the blueprint for the Newspaper of the Future. By re-structuring the business model and leveraging local assets, a newspaper can be transformed from a weakening print media company into a highly valuable local multimedia and advertising sales enterprise. © 2012 Frank N. Magid Associates, Inc. The Goal: Dramatically increase your feedback from people: viewers, users, and information consumers. Increasing research capability by establishing a proprietary panel Getting more research for less money per study. Ability to talk to your consumers more frequently – potentially as many as 6 times per year or more. Highly flexible. Faster turnaround. Tracking the growth/change of news consumer wants, needs and opinions. What’s in those surveys: Content ideals. Concept testing. Test promotion. Tracking customer attitudes Sales efforts – for example, use of panel to test advertising for client development. © 2012 Frank N. Magid Associates, Inc. Newspaper of the Future Experience 7 The local media of the future process has been applied in a total of 9 markets – 6 for local newspapers, 2 for local television stations, and 1 including both local newspaper/television of the future for a duopoly. We are now applying our Digital News Product of the Future process which leverages our extensive Web, social media, mobile and tablet experience to help optimize digital local news products and business models. © 2012 Frank N. Magid Associates, Inc. Why Newspapers? Or more importantly, what’s happened to print: 8 Understanding Market Voids: Identifying brand and market shortcomings, and quantifying these gaps to lead to stronger product and consistent growth Defining Content Focus: Implementing a more focused content selection process based on consumer attitudes to increase product relevance and use Overhauling Content Presentation: Executing concept development and testing to reinvent presentation, style and tone to create a more compelling product Optimizing Distribution: Re-working circulation strategy based on areas of readership for efficiency and cost savings Enhancing Advertiser Products and Services: Developing new and enhancing current ad products, services and sales strategies based on advertiser needs to increase ad revenues Maximizing Advertising Effectiveness: Helping advertisers optimize print and digital ads to drive incremental revenues for media companies © 2012 Frank N. Magid Associates, Inc. Understanding Market Voids To define voids and opportunities for growth, Magid gauges interest in several content areas, news values and presentation styles as well as measures the client’s current performance in these areas. Voids identified in previous projects have included: Lack of meaningful depth and detail Lack of content relevance and uniqueness Lack of original reporting and watchdog journalism A failure to understand the community and its ideals A failure to demonstrate market expertise Boring and/or confusing presentation Bias 9 © 2012 Frank N. Magid Associates, Inc. Example: This Paper Falls Short On Key Market Values When looking at ideals and evaluations, we see that this paper falls significantly short in eight of the top 10 market values Serves the community by watching out for wrongdoing from business and government 43% Importance 810 -28 71 Does original reporting, not just collect stories from other media sources 40% -31 71 The paper digs deep to get the real story, not just the official version 40% -29 69 On any given day, spending 20 minutes with this paper will give me a lot of information 49% Is the most complete source for local news in the area 69 43% -26 69 Is politically neutral in its stories and headlines 31% -38 69 Has valuable information that I cannot easily get elsewhere 32% -33 65 Shows a thorough understanding of the local area and its history 59% The people who produce the newspaper really seem to care about their readers 34% Does a good job of boiling things down to what is important to know 32% The paper’s photographs consistently help to better tell the stories 38% Has a good balance between serious and lighter stories 64 -29 63 -27 59 56 40% Has a good balance between positive and negative news 54 42% 54 Has columnists and personalities that I enjoy reading 44% 54 Reports on positive business development in the area 43% 51 Provides the most useful store advertising and coupons 42% Sets the agenda for what everyone else will be talking about Paper 8-10 Evaluation 10 Gap = 50-60% of Importance level = near Importance level 44 29% % 20% 40% 32 60% 80% © 2012 Frank N. Magid Associates, Inc. Defining the Content Focus We consistently find that newspapers’ content mix misses the market with consumers. By doing a detailed assessment of content ideals and voids, we build specific filters to help clients focus on more compelling content that increases overall readership and time spent with the paper. Changes implemented include: Change in geographic content mix: local, national, county, state, etc. Adding and/or removing specific content sections Changing content tone: positive/negative, opinion, writing style, story selection Adding navigational tools such as content rails to showcase content breadth Focusing on the freshness of content 11 © 2012 Frank N. Magid Associates, Inc. How Do We Better Define The Printed Newspaper? Multi-story “round up” rail? Story branding? Multi-photo vs. Featured photo? National vs. Local? Visual content vs. Text? Important/Relevant vs. Interesting? Quality (Writing style? Headlines?) 1A Content Choices 1A Design Choices 2A-3A Content/ Design National vs. Local? Important vs. Interesting? Columnist? Information destination? Overall Section A Impact - On current subscribers - On readers who don’t subscribe Other Factors Marketing slogans? Impact of editorial opinions? Teases? 12 © 2012 Frank N. Magid Associates, Inc. Overhauling Content Presentation We find that readers are turned off by the look and feel of the paper. By developing and testing prototypes, we can help our clients define the optimal approach to content presentation and create a more interesting product. Presentation factors we have addressed include: Headline writing Use of color, photos and graphics The use of call-out boxes to highlight key elements of a story Quantity of content presented on the front page Use of navigation graphics and section headers to guide readers to sections Presenting two differing viewpoints next to each other Different use of spacing and fonts 13 © 2012 Frank N. Magid Associates, Inc. Example: Content Focus Is Not Optimized In this market, one-third or more of consumers are dissatisfied with even the most straightforward content areas, such as local, state, county and national news. A-National D-Your city or part of town C-County G-State government/politics E-Local business/economy O- Investigative/watchdog B- Entire state L-Events, entertainment Q- Natl/world opinion F-Schools /education H-Crime P- Local/regional opinion N- Local ads K-College sports M- Lifestyle info J-Pro sports I-High school sports 14 Very Interested Only somewhat/Not Satisfied Among the Very/Somewhat Interested TOTAL MARKET Interested but Dissatisfied 68% 61 54 52 51 50 47 42 40 38 38 29 25 23 19 17 11 37 37 39 30 31 46 33 28 40 31 31 39 25 21 32 33 26 35 36 36 26 28 42 30 25 31 23 26 28 16 11 19 14 9 © 2012 Frank N. Magid Associates, Inc. Newspapers are still strong in smaller markets – tying with TV among younger panelists Tablet app None Smartphone app Other local website Typically, in surveys of newspaper readers, Magid finds that TV is the leading choice (norm 44%-53%). - 1% 2% 2% - Newspapers usually are a distant second (norm 14%22%). Radio can have a range depending on the market (6%21%). Digital sources typically are not as strong (13%-16%). 9% Newspaper website The findings here are consistent across most Large Dailies and Community papers. The print advantage skews A45+. Younger people are more split in their choice of main source: Local newspaper 10% 38% 9% - Local radio station Local TV station 28% Base: Total Market Q.B1 . Which one of these sources do you use most often for local news and information? - Age 18-34 chose newspaper (14%) and TV (15%) equally Ages 35-44 still preferred newspaper (24%) to TV (22%) equally Digital sources lead for ages 18-34 (55%), and for ages 35-44 (41%), declining rapidly by age to just 12% of ages 65-74. Emotional connections with the newspaper run deep Most readers say it would be a huge loss if the paper were gone. That’s a common sentiment among newspaper readers elsewhere, too. It would be a huge loss to our area if it were gone 61% Mean It's uniquely important to life in our local area 47% 7.6 I feel a strong personal connection to this newspaper 39% 6.8 It's by far the best way to get local news and information in our local area 38% 6.1 It's useful, but easily replaced 23% 6.1 0% 20% 4.7 Base: Past-month Readers B7 How much do you agree or disagree with each statement about the printed version of_______(NEWSPAPER)? (Scale from 1/STRONGLY DISAGREE to 10/STRONGLY AGREE) 40% 60% 80% Overall evaluation of measured newspapers: Below Average Average evaluation of 6.7 is weak; normative goal around 7.5 Sunday evaluations are stronger than for weekday (as seen in other markets). The Sunday/Saturday evaluation was 7.2 for both Saturday and Sunday markets. Overall N=2394 6.7 Sunday (Saturday) N=2280 7.2 Weekday 6.4 1 2 3 4 5 6 7 Base: Past-month Readers of the Main Paper; Readers who read Sunday (Saturday), or read Weekday (Mean excludes those choosing “Not familiar/Don’t know”) Q.A2/F1 Please think about what you personally want from a news organization that focuses on local news. Based on your own needs and interests, please rate each of printed versions of (MAIN PAPER) Scale 1/Poor to 10/Outstanding, or Not familiar/Don’t know N=2161 8 9 10 Readers' ratings reflect perception of negative momentum About 1 in 3 readers of papers (29%) rate their paper as getting worse . Only 11% say the paper is getting better, for a NET average of -27. Scores underperform Major Market norms, which currently average closer to NET 0/neutral. N Worse Total Large Dailies Better -38 11 -40 Community Group -29 40% 30% 20% 10% NET 2411 -27 11 2054 -29 12 357 -18 0% Base: Past-month Readers Q.A3 Over the past six months, how would you say that ____ has changed, if at all? (Getting Worse, About the same, Getting better, Don’t know) 10% 20% A few key changes would make a ‘big difference’ to more than 50% of readers The newspaper provided even more depth to its news stories 33 61 The newspaper had more about local activities and things to do 36 57 The newspaper had more local coverage in the main section When using stories from national newspapers and wire services, a local reporter would also provide a more … The newspaper made a real and obvious effort to eliminate bias in the newspaper The newspaper had more columnists you enjoy reading 28 38 27 35 63 The newspaper included more stories from the national newspapers and wire services The newspaper had more special reports on health care 47 30 49 27 Each week, the newspaper included a local coupon book for stores in your area 35 39 The newspaper had even more reporters on staff 31 42 51 60 51 The newspaper took a stronger point of view on stories, like what you might hear from a well-… The newspaper gave special premiums and shopping discounts to subscribers only The newspaper included more stories written by the newspaper’s own staff 37 48 The newspaper expanded to have a few more pages each day whether I read them or not 36 47 The newspaper’s delivery was more consistent and reliable A little A big difference Q. P3 Suppose that ____(MAIN NEWSPAPER) made some changes. For each possible change listed, please indicate what difference it would make, if any, in the value you get for what the newspaper costs Base: Past-month Readers 42 30 34 38 25 41 Layout Analytics Guide Front Page Design Actual Front Page Layout Analytics Type Target % Space % x% z% max x% z% Story text x-y% z% Headlines x-y% z% x-y% z% x% z% x-y% z% Photos/Graphics Largest Visual Top Teases/Mast Lower teases/ index/UPC Captions/Bylines /White/Other Flags: • Too much x • Too little story y • Too little z Optimizing Distribution We have found that newspaper circulation strategy needs to be re-assessed based on: Those who read the paper live in higher demo areas that are generally suburban as opposed to center city Those who “use” the paper for coupons and non-content reasons live in lower demo areas Different marketing messages needed for acquiring these different types of readers Content that needs to specifically reflect important geographical areas Circulation tiers need to be created to ensure alignment with acquisition and subscription goals 21 © 2012 Frank N. Magid Associates, Inc. Maximizing Advertising Effectiveness In order to increase ad effectiveness for advertisers and ad revenues for media companies, Magid has developed a customized process (Magid Advertising Performance Research) that improves advertising effectiveness across platforms. We work with media clients to identify opportunities, conduct consumer research to test ad creative, and provide actionable recommendations to improve advertising performance. The process positions our media clients as valuable partners in helping to improve ad performance, thus enhancing their relationship with key prospects which leads to new or larger media buys. We have completed over 75 engagements and generated over $1MM in incremental advertising on average for top ten market clients. 22 © 2012 Frank N. Magid Associates, Inc. Results Every newspaper we have worked with has seen notable improvements including: Improvements in attitudes and perceptions of the paper’s brand Two major market papers increased circulation for the first time in 10 years; one paper’s circulation is now even after being down for consecutive years Renewed focus on content areas of importance to readers All redesigns launched with improvements in content, navigation and style More attention to in-paper marketing to promote strengths of the paper Newspaper sweeps that align promotion, marketing, circulation, sales and the newsroom behind a few key, in-depth stories 23 © 2012 Frank N. Magid Associates, Inc. Case Study: Improvements in Market Position After One Year December 2011 May 2010 Weak position as a medium • • • • • People reading less Perceptions that paper getting worse Circulation overall not strong, weak in specific areas Efforts to improve paper’s web site and Sunday edition not benefitting brand Internet and mobile use accelerating, print’s value questioned by own readers Stronger position as a medium • • • • Perceptions that paper getting better Circulation has improved Efforts to reposition the print product appear to be paying off These improvements come even as Internet, mobile and tablet use increases Weak position as a local brand Paper’s brand is stronger • • • • • • 24 Paper rated mediocre vs. other media Emotional attachment to the paper and newspapers had largely disappeared Positive marketing not off-setting bad wordof-mouth Most valued attributes to newspaper readers not reflected in brand perceptions Paper perceived to be on wrong side of the market’s political preference • • • Positive brand scores have increased, negatives are down ‘Relevance’ is a long war, but it helps to be winning some key battles Easing of negatives extends across many sub-groups Fewer label paper as ‘liberal’, and more express that a Moderate paper is their ideal © 2012 Frank N. Magid Associates, Inc. Case Study: Improvements in Market Position After One Year 20 % Better vs. % Worse – Total Market 15 % Better vs. % Worse 10 5 0 -5 Better/Worse -10 Satisfaction -15 25 Wave 1 Wave 6 6.7 7.2 © 2012 Frank N. Magid Associates, Inc. Case Study: Improvements in Market Position After One Year % Better vs. % Worse – Total Market 35 % Better vs. % Worse 30 Net 31% of adults in market said paper improved 25 20 15 10 5 0 -5 Better/Worse 26 © 2012 Frank N. Magid Associates, Inc. Bill Day Executive Director 757-771-1230 bday@magid.com