How We Got Here
• Started with an open-ended question: Is there a pay model that makes sense?
• Began by collecting data and having conversations with industry peers.– How may stories were
we publishing daily?– What was being read?– What were our sell
through and CPM rates?– What models were in
use, with what results?
• Key observations:– Our sell through was 54%.
Rest of our inventory only generating remnant rates.
– More than 75% of our visits were being generated by 35% of the audience.
As measured by Quantcast
5/24/2011
How We Got Here
• The open-ended question became more specific:Is there another revenue stream that we can generate on the subscription side if we invest the half of our page views that were just going to remnant?
• Allow for sampling, convert casual users to subscribers
• Led us to the metered model
5/24/2011
Metered Content Model
• Pay wall covers all local content (articles, photos, videos) plus digital extensions (mobile site & e-edition)– Articles metered to allow sampling:
• Three free per calendar month• Four through 10 require free registration• More than 10 requires paid subscription
– There is some fully walled content, i.e. subscription required (no sampling).
• E-edition• High school sports in some locations
– Outside of pay wall:• AP & other syndicated content• All of Region.com• Calendars and blogs
5/24/2011
Market Tests
• SCMG/SJMG: Online priced higher than print; combo represents best value
• HVMG/PMMG: Online only priced higher than combo.
• SOMG: No print-only offering. Online only priced the same as combo.
• CCMG: In addition to unlimited access (premium), offering basic online (50 articles/mo) and eEdition-only products
• SEMG: Affordable online only price reflects price of content minus the cost of printing and delivery.
5/24/2011
Hypotheses
• Paid home delivery circulation: Decrease rate of erosion– Hold constant to industry average by eliminating
completely free Web site as an alternative to a paid subscription.
– Single copy: No impact on sales because we assume this is influenced largely by newsstand price, which remains unchanged.
• Web traffic: Page views will decrease by 50%• Digital Ad Inventory: Sites were only 50 percent sold
out before launch of metered content. A reduction in traffic should have no impact on locally sold ads.– Higher CPMs can be gained from improved sellout rates –
i.e. reduction in remnant inventory -- and a higher concentration of a local, loyal audience.
5/24/2011
Overall Results
Metric ResultDirect Revenue (Annualized)-Upsells-Acquisitions
81%19%
Internet Audience-Subscribers-Free Registrants
203K26K
177KHome Delivery-Daily-Sunday
-7.0%-7.9%
Single Copy-Daily-Sunday
-12.5%-7.1%
Web Page Views -33.6%Web Daily Uniques -9.6%
5/24/2011
Other Tests: Opt-Out vs. Opt-In
• Tested whether to be assumptive in upgrading print subscribers’ accounts to include online access.– Opt-Out (SJMG): 75 percent of credit card
customers are paying higher rates, while 50 percent of invoiced customers also continue to pay higher rates.
– Opt-In (SCMG): Relatively few opted in. Eventually switched to opt out model. Remains lowest ranked location when it comes to credit card customers paying higher rates, with 43.6 percent customers paying to include online access.
5/24/2011
Other Tests: Lightboxes Drive Leads
• Last year, we streamlined conversion flow with these goals:– Greatly increase free
registrations, because these represent our best leads for conversion.
– Reduce steps required to register or subscribe.
– Build our email subscriber list by placing the newsletter opt-in box more toward the front of the funnel, and more obvious.
5/24/2011
Other Tests: Lightboxes Drive Leads
Media Group Top Referrer Second Referrer Third Referrer
SCMG 3-article box (23.34%) Subscribe button (13.45%) 10-article box (7.1%)
SJMG 3-article box (30.72%) Subscribe button (8.52%) 3-obituary box (7.46%)
HVMG 3-article box (24.6%) 10-article box (8.72%) Subscribe button (7.63%)
PMMG 3-article box (29.91%) 10-article box (9.09%) Subscribe button (7.11%)
SOMG 3-article box (33.25%) 10-article box (6.77%) Subscribe button (6.24%)
CCMG 3-article box (25.86%) 10-article box (7.05%) Subscribe button (6.72%)
SEMG 3-article box (36.34%) 10-article box (10.25%) Subscribe button (7.87%)
5/24/2011
Choosing a Model
Media Group Online Acquisition
Discount
New Online Only and
Print-Plus-Online
Subscribers
(As of 3/27/2011)
CCMG 38% 573 | 146
HVMG 30% 286 | 250
PMMG 20% 117 | 116
SCMG 25% 357 | 272
SEMG 30% 804 | 113
SJMG 46% 325 | 221
SOMG-MT 32% 139 | 281
5/24/2011
Choosing a Model
• If during the rollouts we had used Cape Cod’s product and pricing model for the entire company, we believe there would have been a 30 percent lift in annualized revenue, and a 20 percent increase in subscribers.
• Conversely, if using the Seacoast model can translate to acquisitions that are nearly 9 percent of the daily print circulation, then the Seacoast model looks most compelling from a revenue standpoint, because that would be a significant increase in acquisitions at our largest papers.
5/24/2011
Next Steps: Focus on Conversions
• Treat audience development like a sales funnel:– Which (traffic) sources are our most
valuable?– Which customers are our most
valuable?• Audience Conversion:
– Convert casual samplers into repeat visitors
– Turn repeat visitors into devout customers
• Metered Content Conversion:– Convert anonymous users to a free
registration about whom we’ll learn something about.
– Convert registrants into paying, targetable subscribers
5/24/2011
Next Steps: Tracking Specific Consumption
• Tracking Anonymous, Registered and Premium groups of users. Correlate with other metrics: Popular Articles, Sections Visited, etc.
• Example: Using Unique User ID – db7e7543-6ff2-437d-bea1-a9737d9e9e74 – can correlate the following:
– New Bedford resident and print subscriber.
– 42 logins– Not subscribed to e-mail products.– Highly engaged consumer of photo
galleries in March. Also read several articles on New Bedford Half Marathon. Reads other New Bedford-specific news.
5/24/2011
Next Steps: Product Development
• Run the meter:– Newsletter product
expansion to entice clicks (Off the Clock & Limelight)
– Utilize blogs, social media and other platforms to our advantage.
– Recommend related content in articles.
5/24/2011
Next Steps: More Premium Experience
GOALS:
• Make subscribers feel like they are immersed in a premium experience
• Non-subscribers must feel as though they are missing something. Must feel value of a subscription – not just on our marketing or walled pages.
IDEAS:• Different entry
experiences *• Messaging *• Show the meter *• Visual cues• Alternate layouts• Personalization* (completed)
5/24/2011
Next Steps: Focus on Expansion
• Expansion to Other Platforms– Intense focus now on mobile apps, devices and other opportunities
• Launched mobile-friendly sites in 2009.– Mobile desktop icons ready for marketing: Dec. 2010
• Launched first iPad app in Nov. 2010• Limelight coupon app on the runway in Dec. 2010
• Expansion to Other Products– Focus on solving needs that will translate to paid products
5/24/2011