revenue strategies online newspapers 1996 | 2005 donica mensing reynolds school of journalism...
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revenue strategiesonline newspapers1996 | 2005
donica mensingreynolds school of journalism
university of nevada, reno
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19961996
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19962005
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19961996
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19962005
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19961996
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19962005
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revenue models(Mings & White, 2000)
• advertising model• subscription model• transaction model• bundled model
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1996 mail surveyPopulation: (Nearly) all online newspapers publishing daily news in the U.S. as of April 1996 -- 187 total.Survey sent to person in charge of online site83 responses -- a 44.3% return rate
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2005 online surveyPopulation: (Nearly) all online newspapers publishing daily news in the U.S. as of Feb. 2005 -- 1,040 total.Survey e-mailed to person in charge of online site242 responses -- a 23.3% return rate
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Percentage of respondents by circulation size
CirculationSize
1996 SurveyValid Percent
2005 SurveyValid Percent
Small(24,999 orless)
19.5 36.5
Medium (25,000 to99,999)
46.4 41.7
Large(100,000 ormore)
34.1 21.8
Total 100% 100%
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Mean response to the Mean response to the relative percentage ofrevenue earned from importance of each revenue source on aeach source in 1996 and anticipated scale of 1-5, with 5 being very importantin 1997 (in order of importance) (in order of importance)
Source
MeanPercentage1996
MeanPercentage(1997anticipated)
Source 2005
Displayadvertising
34.4 34.5 Classifiedadvertising
4.67
Internetaccess fees
20.4 13.8 Displayadvertising
4.36
Classifiedadvertising
18.5 29.9 Subscriptions 2.99
Subscriptions 5.2 5.3 Archives 2.67
Premiumservices
3.7 7.1 Other sources 2.5
Other sources 3.6 3.12 Transactionfees
1.95
Transactionfees
1.8 2.3 Customservices
1.7
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Importance of various revenue sources to current business models in 2005
Source
(1)
Unimportant
(2)Somewhat
unimportant
(3)Neutral
(4)Somewhatimportant
(5)Very
important
Classifiedadvertising
3% 1.7% .6% 15.5% 79%
Displayadvertising
3 4 5.7 29 58
Subscriptions 34 6 14 21 26
Archives 32 13.5 20 25 9.6
Custom services 63.8 12.8 14.8 6.7 2
Transaction fees 55.4 8.8 22.3 12.2 1.4
Internet accessfees
78.8 3.4 12.3 4.1 1.4
Other sources 42.4 3 27.3 12.1 15.2
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classified advertising
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display advertising
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subscriptions
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archives
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other comparisons• micropayments• registration• attitudes towards print• promising strategies
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“In the next few years we will have a system of micropayments and will charge very small amounts for visitors to purchase content by the piece.”
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requiring users to register
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Perceptions of the impact of the online site on the print product
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Summary of open-ended answers to the question: “What do you think are the most promising profit strategies for publishing Web newspapers?”
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what have we learned?