client

Digital Editions Update


Client update February 2013


The Digital Landscape


Small and smart, the saplings that will rise after the press forest fire

"The decline in the quality and depth of The Washington Post in the past few years has made readers less likely to pay for it, rather than more. What we have is a forest fire in which only the truly biggest, tallest sequoias will survive. Among magazines here I can see The New Yorker and The Economist surviving, but not lesser brands."

The Sunday Times, 16 December 2012


IDC estimates that 1.7 billion smartphones were shipped globally in 2012. An increase of 45% year on year. They predict that by 2016 that will grow to 2.2 billion.

Digitimes Research predict a 38% growth in global tablet shipment in 2013, to 210 million units. By 2015, they forecast there will be 300 million tablets shipped.

Over 33% of Americans own an e-reader, according to PEW, 22% own a tablet and 44% a smartphone.

According to Flurry, over 17 million devices were activated on Christmas Day. increase 35%.

Digital is not the Future. It’s the Present.


Over 62% of tablet and smartphone owners get the news each week through their

device.

60% will return to trusted sources for their news.

Importantly 21% of tablet owners read in-

depth article on their tablets.


Snacking, Research, Community, Sharing

Ritualistic Pleasure of Reading Lean back only

better

A reader of The Economist


Our Strategy• Create and operate our digital editions under the

same business model as our print business Subscriptions: premium pricing = print Advertising: full page, beautiful, branding experience

• Allow our customers to float between the medium of their choice without impeding us commercially

• Focus on the deep/incisive premium content our customers love


Our App offering• The (container) app is free to download• Editor’s Highlights – currently 6 free articles• Full Edition – available to all digital and print

subscribers• Single issues can be purchased in-app• Subscriptions can be purchased in-app, online,

and by phone• Weekly issues – delivered to devices on

Thursdays at 9pm (UK time)• Every article, graph, chart and photo from the

weekly print edition (including audio)• Full page advertising


The App FamilyNow available on iOS, Android, RiM and

Windows 8

Also available on e-readers: Kindle, B&N Nook & Kobo and on Zinio, Le Kiosk & ADLP


The Economist on…

Replicates the lean-back, immersive experience that readers get in print.

Offers a quick download of :15 for each issue.

Provides an uninterrupted reading experience - wifi connection not needed.

Supplies audio versions of each story are available, ideal for the mobile audience.

Entices return visits with bookmarking of articles and access to past issues.

Combining Brand Name Journalism with Digital Technology

© The Economist 2012


Reception - media


Reception - Users


Jan 2013: Introduction of tappable ads on iPhone

Nov 2010: Launch iPad and iPhone appsFeb 2011: Regionalisation

of AdsApril 2011: Premium positioning for AdsJune 2011: Introduction of sharing and bookmarking on iOS appsAug 2011: Launch of Android app for SmartphoneOct 2011: Upgrade of iPad app for Newstand

Jan 2012: All Ads are allowed to tap out to any locationApril 2012: Launch of Android app for tablet app

June 2012: Optimisation of Android app for ICSDec 2012: Upgrade of iPhone app for Newstand globally

Sept 2012: Introduction of Interactive ads on iPadDec 2012: Launch of Windows 8 App

The App Story so far…

April 2012: Launch of Playbook html5 app

Feb 2013: Launch of Blackberry 10 smartphone app


Adoption – Unique Downloads

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

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Android

iPhone

iPad


CaptivatedReaders said they spent an

average of 2 hours and 15 minutes reading the June 2nd

issue of The Economist

A fifth spent 3 hours or more reading the issue

Readers have looked through the issue an average of 4

times

Source: Harvey Research, June 2012


Recall seeing or reading

89% 88% 87% 87% 85% 83% 83% 82% 82% 81% 80% 80% 79% 77% 75% 74% 69%

Lead

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Britain

Internati

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Finan

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Books a

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Middle East

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Obituary

What our readers are reading


Digital Editions UpdateWHAT OUR READERS ENJOY ABOUT THE ECONOMIST DIGITAL EDITIONS’ EDITORIAL

“Gives good insight and sheds light on the other side of a lot of stories”

“I like the short summaries that keep me relatively knowledgeable about current

events”

“The Economist’s reporting is always more objective and

informed than quality newspapers”

“The Economist covers topics I don’t see elsewhere”

“I do not always agree withThe Economist’s opinions but it

does often have a good argument”“Keeps me on my toes”

“Great and mind opening material”

“My way of keeping up with worldwide news”

“It’s how I form my opinionson major world events”

“Best buy. I have to keep up”

“The quality of the Leaders is a principal reasonfor buying The Economist. Clear, well-reasoned analysesand policy development are always thought-provoking.

I may not always agree, but I feel I have been informed”



Advertising on the App


Within the market, 2 models have been developing

Beautiful Impactful Within content

Digital Editions UpdateRecall rate in Digital Editions: 48%-75%

Source: Harvey Research, June 2012 Base: All recalling ad

15%

62%

Average Actiontaken

Average Recallseeing

Actions taken include tapping on ad (iPad only), returning to ad for more detail, speaking to family or friends about service or product and feeling more favourable about the advertiser.


What our readers say about our advertising


“The visual appeal of the ad - it's eye-catching”

“Liked the opportunity to download an app to my iPad for further investigation.”

“I read the Economist almost exclusively on my iPad and I liked the interactive features

of the ad - especially the option for the app forfurther information” “Nice graphic design. The bold messages really

made me want to learn how these superb results were achieved in such different business

environments”

“Great visuals, simple, contrasting text to read”

“Visually appealing and the textmatched the photography without effort”

“Visually attractive ad andan interesting colour”

“Possible business purchase”

“Most relevant, eye-catching”

“Liked the interaction via iPad”

“Excellent. Complete configuration tool INSIDE the app. Very cool”

“Interesting picture. Drew me in”


Winner of the Digital Magazine Awards 2012Advertisement of the YearAvis “It’s Your Space” iPad ad in The Economist


Be clear on what you want the user to do.

Lessons from the best ads

Keep it simple.

Think about the user journey.

Consider the device.


Global Weekly Active Readers: 646,020

Up 7% from November

iPad iPhone

Android (Smartphon

e)Android (Tablet)

Global Audience Reach

(What platform the reader is using) 35% 31% 31% 3%

December Digital Editions at a glance

* Weekly Active Readers: A weekly average of the unique devices that have accessed the apps during the period stated.

Digital Editions UpdateDecember active readers per region

RegionSmartphone weekly readers

Tablet weekly readers

Total weekly readers

World Wide 397,994 248,027 646,020

North America 167,339 104,280 271,679

Latin America 11,118 10,893 22,011

C. Europe 59,212 40,918 100,130

Asia / Pacific 93,649 49,710 143,359

UK 54,154 30,069 84,222

Middle East & Africa 12,463 12,157 24,620

This report, provided for information purposes, has been compiled from data provided to us by third parties.


Advertising report always includes:ReadershipAd Views/ InteractionsShare of VoiceArticles ReadReporting on bespoke ad features can be done seperately.

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