1.PAID ONLINE CONTENTTrends, best practices and strategies that fit Michigan Press Association Jan. 26, 2013 Presented by Mike Jenner Missouri School of JournalismUniversity of Missouri Missouri School of Journalism

2. 3 THINGSYOU NEED TO KNOWUniversity of Missouri Missouri School of Journalism 3. 1. HALF the countrysdailies are now chargingPaid content is no longer a trend.Its a movement.University of Missouri Missouri School of Journalism 4. Half the countrys dailies now charge An RJI survey of 458 daily publishers last summer Yes47%No showed that53% 47 percent were requiring online users to pay0% 0% Source: 2012 RJI Publishers Confidence Index University of MissouriMissouri School of Journalism 5. Half the countrys dailies now charge Since then, the numbers haveYes climbed to a 50% tipping point.No50%0% 0% Source: 2012 RJI Publishers Confidence Index University of MissouriMissouri School of Journalism 6. Smaller papers have led the way 59% of dailies under 5,000 circulation 53% of dailies between 5,001 and 10,000 46% of dailies between 10,000 and 50,000 26% of dailies with circulation over 50,000 University of Missouri Missouri School of Journalism 7. Groups have seen the light Gannett: 71 of its dailies Media News-Digital First McClatchy Gatehouse Tribune Schurz Media General Swift Lee Wick Cox Pioneer Scripps New York Times Morris Dow JonesUniversity of Missouri Missouri School of Journalism 8. Why this matters to the industry Basic economics: Supply and demand Widespread paid content is bringing a badlyneeded scarcity to a glut of news It straightens out an illogical business model University of MissouriMissouri School of Journalism 9. Why this matters to the industryIt makes an important statement: Your content has value regardless of platform. University of MissouriMissouri School of Journalism 10. 2. Reduced page viewsdont hurt revenuesSites have so much unsold inventory, the onlylosses in ad sales are pennies in remnant banners.University of MissouriMissouri School of Journalism 11. When paywalls go up Page view declines range between 5-40 percent Most sites have an inventory glut many morepage views than needed to present paid ads Only remnant and value added avails are lost Paid content quickly covers any lost ad revenue I know of no site thats seen a net revenueloss, even those seeing 40 percent fewer pageviews University of MissouriMissouri School of Journalism 12. 3. Your loyal readers willsupport your efforts to chargeThey want you to succeed.University of MissouriMissouri School of Journalism 13. They want you to survive and thrive Loyal readers are the biggest supporters of paidonline content, even in markets where they areasked to pay more for access to online news. In Cape Girardeau: Less than 2 percent ofhome delivery subscribers opted out. Yet lessthan 40 percent established digital accounts! University of MissouriMissouri School of Journalism 14. 4 BENEFITSOF A PAID MODELUniversity of Missouri Missouri School of Journalism 15. New revenue: Straight to the bottom line Revenue increases will depend on market sizeand pricing Its no silver bullet Case studies show how pricing affects revenue University of MissouriMissouri School of Journalism 16. Your site will become more valuableto your advertisers More local, more quantifiable You know who your customers are and what theyre seeing on your site. University of MissouriMissouri School of Journalism 17. Quality of reader comments improvesLongtime reader to Andy Waters after theColumbia Daily Tribune launched its paid model:Thank you for cleaning up the comments! University of MissouriMissouri School of Journalism 18. Online users are no longer freeloaders.Theyre customers. University of MissouriMissouri School of Journalism 19. 2 DISADVANTAGESOF A PAID MODELUniversity of Missouri Missouri School of Journalism 20. 1. Your online users are no longerfreeloaders theyre customersUp until now, if they had a complaint, makingthem happy might not have been your highestpriority.After all, you were giving it all away for free.Now, theyre paying customers. University of Missouri Missouri School of Journalism 21. 2. Youll hear some negativecomments when you launch Expect story commenters to object The wave of opposition will be loud but thinand short-lived Plan in advance to counteract it Thoughtful explanation to readers Sustained marketing effort Focus on your value proposition University of MissouriMissouri School of Journalism 22. 2 CASE STUDIES Columbia Daily Tribune Augusta ChronicleUniversity of Missouri Missouri School of Journalism 23. 20,000 average weekday circulation Ownership: Family Launched December, 2010 Metered model Built it in-houseUniversity of MissouriMissouri School of Journalism 24. ColumbiaTribune.com launched paid content on Dec. 1, 2010. Advertising-only model was not generating revenue growth Wanted to eliminate incentive to stop buying print edition New revenue streamUniversity of MissouriMissouri School of Journalism 25. How does it work? Metered model 10 free/mo. Online-only: $8/mo. Print subscribers: $1.50/mo. Premium: All local content (photos, video, news, sports, blogs, obits, etc.) Free: Everything else (section fronts, wire, weather, contests, classifieds, etc.) Only subscribers can commentUniversity of Missouri Missouri School of Journalism 26. One year after launch 3,000,000 PVs/mo (still most popular in market) Total unique visitors up; local audience up 7% More than 9,500 paying 60% conversion tobundle Local advertising unaffected Non-issue foradvertisers In first month, subscription revenue three timeslost ad revenue Few objections from readers Quality journalismat stake University of MissouriMissouri School of Journalism 27. 55,000 average weekday circulation Ownership: Morris Launched December, 2010 Metered model Thoughtful strategy, methodical rolloutUniversity of Missouri Missouri School of Journalism 28. University of Missouri Missouri School of Journalism 29. A thoughtful, deliberate rolloutCore belief: Placing a value on the content is more important thanany penny well collect.Strategy: Put toe in the paid-content water to learn. Set stage formobile/app paid content strategy. Use flexibility of model to experiment.Start up: Introduction of page threshold phases in December 2010.Rollout: Lots of communication with the market. University of Missouri Missouri School of Journalism 30. A thoughtful, deliberate rollout An editors column A publishers column Online FAQ Anonymous comment interaction Media response and comment Phone calls Newsroom mindset: Lets give em somethingworth paying forUniversity of Missouri Missouri School of Journalism 31. What the Chronicle told readersWe go beyond the button-pushing journalismsome bloggers and copycat online sites offer.From Editor Alan Englishs column:How much would you pay to have your favoritejournalist or columnistwatchdoggingCity Hall?Would you buy him or her a cup of coffee eachmonth?University of Missouri Missouri School of Journalism 32. What Alan English told readersThe value goes beyond access. You support thelocal journalism that includes: Bio-testing local waterways, revealing problems and getting them attention. Battling for public records. Celebrating local heroes and honoring fallen soldiers. Checking the safety of your roadways and bridges.University of MissouriMissouri School of Journalism 33. What Alan English told readers Reviewing policies and hiring practices at city hall. Raising awareness and donations for breast cancer. Championing better government. Leading coverage of ASUs national championship. Convening a roundtable of local health care CEOs tolearn the impact of reforms. Rallying charitable giving at Christmastime.University of MissouriMissouri School of Journalism 34. Editor Alan English asked readers: Who else does this as oftenas your local newspaper?University of MissouriMissouri School of Journalism 35. 5 RECOMMENDATIONSUniversity of Missouri Missouri School of Journalism 36. 1. Make your site worth paying forCharging generates revenue to help payfor journalism, but you now have to makeyour digital edition good enough to expectreaders to actually pay for it. University of MissouriMissouri School of Journalism 37. 1. Make your site worth paying forThis means: Your site needs to work. It looks like it was put together with amodicum of care. Youve added value to the content. University of MissouriMissouri School of Journalism 38. Product differentiationProduct differentiation Your site should be different from yourprint edition. Play to the strengths of digital: add valuethat only digital allows you to add University of Missouri Missouri School of Journalism 39. What this means Deeper, richer stories: documents & data Sight, sound & motion Context Interactivity Links to archived content Engagement/community University of MissouriMissouri School of Journalism 40. 2. Go with opt out, not opt inGive print subscribers the option of notchoosing a digital membership butassume they will want to do so. University of Missouri Missouri School of Journalism 41. 3. Choose a meter over a hard wall University of MissouriMissouri School of Journalism 42. 3. Choose a meter over a hard wall Keep your site search-engine friendly Encourage discovery Some see value in a porous wall University of MissouriMissouri School of Journalism 43. 3. but keep your meter tight Most early adapters started loose and beganto tighten The Augusta Chronicle began by givingeveryone a free buffer of 100 views Within 6 months, theyd tightened it to 10 University of MissouriMissouri School of Journalism 44. 3. but keep your meter tight 35Surveyed dailies monthly meter settings 30 Percent of papers 25 20 15 1050 Less5 1015 20 25 andthan 5 up Free stories per 30 days University of MissouriMissouri School of Journalism 45. 4. What to keep inside / outside the wall OPEN ACCESS: RESTRICT ACCESS: Breaking News Unique local content Section fronts News Wire Sports Commodity news Photos Weather Obits Contests Ability to comment Classifieds University of Missouri Missouri School of Journalism 46. 5. Dont be afraid to ask for real moneyIt is possible to charge too little.Dont be afraid to ask readers to pay.University of Missouri Missouri School of Journalism 47. Mike Jenner Missouri School of Journalism jennerm@missouri.edu Cell: (573) 808-4785University of Missouri Missouri School of Journalism