Focused digital media offerings results in better total reach

By Lars Ørhøj | May 20 2014 | Blogs

Last week saw one of the biggest media conferences in Norway - "Nordic Media Festival 2014".

One of the first topics on the agenda was how life is behind the paywall, with participants from Aftenposten, Hallingdølen, Asker og Bærum Budstikke and Bergens Tidende.

According to an article on Kampanje.com, in Norway, revenue from ads has fallen 12 per cent in the last year. Print ads have decreased by 17 per cent, while digital ads are up by 20 per cent. So, do we see the same pattern when we look at the number of readers?

Blog-Visiolink-Kampanje-AdRevenue.001

For me, the most interesting snippet from the conference came from Schibsted as it for the first time in many years that the publisher could proclaim a rise in total reach. Total reach on weekdays has increased by one per cent. The main reasons for this increase were digital subscriptions and plus packages that combine a physical newspaper with digital offerings.

One of the papers owned by Schibsted, Fædrelandsvennen, has been a very good case study over the last 12 months for the increasing shift towards engaged readers that use digital platforms. However now other newspapers are seeing the same trends, with greater reach and increased revenue streams from digital products.

Andreas Thorsheim, CEO at Bergens Tidende, told Kampanje that the new payment models on digital platforms are the reason behind the positive trend in total circulation: “The payment model is part of the explanation,” he said.

“The driver behind circulation growth is that our journalism has increased accessibility. It allows for more [readers] to request editorial content. We also see that it is easier to sell a weekend product that also gives full digital access every day. This means the number of readers is on the rise again and they come via digital platforms.”

Learnings from the Nordic Media Festival

  • The replica edition is still the most used platform. As Espen Egil Hansen from Aftenposten said: "remember that e-paper is a bridge for the reader who grew up with printed newspaper."
  • Half of all subscribers to Aftenposten have a digital user profile.
  • The savings from having fewer paper subscriptions are bigger than the cost to obtain new digital subscribers.
  • Revenue from subscribers is now more significant than revenue from ads.
  • New product development of your digital media is constantly needed; especially to reach out to the younger audience. Here combination products (digital during the work week, paper in the weekends) have shown success to engage readers.
  • For Budstikka offering early release for e-paper has lead to more downloads than ever before.
  • Websites, e-paper and other mobile offerings are estimated to make up 10 per cent of total revenue.
  • The offering to the reader is moving from one product to many products. E.g. approximately 16 per cent of Aftenposten’s readers subscribe to more than one product.
  • Constant A/B testing of different subscription model done based on data and business intelligence.

Want more related information?

Visiolink User Survey 2014


Lars Ørhøj

Author

Lars Ørhøj

Lars is Visiolink's Chief Marketing Office and an avid a cappella singer in the world acclaimed Danish choir Vocal Line. He has been a part of the media world for over 30 years.