The WAN-IFRA congress in Bangkok showed good examples of the newspaper industry’s transformation. Here are some highlights.
Last week, I travelled to Bangkok for the 65th congress of the World Association of Newspapers (The WAN-IFRA also includes the World Editors Forum and the World Advertising Forum.) For a supposedly dying industry, the event gathered a record crowd: 1400 delegates from all over the world (except for France, represented by at most a dozen people…) Most presentations and discussions revealed an acceleration in the transformation of the sector.
The transition is now mostly led by emerging countries seemingly eager to get rid themselves as quickly as possible of the weight of the past. At a much faster pace than in the West, Latin America and Asia publishers take advantage of their relatively healthy print business to accelerate the online transition. These many simultaneous changes involve spectacular newsroom transformations where the notion of publication gives way to massive information factories equally producing print, web and mobile content. In these new structures, journalists, multimedia producers, developers (a Costa-Rican daily has one computer wizard for five journalists…) are blended together. They all serve a vigorous form of journalism focused on the trade’s primary mission: exposing abuses of power and public or private failures (the polar opposite of the aggregation disease.) To secure and to boost the conversion, publishers rethink the newsroom architecture, eliminate walls (physical as well as mental ones), overhaul long established hierarchies and desk arrangements (often an inheritance of the paper’s sections structure.)
In the news business, modernity no longer resides in the Western hemisphere. In Europe and in the United States, a growing number of readers are indeed getting their news online, but in a terrifyingly scattered way. According to data compiled by media analyst Jim Chisholm, newspapers represent 50.4% of internet consumption when expressed in unique visitors, but only 6.8% in visits, 1.3% in time spent, and 0.9% in page views!… “The whole battle is therefore about engagement”, says WAN-IFRA general manager Vincent Peyregne, who underlines that the level of engagement for digital represents about 5% of what it is for print — which matches the revenue gap. This is consistent with Jim Chisholm’s views stated a year ago in this interview to Ria Novosti [emphasis mine]:
If you see, how often in a month do people visit media, they visit the print papers 16 times, while the for digital papers it’s just six. At that time they look at 36 pages in print and just 3.5 in digital. Over a month, print continues to deliver over 50 times the audience intensity of newspaper digital websites.
One of the best ways to solve the engagement equation is to gain a better knowledge of audiences. In this regard, two English papers lead the pack: The Daily Mail and the Financial Times. The first is a behemoth : 119 million uniques visitors per month (including 42 m in the UK) and the proof that a profusion of vulgarity remains a weapon of choice on the web. Aside from sleaziness, the Mail Online is a fantastic data collection machine. At the WAN conference, its CEO Kevin Beatty stated that DMG, the Mail’s parent company, reaches 36% of the UK population and, on a 10-day period, the company collects “50 billion things about 43 million people”. The accumulation of data is indeed critical, but all the people I spoke with — I was there to moderate a panel about aggregation and data collection — are quick to denounce an advertising market terribly slow to reflect the value of segmentation. While many media outlets spend a great deal of resources to build data analytics, media buying agencies remain obsessed with volume. For many professionals, the ad market better quickly understand what’s at stake here; the current status quo might actually backfire as it will favor more direct relationships between media outlets and advertisers. As an example, I asked to Casper de Bono, the B2B Manager for the FT.com, how its company managed to extract value from its trove of user data harvested through its paywall. De Bono used the example of an airline that asked FT.com to extract the people that logged on the site from at least four different places served by the airline in the last 90 days. The idea was to target these individuals with specific advertising — anyone can imagine the value of such customers… This is but an example of the FT.com’s ultra-precise audience segmentation.
Paywalls were also on everyone’s lips in Bangkok. “The issue is settled”, said Juan Señor, a partner at Innovation Media Consulting, “This is not the panacea but we now know that people are willing to pay for quality and depth”. Altogether, he believes that 3% to 5% of a media site’s unique visitors could become digital subscribers. And he underlined a terrible symmetry in the revenue structure of two UK papers: While the Guardian — which resists the idea of paid-for digital readers — is losing £1m per week, The Telegraph makes roughly the same amount (£50m a year, $76m or €59m) in extra revenues thanks to its digital subscriptions… No one believes paywalls will be the one and only savior of online newspapers but, at the very least, paywalls seem to prove quality journalism is back in terms of value for the reader.