Visits To Online Newspapers Surge In Q3
By Bradley Barriteau
Online newspapers (including
The Houston Insider) drew an average of 57 million visitors
a month last quarter--marking a 24% increase from last year,
according to a report issued Thursday by the Newspaper Association
Web users also are viewing
more pages and spending more time on newspapers' sites. Last
quarter, people viewed an average of 47 pages a month--up
from 40 last year--and they spent almost 42 minutes a month
at online newspapers, up from around 37 minutes last year.
Randy Bennett, vice president
of audience and new business development for the NAA, attributed
the jumps in audience to more effective marketing as well
as new services and applications, including blogs and platforms
for user-generated content, on newspaper Web sites. "Publishers
are realizing people are looking for more and different things
from the newspaper," he said.
Newspapers still face
challenges when it comes to monetizing online readers, however.
Currently, an online reader isn't monetized at nearly the
rate of a traditional print reader, with estimates for online
revenue-per-reader varying from 3% to 33% of print advertising,
according to research firm Outsell.
that newspapers are still experimenting with ways to monetize
online readership, pointing to bundling of print and online
sales as a promising way to boost the value of online readers.
He also said newspapers should develop a national network
for online ad sales. "It really needs to become much
easier to buy across multiple properties, if newspapers are
to stay competitive with single sites with a national footprint,"
travel Spending Rises 9%
By Ralph Johnson
comScore Networks reported its US e-commerce
sales estimates for the third quarter of 2006 and forecast
for the entire year. In the third quarter, online non-travel
("retail") spending increased to 23.1 billion
(up 23%), while travel spending - despite a slowing growth
rate - nonetheless reached 18.2 billion (up 9%).
Overall, total online spending by consumers
reached 41.3 billion in the third quarter, representing
a 16% increase versus the same period in 2005. While total
non-travel spending rose 23%, some retail categories far
outperformed the average, including Consumer Electronics
(excluding PC Peripherals), which rose 42% and Apparel &
Accessories, up 32% versus the same quarter last year.
The Sport & Fitness and Computer Software
(excluding PC games) categories rose 29% and 27%, respectively.
Through the first three quarters of 2006,
total e-commerce spending rose 19% versus last year to 122.1
billion, buoyed by a 24% increase in non-travel spending
to 69.1 billion.
Online travel spending increased 13% to
52.9 billion. Overall, comScore currently forecasts that
total consumer online spending in 2006 should reach approximately
170 billion. Of that total, comScore estimates that non-travel
e-commerce will break the 100 billion threshold for the
"Online consumer spending at U.S.
sites -- and particularly non-travel spending -- remains
strong," noted Gian Fulgoni, chairman of comScore Networks.
"With year-over-year growth rates in U.S. online non-travel
spending at about 23% in the third quarter, the Web continues
flexing its muscle as one of the important drivers of retail
Households Expected to Surge and Enable Pay-DTT Opportunities
By Ray Desjardin
Current forecasts from IMS Research predict
that the worldwide digital terrestrial TV (DTT) market
will grow significantly over the next five years, from
an estimated 37 million households in 2006, to a forecast
131 million households by the end of 2011.
Primarily driven by DTT uptake in Western
European countries, the Europe, Middle East and Africa
(EMEA) region has experienced the most success in DTT
adoption, and is expected to comprise nearly 62% of worldwide
DTT households by 2011.
According to analyst Mark Meza of IMS
Research, "The success of DTT in Europe is due in
large part to government and industry initiatives, a growing
selection of content, and increasingly affordable set-top
boxes. This success has created an opportunity for value-added
paid DTT services, such as Top Up TV in the UK. Paid DTT
services have a distinct advantage in markets where a
free DTT service has been successful."
Meza continues, "Standalone pay
DTT services face greater challenges in establishing subscribers,
often due to limited content offerings and pricing that
is not competitive with other pay TV options. An example
of this is the difficulty faced by USDTV, which recently
filed for Chapter 7 bankruptcy after securing only about
10,000 subscribers in 3 years of operation, as well as
early launches of pay-DTT in the UK." With the continued
growth expected for DTT worldwide over the next five years,
IMS Research predicts an accompanying rise in value-added
Mail Drives Traffic Directly To Websites
By John Byrnes
Increasingly, the line between direct
marketing and online marketing is blurring. "True
'relevance' lies in the content and context of a marketing
message, not in the mere strategic placement of a recipient's
name or other customer data in a marketing solicitation,"
Bruce Biegel of Winterberry Group told attendees at
the DMA 2006 Conference in San Francisco. "If marketers
expect results, they must tailor relevant messages by
utilizing data and analytics programs that react to
geo-, demo- and psychographic information to enhance
behavioral targeting and measurement."
In the "What's in the Mailbox?"
survey, meant to find how to stand apart in a crowded
marketing landscape, researchers found that 21% of respondents
visited a corresponding Web site within 30 days of receiving
direct mail, up from 14% in 2003, reported eMarketer.
According to Internet Retailer, the
results indicate that direct-mail-influenced Web traffic
grew 50% over the past three years. Though that may
be putting the case a little strongly, the trend is
definitely up. Direct marketers are doing a number of
things to make their mailings more effective.
Though over 80% of them only modify
the salutation and a few basic content elements, the
survey shows that 44% of marketers are now using some
form of personalization in every e-mail campaign they
Non-Paid Magazine Distribution Yields Similar Ad Response
By Karl Ghross
The Value of Magazine Readership study,
from the Magazine Publishers of America, suggests that
many assumptions may not be accurate about the connection
between consumers' reaction to magazine advertising
and the price paid and circulation source for the magazines
that they read. This report shows that:
Differences in the ways subscribers,
newsstand buyers and public place readers respond to
magazines and to the advertising in them are often insignificant.
Public place copies generate significant
advertising exposure opportunities, often to readers
with desirable demographic characteristics.
The analysis of MRI data by DJG Marketing,
and, and Waiting Room Subscription Services shows that
in 2006 approximately one-fourth of magazine reading
is done in public places, up from 16% in 1996. Rick
Jones, of DJG Marketing, notes that "Public place
copies are individually addressed and strategically
targeted to specific locations. They are third-party
auditable copies with proven readership value for the
Their research found that "Public
place distribution can and frequently does enable advertisers
to reach a larger body of readers who are involved,
demographically qualified and responsive to their advertising
Factor (Public Place/Newsstand) is
the multiple of readers per copy that public place copies
offer as compared to newsstand copies. For example,
among total readers in the titles studied, public place
readers per copy are 7.5 times those of newsstand buyers,
reports The Center for Media Research.
McPheters & Company conducted a
study in which the subscriber base of multiple magazines
was anonymously matched with the base of MRI respondents.
According to Rebecca McPheters, who led the analysis,
"The price paid by a subscriber for a particular
magazine does not predict the quality of the reader
nor is reader quality determined by the method by which
a reader acquires a magazine. Quality is a function
of reader characteristics..."
Video OK For 3/4 of Users
By Richard Gagnon
According to a telephone poll by
the AP and AOL, 71% of U.S. Internet users who watch
online video prefer to watch and download videos for
free, sponsored by pre-roll advertising, while only
23% said they would prefer to pay for ad-free content.
The poll also reports:
Users prefer shorter videos
20% of those surveyed had downloaded or watched a
full-length movie or TV show
54% of U.S. Internet users consume video online
32% of respondents say they watch more video online
than they did a year ago
80% say their TV viewing habits remain unchanged
AOL EVP, Kevin Conroy, said "...
video usage is growing faster than most predicted...
As more and more Web users adopt broadband, demand
for online video of all types, including news, music
videos and concerts, TV and movies, sports highlights,
and user generated video mash-ups will continue to
grow at a very fast pace."
The poll, conducted by Ipsos Public
Affairs among 1,347 online video watchers in the U.S.,
found that the top video categories were News, at
72%, and TV or movie clips, at 59%, reported The Center
for Media Research.
In 10 Tweens Surf Web At Home
By James Hanson
Children between the ages of 8
and 11 are almost as likely to surf as they are
to watch television, according to a new report by
market research company Youth Trends.
Youth Trends reported that 81%
of 8- to-11-year-olds have a computer at home--just
slightly less than the 95% that have a TV at home.
The vast majority--87%--of the tweens between 8
and 11 that have computers at home also access the
Web from them, according to the report.
Overall, about 70% of children
between the ages of 8 and 11 go online from home,
according to Youth Trends. That figure appears to
be similar to an estimate by research company eMarketer,
which reported this month that 67% of U.S. children
ages 8-11 are online.
Youth Trends reported that 60%
of the tweens with Web access from home go online
at least once a day. An additional 33% said they
go online at least once a week.
What do they do online? More than
one in three--37%--said they have used instant messaging
in the last month, while 35% have played games,
31% have visited sites geared toward youngsters,
30% sent an e-greeting card, 23% posted photos,
and 18% watched music or video clips. Also, they
shop--or at least are beneficiaries of online purchases.
Forty-six percent said their parents have bought
something for them online.
Youth Trends also asked youngsters
about their ad preferences. Thirty-seven percent
expressed a preference for free samples, 24% said
they liked catalogs sent via postal mail, and 22%
chose movie theater ads. Just 15% counted TV commercials
among their preferred forms of advertising, while
a scant 11% said they liked online ads.
The report was based on interviews
conducted in August with 900 youngsters ages 8-11.