Journal Register

C O M P A N Y

Digital First
Industry Trends

Arturo Duran
August 25, 2010

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 External Factors: Traditional Media Journal Register C O M P A N Y

Advertising Revenue on the decline

Newspapers (-49%) and magazines (-39%)

see the sharpest decline in revenue

Other includes Directories, Direct Mail, Outdoor

Sources: Traditional Media:: MAGNA - US Advertising Revenues Forecast, 2009

Interactive Media: Forrester Interactive Media 2007-2012 & 2009-2014
CompanyAlternative
Confidential Media & Product Placement: PQ Media - 2007
 Traditional Media is losing its share Journa
of l Register C O M P A N Y

advertising dollars to other options

2006 2007 2008 2009 2010 2011

Traditional Media 75.7% 71.4% 65.6% 57.6% 53.6% 49.5%
Interactive Media 7.0% 7.2% 9.5% 10.6% 11.3% 12.4%
Product Placement 1.8% 2.0% 2.4% 2.9% 3.1% 3.3%
Other Alternative 15.5% 19.4% 22.5% 29.0% 32.0% 34.8%
Total Advertising 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Traditional media is defined as Broadcast TV, Cable TV, Radio, Newspapers, Magazines, Directories, Direct Mail and Outdoor
Interactive Media is Social Media, Search Engine, Email Marketing, Display Online, Mobile Media
Other Alternative Media includes consumer-generated media, videogame advertising, online video advertising, word-of-mouth marketing,
advergaming & webisodes, event sponsorship, and digital out-of-home media

Sources: Traditional Media:: MAGNA - US Advertising Revenues Forecast, 2009

Interactive Media: Forrester Interactive Media 2007-2012 & 2009-2014
CompanyAlternative
Confidential Media & Product Placement: PQ Media - 2007
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Value of Media Platforms

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Advertising Spend Shifts C O M P A N Y

As total dollars decline, marketing dollars are being shifted away from
traditional media toward new media that connects with consumers

Sources: Traditional Media:: MAGNA - US Advertising Revenues Forecast, 2009

Interactive Media: Forrester Interactive Media 2007-2012 & 2009-2014
CompanyAlternative
Confidential Media & Product Placement: PQ Media - 2007
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National vs. Local Adv.

n Local online advertising will grow at a

faster rate, but national ads will still
account for the vast majority of online
ad spending through 2011. .

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 Industry Background: Journal Register
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Competition
Verticals
Lifestyle
Portals
n Nationally, JRC will
find fierce
competition in
many of its key
areas of strength…

Listings & Directories

Social Networking

Video and IPTV

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Social Media

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Social Networks

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… Partner with the Rest!

n The fusion of Web 1.0 and

Web 2.0 is creating a
new paradigm, which
combines content you
create on your website
with content others have
created on social media
channels

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Uses of Customer Data

n The Accenture Global Content Study 2009

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 Leading News Source Journal Register
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Platforms

n In December 2008, 40% of

respondents said they
got most of their news
about national and
international issues from
the Internet, up from just
24% in September
2007.
n

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Email vs. Social Media

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Why do Brands Use Twitter?

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Online Video

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Market background

 How big is Mobile?




l Over 1.5 billion people worldwide carry

mobile phones.
l

l Mobile phone subscription in the US

recently reached 202 million, almost
67% of the population.
l

l 97% of all phones are SMS capable,

32% are MMS capable, 4% are video
capable.
l

l The coveted youth market is an early

adopter of mobile services and spends
up to 15% of their income on mobile
content and services.


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Mobile Products / Services

Application
complex Browser/Based

Maps and
directions GPS Voice Other
Voice Business
GPS Resume Apps
Activated Finder
Application Enabled Builder
Browser/Based directory Contests
GPS Ticket /Other
Video and
Shopping Purchases
Audio
Exclusive Downloads Local Favorites
Wallpapers
Artist Photo Reviews Application
Ringtones MMS
galleries Local Browser/Based
Carrier Classified
WAP listings
Breaking Integration Local Movies
Mobile News Concerts and
WAP Text WAP Events
Sweepstakes
Personalized Advertising Push
Coupons Horoscope WAP Banner
Weather Advertising
Text-To-Win
Contests SMS
Browser Based
simple SMS Based

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Wireless Growth

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 Market background - Journal Register
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worldwide

Source: e-marketer 2008.

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Market background - US

Source: The BIA Kelsey Group 2009

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US Mobile Market Growth

Source: comScore M:Metrics, August 2008.

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Mobile Market Growth

Mobile usage preference Role of mobile

Source: Jupiter Research, Oct. 2008, ExactTarget Oct. 2008.

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Where to Reach Women Online C O M P A N Y

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Growth of Mobile Video C O M P A N Y

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Health Seekers Harness the Web C O M P A N Y

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Summing Up: The Big Picture

Mobile Media Market has fully arrived

l 1/3 of phone owners using mobile media
l Critical mass for publishers with room for sustained growth
Technology enablers continue to grow
l Even faster networks / devices arriving

n Growth of key consumer enabler -- unlimited data plans -- in doubt

l Will others follow AT&T with tiered data pricing? Will it slow growth of adoption?
(Check back at the end of the year)
“Classic” mobile content business: personalization in decline
App Store economics driving to free
l Mobile ad model works -- and it must work -- to monetize Web and Apps
l Encouraging diversity in mobile advertisers and increasing (repeat) spends

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 Summing Up: The Platform Journal Register
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Wars

Smartphones have hit critical mass

l Majority share of major mobile media audiences despite 20% overall penetration
l Touch interfaces are on path to dominance
l Sensors and cloud services will continue to change the way we interact with devices,
people, content, services
Smartphones platform competition creating an epic business battle
l RIM/Apple/Google have strong starts
l Nokia/Microsoft/HP?/Others? are in it for the long haul

n Device replacement cycles and carrier competition create substantial opportunities for
opportunities for the lead to change (and the Metrics for “the lead” are variable)
Publishers and developers must contend with (the costs of) fragmentation
l Of the audience. . . platform priorities? . . . what about feature phones?
l Of content delivery . . . Apps? Which development platform? . . . HTML5?
But ubiquity, intimacy of mobile makes it an increasingly critical channel

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Extend JRC Audiences C O M P A N Y

nNetwork of websites linked by common infrastructure and

navigation:

El Diario Partners Unbranded Digital Network

Partner newspapers
Hyper-local blogs

Classifieds

New York State

Ohio / Michigan
Local Content

Philadelphia
Connecticut
Navigation
Best-in-class

Directories
Widgets

Ohio
Jobs in USA

Other Channels
Traffic builders Listings Local Adv

Network Templates & Navigation

Content Management System

Technology Platform
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Future of Classifieds C O M P A N Y

n Merging of Directories, Listings, and “What’s on Sale” with Social Networking:

Social Traffic
Networking

Paid Listings
Classi- What’s
fieds “Marketplace” On Immediacy
Sale?

Directories
Free Listings
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 Diving deep into size,
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characteristics and engagement

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 The first 90 days will be focused on six key priorities:

Build the new 1

sites
Infrastructure
and platforms
Quick launch,
contin-uous
6 Build the plan improvement Build the team 2
Budget for 2011 •Strategy
3-year strategic •Marketing
plan •Business Development

5 Build audience 3
Traffic Build relationships
exchange Internal (e.g.,
(widgets ) publishers)
SEO External
Leverage (partnerships)
newspapers Build
4 businesses
Classifieds
Mobile

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Next Steps

n Month One
l Get to know company/colleagues/team
l Finalize Digital SWOT
l Define role and objectives
l Assign projects and tasks
l

n First 90 days
l Define Digital Initiatives
l Partnership Matrix
l Build business rules for IT deployment of backend systems
l Finalize Mobile Plan and Launch first mobile iteration
l
l

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Forecast 2010 – 2013

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