CPM of Various Media Advertising
April 23, 2009
Excerpts from “How Much Ads Cost” – eMarketer.
(…) broadcast TV had the highest cost-per-thousand (CPM) rate of $10.25, with syndicated TV at $8.77. Magazines, cable TV, newspapers, radio and outdoor advertising round out the space. (…)
As for spending in the online sector… it’s a little more complicated. (…)
For display advertising, Credit Suisse estimated that in 2009 the average CPM will be $2.39, down from $2.46 in 2008. (…)
As for paid search, JPMorgan projected that for every 1,000 searches, $75.33 would be generated from ads in 2009. (…)
What it means: always interesting to compare the CPM of various media. It gives you a good benchmark to calculate revenues needed to counter offline to online revenue migration. Again, no Yellow Pages CPM to compare though. I wonder if someone has made the calculation before for the directory publishing industry.
Analysis: "ESPNChicago.com Launches Monday"
April 9, 2009
“ESPNChicago.com Launches Monday” via Mediabistro.com.
The Chicago-focused online sports destination will feature original content from some of the most familiar names in Chicago sports including former Bears wide receiver Tom Waddle and former Bulls announcer Chuck Swirsky.
ESPN Digital Media is also launching new technology that allows for geo-targeted content and ad insertion in both live audio streaming and downloadable audio. ESPNChicago.com will also make use of existing ABC/ESPN properties in the city including ESPN Radio 1000 and WLS-TV and abc7chicago.com.
Mini what it means: I’m seeing more and more “national” media brands (television, magazines, newspapers) deploying local strategies online. Makes sense. They leverage a powerful and trusted national brand online but they make it locally relevant. It’s something that’s usually very expensive to do offline but is cheaper to do online.
I recently wrote a message on Twitter saying that I was “thinking that newspapers are looking more and more like magazines. And magazines are looking more and more like books.” That thought came out of the following realization:
- Newspapers are trying to stay relevant by doing more in-depth analysis and longer articles (the Focus section of the Globe & Mail is a perfect example). They’re slowly morphing into magazines.
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Magazines are still focusing on long articles and analysis but are also doing special topical issues. For example, Philosophie magazine recently published an amazing issue on twentieth-century philosophers. Monocle magazine’s about us section says its “More of a book than a magazine, Monocle’s designed
to be highly portable (it’s lightweight and compact) and collectable (it’s thick and robust)”. They’re slowly morphing into “books”. - For many people, microblogging is replacing blogging. I had detailed that new phenomenon in a recent blog post.
I also received a couple of responses to my Twitter message. Bruno Boutot said “.. and tweets like blogposts?”. Dylan Fuller added “I
expand blogs R now newspapers or niche ‘zines… thus newspaper to mags to books. what R books becoming? perfect & timeless”. To which I replied that I agreed and that “books are permanent reference markers in time.”
A typical reaction to new competition is to add value to your product, to avoid becoming a commodity and having to fight on price only. I think we’re seeing that reaction on the whole “news” value chain.
- Microblogging is replacing blogging (expressing your thoughts)
- Blogging is becoming newspaper-like (more reporting)
- Newspapers are becoming the new magazines (more analysis)
- Magazines are becoming book-like (more permanent reference material)
- Books are still relevant as reference material
Have you seen the same thing?
Why Monocle is Probably My Favorite Magazine Now
January 6, 2009
Monocle magazine is great!
But first, some background story…
In September 2007, I lamented the demise of Business 2.0, probably the favorite magazine of the business/technology tribe. Following this death, I went back to my old flame, Wired Magazine, whom I felt at the time had improved drastically since the dark 1999-2002 period. Recently, I got tired (again) and canceled my subscription (again).
Back to Monocle. I had picked up issue 15 last July, the City issue, as the theme really appealed to a local media guy like me. I had enjoyed the read but I believed it was because of the subject matter. Fast forward to last week, I picked up issue 19, the 2009 Forecast/Predictions issue. Again, a topic that’s really attractive to a strategy guy like me. Since then, I’ve come to the conclusion that this magazine fits perfectly in today’s social/local zeitgeist.
Split between headings called “Affairs”, “Business”, “Culture”, “Design” and “Edits”, Monocle covers a variety of subject like sociology, anthropology, city trends, design/ideas/new technologies and politics. The mix of business and society creates a group of stories that’s very stimulating. I would say the only thing missing is a larger dose of technology-oriented articles. Business 2.0 was very good at covering bleeding edge tech business ideas. But I definitely recommend Monocle to everyone who liked reading our favorite business magazine.
BTW, if anyone needs more convincing arguments, Alain de Botton, currently the best young philosopher in the world, is a regular contributor. If you don’t know de Botton, you need to read “How Proust can change your life“, “The art of travel” and “Status anxiety“.
Word-of-Mouth the Most Powerful Selling Tool; Traditional Media Advertising Still More Credible than Online Ads
October 11, 2007
Nielsen just released the results of their Nielsen Online Global Consumer Study (found via Eric Baillargeon’s blog). In it, “Nielsen (…) surveyed consumers on their attitudes toward thirteen types of advertising – from conventional newspaper and television ads to branded web sites and consumer-generated content.” Excerpts:
The Nielsen survey (…) found that while new platforms like the Internet are beginning to catch up with older media in terms of ad revenues, traditional advertising channels continue to retain the public’s trust. Ads in newspapers rank second worldwide among all media categories, at 63 percent overall, while television, magazines and radio each ranked above 50 percent. (…)
Although consumer recommendations are the most credible form of advertising among 78 percent of the study’s respondents, Nielsen research found significant national and regional differences regarding this and other mediums. Word of mouth, for example, generates considerable levels of trust across much of Asia Pacific. Seven of the top ten markets that rely most on “recommendations from consumers” are in this region, including Hong Kong (93%), Taiwan (91%) and Indonesia (89%). At the other end of the global spectrum, Europeans, generally, are least likely to trust what they hear from other consumers, particularly in Denmark (62%) and Italy (64%).
The reliability of consumer opinions posted online – which rated third, at 61 percent overall – also varies throughout the world, scoring highest in North America and Asia, at 66 and 62 percent respectively. Among individual markets, web-based opinions such as Blogs are most trusted in South Korea (81%) and Taiwan (76%), while scoring lowest, at 35 percent, in Finland.
What it means: a few weeks ago, I blogged about the fact that word of mouth might actually be the biggest opportunity directory publishers have seen in the last few years given that the Web was becoming a big word of mouth machine. These numbers clearly show that i) traditional word of mouth is still the most trusted source of advertising and ii) online word of mouth is not far behind. It’s also interesting to note the differences in the various geographical areas.
Quote of the Day: Jossip.com
September 4, 2007
“Of Vogue’s 840 pages, 727 are ads, or: 13 percent is editorial. Sounds about the right ratio to us.”
Jossip.com’s on the number of advertising pages in the September 2007 issue of Vogue. Clearly, some print magazine verticals are doing very well!
Blog Network in Australia to Leverage Gawker Media’s Brands
September 1, 2007
(from The Australian)
With internet blogging on the cusp of becoming a commercial medium, a local publisher is attempting to create Australia’s first significant independent blogging network. Allure Media, which next week will launch its fourth blog since April, also has the licence to launch local versions of the Gawker Media portfolio of high-profile US blogs such as tech blog Gizmodo and celebrity gossip blog Defamer.
It is backed by the $40 million internet investment fund Netus, which is led by former Microsoft executive Daniel Petre, while News Limited (publisher of The Australian) has majority ownership. Netus operates separately from News, but the investment reflects thinking within traditional media companies that blogging is beginning to become mainstream, with some blogs attracting significant audiences and even advertising revenue.
Netus executive director Craig Blair said Allure, which started in January, would launch eight to 10 blogs in the next six months. It launched a local version of technology-in-action blog Lifehacker last week, and next week will unveil gaming blog Kotaku. (…) “For advertisers, this is a really good way of getting niche audiences. We’ll expect a business like Allure Media to break even within 12 months.”
According to Tim Hughes, former Netus executive, blogger and commercial director of HotelClub.com, advertising revenue on blogs would comprise less than 1 per cent of the $335 million online display market. “It will grow,” he said. “Great content with great readership equals the ability to monetise.” (…)
The highest profile independent local blogger making money is Melbourne-based Darren Rowse, who runs Problogger (a blog about how to make money from blogs) and a number of digital photography blogs that attract related advertising. Mr Rowse is also a co-founder of b5media with two other local bloggers. B5media, which is based in Canada after it secured $2 million in venture capital funding two years ago, has a sales team that sells advertising on nearly 250 blogs globally, organised into about 15 channels. “We contract bloggers around the world to write for us and we revenue-share with them,” MrRowse said. (…)
What it means: a couple of interesting insights. We see more and more of these blogging networks being built with the objective of reaching critical mass from a visitor, content and revenue point of view. I think it’s one of the best strategies right now to build a serious media business out of blogs. Those networks are usually managed like vertical magazines. Second, I like the fact that News Limited, a traditional print media publisher, is getting in that game via their investment fund. Smart. Third, I did not know Gawker Media licensed their brand in the world. That’s a great new revenue source!
