Power Users 2006 An Engaged Audience for Advertising

Document Sample
Power Users 2006 An Engaged Audience for  Advertising Powered By Docstoc
					Power Users 2006
An Engaged Audience for
 Advertising and News

           Federation Members
           Presentation
           May 2006
                                                                      2



Power Users 2006

In this presentation…              • The 2006 sites
                                         AZCentral.com
      Overview
                                         Boston.com
                                         CJOnline.com
      Online Audience & Habits
                                         Cleveland.com
                                         DelawareOnline.com
      Online Interests
                                         KnoxNews.com
                                         MySanAntonio.com
      Local Online Marketshare
                                         Sacbee.com
                                         TBO.com
      Online Advertising
                                         TwinCities.com
      Online Commerce
                                   • Interviews
      Online & Print Interplay          1,501: Phone Interviews

      Recommendations                   9,576: News sites


                                   • Fielded in Dec. ’05 – Jan. ’06
Note: Full written report can be
downloaded at digitaledge.org
                                                                            3



Comparisons & Weighting
 Methodologies                                     Respondents
  – Online Newspaper Users
         Online pop-up survey
         10 sites, chosen by NAA
         Average of 950 interviews per site
         Fielded Dec/Jan 2005-2006              '06 NP
                                                                    9,576
                                               site users
  – General Internet Users
      21-minute telephone survey
      Random-digit dialing
      Used Internet during past month
 Weighting
  – Online
       Data balanced across markets and            '06
        balanced by gender                       Internet   1,501
  – General/Phone                                 users
       Weighted to census estimates & a
        recent national MORI study for age,
        gender, ethnicity & census zones
                                                     4



Legend Key

       “NP site”
         – Online pop-up survey on newspaper (NP)
           sites; users on an “average day”

       “Non-users”
         – Phone survey
         – Did not use a newspaper Web site in the
           past 6 months (49% of general Internet
           users)

       “Past 6 mo. users”
         – Phone survey
         – Used a newspaper Web site in the past 6
           months (51% of general Internet users)
                                                            5



 Overview

 Using a different analytical strategy than the 2002 and
 2004 surveys, we mostly compare ―average day‖ NP
 Web site users with non-users, defined as those who
 have not visited in the past 6 months.

 Newspaper Web site users remain Power Users:
 Compared to non-visitors, they are younger, more
 affluent, and more engaged.

 NP Web site audience continues to grow but at an
 uneven rate—―yesterday‖ visits growth accelerated
 since 2004, but past week or past 6 month growth
 slowed.
                                                             6



 Overview (cont'd)
 Broadband connections increased both at work and at
 home, increasing the volume of Internet usage.

 NP site visitors spend much more time online than non-
 visitors, and the morning hours remain prime time.

 News is still the main driver to the Internet for NP Web
 site users but also a limiting factor: Non-users are much
 less interested in local news.

 NP Web site users are more likely to participate in online
 activities, such as blogging, consumer reviews, banking,
 etc; they are more engaged online than non-users.
                                                              7



 Overview (cont'd)
 NP Web site users are more likely to own portable
 electronic devices.

 Internet users generally are more interested in receiving
 news alerts than advertising on electronic devices. NP
 Web site users are more interested than non-users in
 news alerts.
 For local news and entertainment, NP Web sites are
 challenged on the local front by local TV station Web sites,
 even among their own users
 Google continues to gain in local news, and information
 and entertainment, and Yahoo! and MSN also are strong
 competitors, especially among non-users.
                                                          8



 Overview (cont'd)
 Usage of interactive services from NP Web sites is
 modest, especially for headlines to handhelds, RSS
 feeds or podcasts.
 News content is the main driver to newspaper Web
 sites, but ads and interactive and multimedia features
 are also important to many users.

 Print newspapers declined somewhat but remains the
 primary source of advertising for both groups; the
 Internet increased since 2004.

 Online research, shopping and buying increased from
 2004, especially among non-users of NP sites.
                                                                 9



  Overview (cont'd)
 NP sites remain a bit player as a destination among consumers
 who seek shopping and advertising information online. Store
 sites and search engines presently own this category.

 Online private party selling increased since 2004. eBay
 dominates, followed by craigslist; NP sites are well behind.

 The interplay of print and online newspapers is mixed:
 Readership by NP site visitors is unchanged but remains below
 that of non-users. Readership by non-users declined.

 Overall, NP site users just as likely to be reading print
 newspapers more often as less often than before, but this
 varies by market. Other traditional media have lost audience.
                                                             10



Overview (cont'd)

 About 6 in 10 NP Web site users sometimes read the
 online version instead of the print, and 4 in 10 say they
 sometimes read the online version as well as the print
 version (many do both)

 Reasons for reading the online version instead of the
 print include convenience, timeliness, and no cost.

 The main reason cited for reading both versions is that
 each provides unique value to the user.
Online Audience & Habits
                                                                           12



Profile of a Power User

Who uses newspaper Web sites?
    – 91 percent recently shopped online
    – 89 percent recently bought online
    – 90 percent are employed
    – 71 percent are online daily @ work
    – 63 percent check news daily
    – 70 percent frequently bank online
                                                       – Mean age: 39
    – 64 percent recently checked classifieds online
                                                       – Income: $73,000
    – 68 percent have home broadband                   – Hours online/week: 19
    – 52 percent have college degrees


Base: Online respondents
                                                                                                                      13



    Newspaper Web Site Visiting by Internet Users

     • Growth of NP Web site audience among past 6-month and past 7-day
       users has continued but at a slower pace.
     • The visited yesterday growth rate, however, has accelerated.
     • There remains enormous room to grow: 49% of Internet users have
       not visited an NP site in the past 6 months, and 43% of past 6-month
       users have not visited in the past week.

                                  '02 Internet users   '04 Internet users    '06 Internet users


                         51
                 48
        40                                             39
                                               37
                                                                                   29
                                                                            25
                                                                   17                                           16
                                   NA                                                                    12
                                                                                                  10
%


        Visited in past 6          Visited in past month        Visited in past 7 days            Visited yesterday
             months
    Base: Telephone respondents
                                                               14


 Frequency Visit Newspaper Web Sites

 The frequency of visiting NP Web sites increased since 2004
 among all Internet users.


                                            2004   2006
                  Daily                     9%     10%
                  2+ times/week             9%     11%
                  Once/week to once/month   12%    16%
                  Less than once/month      19%    14%
                  Not in 6 months           51%    49%




Base: Telephone respondents
                                                                                                                         15



 Demographics                                          (Part 1)

 NP Web site users on average continue to be younger, more affluent,
 and more educated than other users of the Internet.

                                                             ’06 NP        ’06 Non-
                                                               site          users

                          Male                                  50%             50%               ’06 Mean Age (NP
         Gender                                                                                   site users): 39.1
                          Female                                50              50
                          18-34                                 40              36                ’06 Mean Age (Non-
            Age                                                                                   users): 42.7
                          35-54                                 49              39
                          55+                                   11              25
                                                                                                  ’06 Mean Income (NP
           HH             <$50K                                 37              43                site users): $73,200
         Income           $50K-$99K                             41              40
                                                                                                  ’06 Mean Income
                          $100K+                                22              17
                                                                                                  (Non-users): $65,900
      Education           HS or less                            15              31
                          Some college/v-tech                   33              34
                          College grad+                         52              35

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                 16



 Demographics                                          (Part 2)

 NP Web site users are much more likely to be employed and white-
 collar workers than other Internet users.
                                                                           ’06 NP site           ’06 Non-users
        Own               Own home                                               69%                   77%
       or rent
                          Rent/other                                             31                    23
                          Employed                                               90                    72
                          Executive/ Managerial                                  15                    9
Employment/               Professional                                           36                    21
Occupation*
                          Technical and sales                                    11                    7
                          Administrative support                                 14                    5

         Family           Blue collar/ service/other                             14                    29
         status           Married/partnered                                      64                    64
                          Children in household                                  42                    41
        Race/             Hispanic                                               11                    13
       Ethnicity
                          Non-White                                              15                    19
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                             17


 Internet Usage: Time Online
 NP site visitors continue to spend twice as much time online as
 other Internet users. The average time online for both groups
 continues to grow very slowly.



                                                                                             '06 NP site

                                                                                             '06 Non-users
                                                                  19.0

                        Mean time spend
                        online per week
                            (hours)

                                                          9.4




Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                       18


 Internet Usage: Connections
 • NP site visitors are much more likely than other Internet users to have
   broadband access at home and at work. Broadband has increased
   dramatically since 2004 for both groups.
 • Broadband users are generally more active online. For example, home
   broadband users are more likely to use Internet services and to check
   nearly all of the content measured in this survey.
                                                                                                       '06 NP site
                            Telephone                    15                                            '06 Non-users
                            connection                                         45

                                                                                                68
                    Home high speed
                                                                                    50

                                                                                             65
                    Office high speed
                                                                   29

                       Wireless on the              6
                             go                     6

                                                  5
                    Wireless hot spot
                                                3
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                    19



Internet Usage: Where Go Online Most Often

  NP Web site users                                             '06 NP site          '06 Non-users

   are far more likely
   than non-users to                                                     71
   cite work as the                                        51                                 47
   location where they
                                                                                                           19
   go online most
   often.
  NP Web site users                                            Home*                              Work*

   access the Internet
   more frequently
   than other Internet
                                                        58
   users both at home                                                                        54
                                                                        37
   & at work.
                                                                                                           19



                                                  Use 7 days weekly at home            Use 5 days weekly at work


                                                                               (*Note: Other locations not shown)

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                           20


 Internet Usage: Dayparts
Respondents noted what times they are most likely to go online. NP
Web site users continue to be especially active in the morning (from
8 a.m. to 11 a.m.). NP Web site users are going online a bit more
frequently in the evening than recorded in 2004—perhaps due to
greater access to broadband at home.
                                                                                           '06 NP site
                                                               18                          '06 Non-users
                              Before 8 a.m.
                                                         10

                                                                                 44
                              8 a.m.-11 a.m.
                                                                    25

                                                                         31
                              11 a.m.-1 p.m.
                                                               19

                                                                            38
                               1 p.m.-6 p.m.
                                                                          34

                                                                                      48
                             6 p.m.-10 p.m.
                                                                                 43

                                                               17
                               After 10 p.m.
                                                          12

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
Online Interests
                                                                                                                            22


News Content Accessed Several Times Monthly
NP site visitors use the Internet in general for various types of news far more often
than non-users. News priorities are different for the two groups: For non-users,
weather is easily the most important online topic, but local news is relatively much
less important.
                                                                                                       89
                  Breaking news                                                                             '06 NP site
                                                               36
                                                                                                            '06 Non-users
                                                                                                       88
                  Check weather
                                                                          51
                                                                                                       88
                      Local news
                                                         24
                                                                                                       88
              Nat'l or world news
                                                                 39
                                                                                    62
             Sports scores & info
                                                          25
                                                                                59
    Medical, health, fitness info
                                                         23
                                                                                59
             Coverage of politics
                                                    19
                                                                               56
                     Lifestyle info
                                               14
                                                                        48
  Biz, financial, investment info
                                                   17
                                                                        48
            Find archived stories
                                              13
                                                                        48
     Columnists, opinions, blogs
                                             11
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                        23


  News Content Accessed Daily
      For many NP site users, checking news is a daily habit.
      Only 7% of non-users check local news on a daily basis.
                                                                                                   63
                                Breaking news                       16
                                                                                                  60
                           Nat'l or world news                      16
                                                                                             54
                                    Local news                 7
                                                                                                        ’06 NP site
                                                                                        46
                               Check weather                            17                              ’06 Non-users

                                                                                   33
                          Sports scores & info                 8
                                                                              28
                          Coverage of politics                 7
                                                                         19
               Biz, financial, investment info             5
                                                                         19
                  Columnists, opinions, blogs          3
                                                                    16
                                  Lifestyle info   1
                                                                   13
                  Medical, health, fitness info        3
                                                                   13
                         Find archived stories         3
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                           24


 Online Services Used Several Times Monthly
 NP site users are becoming quite active with interactive online functions. Usage
 of podcasts/RSS feeds anywhere on the Internet is still modest, a limiting factor
 for their use from NP sites.
                                                                                                               94
                               E-mail or IM
                                                                                                      77

                                                                                                 70
                          Bank or pay bills
                                                                            28

                                                                                            66
                   Gets maps & directions                                                                  '06 NP site
                                                                                 32
                                                                                                           '06 Non-users
                                                                                       60
                     Read or post reviews
                                                                       23

                  Read blogs, chat rooms                                          34
                        or forums                                 15

                                                                            27
                               Post photos
                                                             11

                      Create blogs or post                        16
                          comments                           12

                              Download                        14
                             podcasts/RSS            5

                                                         8
                  Engage in stock trading
                                                 3


Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                       25


Online Services Used Several Times Weekly
 • Men are more likely than women to read blogs/visit chat rooms or forums,
   download podcasts/RSS feeds, read or post reviews, or trade stocks online.
 • Users who access mostly from home are more likely to read blogs, post
   comments or post photos
                                                                                                       88
                                 E-mail or IM
                                                                                              67

                                                                               36
                            Bank or pay bills
                                                                   12

                                                                              33
                        Read or post reviews                                                           ’06 NP site
                                                                   12
                                                                                                       ’06 Non-users
                                                                         25
                     Gets maps & directions
                                                                   11

                     Read blogs, chat rooms                             23
                           or forums                               11

                                                                   11
                                  Post photos
                                                       5

                         Create blogs or post                  9
                             comments                      7

                                 Download                  8
                                podcasts/RSS       3

                                                       4
                     Engage in stock trading
                                                   2
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                       26



  Online Services Used Daily
  Interactive services for most users are things to do on an
  occasional basis rather than every day.
                                                                                                76
                             E-mail or IM
                                                                           45

                 Read blogs, chat rooms                    14
                       or forums                       6

                                                           15
                   Read or post reviews                                                                ’06 NP site
                                                   4
                                                                                                       ’06 Non-users
                                                           14
                        Bank or pay bills
                                               3

                                                       7
                 Gets maps & directions
                                              2

                    Create blogs or post           5
                        comments               3

                                                   4
                              Post photos
                                              2

                            Download               4
                           podcasts/RSS       2

                                               2
                 Engage in stock trading
                                              1


Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                               27


  Ever Access Entertainment Information Online
  NP site users are far more likely than non-users to get leisure-related info online,
  especially event calendars, dining out/nightlife, and entertainment news. Interest
  in travel info confirms high demand for travel advertising space on many sites.

                                                                                                            88   '06 NP site
         Travel or destination info
                                                                                        64                       '06 Non-users

       Movie show times, reviews                                                                       81
               & trailers                                                    46

            Theatre, concert & arts                                                               76
             show times & reviews                                       41

                                                                                             69
                Calendar of events
                                                        22

                                                                                          67
             Dining out & nightlife
                                                           25

              Get entertainment or                                                       66
                celebrity news                        20

          Downloading music,                                                 47
       podcasts, other file-sharing                          26

          Online games or fantasy                                      38
                   sports                                  24

        Active participation sports                               33
              (running, etc.)                   11

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                               28



  Portable Device (PD) Ownership
 NP Web site users are much more likely than other Internet users
 to own a portable electronic device. Among the items measured,
 the two groups are close only on gaming devices.

             Any of the devices mentioned                                        58            '06 NP site
                      below (net)                                                              '06 Non-users
                                                                         36

                                                                         38
                                      MP3 player
                                                               18

                                                                    25
                                    DVR or TiVo
                                                             13

           PlayStation Portable or gaming                         21
                       device                                  18

                                                             13
             Device like Treo or Blackberry
                                                         4



Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                                   29



  Interest in Receiving Information & Ads on PDs
 Both groups are more interested in receiving news than advertising on
 PDs such as laptops or mobile phones. NP site users are much more
 interested than non-users in news, but only marginally more in
 advertising.
         News or Event Info                                                           Advertising & Product Offers
                                                            '06 NP site
                                                 37                                                                        19
Laptop compute r                                            '06 Non-users             Laptop computer
                                       21                                                                             13

                                            26                                                                        11
   M obile phone                                                                       Digital music or
                                  13                                                    video player              8

De v ice like Tre o                    20                                                                             11
 or Blackbe rry                                                                          Mobile phone
                              10                                                                                  8

 Digital music or                  17                                                                                10
                                                                                      Device like Treo
  v ide o playe r             10                                                       or Blackberry             7

   PlayStation                9                                                           PlayStation            7
   Portable or                                                                            Portable or
  gaming de v ice         6                                                                                      6
                                                                                        gaming device

 Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 mont(Very or somewhat interested)
Local Online Marketshare
                                                                                                                  31



  Used Internet in Past 6 Months For…
  Non-users are about one-half as likely as non-users to go online for
  local news or entertainment information. Among non-users, usage of
  the Internet is up 13 points from 2004 for local news and 8 points for
  local entertainment.
                                                '06 NP site            '06 Non-users


                 97
                                                                                  87




                                                                                                       46
                                           40




              Local news & information                              Local entertainment listings & things to do
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                                         32


       Sources Used for Local News & Info Past 6 Mos.
      – Google as local news source grew from 2004 among both NP site users and non-users.
      – Yahoo is stable among NP site users and up among non-users.
      – MSN is down slightly among NP site users and is up among non-users.
      – AOL is stable from 2004 among NP site users and down among non-users.
      – Non-users in 2006 use national sites more than local media sites for local news, though
      they are more likely to use local media sites than in 2004.
                                                                                                                        95
                 Local newspaper Web site                                 29
                                                                                         53
                  Local TV station Web site                                    33
                                                                                         52                     ’06 NP site
                                      Google                                                  56                ’06 Non-users
                                                                                    43
                                      Yahoo!                                             53
                                                                           31
                                         MSN                                 34
                                                                 21
                    Other local competitors       NA
                                                                18
               Local radio station Web site                14
                                                           13
                                    Craigslist       5
                                                          12
                                         AOL                         22
                                                 1
                                    Topix.net    1
                                                          11
                              Other Web site             10
Base: Online respondents who got local news online in past 6 months; Telephone non-NP Web site users who got local news online in past 6 months
                                                                                                                                        33
 Sources used for Local Entertainment and Things To
 Do

  Google is up from 2004 as a source for local entertainment information among
  both groups; Yahoo is up slightly, but MSN and AOL are about the same as in
  2004. Non-user visiting of local media sites doubled compared with 2004 data.
  Non-users are more likely than NP site users to visit national sites.
                 Local newspaper Web site                                                                       81
                                                                 13
                                       Google                                        34
                                                                                           47                    ’06 NP site
                                                                                29                               ’06 Non-users
                                        Yahoo!                                            45
                   Local TV station Web site                               23
                                                                10
                        Online ticket service                         18
                                                                                28
                                          MSN                    13
                                                                           24
                Local radio station Web site                    11                         Other sites mentioned include:
                                                                11
                                                                11
                              CitySearch.com            7                             NP site: Fandango, MovieFone, city sites,
                                           AOL           8                                 other venue/entertainer sites, ISP
                                                                      19
                                         NA                 8                                  homepages (e.g. Comcast)
                      Other local competitor
                                                        6
                                                                                      Non-users: Other venue/entertainer sites
                                     Craigslist     2
                            SuperPages.com          2
                                                    2
                     Movie theater Web site*       1
                                                    2
*Unaided response                                           9
                               Other Web site               9

Base: Online respondents who got ent. info online in past 6 months; Telephone non-NP Web site users who got ent. info online in past 6 mos.
                                                                                    34



NP Web Site Services Used in Past 6 Months
   The potential appears greater than current usage of interactive
   services from NP sites. Interest scores for headlines and alerts on
   phones and PDA’s are about double the level of usage.

                            Any listed (net)                     28   '06 NP site




                             E-mail alerts
                           from newspaper                   16
                               Web site


                           Headlines from
                           NP Web site for
                                                       10
                           mobile devices
                           (PDA's, phones)


                             RSS or Web
                           feeds from Web          6
                                 site


                             Free podcasts
                           from newspaper      3
                               Web site
Base: Online respondents
                                                                                                                           35


  Duration of NP Web Site Visit
There is little difference between frequent and occasional NP site visitors in the
length of their visits. Almost half of each group’s visits typically are less than 10
minutes. This is not surprising: Users are selective in content checked, and they
have to fit the visit into the rest of the day’s activities.

                                                             10                                 '06 NP site
                                Less than 5 min
                                                                  13                            '06 Past 6 mo. users


                                                                                   34
                                 5 - 10 minutes
                                                                                  32

(Typical amount of time spend
                                                                             25                          NP Site
   at site during each visit)
                                    11 - 15 min
                                                                            23                         Mean: 16.4
                                                                                                      Median: 12.1
                                                                       19
                                    16 - 30 min
                                                                       19
                                                                                                    Past 6 mo. users
                                                         8
                                31 min - 1 hour                                                        Mean: 16.8
                                                         7                                             Median: 11.6

                                                    2
                             More than 1 hour
                                                     3

 Base: Online respondents who visited before today; Telephone respondents who visited a NP Web site in the past 6 months
                                                                                                                                   36


  Content Used When Visiting NP Web Sites
                               Interactive and multimedia services & features are almost as
                               important as classified ad content. National or international
           '06 NP site
                               news draw much less than local or community news.
         NEWS CONTENT (NET)                                        96                AD CONTENT (NET)                          44


                 Breaking news                               74                             Ads for jobs                 29


     Local or community news                                 73             Ads for homes or real estate            21


                         Weather                        63                                 Ads for autos       13


 Local entertainment, event or                                             Ads for general merchandise         11
                                                   55
        restaurant info

              Nat'l or int'l news             46                    INTERACTIVE / MULTIMEDIA (NET)                            37


           Sports scores or info              46                              Columns, blogs or opinion             23

                                                                         Reader-submitted info (photos,
             Political coverage          30                                                                    14
                                                                                   stories)

Lifestyle info (fashion, cooking,                                       Video reports of a news event or
                                         30                                                                    13
              home)                                                                interview

                                                                  Downloading music, podcasts or file-
   Financial or investment info     12                                                                     2
                                                                              sharing
 Base: Online respondents
Online Advertising
                                                                                                                                          38


Use Internet for Shopping & Advertising Info
   NP site users are much stronger users of the Internet in general
   for shopping and advertising.
                                                                                                                       95   '06 NP site
                                       Any listed (net)
                                                                                                                  81        '06 Non-users
                                                                                                                  82
                          Purchase products online
                                                                                              55
                                                                                                              78
                       Check store hours/locations
                                                                               36
                                                                                                             76
                           Browse products for sale
                                                                                         48
                                                                                                             75
                                    Comparison shop
                                                                                39
                                                                                                        71
                             Shop for or book travel
                                                                                    41
                                                                                                        70
Check pricing & availability before buying offline
                                                                               37
                                                                                                   63
                             Get info about vehicles
                                                                                    43
                                                                                          51
                 Get info on homes or apartments
                                                                          24
                                                                                    43
                                  Download coupons
                                                                   14
                                                                                39
                              Participate in auctions
                                                                     18
 Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                   39



Use NP Web Site for Shopping & Advertising Info
– While many NP site users use the Internet for shopping and advertising
information, usage of NP sites for this information lags.
– The biggest gaps are with online purchasing, travel, comparison shopping, and
checking store hours or locations. The smallest gaps are with homes or apartments
and downloading coupons.
                                       Any listed (net)                         67
                                                                                     '06 NP site

                   Get info on homes or apartments                         39


                             Browse products for sale                      38


                               Get info about vehicles                    37


                           Check store hours/locations                    35


                                     Comparison shop                 30


   Check pricing & availability before buying offline                30


                             Purchase products online               29


                               Shop for or book travel          25


                                   Download coupons            22


Base: Online respondents        Participate in auctions   12
                                                                                                       40



  Primary Source for Local Advertising
  – Overall, print newspapers decreased while the Internet increased.
  – Among NP site users, local newspaper Web sites increased slightly from
  2004; they are unchanged among non-users.
                                                                              25
                     Local newspaper (print)                                             42
                                                                        13
                            Internet (general)                     10
                                                                        13
                  Local newspaper Web site                                             '06 NP site
                                                   2
                                                                                       '06 Non-users
                                                                    12
                             Local television                            15
                                                              8
                                  Local radio             5
                                                              7
                         Ads mailed to home                    8
                                                        4
                 Shoppers/free newspapers               4
                                                   2
                                Yellow pages              5
                                                  1
                        Online yellow pages       1
                                                  1
                 Local TV station's Web site      0.5
                                                  0.5
              Local radio station's Web site      1
                                                      3
                                 Other source     1
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                                    41


 Advertising That Influenced a Purchase in the Past Year

 Three-fourths of NP Web site visitors were influenced by the Internet in
 their purchasing in the past year—a far higher level than among non-site
 visitors.
                                                                                          73
                   Internet (general)                                  40
                                                                                     64
            Local newspaper (print)                                                60
                                                                              52
                Ads mailed to home                                     41
                                                                         47
                     Local television                                   44
                                                                  36
         Shoppers/free newspapers                            30
                                                                  35
         Local newspaper Web site              9

                          Local radio
                                                               33                              '06 Yesterday NP site users
                                                             29
                        Yellow pages
                                                            27                                 '06 Non-users
                                                             29
         Local TV station's Web site                   22
                                                12
                                                  16
      Local radio station's Web site           10
                Online yellow pages               16
                                              6
                                           0.5
                            Billboards 1

                             Magazine 0.5
                                           1
For technical reasons the results for newspaper Web site users are taken from the telephone survey rather than the pop-up survey.
Base: Telephone respondents who visited a NP Web site yesterday; Telephone respondents who did not visit a NP Web site in the
past 6 months
Online Commerce
                                                                                                                 43


 Researched or Shopped Online
                                                 Past 6 Months
   NP site users research and shop online more than non-users,
   but the gap has narrowed. Researching and shopping among
   both groups have increased since 2004.


                         '04 NP site                                                                   84



                         '06 NP site                                                                        91




                    '04 Non-users                                         46



                    '06 Non-users                                                 58


Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                            44



  Made a Purchase Online
                                                 Past 6 Months
  The same trend holds for making purchases as for shopping and
  researching. NP site users are much more likely to make purchases
  online than non-users, but the gap has narrowed somewhat in 2006.

                           '02 NP site                                                          79


                           '04 NP site                                                            82


                           '06 NP site                                                                 89




                       '02 Non-users                                   40


                       '04 Non-users                                   41


                       '06 Non-users                                             56


Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                       45



  Items Shopped for Online
                                                  Past 6 Months
                                                                                             58
                           Books or music                                          47             '06 NP site
                                                                                             57
                      Clothing or apparel                                           49            '06 Non-users
                                                                                        53
                            Airline tickets                               40
                                                                                    50
            Make hotel accommodations                                    37
                                                                                    49
                    Electronic equipment                                      42

Theater, concerts or sports event tickets                                38
                                                                                   48    – The biggest gaps between
           DVD or videocassette movies
                                                                              42         NP site visitors and other
                                                               26
                                                                              41         Internet users are with
        Computer hardware or software                               30
                                                                          40
                                                                                         home supplies or furniture,
                            Games or toys                                38
                                                                                         DVD or videocassettes,
                                                                          40
              Home supplies or furniture                    24                           travel arrangements, and
                                                                29
                                   Vehicle                     26                        phones.
                                                             27
                           Sporting goods                  23                            – They are closest on
                                                             27
            Mobile phone or phone card                15                                 vehicles, sporting goods,
                 Auto parts / accessories
                                                         19
                                                          20
                                                                                         games or toys, and auto
                                                                                         parts.
Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                                                                        46



Items Purchased After Shopping Online
                                                                     Past 6 Months
                      Purchased Online                                                                               Purchased Offline
                         Books or music                                             42                                                                         20
                                                               18                                                  Books or music
                                                                                                                                                    10
                                                                               36               '06 NP site                                                             25
                      Clothing or apparel                      17                                               Clothing or apparel                      14
                                                                                                '06 Non-users
                           Airline tickets                                           43                                                2
                                                                20                                                   Airline tickets
                                                                                                                                       2
                                                                                    41                                                  3
            Make hotel accommodations                           19                                    Make hotel accommodations        2
                                                                     23                                                                                            22
                   Electronic equipment                                                                       Electronic equipment
                                                          12                                                                                             12
Theater, concerts or sports event tickets                                     33                                                                        11
                                                           15                             Theater, concerts or sports event tickets     4
           DVD or videocassette movies                                   26                                                                                   17
                                                      9                                              DVD or videocassette movies                7
                                                                     23                                                                                  14
        Computer hardware or software                     12                                      Computer hardware or software
                                                                                                                                            5
                          Games or toys                             22                                                                                        18
                                                          12                                                        Games or toys
                                                                                                                                                        12
              Home supplies or furniture                  13                                                                                                       21
                                                 5                                                      Home supplies or furniture
                                                                                                                                                8
                                 Vehicle     2                                                                                                          12
                                             1                                                                             Vehicle              8
                                                          12                                                                                             13
                         Sporting goods          6                                                                 Sporting goods           6
             Mobile phone or phone card               9                                                                                                 11
                                             3                                                         Mobile phone or phone card
                                                                                                                                        4
                Auto parts / accessories          7                                                                                                 9
                                                 6                                                        Auto parts / accessories          5


Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                                    47


  Online Sources Use Most Often for Shopping & Researching

 A trend from 2004 continues: disintermediation. Shoppers are more
 likely to go directly to the source for product information (store Web
 sites, sites via Google). NP Web sites are struggling in the shopping
 arena.
                     Store Web sites                                                                        73
                                                                                         52
                                                                                                            73
                                Google                                                        58
                                Amazon                                                              64
                                                                                40
                                   eBay                                                  52
                                                                                         52                   '06 Yesterday NP site users
                                                                                 43                           '06 Non-users
                                 Yahoo!                                            46
                Discounter Web site                                        36
                                                                  22
                                                                   23
        Local newspaper Web site               4
                                                                           36
        Consumer review Web site                                   24
                                                                     27
                                    MSN                             26
                                                              20
  Comparison shopping Web site                        12
                                                             18
                     Other Web sites                    14
For technical reasons the results for newspaper Web site users are taken from the telephone survey rather than the pop-up survey.
Base: Shopped online: Telephone respondents who visited a NP Web site yesterday/today; Telephone respondents who did not visit a
NP Web site in the past 6 mos.
                                                                                                                               48



 Amount Spent Online
                                                 Past 6 Months
         More evidence of the attractiveness of NP Web site users:
         they spend more online than non-users.
                                              '06 NP site     '06 Non-users




                                                   37                 36
                                       32                                         31


                                                                                                    18
                     16
                                                                                                                 14
        10




        Less than $100                   $100 - $499                   $500 - $1,999                $2,000 or more



                          NP site:                                                     Non-users:
                      Mean: $1,500                                                     Mean: $1,280
                     Median: $1,060                                                    Median: $720

Base: Made a purchase online: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                               49


Amount Spent Offline After Researching Online
                                                 Past 6 Months
      NP site users also spend significant money in stores after
      shopping online.
                                         9                                  '06 NP site

          Less than $100                                                    '06 Non-users
                                                           25


                                                      21
               $100 - $499                                                                  ’06 NP site users:
                                                           25
                                                                                              Mean: $2,570
                                                                                              Median: $1,640

                                                                  32
             $500 - $1,999
                                                                                              ’06 Non-users:
                                                           24
                                                                                               Mean: $1,910
                                                                                               Median: $660
                                                                  32
           $2,000 or more
                                                 16


Base: Made a purchase online: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                       50



  Sold Anything Online
                                                 Past 6 Months
 Though relatively few people sell items online, the numbers increased
 in 2004 and 2006, probably at the expense of print venues.


                                          '02 NP site            8


                                          '04 NP site                10


                                          '06 NP site                 14




                                      '02 Non-users          3


                                      '04 Non-users          3


                                      '06 Non-users              6


Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                                               51



Online Sites Used to Sell Items
    National sites challenge NP sites because they don’t
    constrain sellers (and buyers) to a single market.
                                                                                                                          79
                                       eBay
                                                                                                       59

                                                                     17
                                  Craigslist
                                                        5
                                                                                               '06 NP site
                    Newspaper Web site's                    7
                                                                                               '06 Non-users*
                          listings              1

                                                            7
                              Amazon.com
                                                    3


                   Other local media Web           2
                             site
                                                                                  Other sites mentioned include:
                                                   2

                                                   2
                                                                    NP site: Half.com, Other auto sites, personal/work sites,
                        Yahoo! Classifieds
                                                       4
                                                                                    organization/specialty sites
                                                                     Non-users: Half.com, Other auto sites, Personal sites
                                                   2
                                        AOL
                                               0

                                                                9
                                      Other
                                                                             29         *Small base
Base: Sold something online: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                                             52


Checked Local Web Site for Classified Listings
                                                  Past 6 Months
      Classified verticals attract users on an occasional basis
      who are not much interested in editorial content.
             ’06 NP site users                                                     ’06 Non-users
                                                                                                       Yes
                                                Yes
                                                                                                       35%
                                                64%




     No
    35%


                                                                                  No
                    Don't                                                        65%
                    know/
                   refused
                     1%

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
Online & Print Interplay
                                                                                                            54


Local Print Newspaper Readership & Acquisition

 Weekday & Sunday readership changed little among NP site users,
 but down significantly among non-users compared to 2004.
 Subscriptions are up slightly from 2004 for NP site users & down
 among non-users.

                                                                                ’06 NP           ’06 Non-
                                                                                  site             users
                         Weekday                 Yesterday                         37                  46
                          Paper                  Past week                         56                  60
                           Sunday                Last Sunday                       52                  55
                            Paper                Past month                        69                  64
                       Subscribe*                                                  38                  55

   (*Read weekday or Sunday paper)


Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months
                                                                                    55


Interaction Between Print & Online Newspaper Usage

      While over one-half of NP site users say they have gone
      online instead of reading the print version, many also say
      they go online and read the print newspaper.

                            Visited paper's Web
                              site INSTEAD OF
                                                                 58   '06 NP site
                             reading that day's
                                    paper


                            Visited paper's Web
                            site IN ADDITION TO
                                                            43
                             reading that day's
                                    paper


                           Don't buy copies from
                            newsstand as often
                                                       15
                           because use paper's
                                  Web site


                            Cancelled a home
                           subscription because    4
                           use paper's Web site



Base: Online respondents
                                                                                                             56



  Reasons Use NP Site Instead of Print
  – NP site users access the online version instead of print
  primarily because online is convenient, free and more timely.
  – Groups that index higher than average are noted below

                        It's convenient                                                         85   '06 NP site


                                It's free                                      58 --18-34s,   Men

  More timely info (breaking news)                                             57


   Don't want print copies piling up                                  39 --Women,   18-34s

      Searching capabilities (ads or
                                                               25
               archives)
     Get more depth or background
                                                          18
               on stories

       For info not available in print                 16--18-34s

         Multimedia features (audio,
                                                     13   --Men, 18-34s
              video, animations)
    Interactive features (discussions
               & mapping)
                                                  10   --Men

Base: Online respondents (58% use Web site instead of print)
                                                                                                                  57


 Reasons Use NP Site in Addition to Print
  – NP site users access the online version as well as the print
  version because both offer convenience and provide intrinsic,
  platform-specific value.
  – Groups that index higher on these items are noted below.

             Both are convenient, depending on time of day                                     65   '06 NP site


  Check breaking news online & context & analysis in print                              50 --Men


  Search for past articles related to stories that interest you                   33 --Age   55+


                       See what will be in the printed paper                 23


                                        To see photo galleries              20   --18-34s


                 Search for products mentioned in print ads            14   --Home users


         Find video & audio that complements print articles            12   --Men, 18-34s


         Post comments or photos related to article in print       4

Base: Online respondents (43% use Web site in addition to print)
                                                                                        58



 Print & Online Duplication Trend

                                    Past 7 Days
             For the past 7 days, the proportion of dual users has
             increased while print exclusives have decreased.

                              '04 Internet users   '06 Internet users




        54
                   51




                                                                24
                                                    20                  20         20

                              6         5


         Print only           Web only                   Both                Neither



Base: Telephone respondents
                                                                                                                           59


 Media Usage Since Accessing Newspaper Sites

                                                                                                             ’06 Past 6
                                                                                     ’06 NP site
                                                                                                             mo. users
                                                 More often                                  8                        9
                 Local TV News                   Same                                       66                        67
                                                 Less often                                 18                        18
                                                 More often                                  6                        8
                          Radio                  Same                                       72                        74
                                                 Less often                                 13                        13
                                                 More often                                 15                        7
                     Local
                                                 Same                                       54                        63
                   Newspaper*
                                                 Less often                                 16                        25
                                                 More often                                  2                        2
                  Yellow Pages                   Same                                       44                        55
                                                 Less often                                 30                        30
(*Asked about specific local market NP online)      Note: Does not display ―Don’t use‖ & ―Don’t know‖
Base: Online respondents who visited before today; Telephone respondents who visited a NP Web site in past 6 months
                                                                     60



 Recommendations

 Newspaper Web sites’ strength is news, especially local
 news, and to some extent classifieds. Newspaper sites,
 however, are not a destination for retail shoppers. This is
 a major problem for the industry, and significant
 improvement will require study, experimentation and
 investment.
   – To better compete with store Web sites and search engines,
     newspaper sites need a more functional local search--not only
     for shopping information, but for all things local.

   – Newspaper sites need to develop more effective ways to display
     retail advertising.
                                                       61



 Recommendations

 Local TV station Web sites are significant local
 competition, aided by constant promotion from
 newscasts. Newspaper Web site promotion is spotty
 in comparison.

 Interactive services on newspaper sites have
 modest, but growing, audiences that merit further
 investment.

 RSS feeds are poorly understood by consumers
 generally but offer great potential for solidifying
 audience relationships. Consider new ways of
 describing, promoting or even naming this function.
                                                          62



 Recommendations
 eBay has nationalized classifieds, and Craigslist
  has changed the cost structure for local classifieds.
  Newspaper Web sites likely will have to experiment
  with free ad categories that can be upsold in order
  to compete long term.
 Audio and video functionality appeals to a niche
  segment of the newspaper Web site audience—
  especially among young adults and those who log
  in at night. This is ample reason for further
  investment.
 Finding ways to monetize editorial content remains
  an urgent industry problem, especially given the
  weakness in retail advertising revenue.
  Download the full written report at digitaledge.org

                 Thank You!

Brent Stahl
MORI Research
952.835.3050
Brent_Stahl@moriresearch.com