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Chart of the week: Willingness to pay for digital media Amazon opened its marketplace for digital subscriptions recently. In some observers estimation, whatever this particular digital retailer gets into can be considered potentially profitable. On its site, fittingly dubbed "Subscribe with Amazon", media outlets can market magazines and newspapers digitally. Indeed, consumers seem to be willing to part with money for access to legacy media online. According to a recent Statista survey in February (https://www.statista.com/statistics/681181/willingness-to-pay-for-digital-media-united-kingdom-uk/), 21 per cent of the 40 to 49- year olds in Britain would be willing to pay for digital legacy formats, with the 30 to 39 age bracket coming in a close second with 19 per cent. The New York Times for example swung into the profit zone with a steady rise in digital subscriptions, adding 308,000 digital subs in first quarter of 2017. (This might also be down to the current political set-up in the U.S.)
DIS2017 speaker presentation: Agustino Fontevecchia, Editorial Perfil How digital disruption fosters innovation and creates opportunities for Latin American publishers
Chart of the week: Ads in legacy media still most tolerated According to data compiled by Kantar Media, people still prefer advertisements in legacy media, whereas they obviously dislike them more in new media formats. The report is based on a survey of 5,213 adults, 18 years or older with access to the internet, across 5 countries (Brazil, China, France, UK and the US). For this chart we subtracted the answers "I dislike it generally" from those saying "I like it generally, it can be enjoyable" (and discarded "doesn't bother me" or "don't know") to form a sort of index score. According to this, advertising in magazines is the most liked, while advertising in online videos is the least liked. The only legacy media that got a negative score was radio. The only new media format that got a positive mention was online "print".
DIS 2017 in-depth special report In this in-depth, special report from DIS 2017, Ashley Norris and Sadie Hale highlights seven of the key issues discussed by speakers at the recent Digital Innovators’ Summit in Berlin.
Chart of the week: Facebook and Tencent are top of the social media league Facebook has released figures for the first quarter of 2017. The social network was able to add to its active users (MAU) portfolio by around 17 percent compared to last year and now boasts 1.94 billion MAU worldwide. When comparing the figures to other social media outlets it becomes clear that Facebook’s closest competitors aren’t really challengers to the throne. WhatsApp and Facebook Messenger are enjoyed by round about 1.2 billion users worldwide but belong to Facebook Inc. Facebook’s closest outside competitor is called Tencent and is one of China's biggest publically traded tech companies. Its subsidiaries QQ, WeChat and Qzone count around 2.4 billion monthly active users. Facebook is barred from operating in China’s vast market for political reasons. Then again, WhatsApp still works in China. https://www.statista.com/page/compass https://investor.fb.com/investor-news/press-release-details/2017/Facebook-Reports-First-Quarter-2017-Results/default.aspx
Chart of the week: Instagram stories blows past Snapchat The company introduced several Snapchat-like features to its social platforms in the past year, hoping to beat Snap at its own game. And while “Messenger Day” and WhatsApp’s new “Status” feature, both heavily inspired by Snapchat Stories, have been received with skepticism so far, “Instagram Stories” is threatening to become a real problem for Snap. According to a recent blog post by Instagram, the platform’s stories feature has passed 200 million daily active users just nine months into its existence. While we have yet to find out how many users Snapchat added since December when 161 million people used the app on a daily basis, it is highly unlikely that Snapchat’s user base will be anywhere near 200 million. In the weeks leading up to Snap’s IPO in early March, many potential investors were alarmed by the fact that Snapchats quarter-over-quarter user growth slowed down significantly in the third and fourth quarter of 2016 – the same time that Instagram rolled out Instagram Stories. If Facebook continues to relentlessly copy Snapchat’s most beloved features, it’s hard to imagine the latter winning against the social media Goliath that is Facebook.
FIPP World Congress Draft Agenda Exclusive preview for FIPP Members of the working draft Note: All aspects of the agenda remain subject to change
Chart of the week: Native vs. networking content Native content is on the rise. It's not just native advertising that is proving prolific. Also, there's a trend towards publisher actually using social media platforms not just to bait readers to come to their own websites via backlinks, but to wholesale distribute complete pieces on social. According to a study by the Columbia Journalism School (http://towcenter.org/wp-content/uploads/2017/04/The_Platform_Press_Tow_Report_2017.pdf), which followed up on more than 23,000 posts this February, a little less than half of the content was full-blown native. "A high proportion of many news organisations’ content is designed to be consumed natively, on platforms including Apple News, Facebook Instant Articles, Instagram, and Snapchat, rather than driving audiences back to publishers’ websites." Their overall conclusion is that Silicon Valley has reengineered journalism. While many publishers bemoan the meagre financial return on social, it makes total sense to go native when looking at it from a reach perspective.
Chart of the week: What's growth going to look like in the digital arena? The biggest challenge for advertising professionals and marketers in the online world is stay on top of an ever shifting marketplace. Things might have become a little more predictable in recent years but are still less so than in the offline ad world. Technological changes still make digital advertising a shifty business. However, some trends and proportionate market shares are likely to prevail and develop in a predictable manner. One thing most observers are pretty sure of is that the digital ad market will in the foreseeable future show no signs of saturation. According to the Digital Market Outlook by Statista (https://www.statista.com/outlook/216/100/digital-advertising/worldwide#), the total worldwide digital ad revenue in 2017 is likely to stand at more than $227 billion. This figure could increase by more than 46 percent to $332 billion in four years' time. Some argue that social media advertising will likely grow disproportionately faster than the rest and might end up taking a bigger share than conservative estimates predict. However, from today's vantage point it seems to be a safe bet search ads will continue to account for the biggest chunk of digital ad revenue, making up 40 percent share of the total revenue.
Chart of the week: Instagram and Facebook for B2C, LinkedIn and Twitter for B2B Social media is developing into one of the most important advertising channels on the web. According to the latest report by the Search Engine Marketing Professional Organization (SEMPO), search ads still dominate online, but social media is the fastest growing segment. The 500 marketing professionals asked for the survey have pretty clear preferences when choosing specific platforms to use for either reaching individual consumers or targeting other businesses on social media. The data shows that the marketers prefer LinkedIn and Twitter when trying to reach businesses through paid social media ads. On the other hand, the somewhat more quirky platforms, like Instagram and Facebook, are said to be the best choice to get the message across to the individual consumer. See the research here: http://searchengineland.com/2016-state-search-report-paid-search-dominates-social-ads-catching-272099 https://sempo.site-ym.com/page/pr_20170328
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