In spring 2013, we conducted a workshop for a large newspaper. They had needed an outside perspective on the state of publishing, social media, digital etc. So we used that opportunity to put all our favorite cases and insights from the media industry into this one deck. It has been fascinating to observe how publishers all over the world have started to implement a lot of the ideas, we’ve mentioned here.
More then one year later, we’re still coming back to this presentation constantly. This is why we have decided to release it to the public.
2. The Future of News Publishing
A Third Wave Report – April 2013
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3. Introduction
In spring 2013, we conducted a workshop for a large newspaper. They had needed
an outside perspective on the state of publishing, social media, digital etc. So we
used that opportunity to put all our favorite cases and insights from the media
industry into this one deck. It has been fascinating to observe how publishers all
over the world have started to implement a lot of the ideas, we’ve mentioned here.
More then one year later, we’re still coming back to this presentation constantly.
This is why we have decided to release it to the public.
Enjoy,
Third Wave
PS: We have started a podcast (in German) that covers a lot of the topics mentioned
in this deck.
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4. Content
The Digital Consumer & The Digital Company
The two key insights for future success in publishing (and beyond) 1
The State of Digital, Social Media and Mobile Marketing
Overview, data, challenges, opportunities, etc. 2
Future Publishing Business Models
• Not one Big Idea, but a few small ones
• The Publisher/Agency model
• Brands as Publisher
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5. Hi, we are Third Wave.
As a consultancy and think tank, we translate technological developments into
new strategies for the digital context.
Our Services:
Business
Communication
Product
More about Third Wave: A profile by German newspaper Berliner Morgenpost
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Business Models
Workshops, development, evaluation
Social Business Design
Corporate Social Media, Enterprise 2.0
Competitor Evaluation
Products, processes, brands
Change Management
Team structures, process optimization
Communication Strategies
Web, Social Media, mobile, CRM, analytics
Social Media Strategies
Platform & content, team setup, KPI
Evaluation
Analysis & feedback for ideas & concepts
Training
Community- & Social Media Management
Evaluation
Analysis, optimization, extension
Development
Workshops, concept, integration of Social
Benchmarking
Best practices, competitors, markets
Trend Research
Overview, scouting, reports
6. From startups, to Mittelstand companies, to agencies, to non-profits, to big
corporations. B2C and B2B. In Germany and other European countries.
Third Wave combine a deep understanding for culture,
society, the economy and technology with a pragmatic,
straightforward approach.
Extremely competent, super straightforward, refreshingly
pragmatic. Every project should be as much fun.
Patricia Strehlke, Head of Marketing Communications, 3A Composites
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Our Clients
Robert Stulle, Partner, edenspiekermann
Working with Third Wave always leads to growth.
Professionally and personally.
Sven Weisbrich, CEO, Universal McCann Germany
8. Understanding the digital consumer is
the first key to the future of publishing.
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9. Digital Life: Today & Tomorrow
Paragraph
http://www.youtube.com/watch?v=iG8KaWxr2gs
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10. The Paris Café
“Imagine you are sitting at a street cafe in Paris. You
have a copy of Sartre's Being and Nothingness, a copy
of Le Monde, the newspaper, and next to you, as is often
the case in Paris, is a cute dog.
You read philosophy, you read the news, you pet the dog.
You don't become stupid when you are petting the dog,
you are just being human!
And when you read the philosophy you are still worldly.
And when you read the paper you are still intellectual.
You talk to your friends at the cafe: sometimes about
the dog, sometimes about philosophy, sometimes about
the news, and, yes, sometimes about what you are
eating for breakfast.
Humans are complex and have emotional needs,
intellectual needs, social needs...”
–Jonah Peretti, BuzzFeed
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13. Serendipity as our Guide
Serendipity means a "happy accident" or
"pleasant surprise"; specifically, the
accident of finding something good or
useful while not specifically searching for it.
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15. The Problem: Share of Time
15 Illustration by Jason Lee for Wired
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16. Multiple Devices
We own multiple gadgets with all
kinds of screen sizes.
We use them all, sometimes at
the same time.
Context is the key.
Connection, too.
We need to optimize our content for the context of the consumption.
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Multiscreen Patterns by precious
18. Becoming a digital company is the
second key to the future of publishing.
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19. Starbucks
Starbucks is a coffee company with
a Chief Digital Officer.
They have one of the strongest brands
in social media.
They have created their own apps
ecosystem with payment solutions.
They keep experimenting and iterating
to innovate.
Starbucks is a coffee company
that is also a tech company.
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Adam Brotman
Chief Digital Officer
20. Technology will touch everything
Technology has become an integral part of
our daily lives.
Whoever will use it better to serve their
customers will win.
Technological understanding must not be
outsourced. It‘s a key asset.
It‘s not only about having an IT department.
Hiring the right people is essential.
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21. Gartner Research
“Marketing has always been an art and a
science, but the growth in underlying
technology (marketing analytics, for
example) requires marketers to have
access to technology talent.”
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22. The Guardian
Webby Awards for Best Newspaper in 2005, 2006, and 2007. Digital Innovation of the
Year 2008, 2009. Digital Journalist of the Year 2008, 2009.
Second largest online newspaper with
51 million uniques per month (2011).
2006 first profitable year, mostly from
advertisement and recruiting.
Explicitly “Digital First” since 2011.
Known for its engagement with readers.
Offers an API (with OAuth) to make
content available to other publishers.
Failed with their Facebook social sharing.
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23. Emily Bell
Director of Tow Centre for Digital Journalism at Columbia J School.
Former guardian news & media director of digital content.
“Be of the web, not just on it.”
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24. The Technology Trends
Big Data. Capture everything.
Cloud. Have everything online.
Analytics. Evaluate everything.
Real-time. Everything faster.
Payment. Everything but cash.
Mobile. Everything everywhere.
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25. Burberry as a digital media-company
“Burberry is now as much a media-content company
as we are a design company.”
–Christopher Bailey, CCO
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27. 2 Ways to look at Digital Marketing
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28. Digital Ad Spending 2012
Online accounted for 19.5% of global
advertising expenditure in 2012 and is
predicted to rise to more than 21% this
year.
Digital advertising spend reached $99bn
worldwide in 2012, a 16.2% increase year-on-
year.
This figure is predicted to grow by 14.6%
to $113.5bn in 2013.
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Source: GroupM study, March 2013
29. Print Ad Spending
Investment in print media continues to lose share
while digital media investment continues to gain.
Print accounts for 14 percent of the media day, but
still attracts about 24% of investment, down from
48 percent when internet advertising investment
measurement began in 1995.
The decline of print advertising reflects falling
circulations in the old world, but its share of the
world's media day has been surprisingly stable,
and even increased in 2011, thanks to China.
Source: GroupM study, March 2013
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30. Digital Ad Spending
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Source: eMarketer, ComScoreDataMine
31. Digital Ad Spending
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Source: eMarketer, ComScoreDataMine
32. Digital Ad Spending
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Source: eMarketer, ComScoreDataMine
33. Digital Ad Spending
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Source: eMarketer, ComScoreDataMine
35. Digital Marketing – Trends
It‘s all about Analytics.
Realtime Optimization.
Prediction Algorithms.
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36. The State of Search
Content farms
Algorithm changes
Personalization
Google+ and the rankings
Experts vs. Friends – GraphSearch
Mobile
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38. Native ads strong in Mobile
Overall spending on mobile advertising in the US, including display, search and
messaging-based ads served to mobile phones and tablets, will rise 180% this year to top
$4 billion.
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39. Digital Marketing – The Big Picture
Conversations instead of campaigns
Most effective when integrated
Less silos – more departments involved
Getting closer to the core business
Becoming part of the product (development)
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43. Facebook Statistics
618 million daily active users on average in
December 2012.
2.5 billion content shares a day on Facebook. 2.7
billion likes a day on Facebook.
250 million photos are uploaded to Facebook
every day.
More than 250 million people are playing games
on Facebook every month.
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44. Facebook Mobile Statistics
U.S. desktop users spend an average of around 6
hours every month on Facebook; mobile users spent
an average of 11 hours.
The number of mobile monthly active users of
Facebook has risen by more than 177% over two
years, hitting 680 million at the end of December
2012.
Ad revenue attributed to Facebook mobile products
rose from 14% in the third quarter of last year to 23%
in the fourth quarter.
Mobile ad revenue on Facebook is expected to reach
$1 billion this year.
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45. The State of Facebook
The new business model: access to fans.
Quality of Content is King.
The new Newsstream: more visual.
Getting stronger on Mobile.
Facebook Home.
Facebook Fatigue & Fasting.
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47. The State of Twitter
The Public Conversation.
Owning the Platform.
Again, all about Mobile.
Teens switching from Facebook
to Twitter.
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48. Up & Coming Social Platforms
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Tumblr
Over 100 million user blogs
have been created.
Over 44.6 billion posts have
been published.
82.7 million posts each day.
Pinterest
48 million users worldwide.
83 per cent are women.
Pinterest generates over 4x as much
revenue per click (attributable to first
touch) as Twitter and 27% more
revenue per click than Facebook.
49. More than Marketing Platforms
Customer Service
Co-Creation, Crowdfunding
Community
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50. Viral/Spreadable Media
Virality is an effect, not a format.
Understanding the nature of Memes.
Adapting to Memes is key.
Smart Seeding helps but won‘t
guarantee success.
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51. Dark Social
20% came from Facebook.
6% came from Twitter.
69% of social referrals came
from dark social.
Sharing is significantly bigger
outside of “measurable” social
networks.
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52. Alexis Madrigal
“The only real way to optimize for social spread
is in the nature of the content itself.”
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Senior Editor for Technology at The Atlantic
54. How to think about mobile.
1 billion smartphones will be shipped
globally this year.
Everything is in flux.
Mobile is at its infancy.
Whatever the landscape, technical possibilities
and ad budgets look right now will have little
resembles with what will happen in 2 years.
Look at trends, make an advised decision,
iterate fast.
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55. Stats on mobile: User behavior
12% of all media consumption time is
being spent on mobile devices. On
average, that’ 158 minutes per day.
(USA)
Most people look at their phone
about 150 times a day.
80-85% of the time being spent
on mobile devices is being spent
with apps, 20% in browsers – the
app has won against the mobile
web. For now.
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56. 4 types of mobile apps
1. Time Wasters
2. Core Utilities
3. Episodic Utilities
4. Notification Apps
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Source: Cdixon
58. Core Utilities
Apps that you have on the home screen.
1.Camera
2. Phone / Contacts
3. Calendar
It’s very hard to replace core utilities. Apps that succeed – like Instagram – are extremely
successful.
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59. Episodic Utilities
Very useful applications that are used in a very
specific context. Often not on the home screen.
1. Hipmunk / Kayak to look for flights and / or book
hotels
2. OpenTable to make a reservation at a restaurant
3. Uber / Hailo to call a shuttle service / taxi
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60. Notification Apps
Emerging category. Apps here can be from all three
previously mentioned categories or completely new ones.
Through clever use of notifications, apps can bring
themselves back into the users life without being
intrusive.
Important: Context. The better an app understands when
to send the notification, the more likely it is that the user
will appreciate it.
Apps that do it well:
Foursquare, Quora, Timehop, Day One
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61. Stats on mobile: Ad spending
Worldwide Mobile Advertising Revenue to Reach $11.4 Billion in 2013
59 percent of mobile users are as
comfortable with mobile advertising
as they are with TV and online ads.
(USA)
Smartphones and Tablets Represent
Nearly One-Fourth of All Paid Clicks
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62. Mobile Monetization – Good News
Global Mobile Traffic Growing Rapidly to 10% of Internet Traffic
Mobile Monetization growing rapidly
Desktop Internet proved Ad $ follow eyeballs, it just takes time
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Source: Internet Trends by Mary Meeker, KPCB
63. Mobile Monetization – Bad News
Mobile’s effective CPMs are 5 times lower than the desktop ($3.50 versus
$0.75).
ARPU (Average Revenue per User) 1.7-5x Lower on Mobile than Desktop
Google: Mobile growth helping boost clicks but reducing cost per click thus
constraining revenue growth
Facebook: Mobile growth helping drive users but constraining ARPU thus
constraining revenue growth.
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Source: Internet Trends by Mary Meeker, KPCB
64. Mobile & Social converging
While Mobile has still a long way to go, it is increasingly
becoming a bottleneck for social, sharing and the spread of
information on the web.
That creates the problem of having to deal with mobile right
now without it being as monetizable as classic digital & search.
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65. Smartphone vs. Tablet
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Source: Internet Trends by Mary Meeker, KPCB
66. Notebook vs. Tablet
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Tablets will outsell
notebooks in 2013,
for the first time ever.
67. Smartphone vs. Tablet
Smartphones are being used for tasks while Tablets for consuming richer
content and leisure experiences.
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68. Case: Flipboard
Aggregates social and classic media
content
Lets the user explore topics instead of
specific outlets
Focused on exploration
Since Flipboard 2.0 allows users not
only to be consumers, but also
publishers through the newly
introduced collections feature.
Every user is now a micro-publisher.
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69. Case: Quartz News
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Quartz News, a business publication
The Atlantic Group
Digital only. Tablet first. Smartphone
second. Web third. Email service.
Content matches the technological
setup. Fast, quotable, always visual.
In the 1st month after launch:
840.000 unique visitors
Comparison: The Economist had in
the same month 8.3 million
71. What about Paywalls?
Paywalls work.
But only if you have a global Brand.
Make them porous for Social.
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72. The most important Insights for the
Future of Newspaper Publishers
Stop thinking like
a Newspaper Publisher!
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73. 3.1 Future of Publishing Business Models:
Not one big idea, but a lot of small ones
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74. Not one Big Idea but many small ones.
No single new idea will replace the old business.
There will never be a single big revenue source again.
Stop looking for the one Big Idea.
Start small. Iterate. Grow.
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Source: Nieman Journalism Lab
75. Meinolf Ellers
“What we all see — newspaper publisher or news agency — is that
the bundle is eroding, losing its power. The more we see the bundle
losing market share and reaching the end of its lifecycle, the more
we have to work on smaller, fragmented products that, not each by
each, but overall, can compensate. That’s the strategy.”
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Managing Director, dpa-infocom
76. Small Product: Marketing Services
Merchants face the same challenge, understanding
digital marketing activities like search engine
optimization, social media and content marketing.
Newspapers have more experience with digital
content and distribution than most local merchants.
Make money by helping local merchants with their
advertising (in addition to any ads those merchants
buy on publisher websites or in the paper).
Some publishers in the US already see up to 10
percent of their overall digital revenue coming from
marketing services.
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77. Small Product: In-sourcing and distribution
Using the full capacity of printing and
distribution resources.
Instead of having printing machines run
idle, offer them to other publishers or even
local vendors.
Morning News in the US makes about 5
percent of its revenues from in-sourcing
(with fair margins).
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78. Small Product: Events
“We are taking a ‘push’ approach to content, and that means
going to people with content where they live.”
–Even Smith, Chief Editor and CEO, Texas Tribune
Organizing events for the readership.
Revenue via sponsorship and admission fees.
About 20 percent of the revenue at the Texas Tribune
right now.
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79. Small Product: Syndication
“I knew I needed multiple revenue streams to
support our business, and syndication of our original
content — in a world of rapidly diminishing
international reporting — seemed like a no-brainer to
me especially given our pricing flexibility.”
–Phil Balboni, CEO GlobalPost
GlobalPost now gets about 12 percent of its
overall revenue from syndication.
It shares its correspondents’ posts with about 30
newspaper, broadcast and other news sites in the
U.S. and worldwide.
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80. Ken Doctor
Leading News Industry Analyst and Author of Newsonomics
“In the digital world, news companies need to think of themselves as
creators, aggregators, and syndicators, doing what they do best,
licensing with zest and linking to the rest.”
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81. Small Product: Ebooks
Digital technology gives the ability to create
hundreds and thousands of products at
small incremental costs.
Like Ebooks.
Advertisers can take part as sponsors.
Guardian Shorts.
The Atlantic Ebooks.
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82. Small Product: Data and Material
The long-tail of unused material.
German Ganske group is offering unused
photo material from their travel guide as stock
photography.
The material from their travel guides is also
available as a database for mapping and
driving apps.
Other publishers make their calendar and event
data available via APIs.
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83. 3.2 Future of Publishing Business Models:
Publisher / Agency Model
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85. VICE – Key facts
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Founded in 1994
Print ciculation: 900.000 in over 30 markets
1.6 Mio subscribes on Youtube
Production of video content generates most of the
revenue
One of the first adopters of the publisher / agency
model
Commitment: Content is King
86. Focus: Virtue
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Founded in 2006
Purpose: Instead of focusing on campaigns, Virtue
helps clients build content that people who interact
with Vice want to see
800 full-time employees, 3500 contributors, 15 mio
worldwide viewers monthly
Early adopter of the “brands as publishers” model
Clients: Intel, Mini, Warner Brothers, Adidas,
Vodafone, Red Bull
87. Focus: Virtue
“The insight I had seven years ago is that inside every great brand is an
idea and that idea used to be solely translated to commercials or print
ads. We take that idea and turn that into content.”
–Spencer Baim, Chief Strategic Officer at VICE
The company has about 60 established shows.
As Publisher, VICE charges high CPM’s.
As Agency, it creates custom, expensive content.
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91. Brands as Publishers – Content Marketing
The basic idea: brands need to do something
valuable to get something valuable in return.
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Real content instead of advertising.
Very few brands understand this.
Probably nobody does it as well as Red Bull.
The world has shifted. Owned media is the
focus. Paid media will not disappear, but
advertisers will shift their budgets away from it.
96. Brands as Publishers – Content Marketing
“…only 38% of brands have a content marketing strategy
at all, even though 55% of clients surveyed are planning
one, almost 90% said that content marketing would
become more important over the next 12 months and
73% agree that "brands are becoming publishers".”
–eConsultancy
Instead of doing all the convincing for brands, Paid
Media will be reduced to point people to long-term,
Owned Media engagement by the brands themselves.
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97. Brands as Publishers – Bad News
“Publishers aren’t the only ones with the
opportunity to monetize their content
through advertising or sponsorships.
Brands are encroaching upon this
territory too.”
–NewsCred, Brands as Publishers Whitepaper
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98. Brands as Publishers – Approach
Advancements in curation technology, semantic
analysis and NLP (natural language processing)
are enabling brands to create smarter, faster and
more targeted content strategies.
Instead of building up huge editorial teams, some
brands rely on outsourcing and technology. This
is both a challenge and opportunity for publishers.
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99. Brands as Publishers – Pepsi
87% growth in traffic in just 1 month!
In Pepsi Pulse, a multimedia
entertainment platform hosted at
Pepsi.com, the company blended new
technology with a decades-long
commitment to supporting
musicians.
Pepsi partnered with NewsCred to license and curate content. Using
NewsCred’s semantic technology and API, they were able to customize the
site to a number of hyperlocal markets and launch it in just 3 weeks.
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100. Brands as Publishers – NewsCred
NewsCred connects publishers and brands
with the world’s best journalism.
NewsCred licenses, curates and syndicates full-text news articles,
images and videos from over 900 of the world’s highest quality sources
—ranging from original work by award-winning columnists to captivating
editorials from publishers like The Economist, The Guardian, Forbes,
Bloomberg and many more.
Combination of a experienced editorial team and a powerful semantic
technology that filters and customizes thousands of articles every day.
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101. Überschrift
Brands as Publishers – Rules of Engagement
Conversation over dictation.
Platform over distribution.
Services over product.
Iteration over perfection.
Engagement over consumption.
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102. Überschrift
Brands as Publishers – Bad News
By following those rules and using
modern technology, brands will soon be
able to provide enough content that will
make it hard for classic publishers to
maintain their superiority in content
development and audience.
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104. Buzzfeed – Key figures
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Founded in 2006.
225 employees, 80 Editorial.
40 Mio. unique visitors per month,
primarily through social.
Over 40% through mobile.
100% of revenue is social content
marketing – there are no banner ads
on Buzzfeed.
105. Buzzfeed – Verticals
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Launched multiple verticals
Venturing into serious journalism,
hired known reports
Converging humor and serious
reporting even inside the verticals, not
only across the platform
106. Buzzfeed – Insights
Main target group: Bored-at-Work
Network which is larger than the audience
of BBC or CNN.
Maximization of Content
Spread = Buzzfeed starves content that
isn’t getting traction, and fuel the content
that is taking off.
BuzzFeed also uses machine learning to predict social hits so they know.
BuzzFeed uses dashboards to help editors train their intuition of what might
work.
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107. Buzzfeed – Insights
“Once people reacted, they are much more likely to spread to share.”
–Jonah Peretti, CEO of Buzzfeed
Buzzfeed operates like the Paris Café –
people are looking at photos of cute
kittens and scoops in the political
landscape on Buzzfeed
Buzzfeed has buttons for emotions –
make it easier for people to determine
how they feel about the content that they
are seeing
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108. Buzzfeed – Insights Business
Editors never touch brand content, but
brands have to learn how to work as
publishers / editors.
Brands are held to a higher bar where they
must have content that people actually want
to click on and read.
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It all works through the same CMS.
Brands get a dashboard that shows how
much earned media they are getting.
109. Third Wave GmbH
Rosenthaler Str. 34/35
10178 Berlin
Germany
info@thirdwaveberlin.com
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