Web advertising US publishers are banking on rising sales from online videos.
Newlyweds in New York, who until now could only hope to appear with a short message on the "Weddings" page of the print edition, now also have the opportunity to share their happiness with the whole world by submitting a video to the Times under the motto "How we met". If the piece is decently made, it has a good chance of also appearing on the NYTimes.com website.The project is the paper's first foray into user-generated content, which means that not only videos made by newspaper professionals will appear under the Times brand name, but also the creations of its readers. "We're going to focus more on that next year, we're still experimenting right now," says Vivian Schiller, Senior Vice President and General Manager of NYTimes.com. "We want to hear what our readers have to say."
Although most US newspapers have discovered online video, the Times has one of the most innovative strategies. In early August, NYTimes.com launched a series of so-called long-form advertising clips for FedEx. The five-minute clips feature FedEx employees around the world telling their stories to a wide audience. The publisher also equips reporters and photographers who are interested in producing video reports with cameras. Around 25 to 30 new features, each between three and seven minutes long, are published each week, bringing the Times an average of five million streams per month.
Technology reporter David Pogue recently broke all records when he turned the launch of Apple's iPhone into a satirical story, making it the second most popular video on YouTube. The Times videos are also dedicated to political and cultural developments. "The topics of our videos run the gamut from cooking recipes to the recent atrocities in Chechnya," says Schiller. The Washington Post video "Hi, I'm Art Buchwald and I just died" caused a similar stir to Pogue. In it, the terminally ill, popular newspaper columnist, who died shortly afterwards, gave his own obituary in a cheerful tone.
TV stations left behindThe print publications want to use their online strategy to counteract the declining circulation and advertising revenues of their print editions with new sources of income in the multimedia sector. For this reason, many newspapers are experimenting online with "pre-roll advertising", i.e. a short, approximately five-second commercial is shown before each video clip. According to a report by the research institute Borrell Associates, newspaper publishers are the ones who have been able to book the largest share of decisive local advertising online this year at 35.9 percent. Even TV stations are at the bottom of the table with 7.7 percent. In 2006, the advertising industry spent 5.7 billion dollars on local advertising, of which local and regional newspaper publishers accounted for 2.6 billion, or 45 percent.
The New York Times wants to generate 30 million dollars a year in the long term with advertising revenue from its online video business alone. "But that doesn't mean that newspapers can already make up their losses from print editions through online advertising," says Colby Atwood, President of the aforementioned research institute, which specializes in the US newspaper market. "I'm not sure that will ever happen," he warns. "Ads on the Internet are far cheaper than in print because there is more competition from online ad services."
In order to make even more curious people aware of their online videos, three of the most important US newspapers, the Wall Street Journal, the New York Times and the Washington Post, have already started or at least announced that they will make the codes for their videos publicly accessible. This means that the videos can also be viewed on other websites such as YouTube or as part of blogs.
Online service sites of local newspapers, such as Shopminnesota.com, operated by the Minnesota Star Tribune, where visitors receive shopping tips and listings of local stores in the Minneapolis area, are also proving successful. Particularly attractive for marketers is the ability to define precise target groups using demographic data collected from newspaper readers.
In this way, for example, the Dallas Morning News managed to strike a deal with the local opera house. Opera fans registered in the newspaper's database were given the opportunity to reserve tickets for the next season in advance. In this way, the newspaper secured a certain volume of advertising for the opera and the stage got rid of all the tickets for the season. "If the offer can be tailored to a precisely selected target group, you can also charge correspondingly high advertising rates," says Colby Atwood. "Local newspapers in particular benefit from this because they have less competition in rural areas and can establish a direct relationship with readers."
Gerti Schön, New York