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Honolulu Digital Strategy & Results INMA E3, Dallas TX Honolulu Digital Strategy & Results INMA E3, Dallas TX Aaron J. Kotarek - Vice President, Circulation Today’s Topics 1. History of Oahu Publications Inc. & the Honolulu Star- Advertiser 2. Brief Introduction to Our Product Portfolio & Reach 3. Paywall Strategy Timeline of Events & Implementation 4. Philosophic Approach to Digital Audiences 5. Results to Date 1. Print Volume Growth Over the Last Five Years 2. How We Stack Up Versus Major Metro Peers 6. Where Are We Headed Next? Only 7 Years Young: Honolulu Star-Bulletin est. 1882 The Honolulu Advertiser est. 1856 OPI Established in 2001 by Black Press Honolulu Star-Advertiser established June 7, 2010 with the purchase of the Honolulu Advertiser from the Gannett Company Honolulu Star-Advertiser Hawaii’s Largest Daily Newspaper • Hawaii’s largest daily newspaper – Daily Circulation: 285,680 • Award winning journalism covering local, state, national and world news on Oahu and neighbor islands • Available in print, online, e-replica and in mobile applications – Staradvertiser.com averages 14MM page views per month (per Nieman Lab 1 of only 3 Major Metro newspapers in U.S. with Hard Wall) • Read by 7 out of 10 Oahu adults each week • #1 Reach in the Nation Among Metro Markets OPI: Hawaii’s LARGEST Media 76% of Hawaii adults reached every week. Honolulu Star-Advertiser MidWeek staradvertiser.com The Garden Island Hawaii Tribune-Herald Kaua’i Midweek West Hawaii Today thegardenisland.com hawaiitribune-herald.com Nielsen Scarborough westhawaiitoday.com Star-Advertiser Daily Circulation Ranks 11th in the Nation 1. USA Today 10. New York Daily News 2. New York Times 11. Honolulu Star-Advertiser 3. Wall Street Journal 12. Tampa Bay Times 4. Los Angeles Times 13. Minneapolis Star-Tribune 5. Chicago Tribune 14. Houston Chronicle 6. Long Island (NY) Newsday 15. Boston Globe 7. New York Post 8. Dallas Morning News 9. Washington Post Honolulu Star-Advertiser ranks in the Top 15 Largest U.S. Daily Newspapers SOURCE: Alliance for Audited Media’s (AAM) “Media Intelligence Center.” List above represents a Top 15 national ranking of AAM member publications (7 day paid newspapers) reporting a Monday--Friday combined volume average. Volume averages compiled using AAM’s Consolidated Media Report (CMR) audience measurements, utilizing the latest CMR report for each publication listed Honolulu Adults LOVE to Read the Newspaper! HONOLULU Ranks #1 in the Nation for Newspaper Readership Index for Daily % Daily Rank out Designated Market Area Newspaper Newspaper of 78 Readership Readership 1 Honolulu 145 38.0% 2 Hartford/New Haven 142 37.1% 3 Pittsburgh 138 36.0% 4 Toledo 137 35.8% 5 Buffalo 137 35.7% Index for Sunday % Sunday Rank out Designated Market Area Newspaper Newspaper of 78 Readership Readership 1 Honolulu 143 45.8% 2 Hartford/New Haven 141 45.3% 3 Buffalo 131 42.1% 4 Cleveland/Akron 131 42.1% 5 Syracuse 129 41.4% Nielsen Scarborough Multi-Market 2016 R2 #1 Penetration In the Nation Daily Sunday Newspaper Average Average Honolulu Star-Advertiser 36.5% 46.0% Washington Post 27.7% 36.0% Chicago Tribune Newspaper Group 14.7% 26.4% Dallas Morning News 16.3% 24.2% Philadelphia Inquirer/ Daily News 14.8% 20.9% Houston Chronicle 13.5% 23.5% Los Angeles Times 12.1% 20.1% New York Daily News 11.4% 12.9% New York Times 8.5% 10.4% New York Post 7.3% 5.5% Long Island (NY) Newsday 5.6% 5.1% Nielsen Scarborough 2016 R2 – Newspaper Penetration Report Among daily newspapers in major metropolitan markets with an adult population greater than 500,000. Hardwall Strategy Timeline of Events & Implementation 1. June 7, 2010: Unveiled the Star-Advertiser, staradvertiser.com, and the Star-Advertiser Breaking News App 2. Over the Next Year Built Reader and Advertiser Trust Developed Brand Loyalty and Identity Proved Content was Local, Relevant, and Differentiated Provided Viewers with a Gratifying Digital Experience Implemented Affordable Subscription Price Points 3. August 3, 2011 Placed Digital Platforms Behind Paywall Breaking News App Remained Free Updated S-A App to Include Premium Content Available to Subscribers ONLY Launched “ALL-ACCESS” Subscription Model Print Subs Receive Unlimited & Unfettered Access to Digital Suite Hardwall Strategy Timeline of Events & Implementation “Wall” is Not Impenetrable Free Content is Available Premium Content is Exclusive Our Approach to Digital Audiences 1. Over-Arching Star-Advertiser Digital Strategy: Our News and Advertising content is considered relevant, local, and differentiated. There are no other media outlets in the State of Hawaii that can provide the level of compelling and comprehensive journalism that the Star-Advertiser does. Our content has value and consequently we PROTECT it. 2. Digital Pricing Strategy: Our digital only subscription price points are determined by a consumer’s proximity (relevancy and value) to the news. As an example, digital consumers of news on Oahu pay more than consumers on the Neighbor Islands or Out-of- State residents. Price points are counter-intuitively presented to potential subscribers to persuade consumer into choosing a subscription package that includes Print AND Digital offerings. i.e. Print/Digital Package $17.95/mo – Digital Only Package $17.95/mo You cannot receive a Digital Only subscription on Oahu without a Sunday Only HD print copy attached to it 3. Digital Strategy’s Affect on Print Volume: From 2010 to 2016, the Star-Advertiser grew/maintained both Daily and Sunday print volumes over that span (Sunday +2.18% Growth; Daily was Flat.) This is attributable to the protection of our content in print and digitally. We have maintained our print volumes by educating readers that they pay for content, not platform or distribution method. Our Approach to Digital Audiences 4. Recognize Digital Platforms Complement Print Offerings…..They Do Not Replace Them Time of Day News Is Consumed and Platform of Choice Are Lifestyles Choices. Consumers Determine the Where, When and How. 5. Content Protection Value Proposition: Paid Home Delivery Subscribers Further Value Their Subscription Since Other Consumers Can’t Access the Same Information Digitally Without Paying for it. 6. Programmatic Ads: Many are blocked. Local retailers must buy digital space directly from us. 7. Commenting: Anyone can read comments on our website but ONLY subscribers can post a comment(s) 8. Email Addresses: Valid email address is required to establish credentials to gain access to Digital Suite Single sign-on credentials allows user access to all digital platforms and account management portal Major Metro Benchmark Print Volume Trend—Core Newspaper: 2010 vs. 2016 Property Sunday Daily Hardwall Honolulu Star-Advertiser +2.18% -0.38% Yes Midwest Major Metro #1 -10.14% -25.48% No West Coast Major Metro #1 -20.81% -32.38% No Northeast Major Metro -30.19% -36.88% No Midwest Major Metro #2 -38.05% -44.57% No Southwest Major Metro -26.45% -38.14% No Midwest Major Metro #3 -25.91% -38.51% No Southeast Major Metro -28.72% -44.55% No West Coast Major Metro #2 -25.24% -29.25% No Mid-Atlantic Major Metro -36.34% -40.59% No *AAM Annual Audits Used in Table Total Active Print & Digital “All-Access” Subscribers 3 Year Trend 100,000 99,000 98,000 97,000 96,000 95,000 Annualized 94,000 Churn Only 18.7%! 93,000 92,000 2014 2015 2016 Dynamic Website Messaging Knowing Who Is On Our Site At All Times Where Are We Headed Next? Dynamic Registration Model? Expanded Usage of Mather “Listener” Tool “Future of the Star-Advertiser” Strategic Team Established X/Y Strategy for D-Day (Digital Day) Continued Protection of Content Ensures Longevity Thanks For Your Time Networking & Benchmarking Always Welcomed Contact Me At: [email protected] (808) 695-6318.
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