From Marketingcharts.org - full story here

This report should be interesting for newspapers and magazines still determining the best way to sell their digital space.

Online Revenue Better for Local Media Cos. With Digital-Only Reps

A “one-staff-fits-all” strategy may not be the best approach for local media companies, according to a January 2012 report from Borrell Associates, which finds that sites with dedicated digital account executives (AEs) outperform those without by a factor of 2.5. In fact, gross online revenue per sales representative (online dollars divided by all representatives selling digital products) is roughly $186,000 for sites with digital AEs, compared to $73,300 for those without any dedicated AEs.

Among TV stations the disparity is even greater: those with sales representatives dedicated exclusively to selling online advertising average almost 3 times the gross revenue of those without ($208,200 vs. $70,300).

Online-Only AEs Hiring Down

46% of local media respondents reported having an online-only AE, down from 60% in 2009. Radio sported the lowest average of digital-only sellers, with just 11% of radio companies employing at least one. Only 2 in 5 local TV stations had at least one online-only AE, although the majority of newspapers (55%) did.

Digital AEs Perform Well With Consultative Sales Approach

Overall, sales managers seemed pleased with their representatives’ performance using the consultative approach, with the majority rating their performance good to outstanding. However, there was a clear difference between companies working with dedicated digital AEs and those without: managers with digital AEs reported an excellent to outstanding rank at a rate of 56%, while those without a dedicated digital staff reported that satisfaction level at a rate of 32%.

Similarly, managers whose staff included digital AEs were far more likely than those without to rank their staff’s understanding of digital products as excellent to outstanding (58% vs. 11%).

Other Findings:

• 15% of managers who had no digital-only AEs on staff rated their staff’s motivation to sell digital products as poor.
• Less than half of managers without digital-only AEs said that their sales representatives had a good to outstanding level of understanding of the basic business trends for their advertising customers.

About the Data: Borrell’s analysis was derived from: an online survey of 345 local media sales managers that yielded 230 usable responses, conducted November 2011 to January 2012; Borrell’s database of online revenue and number of dedicated sales representatives at more than 5,100 local media companies in the US and Canada; and a survey of 7,805 local businesses conducted January to December, 2011.

From Comscore.com full story here

Nearly 50 Percent of Internet Users in Europe Visit Newspaper Sites

comScore Releases Overview of European Internet Usage for November 2011

LONDON, UK, 19 January 2012 - comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released an overview of Internet usage in Europe, showing that 379.4 million Europeans went online in November 2011 for an average of 27.8 hours per person. This release highlights Internet usage in 49 European markets aggregated into the European region and provides individual reporting on 18 markets. Amongst its findings, the study also showed that 47.8 percent of Europeans visit Newspaper sites, with a notable percentage of visits to the top 5 Newspaper sites preceded by a visit to Facebook.

Nearly 1 in 2 Europeans Visit Newspaper Sites
In November 2011, 181.5 million unique people in Europe visited Newspaper sites, an increase of 9 percent from the previous year. The Daily Mail continued to attract the largest audience at 20.1 million unique visitors, followed by the Guardian at 15.7 million unique visitors. Turkish newspapers Hürriyet and Milliyet and German newspaper Bild rounded out the top five Newspaper properties, with each attracting approximately 10 million unique visitors.

From AdAge in an article entitled: "ComScore Study Confirms What We Already Knew: You're Wasting Money on Ads No One Sees"

One of the key findings: 31% of the 1.7 billion ad impressions were never in view. The number is probably not a shock to many in the space, and is the main reason why so-called remnant inventory sells for a fraction of the space above the fold. But with this knowledge, advertisers can more accurately manage expectations and calculate ROI, said ComScore CEO Magid Abraham. 

Not a huge surprise- online display ads have always produced very poor results. Full story here

 From YahooNews. Full story here

LIVONIA, Mich. – News Corp. subsidiary News America Marketing has agreed to pay rival Valassis Communications Inc. $500 million to settle antitrust charges.

Valassis, a marketing company that provides direct mail and coupons, said the deal settles lawsuits it filed in several states against News America Marketing. Among them is a jury decision in Michigan circuit court last July that awarded Valassis $300 million in damages. News America was appealing that ruling.

Valassis accused News America of threatening customers with price hikes for not offering exclusivity in marketing deals.

Meanwhile, News America argued that Valassis tried to force higher marketing rates by publicly announcing price changes.

In a statement Saturday, News Corp. said it did not want to risk presenting the case to a jury in Michigan federal court, where it was scheduled for trial Tuesday. Citing unspecified concerns over the venue in U.S. District Court for the Eastern District of Michigan Chief Operating Officer Chase Carey said News Corp. decided "it was in the best interests of the company and its stockholders to agree to a settlement."

Valassis said the deal also includes a 10-year shared mail distribution agreement with News America.

If you are involved in the print industry, representing a newspaper or magazine, you have read these types of articles before - the digital age is upon us. Ink is doomed. Whether or not you believe it, there is no denying the trend towards the digital. Josh Bernoff, synopsizes the digital-is-our-future argument well, in his story in this week's AdAge. He might disagree but what I think he is really saying has less to do with how the advertising is presented and in what medium and more to do with the fact that advertisers want results- measurable, verifiable, results. Digital advertising is ready made to measure response. But it can be done in print. At Mediabids, we measure the results of thousands of ads and when measured, newspapers and magazines generate very respectable results, oftentimes outperforming digital from an ROI perspective. So, Bernoff may be wrong about the speed of the gravitational pull toward digital, but he is right about why digital is so appealing to so many advertisers right now.

Here is a portion of Bernoff's story:

In this recession, marketers have learned that interactive marketing is more effective, and advertising less effective, per dollar spent. While budgets for online have decreased, they decreased less than other budgets. Six out of ten marketers we surveyed agreed with the statement "we will increase budget for interactive by shifting money away from traditional marketing." Only 7% said "we have no plans to increase our marketing budget."

Unlike the last recession, digital marketing is no longer experimental. Now it looks more like advertising is inefficient, relative to digital. More than half of the marketers we surveyed said that effectiveness of direct mail, TV, magazines, outdoor, newspapers, and radio would stay the same or decrease within three years. In contrast, well over 70% expected the effectiveness of channels like created social media, online video, and mobile marketing to increase.

The result is that digital, which will be about 12% of overall advertising spend in 2009, is likely to grow to about 21% in five years. Along the way overall advertising budgets won't grow much.