Newspaper Web Sites Attract 74M Visitors In Q3 As Industry Grows Audience Across Multiple Platforms

New Business Models Build Total Audience, Increase Subscriber Retention and Deliver Maximum Value to Advertisers

October 22, 2009 -- Arlington, Va. – Newspaper Web sites attracted more than 74 million monthly unique visitors on average in the third quarter of 2009, more than one-third (38 percent) of all Internet users, according to a custom analysis provided by Nielsen Online for the Newspaper Association of America.

Newspaper Web site visitors generated more than 3.5 billion page views during the quarter, spending 2.7 billion minutes browsing the sites over more than 596 million total sessions.

These figures come as additional research indicates consumers also find substantial value in newspaper print products, with newspaper companies able to command higher newsstand and home-delivery prices for print editions. NAA's recently released 2009 Circulation, Facts, Figures and Logic report* shows higher levels of subscribers retaining subscriptions, with subscriber "churn" falling dramatically to 31.8 percent in 2008, compared with 54.5 percent in 2000. In addition, 32 percent of newspapers priced their daily edition at 75 cents at the end of 2008 (vs. just 2 percent in 2006), while the average seven-day, home-delivery weekday rate rose 8.6 percent at the same time newspapers are increasing retention.

"Newspaper publishers continue to aggressively reinvent their business models, leveraging trusted brands to attract a growing and sophisticated audience in the digital space," said NAA President and CEO John F. Sturm. "At the same time, industry executives have adopted smarter circulation strategies that are growing circulation revenues even though paid circulation numbers are lower. This places the focus where it belongs: retaining core readers who deliver maximum value to advertisers while harnessing digital platforms to broaden our medium's audience and position us strongly for the future."

These audience figures reflect Nielsen's introduction of its new methodology, part of an effort to provide a significantly larger sample size, which allows more newspaper Web sites to be reported with greater depth and granularity. As a result of this change, comparisons with prior period reports are not statistically valid. Further details on this new methodology are available at the conclusion of this release.

New Business Models Generate Additional Revenue
In addition to reduced subscriber churn and changing price points, findings from Circulation Facts, Figures and Logic indicate that:

* Newspaper partnerships are streamlining efficiency: In the 100,000-circulation category, nine out of 10 newspapers deliver more than just their own publications and count income from that arrangement as a revenue source. Newspaper partnerships have become more widespread among neighboring newspapers of all sizes and the concept of a single carrier delivering several newspapers (and possibly additional products and advertising) is becoming closer to reality.

* Newspapers are successfully directing subscribers to more cost effective, higher retention payment plans: In 2008, 92 percent of newspapers offered a discount for participating in a recurring payment plan; 38 percent of new subscriptions were sold on a recurring payment plan while only 28 percent were sold with no initial payment required.

Research Analysis: Circulation Strategies
John Murray, NAA vice president of Audience Development, provides further perspective on the research findings in NAA's latest podcast.

*Facts, Figures and Logic is based on a biennial survey. This year, 405 newspapers responded by mail and online between November 2008 to January 2009, and Clark, Martire & Bartolomeo Inc. helped compile the data. Information on ordering the publication is available here.

**Effective with June 2009 data, Nielsen has made several enhancements to the NetView service, including an increased sample size of more than 230,000 panelists, more granular reporting and improved accuracy and representativeness. Due to the enhancements, trending of previously reported data with current results may show percentage differences attributable to these product enhancements and should only be compared directionally.

Source: NAA