John Cruickshank - Audience development - Reeling in readers and advertisers

Audience InsightsAudience Insights

John CruickshankPublisher, Toronto Star,

President, Star Media [email protected]

September 2012

Session Content

• Strategic OutlookStrategic Outlook

• Audiences – Strength in Numbers

• Audience Insights – Research and Segmentation

• Audience Insights in ActionAudience Insights in Action

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Torstar Corporation

Torstar Corporation is a broadly based media company listed on the Toronto Stock Exchange (TS.B). Its businessesinclude the Star Media Group led by the Toronto Star, Canada's largest daily newspaper, and digital properties includingthestar.com, toronto.com, Wheels.ca, Workopolis, Olive Media, and eyeReturn; Metroland Media Group, publishers ofcommunity and daily newspapers in Ontario; and Harlequin Enterprises, a leading global publisher of women's fiction.

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Star Media Group

DailiesDigital Specialty

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How we define ourselves

Star Media Group is a growing network of i l d i ll b d i l dregional and nationally‐based interrelated

businesses that create compelling content i f ll d fi denvironments for well‐defined consumer

groups and the marketers who want to h hreach them

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STRATEGIC PRIORITIESWHO WE AREINVESTMENTS

Invest in people, quality journalism, marketing and digital opportunities

Foster an agile, innovative and results‐driven culture

AUDIENCE INSIGHTS

Through market research and strategic planning, identify opportunities to grow audiences g g p g, y pp gacross multiple markets and platforms

CUSTOMER SOLUTIONS

Leverage our content and advertising relationships across multiple platforms and partners to g g p p p pprovide broader solutions to our customers

REVENUE DIVERSIFICATION

Diversify our revenues by growing the influence of other print and digital businessesy y g g p g

OPERATIONAL EFFECTIVENESS

Align costs with revenue realities to ensure long term success

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Improve our speed to market

Our strategy is to stabilize our core business and to grow a portfolio of products that consists of line extensions and opportunities that appeal

to our target audiencesSMG Business Position 2012

to our target audiences

yourcitybiz

Close to N

Queen’s Park Briefing

Core Close to Core

New Competencies

Capabilities Spectrum

Assumptions: • Digital integration across all business activities

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g g• Portfolio focus – multiple smaller wins• Assumes we are not only content centric • Toronto Star revenues and profits diminish over time

Session Content





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The Toronto Star is the most read weekday newspaper in Canada.newspaper in Canada.

1,223,3001,250,000Average Weekday Readership – Adults 18+

978,6001,000,000

642,400597,900

529 900

750,000

529,900

449,800 436,500 420,600 407,000364,900

500,000

0

250,000

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0

STAR(TO)Weekday

GLOBE(CA)Weekday

SUN(TO)Weekday

LE JOURNAL(MO)Weekday

METRO(TO)Weekday

SUN(VA)Weekday

LA PRESSE(MO)Weekday

POST(CA)Weekday

PROVINCE(VA)Weekday

24HRS(TO)Weekday

Source: NADbank 2011 Full ReportBase: All Markets & Toronto Extension, Adults 18+ (19,993,700)

In Toronto, the Saturday Star’s print readership is larger than the total print and online weekly readership of the Globe and Mail (our primary competitor)

Toronto Adults 18+

>

Saturday StarOne Day

1,181,000

Globe Print + Online6 Day Cume 1,116,500

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1,181,000 1,116,500

Source: NADbank 2011 Full Report; Toronto CMA, Adults 18+

Saturday Star = Top Toronto TV Shows

Toronto 18+

Toronto 2+

= +Big Bang Theory

608 000

+Survivor: One World

550 000608,000

Saturday Star1,181,000

550,000

11Star Source: NADbank 2011 Full Report; Toronto CMA, Adults 18+ (4,569,400)TV Source: BBM Canada , Toronto /Hamilton 2+, Average Minute Audience , Week of April 2-8, 2012

, ,

While the Star provides a dominant regional audience, Metro is expanding audiences across the country

EdmontonVancouver

Saskatoon

= Metro Print & Digital

HalifaxVictoria Calgary Regina Winnipeg Ottawa

TorontoKitchenerLondon Hamilton

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g

= Metro Digital Windsor

Metro – Canada’s largest weekday newspaper title

1,492,7001,500,000

Average Weekday Readership – Adults 18+

1,223,300 1,208,300

1,086,100

1,250,000

978,600

750,000

1,000,000

500,000

250,000

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0

METRO STAR SUN 24 HRS GLOBE

Source: NADbank 2011 Full ReportBase: All Markets & Market Extension Adults 18+

The Star and Metro provide large web audiences

Online9.6 million unique visitors/month

77 million page views/month

Online.9 million unique visitors/month

3 million page views/month

MobileOver 23 million page views/month

MobileOver 3 million page views/month

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Source: Omniture – May 2012

Star + Metro English (Print & Online) audiencebigger than Canada’s 2nd largest citybigger than Canada s 2 largest city

~

Star + Metro English Print & Online Net Weekly Audience

4,975,400

Toronto CMA5.8 million

Montreal CMA3.9 million

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, ,

Audience Source: NADbank 2011 Full Report; Base: All Markets & Toronto Extension, Adults 18+ (19,993,700)Metro English = 6 Markets: Vancouver, Edmonton, Calgary, Toronto, Ottawa, and HalifaxStar print is only measured in Ontario; Star online is measured outside Ontario in Vancouver, Edmonton, Calgary, and MontrealToronto CMA Total Population Source: FP Markets Canadian Demographics 2011

Session Content





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Audience Insight Sources

PopulationStatistics Canada

PMB

NADbank

comScore

Customers /Readers /

Visitors

Subscribers

Omnibus Studies

Other Panels

PMB

NADbank

Proprietary Studies

CCAB

Generation5

Proprietary Studies

Can also tell us about

Panels

Can also tell us about

EmployeesEmployees

Proprietary Studies

Star Advisers Panel

Research & Analysis of Media

(RAM ) Panel

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Subscriber Database

Generation5

Audience Segmentation assists in understanding current customers, potential customers and how best to serve them.

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However, Audience Segmentation pitfalls can range from too simple to far too complex to be actionable.

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After considering many different segmentation models, we split the market into 21 segments based on age, income and presence

of kids in the household.of kids in the household.Young: Age <45,

No Kids <18 at HomeFamilies:

Kids <18 at HomeMature: Age 45+,

No Kids <18 at Home

Age 18-29, Age 30-44, Kids <6, HHI$100K+ Age 45-64, Age 65+,Age 18 29,HHI$100K+

(234,000)

Y1

Age 30 44,HHI$100K+

(166,000)

Y2

Kids 6, HHI$100K(274,000) F1

Age 45 64,HHI$100K+

(331,000)

M1

Age 65 ,HHI$100K+

(63,000)

M2

Kids 6-11, HHI$100K+(272,000) F2

Kids 12 17 HHI$100K+Kids 12-17, HHI$100K+(290,000) F3

Age 18-29,HHI$50K-$99K

(238 000)

Age 30-44,HHI$50K-$99K

(205 000)

Kids <6, HHI$50-$99K(289,000) F4

Age 45-64,HHI$50K-$99K

(352 000)

Age 65+,HHI$50K-$99K

(131 000)(238,000)

Y3

(205,000)

Y4

(352,000)

M3

(131,000)

M4

Kids 6-11, HHI$50-99K(286,000) F5

Kids 12-17,HHI$50-99K(340,000) F6

Age 18-29,HHI<$50K

(158,000)

Age 30-44,HHI<$50K

(86,000)

Kids <6, HHI<$50K(216,000) F7

Age 45-64,HHI<$50K

(287,000)

Age 65+,HHI<$50K

(423,000)Kids 6-11, HHI<$50K(200,000) F8

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Y5 Y6 M5 M6( , )

Kids 12-17, HHI<$50K(169,000) F9

Seven key segments emerged from the ranking analysis – based on the propensity to consume media and spend money.

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Perception Map: 21 SegmentsTotal Media Usage (8)/All Consumer Spend (32)

M2 F2 Y2F3

M1

ndex

KEY TARGET ZONE

15 Y3

F1

M3

Y1

r Spen

ding

In

F9 F7M6

M4F8

F4 F5

Y4F6

Consum

er

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11.5 14.5 17.5

Y6F9

M5

M6

Y5

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Media Usage Index

The segmentation is used in strategic development for both filling-the-target-gaps and drawing from developed targets.

Y1 Y2 F1 F2 F3 M1 M3

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Primary Target Secondary Target

Y1 - URBAN HIPSTERS[ Young educated individuals living in a household with high income ]

Target Audience Summary

[ ou g du d d du s g ous o d g o ]

“Drinking is Part of My Lifestyle” “Low Fat Foods are Important Part of My Regular Diet”

“I Love Expensive Sports Cars”

“I am More of a Spender than a Saver”

“I Enjoy Keeping Fit”

Part of My Regular Diet“I Can’t Imagine My Life

Without the Internet”

I Love Expensive Sports Cars

“I Like to Have a Wide Variety of Snacks”

I Enjoy Keeping Fit

“I am Very Interested in Unfamiliar

“I Tend to be the First to Own New Electronic Products”

Highly Engaged:Consumption Habits:Uniquely Recognized:

“I Really Enjoy Shopping for Clothes”I am Very Interested in Unfamiliar

Vacation Destinations”

Highly Engaged:• News & Social Media sites• News, Entertainment and Arts print publications• Movies and Situation Comedies programming

T d i h M d R k & T 40 Hi

Consumption Habits: Average Shoppers Early Adapters Heavy Media Consumers

Uniquely Recognized: Diverse and Cultured Active and Adventurous Health and Tech Enthusiasts

• Tuned into the Modern Rock & Top 40 Hits

Source: PMB 2012 Spring 2 Year Study; Base: Toronto CMA, Adults 18+*Based on Y1 Segment

Session Content





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Audience Insights in Action

Current Subscribers – Maximizing Revenue

Challenge:- Declining revenue from lower circulation volumes

Audience Insights:Audience Insights:- Variances in customer behaviour by:

- geography- payment type- tenure- demographic

- Strong core of loyal subscribers- Support quality journalismSupport quality journalism

Actions:- New subscription pricing model

M i i i i i tt iti

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- Maximizes revenue, minimizes attrition


StarWeek – Saturday Opt-in Section

Challenge:- Declining ad revenues in TV book

Audience Insights:- Under-serving dedicated readers - Over-serving non-readers

Actions:- Improved/enhanced content- Paid opt-in model

“More information is certainly the most important thing for me”“Just tell me what’s on TV”

p

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Just tell me what s on TV


New York Times – Sunday Opt-In Section

Challenge:- Declining ad revenues on Sunday

Audience Insights:Audience Insights:- More content needed on Sunday- Need to improve international news

Actions:- Launched section- Paid opt-in model

Congratulations to The Star for giving subscribers the chance to receive it.Great service at a reasonable price. Much better than the full Times (that I have subscribed to in the past) - as it is a manageable size

The best paper in the country gets better with this addition.The articles are well written, well researched and represent a good cross section of the full edition

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NYT crossword puzzle is great. And the book reviews are as good as any that I ever read.Enjoy their (NYT Book) review to the point that I usually buy one selection that they discussed and have not been disappointed


World Weekly – Saturday Subscriber Section

Ch llChallenge:- Satisfaction gap – high interest in international news but low content rating

Audience Insights:- Invest in more international news- More international perspectives

Actions:- Launched special section- Home delivered copies only

I LOVE the new "World" section!The World section is impressive

The new World section is great - something I have wanted for yearsstill my favourite paper - like the new World section a LOT.

Love the paper & all its efforts to improve! Thanks

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Love the paper & all its efforts to improve! Thanks.


The Grid – Alternative Weekly

Challenge:- Declining ad revenues- Readership instability, distant 2nd in marketplace

Audience Insights:- Low content rating- Need for competitive differentiation- Attractive target audience (Adults 25-39)

Actions:- Launched repositioned publicationLaunched repositioned publication- New content strategy

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The Kit – Fashion Content

Challenge:- Audience not reached by SMG- Underdeveloped ad category for newspapers- Underdeveloped ad category for newspapers

Audience Insights:- Key target audience (Women 25-49)- Niche but committed audience

Actions:- Purchased digital magazinePurchased digital magazine- Added section to Thursday Star

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Make Investments, But Be Prepared For Challenges

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SMG brands - diversified platforms to fuel growth

Platform ProductsPrinted

Publications

Target Audiences

- Paid

Printed Publications

- Free

Y1

Y2

Printed Opt-in Products -

Paid

Digital

F2

Digital Consumer Products -

Free

Digital

F3

F1g

Consumer Products -

Paid

Email &

M3

M1

F1 Work in Progress

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Database Marketing

John CruickshankPublisher, Toronto Star

President, Star Media Groupjcruickshank@thestar ca

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[email protected]

John Cruickshank - Audience development - Reeling in readers and advertisers

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