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Industry Research

Industry-Research

Making automated journalism work for you

As The Tow Center for Journalism’s newly released Guide to Automated Journalism points out, the use of algorithms to automatically generate news from structured data is increasingly impacting the journalistic industry. These algorithms can quickly and inexpensively create high volumes of news stories for a given topic. According to Tow, this has fueled journalists’ fears that automated content production will eventually eliminate newsroom jobs, while at the same time scholars and practitioners see the technology’s potential to improve news quality.

Tow’s guide summarizes recent research on the topic to provide overview of the current state of automated journalism, discusses key questions and potential implications of its adoption, and suggest avenues for future research.

Among the key findings…

For news consumers

  • People rate automated news as more credible than human-written news but do not particularly enjoy reading automated content.
  • Automated news is currently most suited for topics where providing facts in a quick and efficient way is more important than sophisticated narration, or where news did not exist previously and consumers thus have low expectations regarding the quality of the writing.
  • Little is known about news consumers’ demand for algorithmic transparency, such as whether they need (or want) to understand how algorithms work.

For news organizations

  • Since algorithms cannot be held accountable for errors, liability for automated content will rest with a natural person (e.g., the journalist or the publisher).
  • Algorithmic transparency and accountability will become critical when errors occur, in particular when covering controversial topics and/or personalizing news.
  • Apart from basic guidelines that news organizations should follow when automatically generating news, little is known about which information should be made transparent regarding how the algorithms work.
Industry-Research

Consumers cannot tell online native ads and editorial content apart

Consumers cannot distinguish online native advertising from online editorial content according to a research study conducted by assistant professors Bartosz W. Wojdynski and Nathaniel J. Evans from the University of Georgia Grady College of Journalism and Mass Communication. Their research included two separate studies to assess consumers’ recognition of paid advertising content.

Sponsored content is often designed to look as if it is a part of the editorial content. Noting this, publishers identify native ads and disclose it as promotional content. Business Insider Intelligence forecasts spending on online native advertisements will grow to $21 billion by 2018 from $7.9 billion in 2015. The growth of native advertising online has brought forward questions regarding the consumers’ ability to recognize them as advertisement.

The professors first study invited subjects to read online content featuring two stories: one that was editorial content and one that was a native ad. The study assessed the impact of the disclosure label and whether consumers could identify sponsored articles as advertising content. The second study included eye-tracking to help determine the best position for visual attention to disclosure labels. In the first study 7% of readers identified the content as advertising, and in the second eye-tracking study, 17% identified the articles as advertising. Further, the second study also found that readers were seven times more likely to identify as advertising those articles that used “advertising” or “sponsored content” in the disclosure label versus those that used terms like “brand voice” or “presented by.”

The practice of online native advertising is still evolving as advertisers work creatively to reach consumers. Importantly, as native advertising becomes more prevalent it’s essential to identify best practice by monitor the impact of designs of the disclosure labels on consumers’ recognition.

Industry-Research

Security concerns in the media and entertainment industry

Media and entertainment business and technology executives are worried about the security of the cloud. And while massive distributed denial of service (DDOS) are happening with regularity, most media execs are not familiar with the details of DDOS, nor are they confident that their site could withstand such an attack, according to a recent survey of 261 media and entertainment executives by Broadcasting & Cable and VideoEdge Magazines. According to their report, Secure My Site –Media Security Concerns, Beliefs and Attitudes, perceived and real threats make security a major issue for media companies in the U.S. today. In fact, over half of the media and entertainment executives surveyed said that they have lost sleep over the potential threats to security posed by cyber-attacks, with 13% saying they often endure sleepless nights.

Among the report findings:

  • Nearly 80% of media executives said that Web security is “very important” or “extremely important” to their organizations, and virtually all of them plan to spend the same amount or more on security solutions in the coming year.
  • Traditional TV companies (broadcasters, pay TV companies, and programming service providers) are even more focused on security, with 89% of executives from these companies saying security is at least “very important” to their business.
  • Though media executives are reluctant to admit security problems, 28% of survey participants said their organizations have experienced a cyber-attack or data breach. Almost all of those reported that one or more corporate Web sites were forced offline because of the incident.
  • The most common problem appears to be Web site defacement, as 75% of cyber-attack victims said that hackers changed the appearance of their site, which can be detrimental to the brand.
  • A quarter of the media executives surveyed said that their corporate data were breached as a result of the cyber-attack they suffered, though 38% say they suffered a loss of corporate intellectual property.
Industry-Research

‘Traditional sources’ dominate UK news consumers’ online favorites

Ofcom’s 2015 research examines news consumption across the four main platforms: television, radio, print and online. The report details various findings relating to the consumption of news: the sources and platforms used, the perceived importance of different outlets for news, attitudes to individual news sources, reasons to follow news, the use of local news, and news consumption in United Kingdom nations.

Among the key takeaways:

  • Two-thirds of adults say they use TV for news, compared to three-quarters in 2014
  • Those aged 55+ are more likely than those aged 16-24 to use TV, newspapers and radio for news consumption, while the opposite is true for the internet/ apps
  • Total hours of national and international news viewing have decreased since 2013
  • The reach of national newspapers has decreased considerably in the past ten years, with reach among all adults decreasing by more than 27 percentage points since 2005

According to Ofcom’s findings, Online news consumption varies considerably by age, socio-economic group and gender.

‘Traditional’ news sources are used most for online news, but social media is also popular:

When Ofcom combined the various types of online news source, those from ‘traditional’ news media such as TV, radio, and newspapers are used most (by 64% of online news users), while ‘digital first’ news sources (excluding social media, search engines and blogs) are used by 28%. Ten per cent of online news users use only social media sites for news, rising to 16% of those aged 16-24.

Routes to online news vary: the most popular way is to use an app to go direct to the home page of a news provider:

Of those who use the internet or apps for news, around half (51%) say they use the website or apps of TV and radio companies to get news (figure 6.1). More than two in five (43%) respondents say they use social media sites. This is followed by 37% who say they use search engines, 28% who use websites or apps of newspapers, 17% who use websites or apps of news aggregation sites, 16% who use websites or apps of online news organizations, 6% who use websites or apps of news magazines and 5% using blogs.

Industry-Research | Perspectives | Revenue | Video

Explosive digital video growth in 2015 spawned unprecedented opportunities

Consumer demand for sight, sound, and motion ignited mobile and
programmatic video advertising growth; new challenges emerged

Digital ad spend in the U.S. is projected to top $58 billion this year and $93 billion by 2019, according to eMarketer. Much of that growth is coming from digital video, with the category poised to absorb significant television ad spend.

Digital video is on an explosive growth track, showing no signs of slowing – more dollars continue to pile into video and new opportunities are emerging. Yet, with unprecedented growth comes unprecedented challenges, and many are beginning to realize just how truly disruptive digital video will be.

What’s fueling digital video’s tremendous growth?

“Sight, sound, and motion” advertising dollars are moving across screens. Viewers are fragmenting across video distributors and programmers as advertising technology races to evolve, and marketers are realizing just how powerfully digital video can tell their stories. Under pressure from marketers wanting to find their consumers across devices, media buyers are pulling from TV budgets to fund digital video growth.

For our sixth annual State of the Video 2015 Report, we surveyed 300 brands, agencies, and publishers to examine these dynamics and learn how key players are adjusting to newly emerging challenges.

Here are our key findings from this year’s State of the Video Report.

Marketers are reprioritizing traditional ad budgets, adding dollars to digital video.  TV budget growth is stagnating, with a sizable portion of dollars being moved to video advertising. Nine in 10 buyers are shifting dollars from linear TV to digital channels, reallocating on average 10% of television budgets. Of marketers moving TV dollars towards digital channels, 88% are shifting that television spend to video, including desktop, mobile, or over-the-top (OTT).

Mobile and video are converging, posing new opportunities and challenges.  Bolstered by faster network speeds and more screens, the growth of mobile video content consumption has been meteoric. This year, more than 191.5 million Americans watched more than 50.5 billion videos via mobile, according to comScore.

Marketers and publishers are attempting to keep up. According to industry estimates, desktop video spend grew 27% from 2014 to 2015, while mobile video grew 75%, eMarketer data shows – trends that align with buyer optimism. Our survey showed overall mobile video advertising spend increased 18% since 2014.

But marketers say measurement and attribution remain key pain points with mobile video. Mobile performance is more difficult to track than desktop due to reliance on deterministic or probabilistic identifiers. Both have benefits and flaws, but neither method can replicate the accuracy of desktop analytics – yet.

Programmatic is ubiquitous – and the sell side is rising to meet buy side demand. Over 90% of brands and agencies report buying some portion of video programmatically. Eighty-eight percent of publishers report selling video inventory programmatically, up 37% from 2014.

Not surprisingly, buyers remain concerned with premium/quality inventory and scale, noting that there still isn’t enough premium video inventory accessible at scale. Addressing these concerns, two-thirds of sellers are establishing standards for video content and ad quality, and are adding in-house support for inventory quality control.

Brands are also building momentum around in-house video strategy and programmatic buying. Twice as many brands have already brought programmatic buying capabilities in-house, compared to last year – a move that can be easier said than done.

Programmatic TV is gaining popularity as audience fragmentation hits an inflection point. This coming year, 41% of television buyers – a three-fold increase since 2014 – plan to rely on programmatic to make TV investments – a threefold increase since 2014, signifying that change is coming to linear buying practices as well.

Marketers moving television spend to digital video cite the ability to target consumers more granularly and superior measuring capabilities as reasons. Similarly, programmatic TV brings the benefits of digital advertising to linear television.

But this is still a nascent space. Buyers express concern with premium, quality inventory and scale. Brands are concerned with issues like integration and qualified personnel.

Branded video is taking hold.  Advertisers and agencies devote over 30% of overall video budgets to branded video content – defined as digital video content co-created between a brand marketer and a publisher. Still a maturing marketing tactic in the digital world, advertiser interest and spend are significant.

Both buyers and sellers cite cost as the biggest obstacle for investing in branded video. Due to the nature of the form, it’s still traditionally thought of as a kind of custom brand messaging that requires a heavy investment of talent, time, and dollars. As for distribution, the majority of publishers rely on their owned and operated sites and social media, indicating that branded video distribution remains limited.

2015 has been a year of significant shifts: as consumers demand sight, sound, and motion everywhere, marketers and publishers are increasingly investing in mobile video and programmatic.

For the first time, television has shown signs of stagnation, though TV dollars are fueling video growth in other formats.

Considering how much movement we’ve seen in such a short time, there is little doubt that 2016 will bring more of the same: consumers are constantly evolving, and brands, agencies, publishers, and technology providers must evolve or risk extinction.

JoAnna Foyle has a passion for both technology and creativity, with nearly 20 years of experience in executive leadership, go-to-market strategy, client business management, TV and digital media, and advertising technology. She has worked with some of the best agencies, publishers and technology companies in the world, driving innovative and holistic technology solutions. As senior vice president of enterprise platform services for AOL, she is responsible for ONE by AOL technology engagements, driving activation, adoption, and expansion for AOL’s biggest partners.

Industry-Research

Consumers rethink their pay-TV options

Stable subscriber counts for pay-TV services were once assurance for cable and satellite operators. Business is quite different these days. Consumers are now canceling or reducing their pay-TV subscription plans and opting for on-demand streaming. MoffettNathanson, a research and investment information firm, reports that US pay-TV services lost nearly a million subscribers across both Q2 and Q3 combined.

Price Waterhouse Cooper’s Videoquake 3.0: The Evolution of TV’s Revolution Report tracks intelligence on consumers’ changing relationship with content distribution offerings. PwC’s comprehensive research included two focus groups, 1,200 surveyed US Adults, 18+ and three months of social listening by examining social media mentions related to this topic.

The study reports that 79% of US consumers subscribe to some type of pay-TV bundle. Of these consumers, almost one-quarter (23%) reduced the size of their pay-TV package this year.  Cable and satellite operators are now offering customizable channel packages to try to stop subscribers from canceling or shifting to “over the top” (OTT) streaming services. After all, the average cable subscriber receives 194 channels and only watches 17; many ask why they should pay for more channels than they watch.

The migration to streaming is seamless given that 70% of pay-TV subscribers already have a subscription to a streaming service. The biggest players in streaming are Netflix, Amazon Prime, Hulu and HBO Go. The data also shows many consumers subscribe to more than one streaming service. For example, 65% of US consumers subscribe to Netflix and of these Netflix subscribers 52% also subscribe to cable and 55% also subscribe to at least one other OTT service. This is also the practice among Amazon Prime subscribers. Just over one-third (34%) of US consumers have an Amazon Prime subscription and among these subscribers 53% also subscribe to cable and 79% also subscriber to another OTT platform.

According to the PwC’s report, cost is the number one reason for canceling cable subscriptions, 57% of those who canceled their subscriptions reported they did so because “the monthly costs are just too high.” It’s not just the pay-TV subscription service that consumer pays for but also the set-top box rental. Ninety-nine percent of pay-TV subscribers pay for set-top box rental which averages to approximately $241 per year in a multi-television household. Streaming video, even multiple, has a much lower cost of entry.

Consumers are choosing to pay for the content they want and not being locked into paying for content they do not watch. As consumers’ relationship with content changes across services and screens, the market will need to continue to respond with relevant consumer options and business models.

PWCCordCut

 

Industry-Research

Growth of the native digital experience

Generation #hashtag is definitely changing the way we consume content. These consumers, regardless of their age, prefer native digital content, that is content and services designed and distributed exclusively through digital (includes mobile) channels. This generation now accounts for half of the entertainment audience (47%) and more than a third of the audience for online services (37%) and publishing (34%) according to Bain & Company’s annual research study conducted among 7,000 consumers in 10 countries.

The native digital experience introduces new digital monetization models as well such as single purchases, subscription and micropayments. Further, contrary to what many think, younger consumers are more willing to pay for native digital content than those older. For instance, 30% of consumers under age 26 are more likely to pay for some forms of digital videos versus 23% of consumers older than age 26.  This also holds true for digital music (34% of younger more likely to pay than 18% of older) and the purchase of games (40% of younger more likely to pay than 28% of older).

Traditional based models for content monetization rely heavily on the consumer and/or the advertiser to pay whereas digital native platforms often blend models. One such blended content offering is freemium where the product is offered free but any proprietary features and/or functionality will cost extra. Another example is crowdfunding where money is raised online via donors to fund a project that is would normally be a financed business venture.

Importantly when thinking of new monetization models keep in mind five key essentials: 1) content strategy, 2) distribution routes, 3) advertising models, 4) use of consumer data and 5) merger and acquisitions tactics. It’s imperative now more than ever that companies develop a native digital experience rather than digitizing already existing content and experiences.

HastagGeneration

Industry-Research

Crowdsourcing creates robust audience dialogue

Crowdsourcing is an important way to personalize and engage your audience. The use of crowdsourcing can result in the creation of unique user-generated content or collaborative and social journalism. To provide a deeper understanding of crowdsourcing practices, the Tow Center for Digital Journalism at Columbia University conducted detailed interviews, survey-work and case studies to produce its Guide to Crowdsourcing.

The two most recognized practices of crowdsourcing are news organizations asking for audience input and social media users offering non-solicited feedback. The Tow Center identified crowdsourcing in journalism as the act of inviting a group of people to participate in a reporting assignment. In other words, it’s an open call for your audience to personally contribute.

Thinking of the Center’s definition, crowdsourcing usually comes in two forms, as an unstructured open-invitation to provide feedback by way of a vote, email or call or as a targeted request to a particular segment of people. Crowdsourcing is especially popular among digital startups who are developing a unique style of journalism with a new audience.

Many news organizations include crowdsourcing in the entire process from story assigning, to pre-data collection, research and analytics to reporting and post-story discussions. Some important practices to incorporate when crowdsourcing:

  • Clearly define your journalistic goals.
  • Communicate what will be done with participant’s contribution.
  • Be specific about the type of response you want.
  • Announce your call-out more than once.
  • Use the proper terms like “share” versus “submit.”
  • Leave a short time gap between call-out and publication.
  • Communicate with community often.
  • Respond to and reward your contributors.
  • Make it easy for people to participate.

Effective crowdsourcing provides robust content and a valuable path for connecting and giving back to your audience.

propublica

 

Industry-Research

INMA surfaces media innovation processes

The International News Media Association (INMA) has released a report highlighting 17 media companies implementing innovation processes to transform their corporate cultures for better outcomes in the Digital Age. Inspired by the road map created at Stanford University’s d.school, How Media Companies Embrace the Process of Innovation aims to surface the best examples of outcome-based design thinking.

The INMA report looks at media company innovation in three ways, providing multiple case studies and specific insights in each area:

1. Innovation as a seedling for ideas. Case Study Subjects/Key Takeaway include:

• The Dallas Morning News/Organic Growth Strategy Leads to Launch of 6 Revenue-Generating Initiatives
• The Economist/Editorial-led Development Team Changes Innovation Internally
• Gannett/Innovation Grants Give Employees: Space for New Product Incubation
• La Presse/Lab Days Allow Digital Team to Innovate for a Day

2. Connecting your brand to innovation. Case Study Subjects/Key Takeaway include:

• Chicago Tribune/ Blue Sky Innovation Programme Engages Local Thought Leaders
• The Irish Times/Start-Up Incubator Fusion Responds to Advertiser Needs
• Sanoma Oyj/ Innovation Begins With an Entrepreneurial Spirit in the SanomaLab

3. Innovation as a cultural accelerator. Case Study Subjects/Key Takeaway include:

• El Colombiano/ ECOlab Innovation Laboratory Reinvents Company from Web Site to Company Culture
• Die Welt/ From “Print-Only” to “Digital-to-Print”
• Expressen/ Social Media Desk Creates Viral Journalism for a Younger Audience
• Fairfax Media/ “Evolving Our Workplace” Brings Innovation to the Workplace Structure
• Independent News & Media/ Legacy Company Comes “Home,” Achieves 4 Transformation Goals
• MittMedia/ FutureWorks Initiative Accelerates Innovation Through Shared Leadership
• Storyful/ Social News Agency Builds on the Tools News Corp’s Buyout Offers
• The Times of India/ Times of Innovation Programme Seeks, Values Disruption

TimesofIndiaInnovationStructure

Industry-Research | Video

Streaming video quality impacts viewer engagement

The quality of the playback experience is a vital consideration for any streaming video provider: viewers abandon quickly, often remember having done so and avoid offending providers in the future, according to a survey conducted by Video analytics and optimization company, Conviva. They also found that different genres have different sensitivities. While entertainment viewers demand smooth playback but are forgiving on picture quality, news and information viewers demand both a great picture and uninterrupted streaming. Additionally, age demographics appear to be significant in establishing how deeply to focus on quality of experience.

In the Fall of 2015, Conviva surveyed 500 Internet video users across the United States to understand their sensitivity to playback experience on streaming videos across the entertainment, news/information, education, self-improvement and product research genres.

Key findings from Conviva’s Beyond Entertainment Report include:

  • As many as one in five viewers will abandon poor experiences immediately, while significantly fewer will wait endlessly for the stream to come into focus
  • Having had a poor experience one in five will never return to that service, while just one in ten will return regardless of the quality of experience
  • Over ninety percent of respondents actively choose to return to services that deliver a superior experience
  • There is significant variation across genres, as the immediacy, relevance and exclusivity of content impact patience and brand loyalty
  • Different age groups have markedly different responses to quality of experience, with the oldest respondents being three times as likely to abandon a poor experience than the youngest

The paper reports the findings and provides commentary on what they mean for streaming video providers seeking to build, maintain and grow successful OTT businesses.

Advertising | Industry-Research | Perspectives

Trust in ads triggers action

Traditional media outperforms digital ads (online and mobile) in consumer trust according to The Nielsen Global Trust in Advertising 2015 Study. In fact, TV ads lead all paid media with 63% of global respondents reporting complete or somewhat trust, followed by newspaper (60%) and magazine (58%) ads. Online video ads, the highest rated of digital media advertising, was trusted by less than half of all respondents (48%) and performed below radio and pre-movie ads (each at 54%).

The study surveyed 30,000 online respondents in 60 countries to measure consumer response to paid, earned and owned advertising mediums. Important to note, survey responses were based on reported behavior and not actual metered data.

In terms of earned media, word-of-mouth remains the most trustworthy type of advertising with eight in 10 respondents (83%) completely or somewhat trusting the recommendations from people they know. Social media appears to be an influencer of trust with two-thirds of respondents (66%) stating that they trust consumer opinions posted online in reviews, etc.

As for owned media, seventy percent of respondents reported completely or somewhat trusting of branded websites, followed by brand sponsorships (61%) and opt-in emails (56%).

Trust and action appear closely correlated. For example, respondents that trust the opinions of friends and family say also they also take action on these opinions at least some of the time (83% each). In fact, the study shows that action exceeds trust by more than double digits for ads served in search engine results (47% trust; 58% take action), ads on social networks (46% trust; 56% take action) and text ads on mobile phones (36% trust; 46% take action).
Millennials more than Gen Z, Gen X or Baby Boomers reported the highest level of trust in digital advertising, online video ads at 54%, search engines 52%, ads on social networks, 51%, banner ads 47% and text ads on mobile at 41%.

Media planning is more important than ever to target audiences and ensure success metrics match objectives. Understanding consumer trust across platforms is an important measure in optimizing campaign performance.

Global Ad Trust Report

Industry-Research

Millennials consume premium news, and even pay for it

A majority of Millennials regularly consumed paid news content in the last year, whether paid for by themselves or someone else, according to a new study on how Millennials get news conducted by the Media Insight Project, a collaboration between the American Press Institute and The Associated PressNORC Center for Public Affairs Research. Significantly, 40% of Millennials personally paid for news. This study is a deeper examination of a nationwide survey conducted in early 2015.

Some of the key findings of the study include:

  • Socioeconomic differences are not a major indicator. The study found few socioeconomic differences between those who pay for news and those who do not.
  • 87% of Millennials pay for some types of content, and the most popular services are movies and television (55%) and music (48%).
  • Facebook and search engines are still the most common sources for obtaining news, even among those Millennials who pay for news from other sources.
  • Almost than a third of respondents (29%) often get celebrity or pop culture news from a national TV network, its website, app or news alerts.
  • More than a third (36%) say they often get sports news from a media organization that focuses on one topic (such as ESPN).
  • About a quarter of those surveyed (26%) say they most often get traffic or weather information from a media organization that focuses on one topic (such as the Weather Channel).

The study was conducted by the Media Insight Project, a collaboration of the American Press Institute and The AP-NORC Center for Public Affairs Research. The study included multiple data collection approaches, including a web survey and in-depth interviews with small groups of Millennials to understand their news habits.

The survey was conducted January 5-February 2, 2015, and reached 1,045 adults nationwide between the ages of 18 and 34. Study recruitment was completed through a national probability mobile telephone sample, while the main portion of the questionnaire was administered online. The margin of error was +/- 3.8%age points. A full description of the study methodology for the survey and the qualitative group interviews can be found at the end of the report.

importanceofnews

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