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Survey: With 90% of Publishers Producing Mobile Content, Digital Publishing is Now Status Quo

Alliance for Audited Media Releases Fourth Annual Survey Results

ARLINGTON HEIGHTS, Ill., Dec. 17, 2012 /PRNewswire-USNewswire/ --  Ninety percent of AAM publications that participated in a recent online survey now have a mobile presence, up from 51 percent in 2009. The remaining 10 percent expect to join suit within the next 12 months. So say the findings of a new survey, How Media Companies are Innovating and Investing in Cross-Platform Opportunities, conducted by the Alliance for Audited Media in conjunction with Roslow Research

When AAM first fielded a digital-focused survey in 2009, publishers were just starting to develop strategies for the mobile market. In 2012, the question has shifted to the profitability of digital efforts. Twenty-two percent of publisher respondents report that their smartphone and tablet apps/platforms are currently profitable. More than half expect these platforms to become profitable over the next two years.

Survey results also show that media companies are distributing content on multiple platforms, eager to get in front of readers on their device of choice. Apple products still dominate the market, with 85 percent of publishers having iPhone apps and 87 percent having iPad apps. But Kindle and Nook apps are growing. The number of publishers developing Kindle apps has grown two and a half times, up from 24 percent in 2011 to 67 percent in 2012. Nook apps have increased more than four times, from 14 percent in 2011 to 57 percent in 2012.

"Media companies know that delivering content whenever and wherever consumers want is key," said Eric John, AAM's vice president of digital services. "They know digital content, including browser-based editions and mobile apps, is no longer the wave of the future, but table stakes to continue reaching and growing digital readership.  This year's survey results show that publishers have embraced tablets, smartphones and the Web as an integral part of their overall cross-platform publishing strategy. They are meeting their readers where they live — in print, on tablets and smartphones, and on the Web."

Key Survey Findings

  • Not only are media companies distributing content on multiple platforms, they are offering multiple apps on each device. On average, companies are producing 3.4 iPad and iPhone apps, 3 Kindle apps and 2.4 Nook apps.
  • Publishers are most likely to charge for content on the iPad (56 percent), followed by the iPhone at 42 percent, Kindle at 38 percent and Nook at 31 percent. But subscriptions are not the only revenue source. The majority of respondents agreed a dual revenue stream from advertising and subscriptions is necessary to make digital platforms profitable. 
  • Even as the market matures, media companies are still testing and revising their strategies to best provide editorial and advertising content to their consumers. They are nearly split on using native apps designed for specific devices versus Web apps that function across devices. Seventy percent are publishing native apps, while 67 percent are publishing Web apps.
  • The impact of HTML5 as a new additional publishing technology is still undecided for most publishers. When asked to think about the next year, 41 percent said they plan to continue using native apps while 31 percent said they plan to try HTML5.
  • After years of allowing customers to access free online content, many media companies are charging for their website content. A number of newspapers — 48 percent — have a paywall to charge for some or all of their content. Combined percentages for newspapers, magazines and business publications show 41 percent currently use a paywall. Of those currently without a paywall, 44 percent plan to implement one in the next two years.
  • The most popular type of paywall is metered, where customers may access a predetermined number of articles before payment is required. Almost 40 percent use metered paywalls, while 17 percent use a hard paywall where payment is required to read any content. And 33 percent use a combination paywall that restricts access to premium content.
  • The million-dollar question is how publishers are monetizing mobile and how that revenue offsets print declines. Seventy-seven percent agreed mobile revenues must stem from both advertising and circulation, up from 52 percent in 2009. Fifty-four percent of respondents said mobile currently represents up to 9 percent of advertising revenue, and 56 percent said it represents up to 9 percent of circulation revenue.
  • Despite the promise of mobile publishing, survey respondents are pragmatic about their print publications. Less than 15 percent said they have plans to reduce their print publishing frequency and less than 3 percent think their publication will only be produced digitally in the next five years.

The complete survey summary is available on AAM's website.

About the Survey
This is the fourth year that the AAM has fielded a digital publishing survey among its membership. The in-tab sample consisted of 210 members of the AAM from the United States and Canada. The sample includes publishers of consumer magazines, newspapers and business publications. Interviews were completed online between Oct. 8 and 26, 2012. This survey was conducted by the Alliance for Audited Media in conjunction with Roslow Research.

About the Alliance for Audited Media
The Alliance for Audited Media (AAM) is a nonprofit organization that connects North America's leading media companies, advertisers and ad agencies. Founded in 1914 as the Audit Bureau of Circulations, the AAM is the preeminent source of cross-media verification and information services, providing standards, audit services and data critical to the advertising industry. The organization independently verifies print and digital circulation, mobile apps, website analytics, social media, technology platforms and audience information for newspapers, magazines and digital media companies in the U.S. and Canada. In November 2012, the AAM joined forces with Certified Audit of Circulations. To learn more about the Alliance for Audited Media, visit the AAM website.

SOURCE Alliance for Audited Media

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