The Multichannel Mix: The Role of Print, Web, Wireless, and Other Platforms in Today’s New Media Environment—Part I: Publishing

EXECUTIVE SUMMARY

The New Media Environment

Multichannel Challenges

The Internet in General

Newer Media

Internet Advertising

Opportunities

Web Site

E-Mail Newsletters and Direct E-Mail Campaigns

Newer Media

E-Books

E-Zines

The Multichannel/Cross Media Environment

Media Channels Changing

Cross-Media Applications

Forces to Be Reckoned With

Online Ad Revenues

Issues to Pay Attention to

Conclusions and Implications

Notes and References

INTRODUCTION

How This Report is Organized

For More Information

SECTION 1: THE NEW MEDIA ENVIRONMENT

Media: Old, New, and Newer

Media Through Time

Onward

Notes and References

SECTION 2: MULTICHANNEL CHALLENGES

The Internet in General

Newer Media

Streaming Media

Specific Publishing Market-Based Challenges

E-Books

Internet Advertising

In Sum

Notes and References

SECTION 3: MULTICHANNEL OPPORTUNITIES

Web Site

In sum: 83

Forums and Chat Rooms

Newer Media

Selected Opportunities by Specific Market

E-Books

E-Zines

In Sum:

SECTION 4: THE MULTICHANNEL/CROSS MEDIA ENVIRONMENT 101

Media Channels Changing

Use Now

Becoming More Important

Less Important

Cross-Media Applications

Cross-Media Challenges

Cross-Media Opportunities

In Sum:

SECTION 5: FORCES TO BE RECKONED WITH

Multiple Media Use

Broadband Penetration

Adoption Rate of Technologies

Newer Media Usage and Demographics

Online Ad Revenues

Issues to Pay Attention to

The Coming Media “Singularity”

Community

Consumer-Generated Content

Advertising Models in Disarray

Long Tail Economics

Conclusions and Implications

Magazine Publishers

Catalog Publishers

Book Publishers

Notes and References

APPENDIX A: GLOSSARY OF MEDIA

APPENDIX B: TWGA METHODOLOGY

TrendWatch Graphic Arts Today

Historic Background

Survey Design

Survey Sampling, Incentives and Response Rates

Sampling Strategy

Non-Response Bias

Other Background Research

Who’s Who at TrendWatch

TrendWatch Report Editorial and Production

Table of Figures

Figure 1: “Competition from Online/Internet Formats” as a Business Challenge, All Publishers, 1997-2006

Figure 2: “Using the Internet More Effectively” as a Business Challenge, All Publishers, 1997-2006

Figure 3: Selected Newer Media Challenges, All Publishers, Summer 2006

Figure 4: “Developing an Effective Online Advertising Model” as a Business Challenge, Magazine Publishers, 2004-2006

Figure 5: “Improving Our Web Site” and “Driving Traffic to Our Web Site” as Sales Opportunities, All Publishers, 2003-2006

Figure 6: “Internet Advertising” as a Sales Opportunity, All Publishers, 2004-2006

Figure 7: “E-Newsletters” as a Sales Opportunity, All Publishers, 2004-2006

Figure 8: “E-Mail Campaign Design, Development” and “E-Mail Campaign Management, Execution” as Sales Opportunities, All Publishers, 2001-2006

Figure 9: Selected Newer Media Opportunities, All Publishers,

Summer 2006

Figure 10: “E-Book Production” as a Sales Opportunity, Book Publishers, 2001-2006

Figure 11: “Non-Print Publications (Like Zinio, NewsStand, etc.)” as a Sales Opportunity, Magazine Publishers, 2004-2006

Figure 12: “Implementing Cross-Media Applications” as a Business Challenge, All Publishers, 2000-2006

Figure 13: “Cross-Media Campaigns Involving Opportunity, All Publishers, Summer 2006

Figure 14: “Competition from Online/Internet Formats” as a Business Challenge, All Publishers, 1997-2006

Figure 15: “Using the Internet More Effectively” as a Business Challenge, All Publishers, 1997-2006

Figure 16: “Managing Web (Internet) Production” as a Business Challenge, All Publishers, 1998-2006

Figure 17: Selected Newer Media Challenges, All Publishers, Summer 2006

Figure 18: “Working with New Media for Wireless Devices” as a Business Challenge, All Publishers, 2004-2006

Figure 19: “Working with Streaming Media: Audio” as a Business Challenge, All Publishers, 2001-2006

Figure 20: “Working with Streaming Media: Video” as a Business Challenge, All Publishers, 2001-2006

Figure 21: “E-Book Production” as a Business Challenge, Book Publishers, 2001-2006

Figure 22: “Losing Sales to E-Books” as a Business Challenge, Book Publishers, 2001-2006

Figure 23: “Developing an Effective Online Advertising Model” as a Business Challenge, Magazine Publishers, 2004-2006

Figure 24: “Improving Our Web Site” as a Sales Opportunity, All Publishers, 2003-2006

Figure 25: “Driving Traffic to Our Web Site” as a Sales Opportunity, All Publishers, 2003-2006

Figure 26: “Optimizing our Web Site for Search Engines” as a Sales Opportunity, All Publishers, 2004-2006

Figure 27: “Optimizing our Web Site for E-Commerce” as a Sales Opportunity, All Publishers, 2004-2006

Figure 28: “Internet Advertising” as a Sales Opportunity, All Publishers, 2004-2006

Figure 29: “E-Newsletters” as a Sales Opportunity, All Publishers, 2004-2006

Figure 30: “E-Mail Campaign Design, Development” as a Sales Opportunity, All Publishers, 2001-2006

Figure 31: “E-Mail Campaign Management, Execution” as a Sales Opportunity, All Publishers, 2001-2006

Figure 32: “E-Mail Customer/Reader Contact Programs to Build Brand or for Traffic Building” as a Sales Opportunity, All Publishers, 2000-2006

Figure 33: “Run Forums/Chat Rooms to Build Reader/Customer Sense of Community” as a Sales Opportunity, All Publishers, 2000-2006

Figure 34: Selected Newer Media Opportunities, All Publishers, Summer 2006

Figure 35: “E-Book Production” as a Sales Opportunity, Book Publishers, 2001-2006

Figure 36: “Non-Print Publications (Like Zinio, NewsStand, etc.)” as a Sales Opportunity, Magazine Publishers, 2004-2006

Figure 37: “Web Magazines” as a Sales Opportunity, Magazine Publishers, 2004-2006

Figure 38: Which Media Channels Do You Use Now to Promote Your Services, Products or Publication(s) to Customers? All Publishers, Summer 2006

Figure 39: Which Media Channels Do You See as Becoming More Important in the Next 12 Months to Promote Your Services, Products or Publication(s) to Customers? All Publishers, Summer 2006

Figure 40: Which Media Channels Do You See as Becoming Less Important in the Next 12 Months to Promote Your Services, Products or Publication(s) to Customers? All Publishers, Summer 2006

Figure 41: “Implementing Cross-Media Applications” as a Business Challenge, All Publishers, 2000-2006

Figure 42: “Cross-Media Campaigns Involving Opportunity, All Publishers, 2002-2006

Figure 43: “Cross-Media Campaigns Involving Opportunity, All Publishers, 2002-2006

Figure 44: “Cross-Media Campaigns Involving Opportunity, All Publishers, 2002-2006

Figure 45: Broadband Adoption in the United States, 2000-2006

Figure 46: Phone Calls Per Day vs. Phone Company Revenues, 1890-2000(logarithmic plot)

Figure 47: Cellphone Subscribers, 1985-2006(logarithmic plot)

Figure 48: Demographic Profiles (by Age) of U.S. Visitors to Blog Sites, May 2006

Figure 49: Percent of Multimedia Phone Users in Select Countries/Regions Worldwide Who Have Browsed the Internet and/or Downloaded E-Mail at Least Once a Month on Their Phone, 2004 and 2005

Figure 50: Combined Blog, Podcast, and RSS Advertising Spending in the U.S., 2004-2006 ($ million)

Figure 44: “Cross-Media Campaigns Involving Opportunity, All Publishers, 2002-2006

Figure 45: Broadband Adoption in the United States, 2000-2006

Figure 46: Phone Calls Per Day vs. Phone Company Revenues, 1890-2000(logarithmic plot)

Figure 47: Cellphone Subscribers, 1985-2006(logarithmic plot)

Figure 48: Demographic Profiles (by Age) of U.S. Visitors to Blog Sites, May 2006

Figure 49: Percent of Multimedia Phone Users in Select Countries/Regions Worldwide Who Have Browsed the Internet and/or Downloaded E-Mail at Least Once a Month on Their Phone, 2004 and 2005

Figure 50: Combined Blog, Podcast, and RSS Advertising Spending in the U.S., 2004-2006 ($ million)

Table of Tables

Table 1: Which Media Channels Do You Use Now to Promote Your Services, Products or Publication(s) to Customers, Which Are Becoming More Important, and Which Are Becoming Less Important? All Publishers, Summer 2006

Table 2: “Competition from Online/Internet Formats” as a Business Challenge, Publishers by Market, 1997-2006

Table 3: “Using the Internet More Effectively” as a Business Challenge, Publishers by Market, 1997-2006

Table 4: “Managing Web (Internet) Production” as a Business Challenge, Publishers by Market, 1998-2006

Table 5: Selected Newer Media Challenges, Publishers by Market, Summer 2006

Table 6: “Working with New Media for Wireless Devices” as a Business Challenge, Publishers by Market, 2004-2006

Table 7: “Working with Streaming Audio and Video” as a Business Challenge, Publishers by Market, 2001-2006

Table 8: “Improving Our Web Site” as a Sales Opportunity, Publishers by Market, 2003-2006

Table 9: “Driving Traffic to Our Web Site” as a Sales Opportunity, Publishers by Market, 2003-2006

Table 10: “Optimizing our Web Site for Search Engines” as a Sales Opportunity, Publishers by Market, 2004-2006

Table 11: “Optimizing our Web Site for E-Commerce” as a Sales Opportunity, Publishers by Market, 2004-2006

Table 12: “Internet Advertising” as a Sales Opportunity, Publishers by Market, 2004-2006

Table 13: “E-Newsletters” as a Sales Opportunity, Publishers by Market, 2004-2006

Table 14: “E-Mail Campaign Design, Development” as a Sales

Table 15: “E-Mail Campaign Management, Execution” as a Sales Opportunity, Publishers by Market, 2001-2006

Table 16: “E-mail Customer/Reader Contact Programs to Build Brand or for Traffic Building” as a Sales Opportunity, Publishers by Market, 2000-2006

Table 17: “Run Forums/Chat Rooms to Build Reader/Customer Sense of Community” as a Sales Opportunity, Publishers by Market, 2000-2006

Table 18: Selected Newer Media Opportunities, Publishers by Market, Summer 2006

Table 19: Which Media Channels Do You Use Now, Which Do You See as Becoming More Important in the Next 12 Months, and Which Do You See as Becoming Less Important in the Next 12 Months to Promote Your Services, Products or Publication(s) to Customers? All P

Table 20: “Implementing Cross-Media Applications” as a Business Challenge, Publishers by Market, 2000-2006

Table 21: “Cross-Media Campaigns Involving Opportunity, All Publishers, 2002-2006

Table 22: % of U.S. Adults Who Regularly Or Occasionally Use the Following New Media, By Age Groups, 2005

Table 23: Mon.-Sun. Media Usage

Table 24: Where People Got News “Yesterday,” December 2005

Table 25: Adoption Time for New Consumer Technologies