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Online: Web Traffic effect on old-Fashioned Newspapers

April 28th, 2021
IT_IOT

Online: Web Traffic effect on old-Fashioned Newspapers

April 28th, 2021
IT_IOT

 

The internet is changing as well the ways of accessing the news by online users. Nowadays most users try to get their latest news from web pages and different online sources. The customer has 24/7 access to the news and also, he can receive emergency news no matter when and even read the different comments and opinions of other users on the webpage or any other applications. The revenue of printed newspapers is decreasing due to these online accessories and we can tell that these days the main source of advertising is online. Even it is possible to make money and augment the revenue online. For instance, some applications or websites would give you whole access to the different parts of the news if you pay the fee.

Though print-based publishers haven’t given up yet and still they are trying their bests to keep it the way it is. For example, some of them try to publish both printed and online newspapers or their work is all online but once in a month, they publish a special printed- magazine.

 The income of online publishers comes from online advertising so it is important to gain as many readers as you can. Most of the online paying ways like Paywall are based on the internet traffic and as the payers increase the traffic increases.

The whole web traffic is the combination of both direct traffic and referral traffic. The first one is defined as the traffic directed to the news websites by the publisher webpage and the second one is traffic directed to third-party such as search engines and social media.

A model of 51 publishers that publish their news online and printed were examined in Germany, France, Spain, and United Kingdom from 2015 to 2017. The results and the statistics show that there is a positive and important effect on the whole web traffic and the revenue of these publishers. Those websites with at least 10 percent higher web traffic had a 1.02 percent higher income.

Estimated Worthiness Of The Whole Web Traffic

We estimate that the value of the web traffic of the examined news sites supported at least 1.646m euros in 2018.

Although the impact and the influence of web traffic are highly dependent on the size of the digital market and the portion of the web references in the whole web traffic. In the end, we could claim that the web traffic value of a single visit is about 0.04 euros. 

Latest Market Procedure In Journal And Newspaper Craft

Again, as mentioned before, the way and manner of gaining recent news are changing in the world. Online revenue is overcoming the typical and traditional way. Besides the online advertisements, a paid subscription is playing a significant role in increasing online income and decreasing printed form. The availability of the news all the time makes people eager to pay attention and gain news more and more. We assume that from 2008 up to 2018, media news consumption has been raised 13 Percent among people. In 2020 Reuters claim for sure that due to the pandemic and advanced inclusive technology, online webpages and news applications have a greater source range and they are the priority for the public rather than printed journals.  

Besides newspapers, users tend to find their desired news from different search engines, social media, and news collectors apps. On the other hand, newspaper industries are happy with being online because it lets them gather a large number of audiences and spectators so the amount of their web traffic would indeed increase. Some factors are important for attracting more readers such as the modality of contents, the brand value, and the simplicity of finding the news via search engines. Of those four European countries mentioned above, Spain has the most online news viewers and after that, it comes to the UK than France and the last one in Germany. Furthermore, we have to declare that in all four countries, online newspapers have overcome the printed type.

It is assumed that 45 percent of all digital revenue is allocated to online advertisements. Once the reader opens a page, an advertisement pops up so it brings income for the publisher and it works via internet traffic. Publishers have learned news earning money models. For instance, they place a different advertisement on their web pages or applications. Even publishers are testing local advertisements. It works by knowing your exact location therefore it indicates to you the publicities that are specialized for that certain position. Some of them are too long and annoying. On the other side, publishers make pop-up and advertisement blockers and sell them to the users to prevent showing publicities hence it’s a win-win situation. It’s quite mentionable that in France, Germany, and UK 40 percent of digital revenue is gained by advertising and in Spain, it’s about 90 percent. Other paywall methods are like paying certain money to have full access to exclusive contents or being able to comment under the posts and the news. Having the capability of attracting more and more users needs some set of skills and digital marketing ways. More online users equal more online revenue.

To determine the effect of the whole internet web traffic on publisher’s income, this research has established an econometric model to separate the influence of the main factors of publisher’s total income, consisting:

  1. Circulation statistics to get a share in print revenues.
  2. Web traffic statistics and paywall method to calculate online income and alter it from print to digital.
  3. Gross domestic product (GDP) per capita, to calculate macroeconomic income stimuli.

The economic analysis permits us to separate the effects of a variety of incomes to a better assessment of the portion of individuals to publisher’s headlines while managing other factors. This model is based on 51 publishers in four countries named: France, Germany, UK, and Spain. The publishers consisted of online and offline posts and its period is from 2015 to 2017.

The econometric analysis claims that the 10 percent augmentation in internet traffic web results in 1.2 percent augmentation in total revenue. Between these four countries from 2015 to 2017, 39 percent of the online visits were direct traffic to publishers. This happened either by typing the URL of the publisher in the browser or pursuing their bookmarks. The other 61 percent of spectators were considered as referral internet traffic. For example, by using links from different search engines or social media like Instagram, Twitter, Facebook…etc. we have inquired whether direct traffic was more valuable or referral one but the differentiations were not that significant so we came to a conclusion that both direct and referral web traffics are as important and valuable as each other. On the bottom line, direct web traffic can illustrate a superior share of income for publishers with superior online attendances and contrariwise.

Article By: Amir Masoud Navidi

Adapted from: Deloitte.

Refer to: 

https://www2.deloitte.com/es/es/pages/finance/articles/impact-web-traffic-on-revenues-traditional-newspapers.html

 

 

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