Mizzou researchers figure out how to rescue the newspaper industry

Murali-Mantrala

Professor Murali Mantrala showed how one newspaper could raise profits through data analysis. (Photo courtesy of the University of Missouri News Bureau)

If you’re wondering whether the newspaper industry can avoid colliding with irrelevance, there may be a way to change course, according to two University of Missouri researchers.

Murali Mantrala, the Sam M. Walton Distinguished Professor of Marketing and chair of the Department of Marketing at MU, and Vamsi Kanuri, a former doctoral student at MU’s Trulaske College of Business, surveyed more than 1,000 readers of a West Coast daily paper to determine not what news they read, but how they got the paper in the first place. The researchers presented the survey participants with a range of purchase options much wider than what the newspaper already offered.

These options ranged from print-only subscriptions to combinations of print, online and mobile subscriptions. The options also varied in price based on the mix of channels, the frequency of distribution, and whether or not they were advertisement-free.

Mantrala and Kanuri combined that information with data on advertiser spending across the variety of channels to create an algorithm that determines what precise menu of subscription options a newspaper should offer to maximize total revenues from subscriptions and advertising.

Given the customizable options for readers and advertisers, the potential benefit of a subscription menu to the West Coast newspaper equaled a 17 percent increase in the publication’s profits.

“Newspapers are in a quandary; they need to find ways to increase revenues without raising prices or creating barriers that will cause them to lose readers,” Kanuri said in an MU news release. “In developing this algorithm, it was important to determine readers’ preferences for how they wanted to receive their news, as well as to determine readers’ willingness to pay for different types of subscription plans. Once we gathered that data, we were able to streamline a process for making decisions about which subscription and advertising plans to offer in order to maximize profits without losing readers.”

And readers will buy news as long as they know the content they receive is unique, convenient, and relevant to their needs. For proof, look at the way members of the Millennial Generation – ages 18 to 34 – consume content. As a group, almost 90 percent of them purchase music, movies, television, and video games. Other research has determined that people willing to pay for entertainment are also willing to pay for news.

Mantrala and Kanuri said their model works for any newspaper or subscription service, including Hulu, Pandora, or Spotify. Publishers and broadcasters must first conduct audience and advertiser surveys, then organize the collected data by audience segment to determine the optimal subscription menu algorithm.

“Any subscription-based service can use this model if they do the requisite research to determine subscriber interest and willingness to pay for various tiers of service,” Mantrala said. “Using this model, as opposed to years of costly trial and error, can help newspapers and other online businesses greatly improve their profits.”

The study by Mantrala and Kanuri is titled, “Optimizing a Menu of Multi-format Subscription Plans for Ad-Supported Media Platforms,” and is scheduled for publication in the Journal of Marketing.

Kanuri is now an assistant professor at the University of Miami. Esther Thorson, a former professor at the MU School of Journalism now at Michigan State University, also coauthored the study.

Mizzou researchers create a tool that makes Twitter more powerful

Mizzou assistant professor Sean Goggins (left) and doctoral student Ian Graves developed software that measures the context of words in Twitter. (Photo courtesy of the MU News Bureau)

Mizzou assistant professor Sean Goggins (left) and doctoral student Ian Graves developed software that measures the context of words used in Twitter. (Photo courtesy of the MU News Bureau)

Twitter already is a powerful news aggregator and microblogging platform. Now, two University of Missouri researchers think they know how to improve it.

Their thinking stems from new software the pair developed that they say considers the context of tweets, not just the quantity. At present, a topic is popular or “trending” on Twitter if there are a high number of related keywords and hashtags that are associated with it.

But the software, developed by Mizzou assistant professor Sean Goggins and doctoral student Ian Graves, can be programmed to pick out words and analyze their placement within tweets.

Goggins and Graves said they tested their concept on a flurry of tweets from the Super Bowl and World Series and assigned tags to words they predicted would be common in the two broad conversations. The software scrutinized where the words were located in each tweet, thus giving the researchers notions on the words’ contextual importance and allowing them to see how conversations evolved.

“When analyzing tweets that are connected to an action or an event, looking for specific words at the beginning of the tweets gives us a better indication of what is occurring, rather than only looking at hashtags,” Goggins said in a Mizzou news release.

In tracking word placement, the researchers were able to determine the nuance attached to each Twitter discussion. They could discern the action on the ball field between pitches and on the gridiron between plays.

“The program uses a computational approach to seek out not only a spike in hashtags or words, but also what’s really happening on a micro-level,” Graves said. “By looking for low-volume, localized tweets, we gleaned intelligence that stood apart from the clutter and noise” associated with each event.

Goggins and Graves believe their software will help make Twitter more effective for monitoring community safety and tracking disaster relief, and improve understanding of cause and effect in major events such as the bombings at the Boston Marathon and the protests in Ferguson.

Although less than 5 percent of Twitter traffic is actual news, much of the dialog that drives retweets and hashtags relates to newsworthy events.

Goggins teaches in the School of Information Science and Learning Technologies at Mizzou. Graves is a student in the Computer Science and IT Department at Mizzou’s College of Engineering. Nora McDonald, a graduate student at Drexel University, contributed to the study, which appears in the journal New Media and Society and was funded by a grant by the National Science Foundation.

Region 7 represents at Mark of Excellence Awards

SPJ's Mark of Excellence AwardsMissouri had three honorees and the states of Iowa and Nebraska had one each to represent Region 7 (Iowa, Kansas, Nebraska, Missouri) in the Society of Professional Journalists’ 2013 national Mark of Excellence Awards, announced Tuesday.

Allison Pohle of the University of Missouri-Columbia, writing for the St. Louis Post-Dispatch, was a finalist in the feature-writing category among large schools for her work, “Kirkwood Father Tries to Find Meaning in Daughter’s Death;” the staff of VoxMagazine.com at the Missouri School of Journalism was a finalist in the online feature reporting category for “Matters of Faith;” and Vox Magazine’s iPad app was chosen best digital-only student publication.

Suhaib Tawil of the Iowa State Daily at Iowa State University was a finalist in the general news photography category among large schools for “ROTC Training During Spring 2013.”

Jenna Jaynes of the Time-Warner Educational Access Channel and the University of Nebraska-Lincoln was a finalist in television feature reporting for “Nebraska’s First Male Color Guard Member Lives His Dream.”

The national awards recognize exceptional collegiate journalism in all 12 of SPJ’s regions over the previous calendar year and are chosen from the first-place winners at the regional level. This time, instead of first-, second-, and third-place awards, SPJ named a winner and two finalists for each category.

Not all categories were mentioned, however. If the judges determined that no entries were excellent by SPJ’s standards, the category was left blank. All judges have at least three years’ worth of professional experience in their respective fields. They are not permitted to review entries from their own regions.

(Complete disclosure: I have been an MOE judge the past three years, first as president of SPJ’s St. Louis Pro Chapter and now as Region 7 director.)

School divisions were based on cumulative undergraduate and graduate enrollment, with large schools having a minimum of 10,000 registered students. For some categories, school size was not a factor.

Winners in each category will be recognized during the Student Union event at the Excellence in Journalism 2014 conference in Nashville, Tennessee, Sept. 4-6. A full list of MOE Award recipients is available on SPJ’s website.