Peter Doucette's presentation at The 2017 ROUNDTABLE in Vail, CO

1. The Boston Globe
Digital Business Case Study
The Roundtable
August 2017

2. Objective
Create a sustainable business model that supports
quality local journalism
2

3. Vision
• We are, first and foremost, a consumer-revenue driven business that
serves and grows our paid-customer base with; quality journalism that
adheres to our mission, products worth paying for, and technology that
allows us to capture and retain those customers.
• We are, secondarily, a business focused on attracting and retaining
premium-advertising clients to whom we offer a highly engaged and
loyal audience.
• And, finally, we serve as a convener in our community, one always
striving to be a relevant and estimable marketplace of ideas, products,
services, and bulletins.
3

4. Approach: Audience-Centric Digital Strategy
4
Low
engage
d
43%
Print
engage
d
25%
Mobile+
online
engage
d
32%
Print engaged –
• Subscriber model
• BostonGlobe.com
Mobile/Online engaged:
• Advertising model
• Boston.com

5. 5
▪ Emergence of distinct B.com voice
▪ Significant aggregated content
▪ Robust online communities
▪ Transaction hub with reviews, loyalty
program and exclusive deals
End-state vision
Online
OfflineMobile
Content
▪ Personalize Boston.com
content (e.g., iGoogle)
▪ Read hyper-local news provided
by journalists and contributors
from the community
▪ Enjoy local social scene
(e.g., photos)
▪ (Re)-discover Boston with city
guide
▪ Enjoy New England with guide
Commerce
▪ Find local coupons/deals
and trade them
▪ Get “Last-minute Boston”
deals
▪ Do everything on one site
with Boston.com
transaction hub (e.g., buying
flowers, booking a
restaurant table, making
appointments)
▪ Join the Boston.com local
loyalty program
Community
▪ Share hyper-local news
▪ Write reviews (e.g.,
restaurants, movies)
▪ Participate in lifestyle
communities (e.g., moms)
▪ Shape content through
preferences and priorities
▪ Connect on and offline with
the community (e.g., affinity
group networking, events
organization)
“My Boston”
“Stay
connected.
Share
experiences.
Shop smart”
Online
OfflineMobile
Content
▪ Personalize Boston.com
content (e.g., iGoogle)
▪ Read hyper-local news provided
by journalists and contributors
from the community
▪ Enjoy local social scene
(e.g., photos)
▪ (Re)-discover Boston with city
guide
▪ Enjoy New England with guide
Commerce
▪ Find local coupons/deals
and trade them
▪ Get “Last-minute Boston”
deals
▪ Do everything on one site
with Boston.com
transaction hub (e.g., buying
flowers, booking a
restaurant table, making
appointments)
▪ Join the Boston.com local
loyalty program
Community
▪ Share hyper-local news
▪ Write reviews (e.g.,
restaurants, movies)
▪ Participate in lifestyle
communities (e.g., moms)
▪ Shape content through
preferences and priorities
▪ Connect on and offline with
the community (e.g., affinity
group networking, events
organization)
“My Boston”
“Stay
connected.
Share
experiences.
Shop smart”
▪ More unique content and interfaces
(e.g., skins optimizing reader experience)
▪ More exclusive subscriber features
(e.g., invite-only classified section)
▪ More multimedia experiences
(e.g., HD video content)
Print
EventsOnline/mobile
Connecting
▪ Engage with Globe journalists in
online discussions
▪ Connect with fellow subscribers
and Globe personalities online
and at subscriber-only events
▪ Enjoy subscriber-only benefits at
Boston institutions, venues and
events
Convenience
▪ Curated view of the news,
The Globe’s take on what’s
important — assembled for
me
▪ Recommended things to do
▪ Form factor of a newspaper
(design cues from iPad, too)
▪ Subscribe once, read
anywhere, print, mobile, iPad,
web
BostonGlobe.
com
“Stay current.
Be informed.
Read.”
Content
▪ All the content of the paper,
with archives access, too
▪ Online-only and customized
content extends the print
experience (video, blogs,
multimedia)
▪ Breaking news
▪ Elegant ad integration:
additive, not distracting
▪ Immersive reading
experience
Print
EventsOnline/mobile
Connecting
▪ Engage with Globe journalists in
online discussions
▪ Connect with fellow subscribers
and Globe personalities online
and at subscriber-only events
▪ Enjoy subscriber-only benefits at
Boston institutions, venues and
events
Convenience
▪ Curated view of the news,
The Globe’s take on what’s
important — assembled for
me
▪ Recommended things to do
▪ Form factor of a newspaper
(design cues from iPad, too)
▪ Subscribe once, read
anywhere, print, mobile, iPad,
web
BostonGlobe.
com
“Stay current.
Be informed.
Read.”
Content
▪ All the content of the paper,
with archives access, too
▪ Online-only and customized
content extends the print
experience (video, blogs,
multimedia)
▪ Breaking news
▪ Elegant ad integration:
additive, not distracting
▪ Immersive reading
experience
Boston.com
BostonGlobe.com
2011 Launch
▪ New site with paywall for full-length BG
content with access across devices
▪ Multi-format (including newspaper-like)
immersive reading experience
▪ User functionality (e.g., chats, forum
moderation)
▪ Digest versions of Globe articles
▪ Some non-Globe content with
increased focus on Local News,
Lifestyle, A&E
▪ Local deals & coupons
Approach: Two Website Model
Two websites and two distinct user experiences to drive
revenue

6. Digital Audience Trends
6
Boston.com
2011
9mm Monthly visitors
Glo
be.
co
m
Boston.com
Globe.com
2014
Globe.com
Boston.com
Note: bubble size represents monthly unique visitors
2017
15mm Monthly visitors

7. Total Digital Revenue Growth
7
33
26
20
2
10 21
0
5
10
15
20
25
30
35
40
45
2011 2014 2017
AnnualRevenue($MMs)
Advertising Consumer

8. Total Subscriber Growth
8
266
224
195
16
56
90
100
120
140
160
180
200
220
240
260
280
300
2011 2014 2017 YTD
SubscriberVolumes(000s)
Print Digital

9. Pay-model changes lead to net sub growth
9
2012
2013
2014
2015
2016
0
10,000
20,000
30,000
40,000
50,000
60,000
(600)
(400)
(200)
0
200
400
600
800
1,000
1,200
1,400
1,600
*Subscriber count does not include ePaper or group subscriptions
Hard
paywall
Meter
10
Meter
Broken
Meter 5
45 Day
Meter 2
Incognito
2017

10. Tactics/Lessons Learned
10
Lead generation: is important for both user engagement and conversion (10X)
Site Design: It is difficult to influence recirculation behavior for non subs through
site design
Subscription Funnel: Focus on mid-funnel activities and existing digital audience
pays dividends
Subscriber Management: managing credit cards is critical
Pricing: digital subscribers are highly price inelastic
Digital Revenue: subscribers can be the primary revenue driver for the website
Retention: subscriber engagement drives retention

11. Lead Generation
11

12. Lead Generation with Newsletter Sign Ups
12
ToFrom
X
X
X
Email Capture Modal – Article 1

13. UX change impact on leads generated
13
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
LeadsGenerated
Day
Impact of Changes Modal Lead Generation
Lead to 5X increase
in conversion

14. Trended View of Leads Generated
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Cumulative
Monthly
New Leads Cumulative Leads
Generated 2mm leads over last 18 months

15. Site Design
15

16. Article 2.0
16
Article Redesign to Improve Recirculation

17. Header and registration redesign
17
Header Redesign to Drive Recirculation

18. Non
-
5.0
10.0
15.0
20.0
25.0
Meter 1 Meter 2 Meter 3 Meter 4 Meter 5 Meter 6+
UniqueVisitros(MMs)
Unique Visitors by Meter
Quarterly Data
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017*
18
Design changes have not impacted user recirculation

19. Subscription Funnel
19

20. Mid-funnel examples
20
• 45 Day Change – 3.2K, $250K
• Meter 3 – 6.1K, $335K
• Incognito Browsing – 0.9K, $50K

21. Subscriber Management
21

22. Dedicated focus on credit card processing
22
Digital - Old Process
CC Updater x
Initiate Payment x
Recycle x x
eMail x
Call
Digital - Current Process
CC Updater x x x x x x x
Initiate Payment x
Recycle x x x x x x x x x x x
eMail x x x x x x
Call x
Wk3 Wk4
expire stop
writeoff
Wk-3 Wk-2 Wk-1 Wk1 Wk2
writeoff
Wk4
stop
Wk3Wk-3 Wk-2 Wk-1 Wk1 Wk2

23. BG.com non-payment stops
Previously implemented processes are stabilizing. Average volume of NonPay Stops on digital subscriptions has so
far been reduced by 65%. Recycling and cc updaters are the largest contributors to this success. Further
improvement is expected as Real-Time Authorization is implemented.
23
Pre-Change NonPay Averages
Count: 321
Percent: 44%
12-Week NonPay Averages
Count: 115
Percent: 27%
Reduced involuntary
churn by 65%

24. Pricing
24

25. 84% increase in rate yields a 4%-5% increase in cancellations
25
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
1/4/2015 2/4/2015 3/4/2015 4/4/2015 5/4/2015 6/4/2015 7/4/2015 8/4/2015 9/4/2015 10/4/2015
Weekly Cancellation Rate
1 YR+ < 1YR
After initial bump, cancel rates are back
return to near normal level

26. Digital Revenue
26

27. Subscribers generate 86% of Globe.com revenue
27
Subscriber revenue includes e-reader revenue
Ad revenue based on $409k per month (56.5% non-subscriber, 43.5% subscriber, based on PV allocation of Logged In vs Logged Out)
$14,606
$2,773
$2,135
2016 Globe.com Revenue (millions)
Subscriber Revenue Non-Subscriber Ad Revenue Subscriber Ad Revenue

28. Retention
28

29. Linear relationship between engagement and retention
• The correlation between site usage and
retention is a linear, 1:1 relationship.
• Subscribers who use the site on 90 – 100% of
possible days have a one year retention of
87%, 3x that of our least engaged segment.
*Based on May 2016 site usage data 29