The Future of Google’s Technology

By Barbara Gengler

Sara Kleinberg, Google’s head of marketing, leads Google’s marketing team for established industries. Sara’s team works with marketers from the retail and technology industries to provide insights into the value of online advertising and how marketers can connect with their target consumers through Google’s advertising platforms.

Prior to joining Google, Sara was a product marketing manager at American Express. Previously, Sara was a strategy consultant at The Parthenon Group in

Boston and worked in business development for various internet companies.  Sara holds an M.B.A. in Marketing from the Wharton School of the University of Pennsylvania, and graduated magna cum laud with a B.A. in Communications from the Annenberg School of Communications at the University of Pennsylvania. Sara lives in New York City.

Could you talk about Google’s multichannel marketing and where the technology is heading?
Think about yourself as a consumer and when you’re thinking about buying something. More times than not the easiest thing to do when you’re first considering a purchase is you go to Google and search to get more information,  about something you’ll buy or something you’re planning to buy. So that’s kind of where it all begins and you might then search at the broad category level. Hey, I’m interested in re-doing my kitchen or you might say I’m ready to buy kitchen cabinets, and that would be product information, the second type of search. Then you might say how much do kitchen cabinets cost? Should I buy at  Home Depot or Lowe’s or should I get them custom? The fourth thing may be do I want to search because I’m about to drive over there and need directions to get there?

It all starts with the consumer and their interest in researching something and buying something. And because Google is a place consumers go to determine what they want to buy, it’s also a good place for retailers and other businesses to market their products and services. Because it is where in-market consumers are looking and researching and shopping. So that kind of ties in back into Adwords and why Adwords is successful and a useful forum for businesses that are trying to reach out to customers.

So the idea is because consumers are on Google search asking questions and stating their interests, Adwords platform enables businesses to place the right ad to the right user for right time to answer those inquiries. So that could be anything from big Fortune 500 companies or the Mom and Pop shops. Adwords can really serve the big to small and do that same service of connecting the right ad to the right consumer at the time based on the searches.

Now thinking about ecommerce I gave the four things that people look for. They look for category information, product information, price information or the link to the store. And so getting into multichannel, sometimes you’re looking online or searching online because you actually want to buy something online and that’s ecommerce.

Is the gap between expectations and capabilities in multichannel marketing significant? What challenges do companies face in planning, deploying and measuring campaigns?
Where the multichannel marketing approach comes into play is with the fourth type of search that links to the store offline. So again back to kitchen cabinets, if you need custom kitchen cabinets you may order them online or you may feel more comfortable going to store to talk to a representative. What we find in our consumer research is you still go to Google to search to do the research online but then you’ll actually visit the store and that’s what we call  (or a business thinks about) as multichannel.

If you think about retail overall and how big that market is online and offline, according to Forrester Research, 45 percent of all retail sales are impacted by online. So it’s not that the purchases are made online but the impact online, Forrester is recognizing how much of general business is impacted by this online research.

If I’m a pure-play ecommerce company and online search company, search marketing is a smart online marketing vehicle for me because that individual is searching online. If I’m a multichannel retailer that means I have ecommerce but I also have a physical store. Even if I’m just a physical store and I don’t have an ecommerce platform, (like a lot of local record shops that don’t have the  infrastructure to sell on line), but because like Forrester said 45 percent of sales are impacted by online, so even if I’m a record store that doesn’t have any ecommerce, that’s what multichanneling marketing is all about.

It’s about using the online channel to market your products and services even if the sale is made in the store. And as marketing is evolving and as consumer behavior is increasingly turning online into search ads the critical research piece to the purchase, it’s smart marketing for these multichannel or even offline businesses to use the search marketing to reach the consumer.

And so the whole Adwords platform or concept of search ads on Google is a way to enable that type of advertising. It’s a self-serve system that even a small cabinet maker or record shop or a big multichannel conglomerate can all access to run these search ads and respond appropriately with the right message to the right companies.

What are some of the most effective ways to get the most optimized campaign possible with Adwords?
At Google we encourage what is called test and learn. We do have some general pointers about ad copy and making sure that the ad copy is directly relevant to the search term that is typed in. And making sure it’s very clearly written and that it can have a special promotion reflects that in your ad copy because that’s going to attract attention.

So there are certain tips that we make available for how to write smart copy and then the other thing we encourage is trial and error so that the Adword system enables you to put several different variations of Ad copy and then you can see which one wins. You can trial and error and see what works best for you and see what works best for your business and your product set, or which products you should be promoting more heavily than others through this self-search system. Not only is it a way to place ads but it’s also a way to be strategic and to learn about your campaign because you get the feedback.

Another advantage of search advertising is the real-time feedback about what’s working whereas in traditional advertising it’s just not an option, like television advertising or newspaper circulars which are all traditional marketing vehicles for driving purchases. It’s difficult to know if the green circular or the blue circular works better, or if the picture of the bicycle or the picture of the tricycle is going to sell better. But on the Adwords marketing platform you can learn real time what’s going to be the most effective advertising for you.

Could you talk about measurement and ROI? Online marketing efforts are claiming a lot but without proper measurement, it doesn’t mean much. So what does Google think about ROI?
That builds on what I was going to explain - that one of the advantages and more unique attributes of online marketing is the ability to see results, to see who’s clicking on what. What online marketing provides is hard and fast data and real time reaction.

If you think about ROI, that is the return on your marketing investment, it depends on your marketing goals. So, for example, when we’re talking about ecommerce, one of my goals would be to get people to my website, and that’s something that I can easily measure on Google’s Adword platform, just by seeing who is clicking and the traffic that I’m getting. If you want to see the return on investment, clearly you’re interested in the sales or the actual transactions or the products that you’re able to sell, based on your advertising. And again that requires a little more analysis but Google has tools to help you do that.

You can sign up for free to get some of these tools that allow you to optimize based on your transactions and learn about that and that way you can better optimize your marketing so you can figure out which ads not only bring the most traffic to your site but you can also figure out which ads yield you the most purchases.

Google has these tools, conversion optimizer and conversion tracking. What Google offers is limited to online transactions. It’s possible but more complicated to also measure offline transactions so let’s talk about the world of online transactions.

Google has these free tools that any Mom & Pop or any major corporation can set up. One is called conversion tracking and one’s called conversion optimizer and if I were a retailer on my website I would set up some tracking links and input some of the information and set it up so that the tool tracks the search terms that are coming in or the ads that are getting clicked. It tracks in this online world on the back end, what kind of things are sold or what kind of transactions made on the back end and its all propriety to the retailer.

So if I’m the record shop that’s selling online and decide to sign on for one of these free tools that Google offers nobody else see that information, that’s my private information.

There are plenty of tools and products in the marketplace offered by many different companies. So again the advantage of online marketing is that it is trackable and it is accountable and it provides a lot of data to be able to make smarter marketing decisions based on the impact the ads are having. And now tie it back to ROI, if you understand the effectiveness of your ads, and you’re able to make smarter marketing decisions about which ads to run, you can optimize to get greater yield, more sales, more transactions or whatever your marketing goal is and then that yields you higher ROI versus the kind of traditional market model, its guesswork. You can try to figure it out, and there are ways and data models to help figure it out, but it’s much more complicated; it’s certainly not real time and it’s certainly not as accessible as implementing a free tool from Google’s.

Could you tell us about the vision for the Google Retail Blog?
At Google we have specialists to address different industries because we want to make sure we’re giving the best advice to businesses based on whether they are retailers or in the travel space or whatever it is. So I look after retail and technology, and we have this blog, the retail blog, for retailers whether they be Mom & Pop shops or large multichannel and this is where we provide tips and advice for smarter, more effective online marketing. For example, at the blog’s entry for April 7, which is called Get Ready for Outdoor Entertaining, there’s a trend that we noticed people searching for patio furniture, what kind of patio furniture and what’s on sale.

And by this blog we track and communicate these trends to help marketers be more effective. And in March there’s an entry about Mother & Father’s day coming up and we took a look at when are people searching for gifts for Mother’s Day and when are they searching for gifts for Father’s Day. This is all based on human behavior and we know that consumers start to search when they’re thinking about making a purchase or when they’re ready to make a purchase.

And so by revealing that information about these consumer insights and the learning we have about how consumers shop and how they research, it can help guide advertisers into when people are shopping, if they’re shopping more for Mom’s than Dads or Dad’s more than Mom’s. The blog is a forum for us to help by revealing some of these insights. And we can also provide information on the types of terms people are searching on. There’s an entry on March 25 for fastest rising search terms or things that people are typing into the search engine, what’s bubbling to the top of frequent new things. Here we see graduation party invitations and dresses for graduation. Because search is what consumers do when they’re thinking about shopping or what’s going on in their life right now, we can come up with a lot of insights on consumers behavior and consumer shopping behavior.

Distimo Provides Insight & Analysis Across Top App Stores

By Ron Callari

Less than a week after Apple introduced its iPad, its app store was offering approximately 2,400 applications optimized for the tablet device and “games” represented 35 percent of all iPad titles. This analysis, coupled with comparison pricing, number of apps sold and the specific app store breakdowns by source is a small snapshot of the work that is done by Distimo, an innovative app store analytics company that addresses the widely fragmented app store marketplace.

Distimo, a privately held company based in the Netherlands provides in-depth reports and analytical monitoring for companies interested in how their apps are doing across the mobile application ecosystem. While the company competes with the traditional market analysis companies such as comScore, Forrester and Gartner, in stead of basing findings on panels and surveys, “Distimo Reports,” according to co-founder and VP of development Remco van del Elzen, “are more timely and accurate, covering the whole app store market based on factual information.”

Jan-Joost Rueb, CEO and co-founder of eBuddy, a Web based instant messaging service uses Distimo’s reports and monitoring analytics for his firm. Differing from some of the other research companies, he finds most useful, Distimo’s ability to not only track popularity of his app in other countries, but also to “compare the performance of competing applications with our own apps.”  The total cumulative download (to date) breakdown per source for eBuddy is shown here.

Interesting to note, eBuddy app is #2 most downloaded app on GetJar (behind Facebook).

Both Distimo Reports and Distimo Monitor are free to companies. The Monitor service offers mobile developers a free analytics tool to track their own and competitive applications across all app stores, without any adjustments needed to their application’s code. The company is monetized by selling their reports to device manufacturers, operators and large developers, with the future goal of “introducing premium features,” notes van del Elzen.

Companies can view daily downloads and revenue figures of all their applications and analyze their rankings, worldwide and compare these findings to how the competition is doing in terms of publicly available data, such as popularity, rankings and price changes.

The app stores currently analyzes findings from the six largest applications stores in existence today: the Apple App Store, Blackberry App World, Google Android Market, Nokia Ovi Store, Palm App Catalog and Windows Marketplace for Mobile.  According to an aggregate report of the number of applications available in the market for the month of March, it is clear that Apple’s App Store is by far the clear front-runner.

Book apps are proven to be lucrative for the eReader market. One of Distimo’s studies indicates that the highest percentage of apps in the Apple App Store is now paid book applications. For example, there are 27,0000 books in the store, and of those 92 percent are paid apps, according to Distimo’s data. When questioning van del Elzen why Kindle, Sony Reader and Barnes and Noble’s Nook were not included in their reports and monitoring, he indicated that Distimo currently focuses on the stores that provide applications. “The line between applications and books however is blurring and we will provide analytics on some of the eReader market as well,” he notes.

The different ratios of free apps versus paid were one of the findings that Distimo presented during MWC 2010. In the chart below you can see the percentage breakdowns per store. While Android has the most free applications, Nokia has the most paid.

Developers can use Distimo’s data-mining to adjust pricing and distribution channels to maximize growth and revenue streams of their apps.

Rueb finds Distimo’s analysis invaluable because of the changing competitive market his firm has to deal with on a daily basis.  Tracking eBuddy’s performance on a worldwide level with Distimo, Rueb sums up Distimo as a service that which “allows us to act fast, based on country level analyses, popularity of competing apps and competitor’s actions.”

Jenn-Air cooks up webisode series to promote new kitchens

By Ken Liebeskind

What’s cooking online these days? How about 11 new webisodes promoting Jenn-Air kitchens starring a celebrity chef and contestants in a cooking competition.

In the Kitchen webisodes debuted March 26, were created and produced by RedLever and star Tori Ritchie, the celebrity chef, who has hosted Ultimate Kitchens on the Food Network and cooking segments on the CBS Early Show. Ritchie introduces the contestants and oversees their preparation of gourmet meals that are served to their special guests. Viewers vote on their favorite contestant, who will win a Jenn-Air kitchen prize. One of the viewers will win another Jenn-Air prize.

The webisodes run five to seven minutes each and all 11 play on the site simultaneously.

Richard Shore, RedLever’s chief operating officer, says the webisodes were shot at a Los Angeles studio and follow a standard episodic format structure: “Act one introduces the candidates, the second act is a set piece in the Jenn-Air kitchen and the third is in a dining room where the contestants throw the occasion on an intimate table setting.”

RedLever pitched the idea for the webisode series to Digitas, Jenn-Air’s agency, which is using them as an online element of a campaign that includes magazine ads and live events.

The webisodes offer brand integration, with the meals prepared in a Jenn-Air kitchen with Jenn-Air product mentions from Ms. Ritchie. The scripts were written by RedLever with guidance from Digitas.

Digitas was drawn to the webisodes by a 25 million per episode audience delivery guarantee by the Adconion Media Network, RedLever’s parent company, which runs an ad network with more than 2,000 sites. The webisodes run at the home site and in banners at sites in the Adconion network. Digitas selected sites that behaviorally and demographically fit the Jenn-Air target, according to Justin Newby, vice president group director at Digitas. “We’re not just throwing it into the air and hoping it works, there’s a guaranteed performance in place,” he says. “We hope as many people as possible watch the whole series, so it plays out like TV programming.”

The 25 million isn’t a viewer number, but an impression number, he notes.

“We have a proprietary ad server and in-house technology that provides us with the targeting capability to identify the right audience. We use third-party data and Comscore overlays to look for the appropriate sites within our network,” adds Nick Higgins, Adconian’s director of global video.

The webisodes are the key element of an online campaign that also includes Flash and rich media units at HouseBeautiful.com, BonAppetit.com, Epicurious.com, PointClickHome.com, Kitchens.com, FoodandWine.com and Yahoo. Magazine ads have appeared in national and regional publications, including House Beautiful, Food & Wine and Texas Monthly. Live events including the Architectural Digest Home Design Show and the Pebble Beach Food & Wine event have also been used. “We’re looking for ways to create the brand experience and engage the target who loves to cook and entertain,” Newby says. “It’s a 360-degree program and the webisodes are the most important component.”

Adconion declined to discuss the specific sites or the number of sites that will guarantee the 25 million impressions. The number of webisode impressions that have been served during the first weeks of the campaign are unreported. “We do not disclose campaign results, but the results are positive,” Newby said.

The webisodes will continue to play through 2010 with a contest winner announced in July.

Knowledge Management: Measuring Social Media ROI

By James Zipadelli

Companies are harnessing the potential of social media to make connections with their clients through so-called “knowledge-management systems.” Knowledge management systems are programs that harness the power of social media sites, such as Facebook, Twitter and MySpace, and track a company’s “buzz” around the Web.

What companies using social media say

One company that is doing this is Salesforce.com. Salesforce.com has an internal social media application, Chatter. 500 clients are using Chatter now, and this service is available to clients who have a subscription to Salesforce.com. Salesforce.com says it has more than 72,000 clients and 150,000 apps in the cloud community.

“People want to have relevance, connect easily to other people, and using devices to do it,” says Ariel Kelman, VP of platform and product marketing, Salesforce.com. “They’re accessing more though smartphones and notebook PCs. That’s Cloud 1. In Cloud 2, we’re looking to YouTube and Facebook, which is the magic of Chatter. We’re looking at the feed as your ultimate user experience. We want real-time status updates and platform technology to be as easy to use and alive with data is as easy as Facebook.”

“With Chatter, we are resetting people’s expectations for how their apps should behave,” Kelman says. “When they go into work, their expectations are Facebook Twitter and YouTube work. That’s why IT organizations have to reset their priorities and a new set of demands. They’re going to be asking the CIO, why can’t our application use Facebook?”

Another company that uses social media to track company buzz around the Web is OneRiot, which calls itself a “real-time search engine.” OneRiot spokesperson Courtney Walsh says traditional search engines don’t deliver what OneRiot can, which are socially relevant results on any topic in real time.

“OneRiot is a search engine. Although, rather than a traditional search engine, OneRiot is a realtime search engine,” Walsh says. “While traditional search engines like Google, Bing, Ask.com offer a way to navigate the web and conduct research - realtime search offers a way to search any topic to find the current buzz.  Realtime search is a great addition to the whole search experience.”

Businesses can use OneRiot to track their company buzz. Search “Microsoft” or “Google” and there is a collection of videos, articles, blog posts and Tweets which people are sharing.

Carlin Wiegner, CEO of the enterprise social software website CubeTree.com describes social media as “good” for the business. “Sometimes, it’s the only way you can reach people,” Wiegner says. “But you’re also trying to drive revenue and making customers happy. Most people are trying to do old way or new way.”

Wiegner says it’s helpful to do polls of CubeTree.com users and changes its software every week, although most changes are incremental.

“One, clearly more than one customer sees this need,” Wiegner says. “Two, it shows the customer they’re engaging in feedback. Those are sometimes the most passionate users but not all the users. Three, competition: We constantly think about where our competitors are going to be. Finally, you also need to have a vision. That’s why you need a project manager but it’s exciting to see what people want fixes to the product.”

What the analysts say
Gartner analyst Michael Maoz says companies are beginning to understand the value of social media and how it helps their businesses.

“There’s just as much value being able to foster internal social communication, and it’s not written about much,” Maoz says. “For example, with social media, companies are onboarding a new employee more quickly - plugging that person right into everyone. Before social media, a new employee comes in, and they jump around from server to server. When you bring together social media in form of wikis, blogs and integrated knowledge systems, they more quickly get a sense of, ah, this is who we are.”

According to Maoz, using social media saves time and money because people can find what they are looking for faster.

“It reduces the number of support personnel that they need directly and also helps product development,” Maoz says. “Instead of figuring out what to work on, I observe the community. Some companies, like Apple, Google, or Amazon don’t work that way. They say, ‘This is how the customer will interact.’”

Maoz used the example of Microsoft and Oracle having communities of developers posting solutions to questions instead of employees. Maoz says the benefit for the developer is two-fold: The developer is sharing information with the consumer and promoting themselves as a trustworthy source in the process.

“These social tools are in a way a mechanism to get back to a level of trust,” Maoz says. “The best way to gain your trust (from a company perspective) is to know what you’re thinking in the first place. We know we’re not perfect, we know you know we’re not perfect and now we’re giving the mechanisms to help you.”

It remains to be seen whether there will be a dominant social organizer on the Web, like Google for search engines. ABI analyst Dan Shey says there will not be a dominant social organizer on the Web.

“I think social networking is enhancing current applications already used in the enterprise.  I would say that search is an important function for internally-focused enterprise social networking - the ability to search the web and internal databases for data specific to a group’s needs.”

Gartner’s Maoz is more optimistic.

“I think it’s going to happen, I don’t know when,” Gartner’s Maoz says. “What they’re going to provide me is a secure way to plug into a framework. I’ve got my stuff right there,” referring to his social media tools to communicate. “Facebook is the idea. I want Facebook to fit to me.”

CubeTree’s Wiegner says having a program organizing social media would be helpful.

“We’d love to have a single tool for social media,” Wiegner says. “You really have to get specialized social media tools to figure out who is saying things about you.”

Rebranding: Digg Digs Deeper

By Sheila Shayon

DMB recently checked back in with Digg, the user-driven social content brand. Things are buzzing at Digg as they prepare a new website, now in private beta, which will go public in a few weeks.

Six months into Digg Ads, the company has just switched CEOs as founder Kevin Rose takes over the reins from acting CEO Jay Adelson. Rose’s first official act - killing off the DiggBar. A bold move in itself, Rose added to the transparency integral to his brand, and made the announcement on his blog, candidly.

“Framing content with an iFrame is bad for the Internet. It causes confusion when bookmarking, breaks w/iFrame busters, and has no ability to communicate with the lower frame (if you browse away from a story, the old digg count still persists). It’s an inconsistent/wonky user experience, and I’m happy to say we are killing it when we launch the new Digg (sign up for the beta here). That said, we will continue to iterate on our browser extensions for Firefox, Chrome, and IE. Look for seriously revamped versions of those in a few months.”

DMB spoke with Bob Buch, Digg’s VP of business development about the latest developments at Digg. “The general feeling is one of excitement; we are on the precipice of launching the new Digg, and getting back to our roots of innovation, entrepreneurial vision, and moving at light speed in the online media space.”

Digg will be ‘unbanning’ previously banned websites. Personalization is the key. “It’s not as critical to curate specific interests for the user. What defines spam is an individual choice. If you are interested in McDonald’s, or Toyota, or Coca Cola, you may want to follow them, it may be interesting content for you,” Buch says. “No one size fits all Home Page anymore. It’s a natural evolution of the product.”

“Input from 40 million readers combined with Digg’s curation algorithm will always be a better filter than policies enforced by a small staff of humans. It’s another way we’re welcoming brands into the Digg conversation. More ways are coming soon,” comments Chas Edwards, chief revenue officer.

As for Digg Ads, they have exceeded expectation. “In addition to being fun to work on, each day brings new performance records. More people are engaging, more revenue coming in, and more advertisers - a broad range - are signing up. And 50% are repeat advertisers,” Buch says.

The Digg plan of transforming ads into worthwhile content is a trend that seems to be working - and the company plans to accelerate efforts in that arena. Two recent examples cited by Buch:

“During Toyota’s recent crisis, instead of pulling back on their marketing plans, they increased their investment, getting their critical messages out in Digg Ads, like, “What to do if your accelerator gas pedal sticks,” or “Is your Toyota on the recall list?”

“Newegg used Digg Ads for their pre-release of the Avatar DVD with a simple message: “Avatar, pre-order today.” They treated it as newsworthy, the benchmark being, would you e-mail and share this item with a friend?”

Asked about syndicating the Digg Ad model, Buch commented soon, but not yet, as they are still working on fine-tuning targeting capabilities. Through a daily auction process, Digg sets a market price for all advertisers in the system. “This auction has unique, inherent fairness, avoids buyer’s remorse and encourages advertisers to bid their utility - or what the click is truly worth to them.”

Digg then uses the “wisdom of the crowds” to adjust the pricing for each ad by rewarding the most popular ads with free bonus impressions so they are seen more at a lower average cost per click. Digg’s second stage plan is to increase the relevancy of ads by allowing advertisers to more granularly target their audiences. To do so, Digg plans to shift from single daily auction to a real-time auction model.

Buch and his colleagues have been pleasantly surprised by how positively the community has responded to the ad model. “Users recognize Digg needs to make money, and they also recognize we are working to be innovative and customize messages to the community. Our ad system empowers users, impacts price, and rewards quality. We’re building an eco-system around it. It’s a game-changer for the ad industry; there are agencies now developing expertise in writing Digg headlines.”

Digg’s current mantra: “Listen to users; collect feedback; keep building and iterating.” Occupied fully with the redesign and delivering apps for iPhone and Android, Digg looks to the future with great expectations.

As everybody in the social media space is trying to gain equilibrium amidst the Facebook and Twitter tsunami’s of success, Digg is confident.

“Imitation is the greatest form of flattery. Digg is a first mover and innovator. The online ad market is so huge, the rising tide will raise all the boats,” Buch concludes.

New York Times Pay Wall Will Go Up, But Where?

By Matt Robinson

PHOENIX — The New York Times is building a metered pay wall debuting in 2011, but still figuring out where to put it.

The pay wall will allow readers free access to stories initially, but after a certain number of page views or another metric, readers will have to pay. The Times decided that another stream of revenue was needed as they continue to develop their digital advertising model.

Arthur Sulzberger Jr., publisher of the paper, speaking at the annual Society of American Business Editors and Writers conference, says the strategy was designed for the nytimes.com site, given its national and international reach. But he didn’t recommend it for other newspapers, including The Boston Globe, a sister publication, because of its local focus.

Figuring out how to quantify reader’s usage is difficult. Readers don’t see 10 clicks on a photo slideshow as similar to 10 different page views, Sulzberger said, and neither should the paper. He’s also uncertain on how the more than 60 blogs on the site will be monitored as well, including CUNY’s Local and NYU’s upcoming East Village site.

Sulzberger explained that the success of the new project is “inextricably connected to the promise of quality journalism.” The Times research and development department, which was started to explore digital initiatives, is spearheading the transition.

That translation decided against a possible “iTunes model,” where consumers buy songs for around a dollar. That model would do the same per story, but unlike music, readers are unlikely to enjoy a story over and over again, Sulzberger says.

He avoided forecasts on how successful the pay wall will be, focusing on the current environment. “It’s what the Times needs to do today,” he says, adding, “It will take time to get this right.”

The paper expects to lose some traffic from people who refuse to pay, but are confident loyalists will continue to support the paper. News on the iPhone app will continue to be free.

The Times has started an ad campaign for its New York coverage as the paper will be competing with the Wall Street Journal’s New York edition, which debuts next month.

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