By paulgillin | November 10, 2011 - 10:32 am - Posted in Fake News

The news just keeps getting better at The New York Times and the Financial Times, as new numbers indicate that paywalls really work if you’re among the most respected news organizations in the world.

The FT reported that it has breached the 250,000 subscriber mark, having grown digital subscriptions 30% during the last year. The FT charges about $390 for an annual subscription to its website, which would indicate total digital subscription revenues of nearly $100 million if everyone was paying the full annual price. However, the actual total is almost certainly lower than that, since print subscribers pay discounted fee and not all subscriptions are annual. However, the performance is still impressive. The FT said 100,000 of those subscriptions are from corporations.

NetProspex Social Business ChartThe Times is confident enough in its paywall experiment to declare victory and begin branding itself as a social media poster child. Times publisher Arthur Sulzberger took the stage at the London School of Economics last week to crow about a report by lead mining firm NetProspex that declares that the Times is the number one most social company in the U.S., based upon the total number of employees using social media and their fan/follower reach. Sulzberger said the designation recognizes the success of individual employees, such as Nicholas Kristof and C.J. Chivers, at building their own social followings.

“In 2000, we were #3 in terms of uniques behind the Washington Post and USA Today,” Sulzberger said.  “Today we’re proudly the #1 newspaper website, with a worldwide audience of over 45 million uniques…and that’s after we started asking readers to pay for unlimited access to our content.” The Times’ aggressive adoption of Twitter, in particular, has paid off in word-of-mouth awareness. Sulzberger said a Times story is now tweeted every four seconds.

Read a transcript of his comments for more examples. Note, in particular, the emphasis on “digital first,” and the speed with which the Times is creating hash tags and real-time Twitter feeds to lead the conversation on breaking news. Sulzberger also has some interesting points about the reading habits of mobile users and how they differ from those of traditional print subscribers. The ability to “literally get into bed” with readers is an opportunity to expand the Times’ franchise, not simply an adjunct to the print product.

The good news continues overseas, where News International reported a 10% increase in digital subscriptions to the Times and Sunday Times over the past three months to a total of more than 111,000. The company said it would start reporting monthly digital subscription updates, indicating confidence that the number will grow.

Does this mean paywalls are the answer to the industry’s woes? We’ll believe that when we start hearing similar success reports coming from major metro dailies that aren’t The New York Times or that don’t deliver high-value financial news. For now, publishers can take some comfort in the fact that the hemorrhaging appears to be under control. Print circulation is actually growing in emerging markets like Latin America and Southeast Asia, and North American advertising revenues actually were up slightly last year.

Nonprofits Gain Traction

Into the Wild - Knight FoundationNonprofit news organizations are some of the most promising candidates to replace the investigative journalism that’s been lost to cost-cutting in mainstream media, but one of the keys to success is to go beyond simply filling that gap. That’s according to an impressive new report from Knight Foundation, co-authored by our good friend Michelle McLellan, that looks at critical success factors for nonprofit success.

Poynter’s Rick Edmonds has an excellent summary of the study, which looked at the business models of seven promising local ventures, ranging from the ambitious Texas Tribune to the much smaller, hyperlocal St. Louis Beacon. While none has reached self-sustainability just yet, these startups are learning tactics that can serve as a model to others.

The report cites three “next-stage” opportunities, but they can really be boiled down to one truth: Go beyond replacing the newspaper model. Successful ventures are leveraging the unique advantages of online media to deliver information that can’t be expressed in print, such as databases and first-person video. That means hiring technology and data analysis specialists, not just reporters. The featured nonprofits are also diversifying their income streams beyond a few big foundations to include paid memberships, syndication fees, events and sponsorships.

Knight’s study is an encouraging sign that investigative journalism will not perish from the earth, and may even be reborn in a smaller, focused and more-efficient form.

Go Google+

Has your news organization registered its Google+ page yet? Better hurry. Google opened up its rapidly growing social network to company pages on Monday, and news operations like The New York Times have already staked a claim (tagline: “All the News That’s Fit to +”). Even if you have no immediate plans to build a Google+ outpost yet, you want to be sure to grab your brand before somebody else does. As many businesses learned with Twitter, failing to register accounts on new social networks can create an embarrassing situation when others begin speaking on your behalf.

By paulgillin | October 27, 2011 - 4:46 pm - Posted in Fake News

The New York Times released quarterly earnings that indicated that is paywall is working. The report is the first to give some indication of incremental subscriber growth beyond the initial surge of sign-ups that came when the paywall went up in March. It shows that more than a quarter million people are now paying at least the $15 minimum fee. Even better is that traffic to the NYT.com website is actually up 2% from a year ago.

“The Times has created the perfect paywall,” writes Ryan Chitturn on Columbia Journalism Review. “It’s getting tens of millions of dollars from hardcore readers while letting in enough Google traffic and casual readers to continue boosting its online readership and collecting ad revenue off of those eyeballs.”

Chitturn estimates that the Times will take in about $63 million in digital subscriber revenue this year and more than $210 million in total digital revenue. That’s more than it costs to operate the newsroom. Which means that The New York Times could theoretically get out of the print business entirely and still make money.

New York Times Paywall

Does that mean it’s time for everyone to jump into the pool? Bill Mitchell thinks so. Writing on Poynter.org, he tells of moderating a panel at the World Editors Forum in which publishers who had taken the paywall plunge spoke of their initial trepidation and then relief when the steep declines in traffic that they had feared failed to materialize. Traffic to the Berliner Morgenpost has actually doubled since it put up a paywall in late 2009.

Mitchell quotes The New York Times’ Jim Roberts saying the wall has had a morale dividend. “There is more of an investment I feel in the newsroom among our journalists since the introduction of the paywall. They feel a greater stake in the product,” he said.

Perhaps the time is right. The Newspaper Association of America reports that traffic to newspaper websites jumped 20% in September compared to a year ago among the coveted adult demographic. “Average daily visits were up 21%; total pages viewed were up 10%; total minutes spent were up 11 %; and unique visitors were up 9 %,” the NAA reported.

Thus the great paradox continues. Newspapers are more popular than they’ve ever been, but the business model is broken beyond repair. The NAA numbers are encouraging, and perhaps indicates a flight to quality among readers who are fed up with social media noise. For the past five years people have been  publishing all kinds of nonsense online because they could. Now the novelty is wearing off and quality is becoming a differentiation point.

Google’s new Panda search algorithm is supposed to be a game changer in its ability to distinguish quality content from crap. We noted recently that Demand Media, which specializes in crap, has had to remove 300,000 articles from its website because Google won’t pay attention to them anymore. And the world hardly noticed.

The fact that newsrooms turn out a good product has never been debatable, but the idea that people who had been accustomed to getting it for free for 15 years would decide to pay for it is still an open question.

Give credit to the early adopters for fine-tuning the balance of free vs. paid content to achieve some success. The idea is to grant just enough access to entice readers to pay but not enough to give away the farm. The Wall Street Journal lets you read a couple of hundred words gratis but then wants a credit card. Perhaps it and the Times have figured out the formula.

We’ve been skeptical about paywalls for two years, but we’d be the first to cheer their success.  If they enable good journalism to flourish once again, we’re all for it.

Washington Post Co. Holds Out

Katharine WeymouthApparently the Washington Post Co. isn’t convinced. Publisher Katharine Weymouth was quoted in Politico last week saying that paid subscriptions don’t make sense for the Post at the moment. The newspaper’s philosophy is that its website should be “open to everybody and attract as many people as we can to spend as much time as they can with our journalism, and assume that that will bring them back for more.”

Politico points out that the Post has hardly been a beacon of publishing success lately. It has shed more than 45% of its newsroom staff and it just last month announced plans to close nine of its 11 suburban regional bureaus. The Post Co. does have a couple of things going for it, however, including its profitable Kaplan education division and its phenomenal 30% market penetration. You’d think a market share like that would be an incentive to charge more for the product, but Weymouth seems in no hurry. She isn’t ruling out a paywall but says she’s content to wait and see what works.

“They Won’t Invest in You”

Invantory is developing software tools to help people sell things. It wants to be kind of an alternative to Craigslist, with a mobile twist. The founders thought newspaper publishers would be potential customers, because they already know the classified advertising business and they have a desirable channel. But Invantory gave up on doing business with newspaper publishers. The principal reason: their computer are a mess.

“Newspapers’ online technology platforms [are] not standard,” wrote co-founder Ian Lamont on the Invantory blog. “This means that non-trivial integration work is required for practically any new feature or service, whether created in-house or purchased from a vendor. There are dozens of online content management systems (CMS) in use, most heavily customized.”

In other words, any chance newspaper publishers might have to federate their once-highly profitable classified advertising businesses into a network that could compete with Craigslist is undercut by technology decisions made years ago and incompatibilities perpetuated by customization.

The Invantory co-founders met with Newsosaur Alan Mutter at the New England Newspaper Publishers Association. Mutter, who himself tried to start a business to service newspaper publishers a couple of years ago, told them to forget about pursuing a model based up on serving the dying newspaper industry. “VCs with any experience won’t invest in you,” he said.

Miscellany

The i newspaper celebrated its first anniversary this week, challenging the conventional wisdom that print dailies are dead. The commuter-friendly daily, which delivers news in bite sized nuggets, has succeeded in building a paid circulation of 184,000 during its first year. And it’s reportedly profitable, too.


“Data journalism,” in which reporters mine public information to discover nuggets of news, is an increasingly popular discipline. Editors Weblog has a list of free tools anybody can use to become a data journalist.

By paulgillin | - 4:46 pm - Posted in Uncategorized

The New York Times released quarterly earnings that indicated that is paywall is working. The report is the first to give some indication of incremental subscriber growth beyond the initial surge of sign-ups that came when the paywall went up in March. It shows that more than a quarter million people are now paying at least the $15 minimum fee. Even better is that traffic to the NYT.com website is actually up 2% from a year ago.
“The Times has created the perfect paywall,” writes Ryan Chitturn on Columbia Journalism Review. “It’s getting tens of millions of dollars from hardcore readers while letting in enough Google traffic and casual readers to continue boosting its online readership and collecting ad revenue off of those eyeballs.”
Chitturn estimates that the Times will take in about $63 million in digital subscriber revenue this year and more than $210 million in total digital revenue. That’s more than it costs to operate the newsroom. Which means that The New York Times could theoretically get out of the print business entirely and still make money.
New York Times Paywall
Does that mean it’s time for everyone to jump into the pool? Bill Mitchell thinks so. Writing on Poynter.org, he tells of moderating a panel at the World Editors Forum in which publishers who had taken the paywall plunge spoke of their initial trepidation and then relief when the steep declines in traffic that they had feared failed to materialize. Traffic to the Berliner Morgenpost has actually doubled since it put up a paywall in late 2009.
Mitchell quotes The New York Times’ Jim Roberts saying the wall has had a morale dividend. “There is more of an investment I feel in the newsroom among our journalists since the introduction of the paywall. They feel a greater stake in the product,” he said.
Perhaps the time is right. The Newspaper Association of America reports that traffic to newspaper websites jumped 20% in September compared to a year ago among the coveted adult demographic. “Average daily visits were up 21%; total pages viewed were up 10%; total minutes spent were up 11 %; and unique visitors were up 9 %,” the NAA reported.
Thus the great paradox continues. Newspapers are more popular than they’ve ever been, but the business model is broken beyond repair. The NAA numbers are encouraging, and perhaps indicates a flight to quality among readers who are fed up with social media noise. For the past five years people have been  publishing all kinds of nonsense online because they could. Now the novelty is wearing off and quality is becoming a differentiation point.
Google’s new Panda search algorithm is supposed to be a game changer in its ability to distinguish quality content from crap. We noted recently that Demand Media, which specializes in crap, has had to remove 300,000 articles from its website because Google won’t pay attention to them anymore. And the world hardly noticed.
The fact that newsrooms turn out a good product has never been debatable, but the idea that people who had been accustomed to getting it for free for 15 years would decide to pay for it is still an open question.
Give credit to the early adopters for fine-tuning the balance of free vs. paid content to achieve some success. The idea is to grant just enough access to entice readers to pay but not enough to give away the farm. The Wall Street Journal lets you read a couple of hundred words gratis but then wants a credit card. Perhaps it and the Times have figured out the formula.
We’ve been skeptical about paywalls for two years, but we’d be the first to cheer their success.  If they enable good journalism to flourish once again, we’re all for it.

Washington Post Co. Holds Out

Katharine WeymouthApparently the Washington Post Co. isn’t convinced. Publisher Katharine Weymouth was quoted in Politico last week saying that paid subscriptions don’t make sense for the Post at the moment. The newspaper’s philosophy is that its website should be “open to everybody and attract as many people as we can to spend as much time as they can with our journalism, and assume that that will bring them back for more.”
Politico points out that the Post has hardly been a beacon of publishing success lately. It has shed more than 45% of its newsroom staff and it just last month announced plans to close nine of its 11 suburban regional bureaus. The Post Co. does have a couple of things going for it, however, including its profitable Kaplan education division and its phenomenal 30% market penetration. You’d think a market share like that would be an incentive to charge more for the product, but Weymouth seems in no hurry. She isn’t ruling out a paywall but says she’s content to wait and see what works.

“They Won’t Invest in You”

Invantory is developing software tools to help people sell things. It wants to be kind of an alternative to Craigslist, with a mobile twist. The founders thought newspaper publishers would be potential customers, because they already know the classified advertising business and they have a desirable channel. But Invantory gave up on doing business with newspaper publishers. The principal reason: their computer are a mess.
“Newspapers’ online technology platforms [are] not standard,” wrote co-founder Ian Lamont on the Invantory blog. “This means that non-trivial integration work is required for practically any new feature or service, whether created in-house or purchased from a vendor. There are dozens of online content management systems (CMS) in use, most heavily customized.”
In other words, any chance newspaper publishers might have to federate their once-highly profitable classified advertising businesses into a network that could compete with Craigslist is undercut by technology decisions made years ago and incompatibilities perpetuated by customization.
The Invantory co-founders met with Newsosaur Alan Mutter at the New England Newspaper Publishers Association. Mutter, who himself tried to start a business to service newspaper publishers a couple of years ago, told them to forget about pursuing a model based up on serving the dying newspaper industry. “VCs with any experience won’t invest in you,” he said.

Miscellany

The i newspaper celebrated its first anniversary this week, challenging the conventional wisdom that print dailies are dead. The commuter-friendly daily, which delivers news in bite sized nuggets, has succeeded in building a paid circulation of 184,000 during its first year. And it’s reportedly profitable, too.


“Data journalism,” in which reporters mine public information to discover nuggets of news, is an increasingly popular discipline. Editors Weblog has a list of free tools anybody can use to become a data journalist.

By paulgillin | October 12, 2011 - 10:29 am - Posted in Fake News

Craig DubowGannett CEO Craig Dubow (right)  resigned last week for health reasons, saying that back and hip problems prevent him for fulfilling his duties. He leaves a job that could pay him as much as $9.4 million this year, but don’t feel too bad for Dubow: He’s eligible for severance pay of up to $37 million.

The irony of this kind of executive compensation for a company that has laid off nearly 40% of its workforce over the last six years isn’t lost on former New York Times columnist Peter Lewis, who posts a savage send-up of Gannett’s extravagance on his blog. Lewis is particularly brutal in contrasting Dubow’s performance to that of Steve Jobs, who died last week:

Annual base pay: Steve Jobs $1. Craig Dubow $1.2 million.

Stock price during CEO tenure: Apple, up 4,000+ percent. Gannett, down 85 percent.

Job creation during CEO tenure: Apple, plus 28,000. Gannett: minus 20,000.

Notable new products as CEO of Apple: Macintosh, iMac, MacBook, iPod, iTunes, Apple Stores, iPhone, iPad, etc., etc.

Notable new products as CEO of Gannett: ?

Executive pay has been out of control at US companies for decades now, but the practice is particularly offensive at companies in dying industries that are downsizing their way out of existence. Is it conceivable that a talented and motivated executive could be found to lead Gannett at a salary of less than $9 million? How does a company look its employees in the eye and ask them to accept yet another layoff or salary freeze when it nearly doubled the salary of the head of its US newspaper division?

We might just go occupy Wall Street over this.

Open Source Journalism

Make MagazineNikki Usher and Seth C. Lewis dig into the application of open source software principles to journalism and find some parallels. “The news industry is one of the last great industrial hold-overs, akin to the car industry,” they write. “Newsrooms are top-heavy, and built on a factory-based model of production.” In contrast open source software and the so-called “maker” culture exemplified by Make magazine encourage collaboration, sharing and continuous experimentation.

Rethinking journalism requires time and open-mindedness that a lot of journalists might not have, but the power of the open source model can’t be denied. Usher and Lewis imagine a new role for journalists as creators of “the building blocks for the story. And while they write this code, it can be commented on, shared, fact-checked, or augmented with additional information such as photos, tweets, and the like.” Seems to work OK for Wikipedia. The Knight-Mozilla News Technology Partnership is working on ways to make this model viable. We hope they succeed.

Quality at 5¢ a Word

Demand Media, whose mission is to erase the distinction between journalism and typing, says it doesn’t need freelancers so much any more.  That’s because Google changed its search algorithm, and that means Demand’s editorial mission has shifted.

In case you’re not familiar, Demand Media employs freelance writers to churn out search-optimized content for posting on enormously popular websites like Cracked.com, LiveStrong.com and eHow.com. The company assigns stories based upon search popularity, meaning that it favors how-to and top-10 formats. A perfect Demand story would be “10 Ways to Remove Coffee Stains.”

Demand is noted for paying freelancers next to nothing while touting the benefits of brand-building and flexibility. “No matter where you end up, you have the potential to influence millions of people with your articles,” says its Writing Jobs page. Writers can make up to $25 an article, or even more! With so many journalists out of work, Demand has succeeded in a recruiting a large pool of contributors, despite its starvation wages.

But apparently not so much now. Google is on a campaign to remove the stuff that these content farms churn out, so the company is shifting to slide shows and videos. Demand says it has eliminated 300,000 low-quality articles from eHow and is focusing on going upscale. “It’s all about quality for us,” said Chief Revenue Officer Joanne Bradford. At a nickel a word.

It’s Not a Paywall, It’s…

Paywalls continue to sprout like crabgrass, but publishers are beginning to show some creative thinking. The Day of New London, Conn. will now charge between $9.99 and $22.99 per month for access to its online content, archives and mobile versions, but subscribers will also become part of a brand loyalty program called The Day Passport, “which features rewards, events and giveaways to local businesses, entertainment venues and cultural institutions.” We were pushing this idea two years ago. Publishers need to expand their revenue base beyond advertising and subscription fees. Affinity programs for local businesses are a natural extension.

We also like what the Richmond Times-Dispatch is doing: Instead of firewalling its content, it’s creating premium content packages such as this one on the Civil War sesquicentennial. The Civil War feature combines historic pages from the newspaper archive with original new material. Pricing begins at $1.99/month, though it’s not clear what other premium packages are planned. We like the concept the concept of charging for added value, and we’re particularly glad to have the chance to use the word “sesquicentennial” in a sentence.

By paulgillin | September 26, 2011 - 2:26 am - Posted in Fake News
M.E. Sprengelmeyer with first issue of the Guadalupe County Communicator

M.E. Sprengelmeyer with the first issue of the Guadalupe County Communicator

It was a man-bites-dog story.

Young newspaper reporters have typically dreamed of working their way up from a small-town weekly to a big-city daily. The title of Washington bureau chief or foreign correspondent was the pinnacle of success.

Michael “M.E.” Sprengelmeyer had those dreams as early as age seven, when he decided he wanted to be a reporter. But something in the back of his mind drew him toward the small-town roots where he and thousands of other young journalists got their start.

Sprengelmeyer got to the summit, becoming a national reporter and foreign correspondent for the Rocky Mountain News. When the Rocky abruptly shut down nearly three years ago, he went searching for his childhood dream: To run a community weekly.

Strange Quest

It seemed a strange quest for a reporter who had been near the top of his profession, but Sprengelmeyer had caught the community itch at a young age. “At 17 I saw a movie called Milagro Beanfield War,” he said. “There was a character who ran a small newspaper and I always wanted to see what a newspaper could be if I ran it.”

Sprengelmeyer’s career had been anything but small town to that point. A graduate of the prestigious Northwestern Univerity journalism program, he had worked at a variety of small- and medium-sized papers before landing at the Rocky in 1999, a month before the Columbine shootings. His career advanced quickly. Within two years he was sent to the paper’s Washington bureau, where he arrived just before the Sept. 11 attacks on the Pentagon. That job morphed into a military beat, overseas assignments and a coveted job as a presidential campaign reporter.

Guadalupe County Communicator front page

But even as he was setting up the Des Moines, Iowa bureau for the Rocky to cover the 2008 presidential race, he kept searching for the opportunity to take over a small-town weekly. When the 149-year-old Rocky suddenly went up for sale in 2009, he was as surprised as anyone. But instead of wringing his hands, he stepped up his small-town search. “I was hunting for newspapers to buy within a week,” of the Rocky’s closure, he says.

When the paper shut down, he hit the road, eventually landing in the beautiful but impoverished community of Santa Rosa, N.M., on the staked plains where the Pecos River crosses historic Route 66.

The local Guadalupe County Communicator served up the usual local fare of local government meetings. The paper had a circulation of less than 2,000, but Sprengelmeyer saw potential. Despite its economic distress, Santa Rosa has a disproportionately large base of businesses on Rte. 66. Sprengelmeyer negotiated the purchase, leaving him with just $1,700 in the bank. He told the story of his quest on the blog of former Rocky publisher John Temple.

Changing the Model

Like many local weeklies, the Communicator served up coverage of local government meetings and photos of winning high-school football teams, but Sprengelmeyer wanted to take it to another level. “I kind of had a chip on my shoulder about the closure of the Rocky and I wanted to send a message about what a newspaper could be,” he says.

His first move was to shut down the paper’s website. “Community newspapers have a captive geography. As long as you can keep everyone within 10 miles reading your piece of paper, you can deliver value for your advertisers,” he says. “The Web gets people from all over the world, but you can’t tell an advertiser they’re going to walk in and buy avocados at his variety store.”

Drew Litton cartoonHe then started investing. He hired a veteran daily photographer on a freelance basis, contracted with local stringers and engaged professional cartoonist Drew Litton. The first issue of the Communicator under Sprengelmeyer’s hand featured a giant photo from the county fair and the first editorial cartoon the paper had ever run. It was a shock to locals, but also a signal that the paper had turned a corner.

You can’t easily find high-resolution images of the Communicator online, but you can get a sense of the layout, story selection and headlines from thumbnails in the paper’s Facebook album. The look-and-feel is big-city all the way, with a clear emphasis on local government, citizen advocacy and people-oriented features. The headlines and story selection are cut from the major metro mold.

Pleasant Surprise

“The reaction has been incredible,” says Sprengelmeyer. While some residents miss the point-and-shoot photos of Little Leaguers on page one, most have responded positively to the tougher coverage of town government, crime and local regulations. The Communicator won seven state journalism awards its first year. Sprengelmeyer’s unusual odyssey has landed profiles in The New York Times, CNN and other national media outlets.

M.E. Sprengelmeyer on:

Hyperlocal journalism

“I hate the word ‘hyperlocal’ when connected to journalism.  Journalism is journalism. The term ‘hyperlocal’ has taken on a connotation that it’s something less when the community is involved. We might try to be very, very local, but it’s professional content.

“There are some things going on in California right now where they’re making their papers less relevant at a local level. They’re taking away the one franchise the newspapers have, which is being a trusted institution. The clock tower says ‘This town is owned by the Oakland Tribune.’ I wouldn’t have combined the Tribune into something bigger. I would have split it into four neighborhood papers.

“I’m not in an ivory tower. I’m in a dirt bunker. They need to look at the little guys and think of what they can learn from us, and we need to learn from them.”

Going Online

“I do not understand why papers on a small scale are doing websites at all, and I don’t understand why a lot of metro papers believe it’s better to compete against the Internet when what they control is their geography. When newspapers were experimenting with their websites you could understand it. But now their click-through rates are going down because people can go directly to a pet store on the Web instead of the local pet store. Why would we want to go from monopoly status to competing with every pet blogger out there?”

The Role of the Local Publisher

“I came here with a mentality of showing the world what we can do with printed journalism. It’s evolved into realizing that this community has one of the highest poverty rates in the country, and the things I could do to shake the politicians into focusing on the right issues and helping the community are more important than that.”

Scrutiny of local officials has ruffled a few feathers, but the newcomer says his outsider status and commitment to fairness has kept the pushback to a minimum. “You smooth out the feathers when you write an accurate, fair story,“ he says. And the Little League photos still run in the Communicator, but no longer on page one.

More importantly, circulation has grown to more than 2,000, or nearly equal to the population of Santa Rosa. Its Facebook page, which was started by a local enthusiast and is now maintained as a joint effort, has been liked more than 1,100 times. Circulation growth has been largest among native Santa Rosans who now live elsewhere. “I’m real proud of that, because we’re a town in economic trouble, where kids grow up, go off to college and settle elsewhere” says Sprengelmeyer. “Now they’re re-connecting with their community.”

Advertising business has grown steadily, if not spectacularly. The publisher’s philosophy is to invest most of the profits back into the property. “When you start cutting expenses to match revenue, you’re on a backwards slide,” he says. A small staff handles advertising sales.

And each week, the new Communicator becomes more embedded in the community. Sprengelmeyer still works seven days a week, but the hourly load has gradually declined. “I’m not banking a lot, but each edition pays for itself and I have enough left to pay my rent and fix my car,” he says.

“I won’t become a millionaire, but that wasn’t the point. The first year was about surviving. The second year was about expanding. The coming year will be fun. This started as a fancy way to spend my life savings in six months, only we’ve gone on for two years. It’s the best thing I’ve done and it’s still left me excited about what we can do next.”


To subscribe to the Communicator, e-mail your info to comsilvercom@plateautel.net and cc: ersthap@hotmail.com. Order a full year’s subscription and send a check for $30 (U.S. delivery only) to The Communicator, P.O. Box 403, Santa Rosa, NM 88435.


Update 10/29/11: The Communicator won 26 awards and “Best of Show” among small weekly newspapers in the 2011 New Mexico Press Association/Associated Press Managing Editors’ awards.

By paulgillin | July 7, 2011 - 1:02 pm - Posted in Fake News

News of the World Front PageIn a stunning example of corporate overreaction, News Corp. today announced that it will shut down Britain’s largest Sunday newspaper amid a growing scandal over voicemail hacking.

The 168-year-old News of the World, which boasts a Sunday circulation of 2.5 million, will publish its last edition on July 10. The move comes as outrage in Britain reached a fever pitch over allegations that the tabloid had illegally accessed and even deleted voice mail messages on the phone of a 13-year-old girl who was kidnapped and later found murdered.

Allegations of phone hacking are nothing new for the tabloid. Reports of reportorial excess have swirled around News of the World for two years. However, public anger and advertiser boycotts grew this week amid allegations that as many as 4,000 people have been victimized by such tactics, including relatives of terrorist attack victims and soldiers killed in combat.

Milly DowlerThe tipping point came with reports this week that hired investigators had not only hacked into the phone of 13-year-old Milly Dowler (left) but also deleted some of the voicemails, giving her parents false hope that the girl was still alive. James Murdoch, the heir apparent to the Rupert Murdoch empire, issued a statement saying such a practice – if it occurred –  “was inhuman and has no place in our company.”

Analysts speculated that the decision to shutter the News of the World and lay off 200 employees was made by the younger Murdoch and supported by his dad, although such drama has not been typical of the elder statesman. Skeptics saw more nefarious motives.

Specifically, they questioned why News Corp. didn’t demand the resignation of Rebekah Brooks, chief executive of News International and editor of News of the World at the time the allegations first surfaced. Brooks is a Murdoch confidante, and critics suggested that the jobs of 200 people had been sacrificed to preserve hers.

The scandal also broke as News Corp. neared the final stages of its bid for BSkyB,  the largest pay-TV broadcaster in the United Kingdom, with over 10 million subscribers, according to Wikipedia. Critics suggested that the cloud created by the News of the World allegations could have jeopardized Murdoch’s bid.

Writing in the Telegraph¸ Harry Wallop quotes politicians and media commentators speculating that an even more cynical business objective was involved. News Corp. had already announced plans to move to a seven-day-a-week publishing schedule across its four UK titles: the Sun, News of the World, the Times and the Sunday Times. The expansion could  potentially create internal competition across the News Corp. properties. Eliminating one title may have little impact on revenues as advertisers simply migrate their business to other holdings within the portfolio.

Whatever the motives, the decision strikes us as a massive overreaction. Scandals like this are usually addressed by a few high-level resignations and some corporate self-flagellation. It could be that the timing was simply bad for News Corp., but depriving 200 people of their livelihoods – and a couple of million Brits of their weekly celebrity scandals – strikes us as a bit over the top.

By paulgillin | June 24, 2011 - 4:59 am - Posted in Fake News
ESPN Magazine cover

How bad is it in the magazine world? Two years ago we bought a subscription to ESPN magazine after finding a promotional offer of 26 issues for just $2. We subscribed simply for the experience of getting a fortnightly magazine for less than the cost of postage.

But it turns out we were getting a lot more than just ESPN. Around the time our subscription expired, we started getting Golf magazine every month in the mail. Golf’s promotional price is $10 a year, but we never paid for or requested a subscription. Then, about three months ago, Sports Illustrated began showing up in our mailbox each week. We like that because we’ve actually paid for Sports Illustrated in the past. However, we aren’t paying for this one. It appears to be another side=benefit of our  $2 ESPN deal.

We’re not sure if this embarrassment of riches is at an end, but we do know that altogether we’re receiving about $70 worth of magazine subscriptions for $2. Why? Because the publishers are desperate. New Audit Bureau of Circulations rules have significantly relaxed the criteria for paid circulation. That means the publisher statements for Golf and Sports Illustrated now count us as subscribers despite the fact that we never requested or paid for either subscription. Any advertiser that thinks it’s getting an engaged audience through this accounting sleight-of-hand is fooling itself. Don’t get us wrong: We hope the SI subscription never runs out, but we are never, ever going to pay for it. Are we as valuable to an advertiser as a paying subscriber? Not so much. Is the print magazine industry in a crisis? We think so. BTW, we did not get the attractive tote bag that comes with  a paid subscription..

Gannett Pounds 700 Nails in Print’s Coffin

If you need any further evidence that print has no future, look no further than Gannett’s announcement of 700 layoffs this week, says Poynter’s Rick Edmonds. Revenues at Gannett’s 81 community newspapers were down 7% overall and nearly 10% in print, even as most mainstream media are experiencing a modest recovery right now. Not so in print. Publishing operating margins fells four times as fast as revenues, and it’s been a decade since Gannett bought any print properties at all. Meanwhile, the company has  reduced its stable of newspapers from 99 to 81. Its broadcast and online operations are actually doing just fine, but they’re not growing fast enough to make up for declines in print advertising.  That’s the problem across the industry. Online revenues are growing, but the volume and margins are a tiny fraction of print revenue.

Gannett, which traditionally dances to the tune of Wall Street, is sending a message in aggressively cutting back on its already lean print businesses. In that respect, it’s ahead of the market. Edmonds points out that, ironically, “Metro papers like the Boston Globe and Dallas Morning News that have adopted a high price/high quality circulation strategy know readers will not be satisfied with skinny papers that have little worth reading. So those newsrooms are protected and, in a few cases, growing.” For a while, that is. Those papers are milking an aging but still profitable population that will dwindle sharply over the next decade. When the tipping point is reached and paid subscribers no longer justify a printed product, the closures will happen en masse.

Nonprofits Figuring It Out

We wrote recently about California Watch, a nonprofit investigative news operation that is breaking even by syndicating its content at low cost to dozens of news outlets to customize as they wish. California Watch and others like it understand the economics of multiple revenue streams. Few newspapers can afford to support large investigative reporting staffs, but a bunch of smaller publishers can collectively contribute enough to make an independent investigative team viable.

Joe BergantinoCalifornia Watch isn’t the only outlet breaking new ground in this area. Writing on Nieman Journalism Lab, Justin Ellis tells the story of New England Center for Investigative Reporting, another nonprofit operation that is surviving on a combination of grants and revenue from paid training workshops for aspiring journalists. The group has only two full-time staff and a corps of freelancers. It delivers its investigative work via a subscription service and republishes them on its website. The Center recently reached a milestone by matching its grant funds with revenue generated from subscriptions and training, meaning it’s on the road to self-sufficiency.

Co-director and veteran New England TV reporter Joe Bergantino (left) says, “To be successful you have to walk through the door and immediately think about how to make money.” And what’s wrong with that? For the last 50 years or so, journalists have had the luxury of having the bills paid by people they don’t even know. Very few businesses operate that way, so Bergantino and his tiny team are simply functioning by the same rules that small businesses have lived with for years. Does that make the quality of their work less reputable?

Got HTML5?

Financial Times' Mobile AppThe Financial Times’ new mobile app racked up 100,000 users in its first week. The twist is that the FT decided to develop the app in the new HTML5 format instead of coding it for the iPad or Android platform. If you don’t know what HTML5 is, here’s a tutorial. It’s an important new technology that could make Flash animation and other plug-in-based multimedia obsolete.

HTML5 works entirely within the browser and gives the publisher considerably more control over display, organization and animation than earlier HTML versions did. Information can be stored and read offline, as well as updated automatically without user intervention (No more Adobe updates; how cool is that?) The trick is that most browsers don’t fully support it yet, but that’s just a matter of time. Apple’s Safari is one of the best browsers for HTML5 apps. That’s not surprising, given that Steve Jobs has engaged in a bitter public dispute with Adobe over Flash. The downside for Apple is that HTML5 enables publishers to deliver apps themselves without using the iTunes store as an intermediary. That’s why the FT is updating its content directly, without going through the iTunes store. HTML5 will also make it easier for publishers like Playboy, whose content wouldn’t make it past the Apple censors, has also gone the HTML5 route.

Miscellany

If you’ve ever wondered whether the image you’re about to publish has been Photoshopped, try out this new service from Google. Upload or type the URL of an image and Google will now scan its database for images just like it – including the exact same image. We’re not sure what it will find if given a photo of one of Lady Gaga’s dresses, but for those beautiful sunset landscapes that come in from “citizen journalists,” it might be worth a try, just to be safe.


Meredith is closing the hip, do-it-yourself magazine ReadyMade and eliminating 75 positions. Apparently an audited circulation of 335,000 wasn’t enough to attract advertisers.


John Locke has become the first self-published author to sell over 1 million books on Kindle. The 60-year-old Louisville, KY resident has written nine novels, mostly thrillers, and charges only 99 cents for the Kindle versions. He says he has no intention of raising his prices. Having brought in about a million dollars this way, Locke is making a decent income for a novelist, especially since he doesn’t have to pay publisher and distributor costs that typically leave the author with only about 10% of a book’s cover price.


In deference to Huffington Post, The New York Times plans to intermingle news and opinion in its “Week in Review” section, saying, “We thought readers would find it more useful to have the stories, photographs and charts offered in an integrated way.” Back in the day, op-ed sections themselves were controversial. Now they will be indistinguishable, although the Times says it will clearly label opinionated content.

And Finally…

Tom MacMasterThis one is almost too bizarre to be believed. A couple weeks ago, it was revealed that a popular Syrian lesbian blogger who went by the name of “A Gay Girl in Damascus” is actually a 40-year-old married dude from Scotland. Despite the fact that gay activists in Syria believe this guy put their safety at risk, he continues to blog under the pseudonym, although he did post a profuse apology for the ruse.

The very same week, a guy in Ohio named Bill Graber admitted that he is Paula Brooks, an executive editor for lesbian site LezGetReal.com. Graber used his wife’s name in the hoax and even posed as the father of the fictitious blogger for media interviews, claiming Paula is deaf. Graber got away with hoax for three years because he was so believable, according to LezGetReal’s managing editor.

It gets even weirder. Quoting the account in StinkyJournalism.org:

Months ago, Graber, posing as “Paula Brooks,” reportedly encouraged “Amina Arraf” to start a blog, but neither Graber nor MacMaster knew the other was really a man posing as a lesbian woman online. According to the Washington Post, Arraf and Brooks “often flirted” with each other online as well.

This week, after both hoax identities unraveled, Graber described his interactions to the Washington Post with Arraf/MacMaster as a “major sock-puppet hoax crash into a major sock-puppet hoax.”

We can only hope neither sock puppet survived the collision.

 

By paulgillin | - 4:59 am - Posted in Uncategorized
ESPN Magazine cover

How bad is it in the magazine world? Two years ago we bought a subscription to ESPN magazine after finding a promotional offer of 26 issues for just $2. We subscribed simply for the experience of getting a fortnightly magazine for less than the cost of postage.
But it turns out we were getting a lot more than just ESPN. Around the time our subscription expired, we started getting Golf magazine every month in the mail. Golf’s promotional price is $10 a year, but we never paid for or requested a subscription. Then, about three months ago, Sports Illustrated began showing up in our mailbox each week. We like that because we’ve actually paid for Sports Illustrated in the past. However, we aren’t paying for this one. It appears to be another side=benefit of our  $2 ESPN deal.
We’re not sure if this embarrassment of riches is at an end, but we do know that altogether we’re receiving about $70 worth of magazine subscriptions for $2. Why? Because the publishers are desperate. New Audit Bureau of Circulations rules have significantly relaxed the criteria for paid circulation. That means the publisher statements for Golf and Sports Illustrated now count us as subscribers despite the fact that we never requested or paid for either subscription. Any advertiser that thinks it’s getting an engaged audience through this accounting sleight-of-hand is fooling itself. Don’t get us wrong: We hope the SI subscription never runs out, but we are never, ever going to pay for it. Are we as valuable to an advertiser as a paying subscriber? Not so much. Is the print magazine industry in a crisis? We think so. BTW, we did not get the attractive tote bag that comes with  a paid subscription..

Gannett Pounds 700 Nails in Print’s Coffin

If you need any further evidence that print has no future, look no further than Gannett’s announcement of 700 layoffs this week, says Poynter’s Rick Edmonds. Revenues at Gannett’s 81 community newspapers were down 7% overall and nearly 10% in print, even as most mainstream media are experiencing a modest recovery right now. Not so in print. Publishing operating margins fells four times as fast as revenues, and it’s been a decade since Gannett bought any print properties at all. Meanwhile, the company has  reduced its stable of newspapers from 99 to 81. Its broadcast and online operations are actually doing just fine, but they’re not growing fast enough to make up for declines in print advertising.  That’s the problem across the industry. Online revenues are growing, but the volume and margins are a tiny fraction of print revenue.
Gannett, which traditionally dances to the tune of Wall Street, is sending a message in aggressively cutting back on its already lean print businesses. In that respect, it’s ahead of the market. Edmonds points out that, ironically, “Metro papers like the Boston Globe and Dallas Morning News that have adopted a high price/high quality circulation strategy know readers will not be satisfied with skinny papers that have little worth reading. So those newsrooms are protected and, in a few cases, growing.” For a while, that is. Those papers are milking an aging but still profitable population that will dwindle sharply over the next decade. When the tipping point is reached and paid subscribers no longer justify a printed product, the closures will happen en masse.

Nonprofits Figuring It Out

We wrote recently about California Watch, a nonprofit investigative news operation that is breaking even by syndicating its content at low cost to dozens of news outlets to customize as they wish. California Watch and others like it understand the economics of multiple revenue streams. Few newspapers can afford to support large investigative reporting staffs, but a bunch of smaller publishers can collectively contribute enough to make an independent investigative team viable.
Joe BergantinoCalifornia Watch isn’t the only outlet breaking new ground in this area. Writing on Nieman Journalism Lab, Justin Ellis tells the story of New England Center for Investigative Reporting, another nonprofit operation that is surviving on a combination of grants and revenue from paid training workshops for aspiring journalists. The group has only two full-time staff and a corps of freelancers. It delivers its investigative work via a subscription service and republishes them on its website. The Center recently reached a milestone by matching its grant funds with revenue generated from subscriptions and training, meaning it’s on the road to self-sufficiency.
Co-director and veteran New England TV reporter Joe Bergantino (left) says, “To be successful you have to walk through the door and immediately think about how to make money.” And what’s wrong with that? For the last 50 years or so, journalists have had the luxury of having the bills paid by people they don’t even know. Very few businesses operate that way, so Bergantino and his tiny team are simply functioning by the same rules that small businesses have lived with for years. Does that make the quality of their work less reputable?

Got HTML5?

Financial Times' Mobile AppThe Financial Times’ new mobile app racked up 100,000 users in its first week. The twist is that the FT decided to develop the app in the new HTML5 format instead of coding it for the iPad or Android platform. If you don’t know what HTML5 is, here’s a tutorial. It’s an important new technology that could make Flash animation and other plug-in-based multimedia obsolete.
HTML5 works entirely within the browser and gives the publisher considerably more control over display, organization and animation than earlier HTML versions did. Information can be stored and read offline, as well as updated automatically without user intervention (No more Adobe updates; how cool is that?) The trick is that most browsers don’t fully support it yet, but that’s just a matter of time. Apple’s Safari is one of the best browsers for HTML5 apps. That’s not surprising, given that Steve Jobs has engaged in a bitter public dispute with Adobe over Flash. The downside for Apple is that HTML5 enables publishers to deliver apps themselves without using the iTunes store as an intermediary. That’s why the FT is updating its content directly, without going through the iTunes store. HTML5 will also make it easier for publishers like Playboy, whose content wouldn’t make it past the Apple censors, has also gone the HTML5 route.

Miscellany

If you’ve ever wondered whether the image you’re about to publish has been Photoshopped, try out this new service from Google. Upload or type the URL of an image and Google will now scan its database for images just like it – including the exact same image. We’re not sure what it will find if given a photo of one of Lady Gaga’s dresses, but for those beautiful sunset landscapes that come in from “citizen journalists,” it might be worth a try, just to be safe.


Meredith is closing the hip, do-it-yourself magazine ReadyMade and eliminating 75 positions. Apparently an audited circulation of 335,000 wasn’t enough to attract advertisers.


John Locke has become the first self-published author to sell over 1 million books on Kindle. The 60-year-old Louisville, KY resident has written nine novels, mostly thrillers, and charges only 99 cents for the Kindle versions. He says he has no intention of raising his prices. Having brought in about a million dollars this way, Locke is making a decent income for a novelist, especially since he doesn’t have to pay publisher and distributor costs that typically leave the author with only about 10% of a book’s cover price.


In deference to Huffington Post, The New York Times plans to intermingle news and opinion in its “Week in Review” section, saying, “We thought readers would find it more useful to have the stories, photographs and charts offered in an integrated way.” Back in the day, op-ed sections themselves were controversial. Now they will be indistinguishable, although the Times says it will clearly label opinionated content.

And Finally…

Tom MacMasterThis one is almost too bizarre to be believed. A couple weeks ago, it was revealed that a popular Syrian lesbian blogger who went by the name of “A Gay Girl in Damascus” is actually a 40-year-old married dude from Scotland. Despite the fact that gay activists in Syria believe this guy put their safety at risk, he continues to blog under the pseudonym, although he did post a profuse apology for the ruse.
The very same week, a guy in Ohio named Bill Graber admitted that he is Paula Brooks, an executive editor for lesbian site LezGetReal.com. Graber used his wife’s name in the hoax and even posed as the father of the fictitious blogger for media interviews, claiming Paula is deaf. Graber got away with hoax for three years because he was so believable, according to LezGetReal’s managing editor.
It gets even weirder. Quoting the account in StinkyJournalism.org:

Months ago, Graber, posing as “Paula Brooks,” reportedly encouraged “Amina Arraf” to start a blog, but neither Graber nor MacMaster knew the other was really a man posing as a lesbian woman online. According to the Washington Post, Arraf and Brooks “often flirted” with each other online as well.
This week, after both hoax identities unraveled, Graber described his interactions to the Washington Post with Arraf/MacMaster as a “major sock-puppet hoax crash into a major sock-puppet hoax.”

We can only hope neither sock puppet survived the collision.

 

By paulgillin | June 6, 2011 - 6:18 am - Posted in Fake News

How much do you really know about your reader? Chances are it isn’t very much. News organizations traditionally haven’t had to know their customers very well because the booming advertising market ensured they didn’t have to. Now that advertising’s value is in free-fall, however, this kind of knowledge may become the most valuable asset you’ve got.

New Revenue for News Organizations Presentation on SlideShare

New Revenue for News Organizations Presentation on SlideShare

We had the chance to speak to a group of newspaper executives about new revenue models a couple of weeks ago and were a bit surprised at how foreign the concepts of lead generation and qualification were to them. In the business-to-business (B2B) publishing industry, lead management has been the lifeline that has kept publishers afloat. It has corollaries that would be useful to news executives in consumer publishing, too.

Lead generation (called “lead gen” in the trade) is the process of matching sellers with qualified prospective buyers who are ready to make a purchasing decision. Advertising is a basic shotgun approach to lead gen in which the publisher plays a passive role by merely providing a platform for delivery. The onus is on the advertiser to convert those leads to customers. That’s an expensive process. B2B companies focus most of their attention on so-called “warm” leads, or those who are ready to sign a check. The problem with advertising is that it also delivers “cold” leads, or tire-kickers, and it’s expensive for the vendor to weed those people out.

Know Thy Reader

Publishers can be a whole lot more active about matching buyers and sellers, though. As they gather information about the characteristics of their audience, they can structure programs that generate better-quality leads and charge more for them.

B2B publishers went through the valley of death a decade ago in a market contraction that was a lot quicker and more dramatic than the one that’s hit newspapers over the last five years. Publications like PC Magazine, which raked in more than $100 million a year in ad revenue at one point, were completely out of the print business by 2009. A lot of publishers perished, but those that survived have converted to a lead gen model.

These publishers now focus on developing customized online destinations and real and virtual events that deliver warm leads. The more they know about the customer, the more they can charge for the lead. Web analytics make it possible to know a lot more about our online visitors in particular than we used to know. When combined with customer relationship management (CRM) systems, publishers can now build extremely detailed profiles of individual audience members.

Newspaper publishers know about the value of segmentation. That’s why they created automotive, real estate, arts & entertainment and home sections decades ago. Advertisers wanted to reach more qualified buyers. Online, you can take that to a new level.

Once an online visitor registers with you and accepts a cookie, you can track that person’s every online interaction with you and build profiles that enable your advertisers to make customized offers. A visitor who reads a lot of article about boating and clicks on your offer of a discounted ticket to the boat show is a lot more interesting to local suppliers of nautical equipment than the average reader.  Similarly, a member who registers for your discounted passes to the bridal expo is going to suddenly interest a lot of specialty retailers.

All About Targeting

Is what we’re telling you a revelation? We hope not. Google and Facebook have built their businesses on delivering warm leads as indicated by search activity and member profiles. They’ve sucked a lot of money out of the print advertising market in the process. On LinkedIn, you can now buy ads aimed at engineers with VP titles who belong to construction groups and live in the greater Cleveland area. Can the Plain Dealer deliver that level of granularity? Probably not. But if it had that same quality of information in its database, it could create some pretty compelling packages for local businesses that wanted to reach those people.

We don’t mean to imply that B2B and consumer newspaper publishing are the same thing, but there are lessons news organizations can learn from their B2B counterparts, who have a half-decade’s more experience with adversity. Qualified prospective customers who are ready to make a buying decision have a lot more value to advertisers than drive-by readers. What can you do to capture more information about the people who visit your online properties? How can you use that information to develop high-value – and high-priced – marketing programs for your customers? Finally, how can you use your unique advantage of local presence to distinguish your products from Google’s and Facebook’s?

Tell us what your news organization is doing to tap into this opportunity.

Note: Our book on B2B social media marketing has a lot more detail about this topic.

By paulgillin | - 6:18 am - Posted in Uncategorized

How much do you really know about your reader? Chances are it isn’t very much. News organizations traditionally haven’t had to know their customers very well because the booming advertising market ensured they didn’t have to. Now that advertising’s value is in free-fall, however, this kind of knowledge may become the most valuable asset you’ve got.

New Revenue for News Organizations Presentation on SlideShare

New Revenue for News Organizations Presentation on SlideShare


We had the chance to speak to a group of newspaper executives about new revenue models a couple of weeks ago and were a bit surprised at how foreign the concepts of lead generation and qualification were to them. In the business-to-business (B2B) publishing industry, lead management has been the lifeline that has kept publishers afloat. It has corollaries that would be useful to news executives in consumer publishing, too.
Lead generation (called “lead gen” in the trade) is the process of matching sellers with qualified prospective buyers who are ready to make a purchasing decision. Advertising is a basic shotgun approach to lead gen in which the publisher plays a passive role by merely providing a platform for delivery. The onus is on the advertiser to convert those leads to customers. That’s an expensive process. B2B companies focus most of their attention on so-called “warm” leads, or those who are ready to sign a check. The problem with advertising is that it also delivers “cold” leads, or tire-kickers, and it’s expensive for the vendor to weed those people out.

Know Thy Reader

Publishers can be a whole lot more active about matching buyers and sellers, though. As they gather information about the characteristics of their audience, they can structure programs that generate better-quality leads and charge more for them.
B2B publishers went through the valley of death a decade ago in a market contraction that was a lot quicker and more dramatic than the one that’s hit newspapers over the last five years. Publications like PC Magazine, which raked in more than $100 million a year in ad revenue at one point, were completely out of the print business by 2009. A lot of publishers perished, but those that survived have converted to a lead gen model.
These publishers now focus on developing customized online destinations and real and virtual events that deliver warm leads. The more they know about the customer, the more they can charge for the lead. Web analytics make it possible to know a lot more about our online visitors in particular than we used to know. When combined with customer relationship management (CRM) systems, publishers can now build extremely detailed profiles of individual audience members.
Newspaper publishers know about the value of segmentation. That’s why they created automotive, real estate, arts & entertainment and home sections decades ago. Advertisers wanted to reach more qualified buyers. Online, you can take that to a new level.
Once an online visitor registers with you and accepts a cookie, you can track that person’s every online interaction with you and build profiles that enable your advertisers to make customized offers. A visitor who reads a lot of article about boating and clicks on your offer of a discounted ticket to the boat show is a lot more interesting to local suppliers of nautical equipment than the average reader.  Similarly, a member who registers for your discounted passes to the bridal expo is going to suddenly interest a lot of specialty retailers.

All About Targeting

Is what we’re telling you a revelation? We hope not. Google and Facebook have built their businesses on delivering warm leads as indicated by search activity and member profiles. They’ve sucked a lot of money out of the print advertising market in the process. On LinkedIn, you can now buy ads aimed at engineers with VP titles who belong to construction groups and live in the greater Cleveland area. Can the Plain Dealer deliver that level of granularity? Probably not. But if it had that same quality of information in its database, it could create some pretty compelling packages for local businesses that wanted to reach those people.
We don’t mean to imply that B2B and consumer newspaper publishing are the same thing, but there are lessons news organizations can learn from their B2B counterparts, who have a half-decade’s more experience with adversity. Qualified prospective customers who are ready to make a buying decision have a lot more value to advertisers than drive-by readers. What can you do to capture more information about the people who visit your online properties? How can you use that information to develop high-value – and high-priced – marketing programs for your customers? Finally, how can you use your unique advantage of local presence to distinguish your products from Google’s and Facebook’s?
Tell us what your news organization is doing to tap into this opportunity.
Note: Our book on B2B social media marketing has a lot more detail about this topic.