Online Revenue Strategies For Newspapers.

Once upon a time there was a tiny hamlet in the Swiss Alps. This hamlet was in serious trouble. The well that supplied water to the village went dry. The people began to panic.

There was, however, another well flowing with water across a deep gorge on an adjacent mountainside. An imaginative young thinker came up with a solution. He built a bridge across the gorge.

The villagers were elated.

A bucket brigade was formed immediately, and the water supply was replenished. Needless to say, the bridge became very important to this group. It was their source of life.

They honored the bridge. A committee was formed to take care of the bridge. Only certain people were allowed upon it, and then only on certain days, and then only wearing certain clothes. No one could see or cross the bridge without permission.

Unfortunately, there were disputes within the committee. The disagreement centered around whether a canopy should be built over the bridge. So the bridge was closed until a decision could be made. Many villagers died of thirst while the leaders debated.

A similar tale is unfolding in the newspaper industry. Just as the village in the Alps found another source of water, newspapers have found another source of revenue on the internet. Like the Swiss villagers, they need to work a bit to bring that revenue over. Unfortunately, some newspaper companies have begun to mismanage access to this new source of revenue.

The landscape is different, the product is different and the business model is different, yet too many newspapers are trying to fit interactive models into a print framework. If they’re not careful, newspapers run the risk of putting themselves out of business by not recognizing the differences between print and on-line in their efforts to increase on-line revenue.

Here are some thoughts on the differences between print and on-line models that newspapers should keep in mind in their search for new revenue over the next 5 years:

I. On-line Sales Strategies Are Not The Same As Print Strategies:

Many newspapers are treating on-line as just another product. Training programs are in place to teach print reps how to sell on-line ads. Internet Sales Managers are put in place to coordinate sales efforts and ride-along on appointments. While it’s true that these practices have been helpful and necessary, on-line only sales efforts also need to be put into play. Here’s a few reasons that Newspapers should consider on-line only sales strategies:

1. Print reps are ill-equipped:

Besides the lack of technical skills required, interactive products require much more support after the sale. Without laptops or even access to computers in some offices, its challenging to make presentations and support on-line products after the sale.

2. Core Compensation Plans Discourage On-line Sales:

When faced with allocating a clients campaign budget, print execs take care of the core first in an effort to hit their monthly budget or goal. On-line compensation plans are often based upon a flat percentage with no contribution to core revenue targets. Certainly special bonuses and spiffs can be put into place, but these “Pep Talks” wear off and sales execs go back to their bread and butter core sales activities.

3. Territories Are Gone:

While print sales execs are often comfortable selling and taking ownership of a territory, on-line campaigns are network wide by nature. Execs need to be able to sell into a network of sites. Some newspapers have actually begun trying to territorialize their on-line sales teams, encouraging execs to sell on-line in their territory only. The result is less revenue and poor performance for clients. On-line only sales execs can focus on selling products across territories, reaching businesses who have never advertised with the newspaper before.

“The” Objection:

The major objection to on-line only sales teams seems to be the fact that these new execs will be taking revenue away from print reps who are already struggling. I would suggest that these new execs would actually bring more revenue in for print reps by pulling in advertisers who have never advertised in print. This is “reverse-publishing” at its best.

Perhaps shared revenue programs can be put into place to encourage print and on-line reps to work together. On-line campaigns can be turned over to on-line only execs who are more skilled and better equipped to support on-line products. On-line only execs can do the same with print and bundling opportunities that they run across in the field.

II. Online Ad Production Is Not The Same As Print Ad Production:

Too many newspapers are treating on-line ad production like print production. They need to remember that there are no hard deadlines with on-line. Ad production systems need to be streamlined by leveraging the technology and standards the WWW offers. Any on-line ad producer who has built print ads will tell you that on-line display ads with set IAB sizes are much easier to produce than print ads. There are even some companies like ImpactEngine and AdReady who have built a self-serve business behind standard ad sizes and themes.

Creative services teams need to build similar systems in-house to streamline ad production. On-line specs are a much larger part of the sales process than print specs. On-line specs need to be shown on a website spec, not on a white background as they are in print. It’s like taking a newspaper into an advertiser and showing them their spec ad in the newspaper in the exact spot that it will run. Something newspaper companies have never been able to do, can be done easily on-line.

III. On-line Fulfillment Is Not The Same As Print Fulfillment:

Web traffic changes hourly, unlike print circulation which is more static in nature. Too many newspapers are over-managing their ad-delivery systems. With an often lengthy and layered submission and approval process, newspapers have made it difficult to fulfill on-line advertising orders. There are also too many automated restrictions in the process. At some newspapers, campaigns are actually being rejected by ad serving systems because their impression goals exceed “projected” impression availability by 100 impressions or less. Newspapers need to remember that “available” impressions is a “dynamic” quantity. On-line campaigns need to be started and billed, impressions can be made up later if necessary. Who knows what local news event will occur tomorrow that results in increased traffic and impression inventory.

IV. Performance Metrics For On-line Are Not The Same As Print Metrics:

Newspapers are right at home with CPM models for measuring performance. They’re actually starting to treat CPM’s like CPI’s, a metric they’ve been using for years. Elaborate metrics reports are being developed and refined to help compare different newspaper groups and increase average CPM’s.

It’s time for newspapers to realize that there’s not enough revenue in on-line display ads. Banner revenue is limited by traffic and we can’t just add more pages like we can in print. The formula is simple (Total Banner Inventory Available/1000) X (Target CPM). Perform this calculation for any newspaper site and you’ll see that banner revenue is not going to sustain the industry. While behavioral targeting and niche site development are going to help CPM’s, the CPM metric is the last thing newspapers need to focus on right now. The focus needs to be on (in this order):

1. Interactive Revenue (non display):

Newspapers need money now. Local search (directories), Search Engine Marketing, On-line Video, Web Site Development and hosting, Email Marketing are all recurring revenue opportunities, independent of banners that newspapers can take advantage of now.

2. # Of New Advertisers:

Newspapers need to use their brand to build networks of new customers in local markets. Self-service products need to be developed and sales forces need to penetrate ALL businesses in the local market. Ted Leonsis, former vice chairman of AOL, states it well in his recent blog post where he lays out his “Ten Point Plan For Newspapers“.

Ted writes:

“Create mini local third party networks. Embrace and extend your reach locally by building a great digital sales force and then network and ingest local unique visitors, page views and engagement from third parties. Do locally what Advertising.com has done nationally, superset the region by creating a network of affiliates and build up massive scale of local sites. Promote them in your print-based property..”

3. Traffic Building Content:

Desperate times call for desperate measures, so content comes last. While they still have some quality journalist left, newspapers need to look for innovative ways to deliver quality content on-line. Again, they can leverage technology and partner with companies wanting to reach local markets.

The veil between sales and editorial needs to come down completely and newspapers need to build content initiatives with sales objectives. There are too many instances where sales is not aware of a new on-line section that suddenly appears on the web site. Editors need to let they’re guard down a bit and invite sales people into meetings about on-line special sections. Widgets can be built to syndicate content across other local sites, encouraging viral traffic growth.

Crossing The Gorge:

It should be clear by now that the solution for newspapers and the tiny hamlet in the Alps is to cross the gorge. They need to get out of the newspaper business and into the internet business. Sure there’s competition, but they still have a foothold on local markets. Newspapers also have a brand that’s been around for hundreds of years versus even the largest and most successful internet companies that have only been in existence for 10 to 15 years.

The answer is not in applying old methodologies, they need to create a new framework and business model to redefine the industry.

“The Word Is Alive”

Four Major Newspapers Form Local Ad Network: quadrantONE

 

The Tribune Company, the Gannet Company, the Hearst Corporation and the New York Times announced the formation of a new company called quadrantONE today. The company will allow national advertisers to reach local markets without working through a media buyer. In their press release, the company claims that they can reach 50 million unique visitors each month through a network of over 120 local news websites including the LA Times (click here for a complete affiliate list).

The move is likely in response to forward progress being made by the Yahoo Newspaper Consortium, although some of quadrantONE’s sites are also members of the consortium. The major advantage to advertisers is “guaranteed” inventory, something the Yahoo network doesn’t offer.  Each of the four newspapers has agreed to “transfer” a portion of the inventory to the new company, making the inventory available immediately to advertisers.

Here’s a few thoughts and ideas for local newspapers that this venture brings to light:

1. Keep focusing on LOCAL advertisers:

While quadrantONE may provide an outlet for national brands it still has yet to define what kinds of advertising it will be supporting. There’s no mention in their press release of contextual advertising or behavioral targeting so the company will most likely sell standard display(banner) ads. The list of sites does include “local” venues but many sites (e.g. LAtimes.com) have a significant amount of “national” traffic. Local newspapers should stay laser focused on acquiring local advertisers and revenue. Let the watered down national plays figure themselves out, there’s profit to be had at the local level. 

2. Leverage Technology Relationships:

Today in the Industry Standard Jeremy Kirk observed: “QuadrantONE is most notable for the online players that aren’t participants, such as Google, Yahoo or Microsoft. ” Without the support of a key technology partner, it will be difficult for quadrantONE to provide a system for delivering ads across all the newspaper sites on its affiliate list. By contrast, the consortium provides newspapers with access to Yahoo’s ad delivery systems which include some of the most sophisticated contextual and behavioral targeting programs available. Local newspapers need to keep looking for these types of partnerships and relationships on a “Local” level that allow them to borrow working technology and ideas from other companies.

3. Form Hyper Local Ad Networks:

Would it be that crazy of an idea to have local newspapers form their own local ad networks? There are hundreds of high traffic local websites and blogs in a given community. Many of these sites are not even supporting advertising units. Maybe it’s the chamber web site, the local golf association, High School, or the areas largest building products provider. Local newspapers can form partnerships and affiliations with these organizations and help them monetize their sites by selling advertising as part of a “local” network buy.

Jeremy Kirk couldn’t have stated it better: “…If newspapers develop better ways to sell their own online ads, they may not have to share revenue with their Web counterparts such as Yahoo and Google.”

“The Word Is Alive”

Newspaper Next Idea-Brainstorming Session 2

We held our second News Paper Next Brainstorming Session this morning.

Though we had 6 out of 8 teams represented (teams formed in Brainstorming Session 1), we were down to a total of 18 attendees. It was encouraging to see that we still had the support of key department heads and executives from circulation and sales. We had at least 5 new attendees, with a strong showing from the creative department. Still no sign of editorial, but it’s clear that next steps in the N2 process will rely on their involvement.

After a brief overview of the N2 Game Plan and framework for flushing out ideas, we spent a few minutes on 6 of the ideas from last month’s session. Team members in attendance were given time to elaborate and suggest next steps for each idea. Of the 8 original teams, only Team 5 led by our ad services manager came prepared with prototype web/print mock-ups , completed N2 Resume Idea Template & preliminary revenue projections.

As new committees/teams were formed to further explore ideas, it became clear that many attendees were reluctant to take on additional responsibilities. “How much time is this going to take?” was the question from sales staff present. While our goal is new revenue, the time investment from commissioned sales staff needs to be justified. With current commission structures focusing on core print revenue within a sales territory, it will be difficult and dangerous to pull talented sales execs away from their bread and butter to work on new “ideas”.

It might make more sense to rely on sales staff less for “hands on” participation and more for feedback as ideas develop. Better yet, in the true spirit of entrepreneurship that N2 fosters, we should consider a “bonus” compensation structure for those employees who spearhead profitable N2 initiatives.

At the end of our discussions we were left with 4 new teams charged with drilling down further into the following ideas/initiatives (for a more detailed description of these ideas see Newspaper Next Idea Brainstorming Session I):

New Team 1: Improving communications and customer service systems.

New Team 2: Coupon advertising program and Auto Display Ad Program.

New Team 3: Hosting industry events tied to publications.

New Team 4: Local kid-targeted special section.

Next steps were also suggested for the following :

1. Creation of a local Hispanic print product: We will be inviting one of our sister publications to provide a presentation on how they successfully launched a “new” Spanish print piece using N2 methods.

2. Alternative News: a prototype of an Alternative News section will be created for presentation at the next meeting.

The following new idea was also presented and accepted with enthusiasm by most present:

PS Weekly (Prep Sports Weekly):

This would be a new weekly print publication highlighting prep sports topics and information. The piece could be distributed free to all high schools and prep sporting events in the local area. With our current on-line dominance in the Preps category, we could also use the product to build out our on-line section. Advertising programs could be developed with the cooperation of schools who would benefit from a percentage of ad revenues.

We’ll be meeting again in the coming weeks to choose an idea to launch within the next 45 days.

“The Word Is Alive”

6 Steps For Selling Local Search Products To Businesses

Step 1. Choose The Right Prospects:

Search engine marketing (paying for keywords) is not for every business. With effective small business packages ranging from $150 to $2000 per month, the cost is significant for small businesses. You have to ask the ROI question when approaching a small business. How much revenue does the average sale generate? If you’re a flower shop or a dry cleaner and your average sale is $25, it’s going to take a lot more clicks to get a return on your investment. Use a 2% conversion rate to determine if an advertiser will make enough money to cover the cost of the campaign. If it costs $150 for 50 clicks ($3 per click) and you are getting a 2% conversion, each customer costs $150. It’s true that repeat business might result in future payback but prepared to explain that when selling to business owners with small ticket items. Paid local search campaigns are better suited to businesses that are selling high ticket items or service organizations such as home improvement services, legal services etc. Here’s a list of industries that tend to have a higher ROI on local search campaigns. Pick a category and go after it.

Step 2. Lead In With The Major Players:

Forget the name of your product, program or SEM company. Businesses have never heard of you. Lead in with “Google” and “Yahoo”. Remember, as an SEM salesperson,  you’ve “partnered” with these companies. Let your prospects know that first and you’ll be more likely to get the appointment. Try cold calling 10 businesses by telephone and you’ll see that there’s a genuine interest in marketing on Yahoo and Google. Most businesses may not know what “SEM” or “SEO” stands for but they use the major search engines every day.

Step 3. Print Search Results Before The Appointment:

Conduct a local search for the business you’re going to see and print out the results. Try searching for at least two keywords or phrases for the business. For example, if its a flooring company in Los Angeles, search for “carpets Los Angeles” and “tile floors Los Angeles”. It’s also good idea to run searches in surrounding cities, especially if the prospect comes up high in the organic (free) results when you run the first search. Put the printed results in a folder to take with you on the appointment.

Step 4. Prepare Sample Keywords & Geotargets:

This is a “suggested” list of keywords and geotargets (cities, areas etc.) that the client can use to start the campaign. 10 to 20 keywords and 5 cities would be ideal. The easiest way is to think of words that consumers might search for when looking for the clients products or services. There are also some on-line tools where you can pay anywhere from $269 to $599 per year to find effective keywords see Wordtracker and Keyword Discovery .  It’s a significant investment, but for the seasoned salesperson it’s well worth the cost to ensure the success of a campaign that can result in repeat business. The search engines themselves also offer free alternatives. Check out Google Suggest or Overture’s keyword selector tool (currently under construction). Once you have the list print it out and put in the same folder with the search results generated in step 3.

Step 5. The Presentation:

Don’t forget the folder! Take your time educating the client about local search. It’s helpful to show a generic search results page while explaining the difference between “Paid” or “Sponsored” results and “Organic” or “Free” results. Don’t be afraid to explain to the client that they can go directly to the search engines themselves and engage in the bidding and tracking process that your service provides. After they realize how much work and time is involved, they’ll appreciate the service your solution provides. Even if they’ll be paying $1 to $2 more per click, the hands on service and attention they receive will be well worth the investment. Lead into your search results pages (from step 3) by explaining that there could be local consumers right now searching for their products or services without knowing that the client exists. Hand the search results pages to them. You’ll find that most clients will take their time perusing the list for their competitors. After you’ve gone over your packages and pricing you can close the presentation and open the relationship with your suggested list of keywords to kick off the campaign.

Step 6. Follow Up:

Most sales executives will drop the ball here. Local search programs provide detailed reports, including keywords searched and clicks generated  on at least a monthly basis. The best programs will include customized landing pages with unique call in numbers which allow the campaign to be tracked from the click through to a call from the consumer. If these are not available you need to insist that the client track the source of incoming calls and sales. After 30 days of data you can make adjustments to the campaign, fine tuning the keywords and geotargets for better results. Effective campaigns will run for at least 90 days so you’ve got plenty of time to make adjustments if the campaign seems to be under-performing initially. If everything goes well you’ll be increasing the package at the end of the first 90 day run.

Here’s some other documents that might be helpful in your efforts to sell local search:

Nielsen Report On Local Search

Local Search Advertiser FAQ

“The Word Is Alive”

Entrepreneurs Redefine News With Hyper Local Data.

“Whats Happening In My Neighborhood?”

While local newspapers are scrambling for a foothold in their region, entrepreneurs are stepping in and aggregating “hyper” local data at the neighborhood level. Backed by a two year grant from The Knight foundation, EveryBlock.com launched today with neighborhood data and news from San Francisco, New York City and Chicago. The site provides up to date information  by Zip Code, Neighborhood, even Street Address. 

There was vandalism on the 1000 block of S. State Street in Chicago at 6PM today. I can also view data on what businesses make up the 21 liquor license applicants in my city this month. The site is easy to navigate and and delivers three types of information: local news and blogs, civic information and user generated local content (eg. reviews from Yelp, photos from Flickr, postings on Craigslist).

Redefining “news” is what venture is all about. While EveryBlock may still pick up the story of the day covered by national newspapers, it’s delivered right along side the review of a new Italian restaurant on Yelp, or a “cool” photo taken of a house down the street that has just been posted in Flickr. The company will be adding data types in the coming months, providing more information for each of the three launch cities.

Local newspapers should be quick to jump on this model.  The EveryBlock team of 4 is led by Adrian Holovaty, a veteran  journalist and web developer whose worked at the washingtonpost.com, lawrence.com and LJWorld.com. While the team promises to work feverishly to obtain more data from city officials and civic resources, local newspapers should already have these relationships in place. 

 Perhaps there’s an opportunity for a partnership here. Local newspapers can have a hyper-local research center “powered by” EveryBlock. Whatever the move, local newspapers need to keep embracing the technology, hiring the staff and pick up the pace on the on-line database development  to establish themselves as the “source” for local information.

“The Word Is Alive”

Newspaper Next Idea Brainstorming Session I

We held our first Newspaper Next brainstorming workshop this morning.

Kudos to our Marketing Director extraordinaire who spearheaded the effort. We were all surprised when over 50 employees showed up to this voluntary event, including department heads from circulation and production. We were even more surprised to notice that nobody showed up from our editorial department. We sat through a brief overview of the N2 initiative including a handout on “Using the N2 Method” and then the real fun began.

As you’ll see from the summary below, many people used the exercise as an opportunity to suggest improvements in the current operations of the company. This, in my opinion, was one of the biggest takeaways from the workshop. It’s apparent that our own employees are concerned with the integrity of the company and the product, an issue we should be addressing first.

We were divided into 8 teams of 6 people and were given the task of completing a blank Newspaper Next Idea Resume. Each team had approximately 15 minutes to come up with an “idea” for the newspaper. We’ll be meeting with our teams throughout the month to flush out our ideas using the N2 tools before the next meeting. At the very least it was a great team building exercise and you could sense some of the excitement in the room as the ideas were explained. The workshop is voluntary so we’ll see who shows up next month.

The following is a summary of the ideas presented:

Team 1 Idea: Improve Delivery and Distribution:

This idea focused on improving existing circulation and distribution systems. Having relocated our press production department to another city, we’ve been dealing with circulation challenges on a regular basis. Team 1 took the opportunity to bring these challenges to light and suggested we focus our efforts on improving circulation above all else.

Team 2 Idea: Create a Local Hispanic Print Product:

Recognizing that we have one of the largest Hispanic populations in the LA area, Team 2 suggested we develop a more local product catering to the Hispanic market in the San Gabriel Valley. The product would be home delivered and would earn income by selling advertising to businesses targeting the Hispanic market.

Team 3 Idea: Improve Communications and Customer Service:

Once again the focus was on “fixing” things that are currently broken. This team brought to light the many basic customer service and communications issues the company has on a daily basis. Although the examples given were borderline sarcastic, some good points were made about how important customer service is before anything else.

Team 4 Idea: Create an On-line Everything Local Guide:

This team discussed the creation of a free on-line guide with hyper-local information for consumers and local residents. This is kind of a community resource center with contact information and resources aside from news stories which are are running currently on the main news site. Again, the project would create revenue from local advertisers.

Team 5 Idea: Create A Topper Coupon Spadea on Sunday:

The idea was to publish a spadea to top the paper each sunday. The spadea itself would feature full color coupon space sold to local advertisers. Examples were given of success of such spadeas and coupons in other markets.

Team 6 Idea: Publish More Alternative News:

This team suggested that news in general had become somewhat “controlled” in the aggregate, and that there was a genuine demand by the public for “alternative” news perspectives on key issues. The newspaper should focus on becoming a conduit to other information sources, without being so concerned with sources and etiquette. As a result the paper would make more money as a better product.

Team 7 Idea: Organize And Host Local Events Tied To Publications:

An example of a “Travel Expo” was given. The newspaper could organize and host a local expo much like the job fairs that have been put on by newspapers in past. The paper could target a specific industry and sell booths along with advertising in an accompanying print publication promoting the event.

Team 8 idea: Create A Product To Target Younger Audiences:

The notion here was that we need to hook them on the paper at a young age. This team discussed the creation of a section or sections in the paper that provided activities, resources and information for kids age 4-12 and their families. The paper could create educational content along with schools and team up with local chambers, community centers, Boy Scouts, YMCA etc. to offer information in print an on-line to this demographic. Advertising sales again would provide the revenue to support the effort.

“The Word Is Alive”

Building An Interactive Sales Team

I was approved to build out an interactive sales and development team today.

In some ways it’s a classic case of “be careful what you ask for”. The revenue objectives, although average in comparison to print revenue, are quite aggressive. I guess this is a way of forcing interactive to kick in.

Sales up to this point have relied heavily on up sells from print reps who already have a book of accounts. The model here is to reach those advertisers that have never advertised with us at all.

It’ll be a pretty slim department to start. The initial team will consist of a full-time developer and two full-time sales people. We’ll be doing some heavy cold calling both on the street and the phone. The objective is to at least touch over 200 local businesses each month. We’ll also be making use of on-line prospecting and in paper advertising in an effort to get prospects to come to us.

I don’t expect a full suite of stand-alone products to be available until March 08 so we’ll begin generating revenue by selling bundles, niche on-line products, local search packages and banners on-line. The developer will be as much a part of the team as the feet on the street. The book hasn’t been written in this space yet and I’ve seen some good development people come up with the best on-line products by accident.

We’ll also be working closely with editorial teams to build new opportunities and empower our sites to capture more information about our users. Currently we collect nothing from anyone that visits any of our web sites. We’ll be looking to build in “voluntary” registration to access key content etc. asap.

The task won’t be easy but I’ve done it before so I’m up for the challenge. More importantly, its going to be fun to be free to make things happen again.

“The Word Is Alive”

My First Newspaper Next “Idea Resume”

I finished my first Newspaper Next “Idea Resume” today.

Newspaper Next is an initiative of the American Press Institute designed to provide a blueprint for transforming the newspaper through new business models. The “Idea Resume” is one of the Newspaper Next tools developed to help newspapers summarize new business ideas. It’s basically a one page template of questions about the idea and anlysis of critical assumptions. Click here to download the N2 Idea Resume template.

My first idea proposes to generate monthly fees from clients that have never advertised with the Newspaper. It turns out that there are over 80,000 businesses in our marketplace yet we have maybe 500 who advertise with us. We’ll be partnering with a technology company to build a site that allows businesses to promote themselves on-line and in the paper locally.

I wasn’t really in on the Newspaper Next hoopla meeting but the white paper makes a lot of sense. Any intiative that promotes “failing often and failing fast” is ok by me. I really liked the Idea Resume form which helps to identify strengths and weaknesses in new business ideas. It also does a good job bringing out certain key revenue assumptions. The whole process took about 20 minutes so I should be able to crank out quite a few of these first drafts and then go with the best one.

It’s my objective to get as many irons in the fire as soon as possible. This “Newspapers Next” initiative is basically giving us the green light to innovate. Something that I think the industry should have done 10 years ago. I intend to document my progress throughout each of these projects so stand by for more.

“The Word Is Alive”

Selling On-line Advertising For Newspapers

Welcome.

I’ve been off the radar for some time now but I’m back in the field working for a local newspaper. I didn’t plan on being here but when my new wife and I decided to start our own local journal, I just couldn’t figure out how newspapers make any money these days. What better way to learn, I thought, than to work for newspaper and learn their secrets.

Well, after 4 months selling print advertising I was moved into the interactive department and here I am selling the web again.

I was surprised to find that I actually enjoy the challenge. As it turns out, these local newspapers are sitting on a goldmine. Here’s a few nuggets I’ve picked up for starters.

1. CPM pricing only make sense to agencies:

Most businesses are still sold on “sponsorship” campaigns. Having their banner ad displayed in a particular section even if less people see it makes more sense to local businesses for branding although they are impressed by traffic reports.

It’s the agencies who are intent on gobbling up the impressions. And once they start buying CPM’s they start looking at CPC which often decreases as the ad gets stale on the site.

In my estimation CPM’s as a metric will be gone in 4 years. This is not news, the rise of “Behavioral Targeting” and web development apps which allow for the viewing of content without refreshing the page (widgets, Ajax etc.) have been on the rise.

2. Print Reps Are ill Equipped:

As a print rep myself for 4 months I found myself waiting in line to use a computer in the office, much less have a laptop to present on-line ads in the field. If newspapers are serious about interactive they need to get all their reps on-line and in the field with laptops. The sales management tools alone would improve production significantly.

3. There’s Money in Niche Markets:

On-line micro sites and special sections seem to hold great opportunity. They allow for ease of bundling with print products and advertisers are willing to pay more for the “intimacy of the content” (I actually stole that phrase from an article I read). We’ve seen $50 effective CPM rates on some recent niche sites we’ve launched.

4. Classified needs to make a decision:

I couldn’t believe how difficult it is to purchase a classified ad on-line when I got here. And even after months of multi-page suggestions working with several different vendors it seems we’re still struggling in this area. It’s no wonder the free class sites are kicking everyone’s behind. A decision needs to be made as to whether or not there’s a future in classifieds on-line for newspapers. Partnerships might be a better option.

The Word Is Alive!