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”

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”

Three Ideas For Newspapers in 2008

Having spent just under 500 days in the industry, I’m not really qualified to comment on where newspapers are going or what they should do in the coming years but I have seen enough to form some entertaining ideas on new business models that might work. 

Along with the ideas outlined here, newspapers have a number of challenges to overcome which I feel are limiting their growth  and future success. The most limiting of these being the ability to activate new ideas often and quickly. In my estimation, newspapers have a 18-24 month window to move on these ideas to maximize their revenue opportunities.

Here’s three business ideas for newspapers in 2008 that may help them capitalize on their position in the local marketplace and acquire new customers over the next 18 to 24 months:

1. Web Development & Hosting For Businesses.

As part of the API’s Newspaper Next initiative, seven local news organizations were selected to launch N2 pilot projects over a 4 month period. Local market research was conducted to determine what “jobs” businesses needed done. One of the prominent discoveries among non-advertising small businesses was that they needed  help developing an effective web presence. Local newspapers are in a great position to develop and promote web sites for small businesses.

Whether it’s a shopping site profile page or a full blown 15 page site, local newspapers can capture the market for local web development and on-line promotion. Local newspapers have creative services departments in place churning out print ads 24 hours a day in many cases. With the proliferation of easy to use web development tools and templates, web ads are much easier to develop than print ads. Most layout and design software including Adobe’s Creative Suite come with “save for web” features built in.

“That’s a completely different business model”, a colleague of mine argued. “How can we maintain the servers and all the programming”. Newspapers may not realize it, but they are already in the hosting and design business. Each section of the newspaper site is its own “mini” web site. Servers are already co-located and there are no real technology barriers to hosting and maintaining web sites today. Newspapers also have the layout, design staff and systems in place which local businesses need.

“But most businesses already have web sites.” it might be argued. While this may be true, I’d challenge any newspaper to take a random sample of 10 local business websites to see what you’re up against. In my estimation 6 out of 10 sites are outdated, poorly designed and generally ineffective as an advertising vehicle. The average local newspaper  has been designing advertisements for businesses for over a 100 years. They know how to write effective copy and turn customer ideas into action generating advertisements. The WWW can be thought of as nothing more than a giant newspaper or yellowpage directory.

Business models and pricing still need to be worked out, but the real value here is in relationship building. There are over 200, 000 businesses in the average metropolitan marketplace, there might be 2000 to 3000 who have been “touched” by the average print sales executive.  Providing these new services expands the prospect base and opens up new opportunities to market products to non-customers who might not ever advertise in the local news paper. Special print/on-line bundles can be created to market a web presence along with additional on-line or print exposure.

Becoming the web presence provider for local businesses is like owning their telephone, fax machine or front door.  Newspapers are effectively locking in a relationship with that business. Whether it’s facilitating domain name registrations, providing self-service web creation tools or complete web services, newspapers are helping businesses attach themselves to their local newspaper, a brand they’ve trusted for years.

2. Renting Mobile CSC Codes to Businesses

Whereas the technology and price barriers to web site development have come down, these barriers are still very much in place for mobile advertising. The cost and price of mobile devices are dropping but the processes by which advertisers can start using mobile advertising are still too complicated and expensive for business owners. There are many applications and ideas for mobile advertising within an industry or vertical market. The basic ability to communicate with customers via text messaging is something businesses will find invaluable for local promotions. 

 The most common mobile programs and easiest to employ are based on CSC (Common Short Code) text messaging. A CSC is a 5 or 6 digit number or letter combination, similar to a phone number which mobile phone users can text messages to interact with businesses.  The CSC itself costs from $500 to $1000 per month, and requires a somewhat lengthy and detailed application process. Newspapers can setup a master CSC for their business community and rent the keyword phrases to local businesses. For example, mobile users might text the phrase “Free Pizza” to  LANEWS (526397) and receive information on a free pizza deal in town. Newspapers can earn monthly fees for renting the phrase and CPA (Cost Per Action) fees for each response received. Because this type of marketing is in its early stages, newspapers can become the front runners in providing local mobile advertising services to businesses. Again, the strong brand and reputation that local newspapers enjoy will help them in acquiring new revenues from advertisers who are currently non-customers.

3. Email Marketing For Businesses

If they don’t have one already, every business should have an email list of all their local customers. Newspaper’s can create programs to help businesses collect email addresses and send emails with promotional information. Newspapers should already be actively collecting email addresses from visitors to the news site and creating opt-in lists of users who are open to receiving information on deals from local advertisers.

With the increase in behavioral targeting capabilites and the proliferation of personalization features on local news websites, newspapers can create databases of consumer information. Local businesses can then be matched up with consumers by interest.  Email marketing can also be bundled with local direct mail campaigns providing for “Total Audience” direct marketing programs.

The Work Factor: 

Henry Ford once said “Opportunity is missed by most people because it is dressed in overalls and looks like work.”

Recognizing that the strength of newspapers lies in their strong LOCAL brand, ad production systems, and local sales forces, these ideas are in no way “easy” to implement.  In fact, I think newspapers and especially their sales forces will have to work harder and more consistently than they ever have to succeed in todays marketplace, but the results will be worth the effort.

 ”The Word Is Alive”

3 Ways Widgets Can Help Local Newspapers.

Assuming you’ve read my post “what is a widget?”, and you now know what a “widget” is, lets take look at how local newspapers can use widgets.

Some of the major newspapers have jumped headstrong into widget development already. The New York Times has created a widget for their crossword puzzle, The Washington Post has a widget for viewing photos and keeping track of 2008 campaign issues, and a stock market tracking widget is available from the Wall Street Journal. We’ve seen less from the more local publications who have much more to gain. It’s true that the business model is not yet clear for widgets and none of major news sites have made any money from their widgets, but here’s some clear opportunities widgets present to local newspapers.

1.Branding:

Besides allowing newspapers to draw in new readers, widgets can be used to create mini local news kiosks on other community web sites. Chamber sites could incorporate widgets with local business news, High School sites can get feeds from Prep-sports. it’s just a matter of time before some local newspaper comes up with the perfect tool or game that “catches on” in the community through widgets which can be easily copied and shared on-line. Regardless of whether or not they read the newspaper or visit the newspaper site, the newspaper’s brand is boosted by being exposed on the widget skin.

2. Advertising:

Widgets can be sponsored by local advertisers. It’s like placing your logo or advertising message on a video game console, your message is in front of the user while they’re using the widget. A pet store might sponsor a “pet finder” widget or a local dealership might sponsor a “sports scoreboard” widget. Newspapers can even be involved in helping advertisers create their own widgets to share important information that they have to share. We’ve already begun to see classifieds widgets with local auto and real estate listings.

3. Promotions & Events:

Newspapers can team up with local advertisers to offer promotions revolving around game widgets. Advertisers can deliver special coupons or deals to these local kiosks on other sites. Widgets can be designed around local community events. The “Tournament Of Roses” widget or the “Western Days” widget might be used for delivering content on local events.

The opportunities to benefit from widgets are only beginning for local newspapers. While steady declines in circulation and print advertising have continued to plague newspapers, widgets are a way to reach out to new, younger users online, who might not otherwise come to a local newspaper’s web site.

“The Word Is Alive”

What is a “widget”?

When I was 9 years old I got my first handheld video game for christmas. It was a football game with little LED lights for each player and although I could turn off the sound, it made the most annoying beeps as I ran a player across the screen or scored a touchdown. “What is that “gadget” you got there?” my grandfather would ask. When I got to high school my Economics professor used “ACME Widget Company” in examples of income and revenue models he was teaching. A “widget” or “gadget” in these cases was a mechanical or electronic device that served some purpose. The video game served as a form of entertainment and the ACME “Widget” was a placeholder name used to represent a product that the company created and sold to earn income. In actuality it could have been ACME Video Game Corp., thus a “widget” is actually a “gadget” that one party manufactures and another uses for some purpose. Not much has changed today.

WWW widgets are nothing more than useful gadgets that can be placed on web sites or on your computers desktop to do something, only in this case the gadgets are not mechanical or electronic, they are tiny software programs. There’s a widget on this page that shows the most recent blog posts. Rather than having to type in the title of the post I just place the widget there and it’s does the work for me automatically. There are hundreds of categories of widgets available to be used on any web site or computer. Most widgets are available free, although some entrepreneurs have started charging for them or charging for more advanced versions of certain widgets.

How Do You Get A Widget?

There are hundreds of sites offering widgets that you can download and use. Here are some of the most popular:

• widgets.yahoo.com
• http://www.dashboardwidgets.com/
• http://www.apple.com/downloads/dashboard/ (For Apple Users)

Once you choose the widget you want to start using, you can install it in one of two ways depending upon where you are going to use it. If you will be using it on your computer’s desktop you will simply need to download and install it as you would any other program. If you will be using it on your website, you will need to place it within the code that is used to create your website. Placing the widget on your website may require some technical knowledge, as you’ll be making changes to the appearance of your website to accommodate the new widget. Many widgets come with detailed installation instructions to help you in this process.

“The Word Is Alive”

Are Private Party Ads Going Mobile?

I received the following text message this morning from a friend in my bible study group. “My daughter got a job in New York, does anyone want to buy a Honda CRX -CHEAP?”. It’s not the first time I’ve received what I consider a “private party” ad via cell phone. I’ve even received images and video for some items.

As the price point for higher technology cell phones decreases we’ll see more of this type of FREE peer to peers (group) advertising taking place. Many social networking sites are also making it easier for this type of advertising. Myspace has its bulletin space where you can post a message instantly to all of your “friends” and Facebook has its “News Feeds” which can be used to communicate offers to people in your network. Even the more business oriented sites such as Linkedin.com offer tools to help users look for jobs within their network of contacts.

There’s also a certain benefit of buying and selling within your group. The “trust factor” comes into play. People generally like to buy from people they trust and offer better deals to their friends or associates. As the various networks of friends grow that’ll be the first place people look to conduct a private party transaction.

Here’s some things newspapers might consider in light of this trend:

1. Provide tools to help private parties advertise on-line:

With the proliferation of free classified sites and peer to group advertising venues it’s becoming difficult and time consuming for sellers to cover all the bases. Perhaps newspapers can create a communications center which allows users to enter and submit messages from a single site. Services such as Vflyer.com, postlets.com, and vendio.com provide valuable tools that focus on the “Sellers” side of the transaction. Many of these sites offer services for free and rely upon paid ads from traffic generated to the ads themselves. People looking to buy a car, for example might be served up an ad for insurance. Newspapers have already begun to sell contextual advertising within editorial content, these ads present more valuable eyeballs who are in the market to buy a certain or product or service.

2. Build groups of on-line users:

The power of newspapers is and continues to be local. It’s not too late to create spaces for local people to interact and form groups around areas of interest. Whether its pets, prep-sports, or local heath, newspapers have valuable “local” content that drives visitors to certain sections. At the very least, voluntary registration forms should be up in all areas of the site. Providing tools to allow users to communicate and join groups within a section allows newspapers to effectively “own” those groups.

3. Embrace mobile technologies:

Beyond the simple mobile alerts and news updates that most newspapers are providing, how about allowing users to share photos and videos from from editorial sections in the printed paper. For many consumers the cell phone is their primary gateway to the internet. Today their are over 3 billion mobile phones in a world of 6 billion people, that 2.5 times more cell phones than Internet connections. Newspapers need to start thinking more about the handsets and less about the PC’s.

“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!