HTML5: Setting the pace for ad interactivity

HTML5 is not only making headway in web development, but also on the advertising front. As advertisers look for more engagement and interactivity than the simple click-thru provides, HTML5 offers great promise. Check out this video of an HTML5 ad on the NYTimes.com:

Newspapers: The Original Location Based Service.

For over 400 years newspapers have been providing location based information and services to consumers and businesses. What other entity provides door-to-door delivery of a tangible and unique location based product every day?

While local print subscriber bases may have eroded, online traffic is still on the rise. On mobile devices, news is one of the top-three content categories consumed according to comScore. For the past few years newspapers have been struggling to come up with new business models but some are starting to gain traction by embracing LBS on mobile devices. While we’re sure to see more innovation from newspapers as the tablet war heats up, the following three location-based engagement models are helping newspapers drive new audience and revenue.

1.       Location Based Crowd Sourcing: Local newspapers are taking advantage of mobile technologies to allow community members to report live news and information. Apps like Snap Scouts on the Android, for example, allow community members to participate in crime prevention by putting them on patrol in their neighborhoods earning points for “seeing , snapping, and sending” in anonymous crime info. The Los Angeles Newspaper Group has recently launched its SoCal Prep Sports iPhone and iPad app with the goal of sourcing photos, scores and live updates from audiences at high school sporting events.

2.        Location Based Editorial: Local newspapers are sitting on a treasure chest of detailed content about their communities. When mobile users “check in” to a location as they are so fond of doing these days, local newspapers can serve up editorial content about the location, historical photos, stories and reviews will enhance the users experience.. The Metro, Canada’s leading free daily newspaper has done this by partnering with Foursquare to add their location-specific editorial content to locations on the service. There’s even a Foursquare badge that users can unlock by checking in to a single-copy location. Newspapers can augment a location by adding context to the user experience with interesting content they have in archives.

3.       Location Based Contests: The Boston Globe has teamed up with SCVNGR a sophisticated mobile scavenger hunt and check in service to launch The Boston Globe Trek. This location-based contest encourages users to explore their city and learn more about local attractions by snapping photos and scanning QR codes at various locations across the city. They’ve issued a series of theme based challenges like romance, movies, sports and tech to engage new audiences.

By leveraging their strong brands, content and local sales resources with emerging mobile technologies, newspapers are in a great position to capitalize on location based services. They are still the best source for location based information, and emerging technologies can help them stay there.

Mobile Application Payment and Subscription Models

So you’ve just created an application to deliver your content on mobile devices. Should you give it away for free and build an audience? Should you charge a subscription? Should you charge a one-time fee?  How about offering access as part of a print subscription? How about a combination of some of these? There are thousands of paid mobile apps that are generating revenue with various payment and subscription models. The following represents a list of the most common payment models for mobile applications along with links to live applications employing each model.

1. Demo or Lite Version:

Allows consumers to try applications with limited functionality and content. Users of the Lite version can upgrade by purchasing a full, unrestricted version of the application at a later date. The idea here is to reach a large audience initially by providing a no risk way for consumers to try the application. Application users are encouraged to “try before they buy” with “Lite” versions of the application. Once they are comfortable with the value of the app, they can download the full version for a fixed fee or subscription.

Example of Demo/Lite Version Content Apps:

News India Lite-Free/News India Plus $1.99

News Canada Lite/News Canada Plus $1.99

2. Pay-Per-Download:

This is perhaps the most popular method of charging for mobile apps. A fixed price is set for the application and once the user downloads the app, they have full access to all the content and features. The paid application may or may not include advertising. This model has been most successful when coupled with a “Lite” limited access version of the application that users can download and use for free.  One of the best examples of the deployment of this model in the content business is the CNN iPhone Application which can be purchased for a one-time $1.99 fee from the Apple App Store. Users pay a one time fee for unlimited access to news content on their phones.

Example Of Pay-Per-Download Apps:

CNN App For iPhone $1.99 one-time fee.

3. Pay-Per-Issue/Edition Download:

Pay-Per-Edition models simulate a subscription by providing an expiration on pay-per-download apps. Consumers are asked to download and pay for another edition of the app towards the end of its expiration. For example users could pay $12.99 for the 2010 edition of their local newspaper application. On January 1st, 2011 they will be required to download the 2011 edition if they wish to continue accessing content.  When employing this method, developers will often reduce the price of the app as the expiration date approaches.

Example Of Pay-Per-Edition Apps:

MLB.com At Bat $14.99 for annual access to MLB content.

The Washington Post - $1.99 for annual access to The Washington Post content.

4. In-Application Subscription:

Apple’s in app purchasing capability, launched last year allows publishers to offer applications free to consumers while generating revenue by giving them  the option to purchase content though i-Tunes within the application. This has become a popular option for organizations to charge subscriptions for content delivered to mobile devices. Users download a free version of the app and then can upgrade by choosing various subscription options from within the app using the iTunes payment mechanism.

Example of In-Application Subscription Apps:

Slacker Radio -Free Download with options for 4 mo subscription@ $19.99 and 12 mo subscription@$47.99

5. Out-of-Application  Activation:

Out-of-App activation models allow consumers to purchase an account (username/password) from a WAP site and then return to the app to login. This model allows app developers to by pass Apples iTunes payment system but makes it more cumbersome to purchase, as users must leave the app and return with credentials. Though users are able to download the app for free using this model, they are not able to access any of the content or use any of the apps features without a username and password.

Example of Out-Of App Activation Model:

Wall Street Journal-Mobile Reader -Access to the content in the App requires registration or $1.50/week subscription via WAP site.

6. Out-Of-App Payment:

Similar to in-app subscriptions, this model allows consumers to access limited amounts of information and features within an application and purchase additional levels of access thought payment mechanisms outside of the application platform. This model often requires complex development to authenticate users accessing content behind a pay wall. The model may also sync up with web-based pay wall systems so that paid subscribers can access content on multiple platforms. Several vendors including Paypal have been experimenting with these types of mobile payment models. The goal is to provide users with a seamless purchase method that sends them back to the application. Both Apple and Google maintain development restrictions which could cause applications using this model to be rejected.

Example of Out-Of App Payment Model:

Touchnote -Free to download with Fees to send a post card

Apple’s iAd Platform Pushes Mobile Advertising Forward

While Google is entangled in lawsuits over their AdMob acquisition, Apple is developing a strategy for dominating the Mobile Ad Industry.

With the announcement and demonstration of it’s new iAd platform last week, Apple has clearly defined their ad strategy as it applies to mobile apps . The company will sell and host mobile ads for application developers who will receive 60% of the ad revenue. More importantly, for advertisers, they’ve created a platform that will accommodate rich media/interactive ads within applications without relying on Flash.

Currently, mobile display ads are limited to flat files that are problematic for advertisers and consumers as interaction with the ad (clicking on it) causes the user to leave the application and open up a mobile web browser leading to a site or landing page containing the advertisers message. In the live iAd demos conducted by Steve Jobs, interaction with the ad unit occurs within the app. Demonstrations of clicking through sample ads promoting Toy Story 3, Nike and Target all resulted in the launching of a mini interactive advertising app which takes over the iPhone screen but allows the user to return to the app by closing out of the ad. All of the examples made extensive use of video and location-based targeting.

As Jobs states, the incorporation of video and interactivity bring both “emotion and interactivity” to mobile ads which really results in the best of online display advertising (interactivity) and TV advertising (emotion). Here’s a few more nuggets from the presentation and thoughts on what this means for advertisers and publishers:

1. Search is not happening on mobile devices, the opportunity is in mobile applications.

Jobs begins his presentation by explaining that mobile users are not using Search like they do on desktops. While Search is the main thing people are doing on the desktop, they are not spending time searching on mobile devices. They are spending their time in apps on mobile devices. They are in fact using apps to get the information they need rather than searching for it. Hence the necessity for more robust advertising capabilities within apps.

As I mentioned in a previous post about “App-vertising” publishers and advertisers need to get into the application development business with the same fervor that entrepreneurs got into the web development business 15 years ago. Those companies that create best of class apps or that are first to market will attract the most eyes on mobile devices, regardless of their ranking on Google. The iAd platform also fosters a whole new field of advertising application development.

2. Though impressive, iAd  and Apple are not the only game in town:

It will be interesting to see how other devices and ad networks respond in the coming weeks. While there seems to be a notion floating around that Apple is intending to cutoff or hinder rival adnetworks (i.e. Google’s AdMob) with this move, it is still too early to tell. The company has told Wired magazine last week that they would not prevent third-party networks from embedding ads in Apples mobile devices (read the full article here).

What Apple has done with HTML5 is quite impressive however, and I would think that other ad networks and mobile operating systems would start working together to do the same. It’s only a matter of time before we see similar ad capabilities on competing mobile devices like the Droid and Blackberry. Which brings us to our next nugget:

3. HTML5 poses a serious threat to Flash:

It’s pretty clear that HTML5 can provide the functionality that Adobe’s Flash offers and while Flash still rules on the web, it’s not gaining much ground on mobile devices. If you can use HTML5 to create rich media on mobile devices, it should be even easier to use on the web. Advertisers and agencies will only tolerate multiple development platforms for so long. Third party development tools are also starting to address the HTML5/Flash issue in anticipation of the transition.

As reported by TechCrunch yesterday, Sprout.com has released a development tool that allows users to simultaneously build rich ads in both HTML5 and FLASH. Tools like this will make it easier for advertisers to run common campaigns across mobile devices and desktops. And make it easier to transition away from Flash.

4.Remember that display advertising is not the only opportunity. Especially for local advertisers:

With all the discussion about ad networks and mobile display ads, we need to remember that display is just one area of opportunity for mobile  advertisers. Lead generation and relationship management are perhaps the fastest growing and most lucrative opportunities  for local advertisers. Mobile device are quickly becoming the preferred device for social networking and transacting business.  Those advertisers that focus on building their virtual relationships to drive in store foot  traffic and sales will realize a great ROI than advertisers that focus on display only.

Gathering and collecting data about application and mobile ad  visitors will become more important. This is where Apple will have an upper hand as they have final approval of the apps and associated features that can be used to collect user data. It will eventually come down to the interpretation of policies as indicated the Apple developers contract and Apples enforcement of them to protect their customers.

Mobile Strategies For Newspapers

2008 was the first year more portable devices than desktops were sold. In 2009 portable sales continued to grow much faster than desktops worldwide. In 2012, IDC predicts, there will be 285.7 million portable devices sold worldwide, compared to only 156.6 million desktops. When technology actually works, real habit changes occur. The daily habit of reading the printed newspaper is on the decline as a more connected culture is developing different content consumption habits. Content on-the-go through mobile devices is on the rise. As determined from strategy sessions across the company, the time is now for newspapers to aggressively pursue a mobile content and sales strategy.

In the short run, many newspapers along with select vendors have already begun to release and sell mobile products and services around these emerging habits. A comprehensive strategy around content delivery and audience will allow them to more effectively take advantage of opportunities and grow more long term sustainable revenue. The right strategy will also position newspapers to grow along with the expected explosive increase in mobile devices and usage over the next 24 months.

With sustainable revenue as the goal, newspapers need to enlist the entire organization behind their mobile strategy. Starting with newsroom, journalists need to learn to package content for delivery on mobile devices. Technology and legacy IT departments need to engage and develop mobile delivery schemes and mobile applications for portable/mobile devices. Sales teams need to become small business trainers and consultants, helping businesses to adapt and take advantage of mobile advertising and sales opportunities. Production teams need to start developing and designing for smaller screens. Resources need to be shifted so that newspapers can more aggressively pursue mobile opportunities.

News Room Strategies:
1. Training on Mobile Content Creation: Newsrooms/journalists need to be equipped and trained to categorize, tag and store metadata on current and archived content. As we move away from a “push” environment and towards a “pull” environment where content is being pulled from connected devices, it becomes more important for newspaper to have their content properly tagged and categorized. Newspaper also have vast archives of valuable content that can be leveraged if they can find a way to curate and filter it for delivery on mobile devices.

2. Training on Mobile Content Delivery: Email, texts, tweets, video, audio and interactive databases are the preferred methods of consuming mobile content. Newsrooms need to be using more of these tools in their day-to-day operations. Journalists should be trained in using interactive content delivery tools and databases. Rather than simply writing a story, they can be publishing interactive content/context applications for mobile devices. If there’s a major event or story in the area, they can build tools to allow readers to follow the story/event.

3. Using Social News, Social Networking and Social Media Sharing: Newsrooms need to develop strategies and best practices around social media tools which allow them to generate content as well as engage new audiences. Tools like Facebook, Twitter, YouTube, Flikr need to be used with a more clear strategy on audience development. Mobile/citizen journalism, UGC and crowdsourcing are all great sources of timely local content. Newspapers can act as a filter for local UGC content.

Technology/Integration Strategies:
1. Mobile Application Development: In house or outsourced developers who can quickly create and deploy category specific mobile applications—Prep Sports, Obits, Calendars, Classifieds etc. The opportunity is in the niches with mobile. Rather than simply mobilizing existing web sites, newspapers can build niche mobile applications and become mobile pure play leaders in niche markets and verticals.

2. Mobile Site Conversion and Development: In house or outsourced developers who can convert static web and print products to robust mobile sites. The right WAP sites today function just like mobile applications. As development tools improve, it is becoming easier to build more functional mobile web sites that do more than just browse.

3. Mobile Delivery Applications: IT departments need to coordinate and assist in delivering news content to mobile platforms. Custom applications need to be built to move content easily from legacy platforms to mobile platforms. The industry is moving to slow in this area. Rather than wait for updates to existing CMS and publishing systems, IT departments need to provide workarounds allowing for easier distribution of content to the web and mobile.

Sales Strategies:
1. Business Outreach/Training: Sales teams need to become the experts on mobile opportunities, training and educating business owners on how newspapers can help them reach mobile audiences. Mobile apps and sites today are like the web was 10-15 years ago, businesses are just starting to engage and understand the opportunities.

2. Location Based Advertising Programs: As more devices are released with native GPS capability, applications around content allowing users to “Shop Nearby” , “Dine Nearby” will connect local consumers and businesses. Sales departments need to organize and build presentations around location based opportunities. New pricing models need to be put in place, as these programs will be much more effective than traditional display advertising.

3. Transaction Based Revenue: Rather than ad-only revenue, tools can be provided to allow business to conduct sales over mobile devices for a small transactional fee or percentage of purchase. Perhaps newspapers can become the “mobile Paypal” solution for local businesses.

Marketing Strategies:
1. Community/Educational Message: Just as sales teams will be educating businesses, marketing departments need to educate the community on how newspapers serve the mobile audience. Communicate all the information and resources available using our mobile sites, platforms and products. Educate the novice mobile users on how to access content.

2. Tech/Trendy Message: Marketing department should also find a way to let the tech savvy audience know what’s now available to them and how to access it. Communicate all the ways that mobile content can keep them up to date and on the cutting edge.

3. Local Partnerships: Trade with local phone retailers and auto dealers to make our mobile content available with every purchase. Free mobile E-edition with every phone, or free Local News application pre-installed. As free wifi proliferates an the cost of connection devices drops, opportunities will open up to bundle content with device purchases.

4. Mobile Opt in Database Development: Text messaging today is what email was 10 years ago. It’s still the tip of the iceberg for txt messaging and it’s already outpacing email as the preferred method of communication for younger audiences. Along with email, marketing departments need to engage in an aggressive mobile opt-in acquisition programs, allowing LANG to build its local, mobile database.

“The Word Is Alive”

Five iPad Ideas For Newspapers

Apple’s launch of the iPad today offers real opportunities for media companies.

It’s not the gadgets, but the habits that media companies need to watch in these times and as we saw with the iPhone, when technology works radical habit changes follow.

Newspapers in particular have been victims of changing habits with the move toward a more connected world. While reading the paper every morning is still a habit for many, declines in readership are indicating that younger readers are adopting different habits of consuming content. Content-on-the-go is what they’re looking for and the iPad with its large screen and web functionality overpowers the E-reader. More importantly for this next generation of video game jockeys, the iPad offers the opportunity to make reading the newspaper fun. The degree to which Newspapers embrace this technology and begin to develop more dynamic content delivery strategies will determine their future with tomorrows consumers.

Well some of the concepts that follow are not “new”, tablet technologies like the iPad are extending them to new levels. Here’s a list of 5 ideas newspapers can consider to take advantage of the iPad and consumer habits that it’s driving:

1. Mobile Journalism: The days of taking content back to the office for editing are over. The right mobile device will provide you with all of the tools necessary to capture, edit and publish from the field. The iPad with it’s 1024 x 768 resolution offers the display capabilities of a high end laptop at a fraction of the weight and cost. Even without a built-in camera, the 30 pin connector and camera connection kit makes the device easy to add high end video and photo capture devices. Within the next few months we’re sure to see case-like camera and video accessories that latch on to the iPad at the connector, essentially turning the device into a camera. Apple has also released a keyboard dock which allows for a typing experience that seasoned journalist can appreciate. With 3G and WIFI baked in, content can fly from the device to the newspaper or other mobile devices within minutes.

2. Finger Functions: With its large touch screen, tablet technology employed by the iPad is even threatening the use of the mouse as our primary navigation device. This provides newspapers with an opportunity to bring some fun back into content delivery. Rather than using the device to view newspaper websites, newspapers can build content apps with creative navigation schemes. Tap twice to follow a story, slide photos within a frame to see the next one in the gallery, stretch a chart or graph to change its units, drag an ad or coupon off the page to save it for later. It’s just a matter of time before users will be able to program their own navigation commands like: outline the shape of an “S” to go to the sports section, or draw a “B” on the screen to switch to business. Tablets are ushering in a new era of finger-based navigation that opens up new doors for interacting with content.

3. Ramp Up The Video: In April 2009, Internet users viewed 16.8 billion videos, a 52 percent increase over April 2008, according to comScore. It’s expected that video advertising will be a $1.5 billion industry by the end of 2012. While still a relatively small percentage of total and local online advertising, online video represents an enormous opportunity for newspapers to grow digital media revenue and audience. The iPad has arrived in the right place at the right time. There’s no substitute for the emotion and detail that video brings to a news story and the iPad is perfect for watching online video . The device also allows users to easily move between wide-screen and full-screen with a double-tap. Along with ipTV, the iPad provides more reason for newspapers to invest in building out their own video content channels.

4. Pad-vertising and App-vertising: Advertising is content on the iPad. There are more opportunities for advertisers to interact with consumers using the touch screen interface. Newspapers need to reinvent advertising units and sizes for tablet displays. Ads will become more interactive. Users will be able to communicate with advertisers and request more information without leaving the ad unit. Perhaps newspapers can get into the app-vertising business by deploying mini content applications that are sponsored by local advertisers. Though this version of the iPad does not come with native GPS capability, location-based advertising campaigns will become the norm for local advertisers as tablet and mobile devices proliferate.

5. Provide Local Free WIFI: If it’s not clear by now, the iPad reinforces the fact that we’re headed towards a constantly connected culture and free regional WIFI access is on the horizon. Some cities have already integrated free WIFI into their communities. It may sound like a crazy idea and it’s definitely a shift from the core business model for newspapers, but newspapers should explore the possibility of becoming free WIFI providers in their communities. As the cost of the technology decreases and bandwidth increases every year, there’s more opportunity to become a local access provider than ever before. Furthermore, it’s become apparent that in a connected culture, digital content is considered free and is readily shared. Newspapers could try becoming the network in their communities rather than trying to charge for their contribution to it. By becoming wireless providers in their communities, newspapers are essentially becoming the plumbing for local content flow. This opens up huge opportunities to monetize with targeted advertising as users login from local access points. It also provides opportunities to monetize around registration data and grow circulation. Just imagine, FREE WIRELESS brought to you by The Daily News.

Did You Know 4.0-Mobile is the internet tool of the future.

CNN Puts a Price Tag on Mobile Content.

Back in February I posted an article outlining 6 Strategies For Monetizing Digital Content. One of those strategies was to focus on the delivery and immediacy of content. Whereas most people won’t pay for content, they will pay for mini applications that deliver information to them in timely and convenient ways.

 As many content providers are sitting around planning ways to charge for content online, CNN has taken the plunge today with its new Iphone application, priced at $1.99.  The app is pretty slick and well organized allowing easy access to CNN breaking news and headlines.

Being in the advertising business, I was pleasantly surprised to find that ads are still being served within the application. Though the ads aren’t obtrusive, I’m sure they’ll receive lots of complaints from readers who expect an ad-free environment for shelling out some cash.

There’s a link to iReport so users can submit their own news reports with videos and photos.  The ”Local” section of  the app is called “My CNN” which automatically tunes into feeds from local newspaper websites. Users can also enter a topic and “follow” news topics or save articles for later reading. The video feeds section is quite impressive, allowing users to view videos live on their phone while news is breaking. No more running to the nearest television for updates.

There are a couple of functional downsides however. The app doesn’t support landscape mode and doesn’t seem to allow for zooming like you can from web sites displayed on the iPhone, but  it’s well worth the $2.

I’d expect that this is an opportunity that local newspapers will be looking into to deliver quality and timely local content to their readers in the near future. It’s less costly and easier to produce an iPhone app today than it was two years ago and it’ll cost even less 2 years from now.  The developers kit is free so it’s only a matter of time before this trend catches on.

“The Word Is Alive”

Bluetooth Technology Delivers Targeted Messages

This is copied from a clip compiled by John Kelly at the Palm Beach Post.  jkelley@pbpost.com:

Shoppers at five regional retail malls in the greater Los Angeles area have a new way to obtain promotional messages and discounts. They just have to set their Bluetooth enabled cell phone, PDA or other mobile device to discoverable.
Santa Monica, CA-based Macerich Co., one of the country’s largest owners of major retail properties, is using the Intera Group’s Proximity Marketing network to reach customers. Pleasanton, CA-based Intera installs Bluetooth transmitters in a busy area of the retail properties. Then it sends ads and special offers wirelessly to the mobile devices of passing shoppers.

The program debuted at the Westside Pavilion in West Los Angeles, The Oaks in Thousand Oaks, Los Cerritos Center in Cerritos, Lakewood Center in Lakewood, and Stonewood Center in Downey. The five shopping centers have more than six million square feet of combined retail space.
The key to the Intera AzureMayan Bluetooth Proximity Marketing network is Bluetooth wireless technology. Bluetooth is the global short-range wireless standard for personal connectivity of a broad range of electronic devices. The low-power technology has a typical range of 50 to 100 feet, says Intera Group CEO Kevin Thornton.
“This limited range enables us to target promotions to a specific location. In addition, Bluetooth operates independently from the wireless carrier networks,” Thornton says. “That means there’s no cost to the consumer to receive the message or associated content.”

Bluetooth zones are located in or near food courts, theater box offices, information kiosks and other strategic locations where shoppers tend to linger. “We always post signs so shoppers know they’re in a Bluetooth zone. They have to opt-in if they want to receive promotions,” Thornton says.

The network enables marketers and advertisers to deliver targeted messages to consumers based on their location and near the point-of-sale, when targeted marketing has the greatest effect. Intera’s content delivery system supports all major content formats including video, audio, images, downloadable mobile applications and text.
“One of the first promotional offers we sent to shoppers was a 30 second trailer for a soon to be released movie. Consumers who downloaded the trailer received an option to download a second piece of content, wallpaper for their mobile device,” he says. “Once people opt-in and download, 50% opt-in a second and third time. Those who don’t opt in again have typically moved out of range.”

Thornton says the key is to make sure consumers perceive value in the content. The promotions have to be relevant and interesting, and the offers have to be meaningful and easy to access. “Generally speaking, merchants just ask the consumer to show the coupon on the screen to redeem it. A few will include a code that can be copied,” Thornton says.

Scott W. Burchard, senior vice president of business initiatives for Macerich, calls mobile marketing “vitally important” for reaching consumers today and in the future. Partnering with Bluetooth network “provides a unique opportunity to reach millions of consumers with relevant offers at the point of sale,” he says.

Macerich owns approximately 77 million square feet of gross leasable area consisting primarily of interests in 72 regional malls. It focuses on high-growth US retail markets, including in California, Arizona, New York and suburban Washington, DC.

This is from a clip compiled by John Kelly at the Palm Beach Post.  jkelley@pbpost.com

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”