Relayer10

Arianna Huffington: New Media Outlets Must Prove Commitment to Truth

The Huffingtom Post is anything BUT a source for real information. If they would just come clean, and admit the bias....then they become legitimate. The HuffPo creates a problem for real journalists....because real journalists dig for facts, and expose it before the world...let the world decide from there. There are a lot of writers posing as journalists that get their data from the HuffPo, without checking ANYTHING. They should also call the HuffPo out for left wing spin...Like FOX, there is a chance that a writer could uncover a truely important story- a scoop- so they need to be looked at....but with extreme sceptisim...because the left spin is so prevalent.

One-Third of Web Users Visit Newspaper Sites

You are right on the money Joe! Thanks for posting the inma link. I've been out of the biz for a few years now- had not seen the article. I am very familiar with the Denver operations....and the article was spot on!

One-Third of Web Users Visit Newspaper Sites

As always, you have to be sure you know something about the source of information. How the question is asked can lead to a desired answer (read "Nudge" by Cass Sustien). In this case, MORI has long been used by the newspaper industry to conduct surveys.

That being said, it is no surprise that so many internet users read online newspapers. Makes perfect sense. Information seekers are looking for information. Newspapers have a lot of new content every day.

The other truth, newspapers usually reach more homes in any market than any single TV, Radio, or other medium. Advertising in any newspaper will normally reach more homes than any other single local medium.

The problem with the web/print connection is that the ability to reach local customers with advertising in a meaningful way is still in transition. Web readers are looking for the information, and try to do it without intrusion of advertising (pop up blockers, RSS, and others). Print advertising had effectively priced itself out of the reach of small local business. The infra structure of the printed piece is just expensive, slow, and aging (many presses are over 30 years old). Without significant local advertising, a newspaper is forced to depend more and more on regional and national large budget advertisers. They are extremely volatile in a rough economy.

Right now, local newspapers are feverishly working to monetize local advertisers both in print and on the web. The hurtle is their recent past. The local effort was largely ignored for about 10 years, in favor of the large advertiser. Proof of this was in rate structure, which gave huge discounts to large budgets, and much higher CPM to locals. That gave rise to new competition, like shoppers, direct mail, niche weeklies, that have claimed a large portion of those small local businesses.

The survey shows about the same information as it has for the past 20 years....newspapers have lots of readers, and their advertising reaches lots of consumers. This information is about the same as it would have shown in the mid 90's. The NAA ran a self promotion campaign about 3 years ago touting the results of a survey similar to this. The issues remain exactly the same...how to get local advertisers back? It's obvious that this survey provided the newspaper information it wanted to hear, or else it would never have been released. In essence, nothing materially new in this survey. Slightly more depth, some different metrics, very similar results. The results will be rolled out to local sales staffs everywhere, as if this information itself will convince the local advertiser that they should abandon everything and come back. Been done many many times....It's not that the info is flawed, it's not. It's understanding that the information is not new- and knowing that using it same old way will not change anything. Current executives will feel good about the information, and likely presume that simply integrating it into local sales presentations is enough.

Unless the paradigm changes, nothing new will result from the use of the information. I hope they realize this before it's too late...newpapers used to be a stable business and good community partner. They will be missed....but they have to wake up very soon, or it will all be gone!

Bad News for the News Industry

When a 20 year old kid, with a $1,300 budget does what Mike Wallace and 60 minutes USED to do....it puts the entire decline in such a perfect box...tied with a bow. Why are the so called " real" journalists not asking deeper questions....why are they focused on the kid? What if the kid is CORRECT??? Why is the big budget professional media machine not looking real deep into the tentacles of ACORN...and more importantly, the politicians that have benefitted from ACORN. If there are none....is THAT not a story as well?? This story just puts a big huge spotlight on how inept media is now...and explains the declines without saying a word! Keep ignoring.....we will keep not buying your papers, and not watching your newscast.....

Newspapers: Seeking the Original Sin

It absolutely is the ad revenue! The root "original sin" occurred about 15 years ago. That is when daily newspapers began to forget the advertisers that made them- local advertisers. Circulation began to drop, and rates began to rise beyond the range of local advertisers. Small and medium advertisers began to seek other forms.

Hence the rise of "shoppers" and alternate delivery vehicles. The family owned papers began to sell to corporate groups. Corporate groups demand a very high margin, which kept driving rates even higher...and even more migration. Big regional advertisers drove the profits...either up or down.

The secret to it all is LOCAL. Newspapers used to deliver a huge local audience at a reasonable cost per thousand. At some point, they forgot that smaller customer- and that CPM was driven out of their range, and market forces began to work against newspapers.
Instead of moving back into what newspapers inherently did really well...they move further from it. Many of us in the ad side tried to convince publishers to "get small". Meaning allow us vehicles to attract smaller local business back. They did not listen- and now, when they need small locals desperately....because the bigger regionals are either gone, or unable to increase budgets, a tenacious recession hits taking them out too!
Too little, too late

Newspapers: Three Nails, One Coffin

"Slight" erosion??? If you mean small loss between fasfax reports...that is slight. If you mean the steady decline over the past ten years or so....it's anything but "slight". It's catastrophic. Especially in metros. Check your most recent ABC circ numbers....DEDUCT all NIE, single copy, and non paid circulation. Compare to 1999. You are NSA, and are well known for removing single copy circ from your buys, and zoning out areas near the outer boundaries of the RTZ...because the density does not meet your clients desire for ROI

It is a long known that the farther you move from the City Zone center, the lower the circulation home delivery number, in the vast majority of cities. Many dailies have expanded their reported City Zone in their ABC to artificially inflate the suburb number, using the far denser City Zone numbers averaged out.

I will concede that the defined suburb will be different..., market to market. Amend "most" to "many". In major metros, the suburbs expand up to 50 miles away. In small towns, that distance is much smaller. In those instances, SOME of the suburbs might be legitimately within a City Zone. In most major cities, many of the most affluent suburbs are well outside the City Zone...and the Retail Trade Zone (EXCLUDING the City Zone, and NIE and all other Single Copy) are FAR below the numbers of the City Zone. Many dailies have TMC's that cover non subscribers because their density shrunk so low that they had to. Most national advertisers (and Media Buying companies) did not place ads in those TMC- because it was not paid.

Your customers wanted to trim expense, and believe that a lot of single copy just can't be verified as legit- due to NIE and event sales reported as average daily paid- (which artificially inflates paid numbers). They began zoning out single copy years ago. I've been out of the biz for several years, and the practice may have changed in some areas- but I suspect it has not.

Valassis is absolutely a competitor to newspapers- and they take as much national business as they can.. Newspapers were very short sighted during the rise of Valassis...and took them (and the national coupons) either free, or so cheap it actually LOST money.

As a sidenote...I no longer have access to ABC numbers, and do not have the vast research capabilities of the NSA...but I will take an educated guess that almost all newspapers have seen very significant drops in home delivered paid circulation. Advertisers vote with their feet...and judging by the draconian drop in the stock price and market caps of newspaper companies...they have voted.

Newspapers: Three Nails, One Coffin

The move by Valassis and movies are even more insidious...

When I was in the biz, many newspapers took the Valassis insert package for FREE. I knew of some that paid Valassis to get them! The reason was readership. Same with movies. Without the coupon package on the weekend, a very significant number of people will stop subscribing...which will increase the death spiral.

Moving to direct mail is more a function distribution control. Advertisers want high propensity geography, with minimal waste. Most newspapers now have less than 50% circulation in the core area, and less than 20% in the suburbs. Too much missed opportunity at too high a price. Right now, that works due to the ability of carrier route distribution. As the USPS becomes less viable, the government will be forced to increase prices dramatically- which will drive these advertisers online....and harm Valassis. It's not a matter of "if"....but actually "when".

Google's Ad-Sales Reporting Is the Real Newspaper Killer

This is a really unique idea! Very "out of the box"...fairly easy to set up and execute. It would work really easy in large cities with mass transit commuters. Great idea....but it requires a forward thinking executive to pull off.

I think this kernal of an idea could work...and the kernal would grow...

LIKE IT A LOT

Google's Ad-Sales Reporting Is the Real Newspaper Killer

I ran two rather large weekly chains...one in a major metro (over 100,000 combined weekly, the other in a smaller market, with large reach (130,000). The ad sales were designed to provide our rather large audience to local advertisers. My staff saw their customers each week, and helped them shape meaningful ad campaigns to draw immediate business. That was the strength of all newspapers, weekly and daily. The way readers gather information is just different now- the audience is far more fragmented, with huge choices for information.

I worked for both Lee Enterprises and MediaNEWS- both in the top 10. They already have the capacity to provide exact numbers of daily circulation. They can even break it down by zip, single copy, and home delivery. Every modern daily, and most weeklies can do that as well. They can also tell you exactly how many unique pageviews for each news story and even the clickthrough rate of every story and ad on their website.

They simply don't want those numbers out, and for good reason. Over the years, fanatical focus was placed on single copy sales, and almost none on home delivery. Advertisers are not told how much of the circulation is home delivered, and how much single copy. Single copy numbers are manipulated to show artificial circulation. The best example of this is Newspapers in Education- NIE. Ask a local merchant or foundation to support reading in schools. Then charge the minimum allowed as paid by ABC and bulk deliver as many copies as that provides to a local school or (hopefully) schools. Or giving away copies at a stadium after an event. Or a free paper at your hotel room. All fake circulation, that provides thousands of single copy sales that mean nothing to an advertiser.

The click through rate of newspaper tile ads on their website is less than 1/2 of one percent!

Major advertisers have caught on, and now demand to separate their inserts into home delivery only- which does not change much, except on Sunday.

If they actually told advertisers how many papers were delivered to homes near their business each day, it would have to be without single copy to be "real". They can easily do that- I did it with any advertiser that cared to know, or I wanted to prove value to. Savvy advertisers would soon compare the dramatic drop year over year, and demand lower rates. Almost no one clicks on banners or tiles- so they really don't want to go there either....typically they use the numbers for the stories on the page, which do pretty well, not the tile ads on it.

As I said earlier....the model has changed, and newspaper top execs just have not yet admitted it to themselves yet. Adwords fluctuate with demand, and click price is based on instant value of the moment. Newspapers could do the same, with little effort. They do this to a small extent by charging lower rates weekdays than Sunday- but no where on the scale of Adwords.

I LOVE that someone in the media (you) is actually looking at this, and shining light on something that Ad Directors and Circ Directors have known for years- and have been frustrated by Publishers and Corporate types for years! They are their own worst enemy, and we just have to wait till shareholders demand their removal. Hopefully, the industry will still be there to save!


On Aug 03 07:49 AM Garland Pollard wrote:

> Great points, Relayer10, but having grown up in newspapers working
> in alternative weeklies, we still had to sell the way newspapers
> have to sell now. That means, when you put in an ad in the alt weekly,
> you hoped that you would get the retailer some result, but what you
> were doing is starting a conversation with the customer that was
> long term--you were always trying to sell the advertiser that you
> were trying to bring awareness to their store and such.
>
> I do think that newspapers can begin to provide metrics, even if
> there is only a small bit of information. For instance, the newsletter
> I got was only a few actual bits of info, but mostly explanation.
>
>
> McClatchy (seekingalpha.com/symbo...) or Gannett (seekingalpha.com/symbo...)
> or Scripps (seekingalpha.com/symbo...) could easily invest
> in a CRM system that married daily newsstand sales with the day an
> ad runs. That would give some explanation for advertisers.
>
> So I am a small restaurant in Miami, and I advertise my job opening
> for dishwashers. I haven't been in the daily paper recently, but
> after my $40 ad, I get info that tells me how many people saw the
> ad online on various networks, which networks online, how many single
> copies were sold that day in print, exactly how many paid subscribers
> there were that day. The newspaper then threw in some extra info
> about how they can use a classified ad to build search traffic in
> general, and talk about response to ads in general. This employment
> ad can begin to rebuild the relationship between newspaper and advertiser,
> and now that the relationship has started, the newspaper can publicize
> that new restaurant directory that the newspaper is publishing online
> and next Sunday in the print edition.

Google's Ad-Sales Reporting Is the Real Newspaper Killer

The big difference is "Active" vs "Passive" buyers or shoppers. Google Adwords is designed to reach an active buyer at the point where either active research or active local buying choice is happening right NOW. Newpapers reach passive buyers who happen to pass the ad information while reading information or news.

The big transformation is with traditional classified advertising and free standing inserts. In the not to distant past, consumers turned to newspaper at the moment of buy decision for cars, houses, and supermarkets etc. That market was by far the most single lucrative. Auto and Real Estate were at one time 30% of the revenue. Employment grew to replace Real Estate as that moved online. Then Employment began to shrink, and nothing emerged to replace it. Newspapers tried to squeeze Auto, so they also began to seek alternatives online. Now, even supermarkets are beginning to send their expensive to produce and distribute flyers via email.

Newspapers have no practical way to do what Google does, metrically. The model is also different- passive advertising simply does not work the same. The categories that could have been measured that way are almost completely gone now. The arrogance of newspapers were the cause of the migration, and now it is probably too late to get it back. The only value newspapers can bring to bear is audience- much like TV and Radio have tried to do. Newspapers still have a much much bigger audience than any TV or Radio station in their local market.

Long explanation- the bottom line is this... Google Adwords work differently than any passive media...and search is the primary means of consumers choosing what and where to buy.

As a note...I am a 26 year veteran of newspapers, as an Advertising Director. I am also a Google Adwords certified specialist.

Forget Goldman, Start Worrying About the Government

The author is showing growing awareness and alarm at the power grab of the government. It's about time! President Obama promises to take only public financing for the presidential election...until unnamed donors (how many are from foreign nationals) poured in over the web- then he broke promise number 1. A very clear indicater of what Mr Obama's word is worth (the same as our deficit)...and he keeps displaying it. Say what we want to hear...then DO the OPPOSITE. Then he gets elected, and promises that he will have the most ethical administration ever- and NO lobbyists....enter Tim Geitner, a financial "genius" that signs a document promising to pay his taxes with a check written specifically for that purpose....then steals it. Twice. He runs the IRS, and builds a trillion dollar deficit. We won't even get into the dozens of people that can't get confirmed of cabinet choices because of tax cheating issues. Promise # 2 broken. Then hires former college room mates for high positions? Are you kidding?

Now...what do you think the chances are of not raising taxes in any way on those making less than $250K. Let's see....tobacco tax, that does not affect them...oh wait...it DOES! How about a national sales tax? That's right...people making less than 250K don't consume anything...and the current version of the National Health Insurance fray...none of the expense of higher taxes on business will be passed on the those making less than $250K...oh wait, that technically is not a pure "in your face" tax.

How many more crooks do politicians have to appoint before the rest of the media, and business WAKES UP!!!

Thanks for FINALLY noticing, and publishing an article that touches a small part of what Republicans and Democrats are doing to us! It is also heartening to see so many comments flowing from people that obviously get it too!

The FCC Jumps into the Journalism Fray

As a side note...

NBC is absolutely not a trustworthy news source anymore...too close of ties with government officials and GE intertwinement....nor CBS. ABC provided an Obama daylong "infomercial", which forever destroys their credibity. The New York Times is so left leaning it is surprising that it just does not fall completely. La Times is even worse. I read both left and right leaners...truth can be gleaned, but you really have to work at it.

Fox leans right, but is actually the only media now openly challenging government- which is the traditional role of journalists.

I'm not sure where all that leads...but it is certainly not good for us readers. GREAT news for the government- both parties get no real challenge from anyone. Perhaps if the new professionals actually get out and ask real questions- then make the official answer them. If they refuse, call them on it. Then DIG. Think "what would Tim Russert do?"

The FCC Jumps into the Journalism Fray

hope you Journalists are paying very close attention to the FCC, and any attempt at controlling news. Richard Nixon attempted it during his Watergate time, because he wanted Dan Rather Walter Cronkite and the very excellent CBS news dept of 1974 to stop investigating him. Not to mention Woodward & Bernstein. Right now, a new FCC power grab is happening, and I have yet to see any of you "journalists" follow it. All you need to do is connect the dots...dig, like Woodward & Bernstein (you can't do it by phone and Google). Rep. Clyburn was the power broker that put President Obama over the top during the critical primary season- turned his back on the Clintons. President appoints Rep Cyburn's daughter to the FCC. Daughter in a position to initiate minority ownership in broadcast stations etc. Which her father oversees in Congress. Which means "unfavorable" stations could suddenly lose their license...and get taxpayer money as well. Payback to a power broker...which could diminish the ability of legit journalists.

Honest, fair, and professional journalists are fast becoming extinct. You folks need to use your training and the mediums you work in to expose the power grab. You may not realize how important your profession is to our ability to sustain our Republic. Get out from behind your computer, go interview the people trying to take your profession away from you. Be skeptical of what they say, question everything, then CHECK YOUR FACTS,,,then check them again....then write the unvarnished truth! We need you right now! I am no journalist- yet I was able to discover this potential attack on journalists by simply paying attention to who is being appointed. There is probably much much more. Why does the President appoint so many Czars instead of filling the Congressional approved positions in government? One of you could win a Pulitzer. Nixon could not walk across his lawn without a journalist questioning the motive. And the country was saved because of the light being shined on him. Now is your time again...don't drop the ball.

When any Senator or elected official wants to "help"....be very very wary. They rarely do anything that does not help their narrow interests. Start looking under the rocks and everything that elected official touches to find out why the interest. We, the non professional readers are counting on you!

Suddenly the FCC Cares About TV Journalism

I hope you Journalists are paying very close attention to the FCC, and any attempt at controlling news. Richard Nixon attempted it during his Watergate time, because he wanted Dan Rather Walter Cronkite and the very excellent CBS news dept of 1974 to stop investigating him. Not to mention Woodward & Bernstein. Right now, a new FCC power grab is happening, and I have yet to see any of you "journalists" follow it. All you need to do is connect the dots...dig, like Woodward & Bernstein (you can't do it by phone and Google). Rep. Clyburn was the power broker that put President Obama over the top during the critical primary season- turned his back on the Clintons. President appoints Rep Cyburn's daughter to the FCC. Daughter in a position to initiate minority ownership in broadcast stations etc. Which her father oversees in Congress. Which means "unfavorable" stations could suddenly lose their license...and get taxpayer money as well. Payback to a power broker...which could diminish the ability of legit journalists.

Honest, fair, and professional journalists are fast becoming extinct. You folks need to use your training and the mediums you work in to expose the power grab. You may not realize how important your profession is to our ability to sustain our Republic. Get out from behind your computer, go interview the people trying to take your profession away from you. Be skeptical of what they say, question everything, then CHECK YOUR FACTS,,,then check them again....then write the unvarnished truth! We need you right now! I am no journalist- yet I was able to discover this potential attack on journalists by simply paying attention to who is being appointed. There is probably much much more. Why does the President appoint so many Czars instead of filling the Congressional approved positions in government? One of you could win a Pulitzer. Nixon could not walk across his lawn without a journalist questioning the motive. And the country was saved because of the light being shined on him. Now is your time again...don't drop the ball.

When any Senator or elected official wants to "help"....be very very wary. They rarely do anything that does not help their narrow interests. Start looking under the rocks and everything that elected official touches to find out why the interest. We, the non professional readers are counting on you!

Print Ad Losses to the Internet: It Ain't Over Yet

No question that currently the printed insert works much better right now. SEM (NOT SEO) will and is changing the game. SEO is "optimization". SEM attaches search parameters to information. Imagine if Best Buy suddenly decides that they can now target potential customers like this...."income over 100,000, TV over 5 yrs old, NO HD in home"....and then an email goes to them advertising all things HD TV and accessories, and the Geeks set it up TOMORROW. Or a supermarket that can find customers that regularly buy imported cheese..you get the picture. Right now, it still works to send out a mass advertisement to general population (I know that newspapers can "zone" but it still is not address or product specific) and it will take weeks for mass retailers to print and meet newspaper advance deadlines. The model of FSI begins to break down when critical mass is no longer a given. As circulation drops, that is inevitable. The best newspaper customers continually age, and drop out of the buying categories, That is also a fact, and inevitable. Urban areas have already seen it at faster decline rates. I live in the Pittsburgh area, and supermarkets are now out of both newspapers- have been for years. Several other traditional have followed them. They are now using marriage mail. That trend will continue and accelerate. The time is right now for newspaper execs to look in the mirror...accept that change is now here....and invest in the future. The good old days of market domination are not coming back. The sooner that is internalized, and real commitment to new emerging methods are started....the more likely they are to survive.

Family owned papers seem to realize this fact, and they seem to be moving quicker. Unfortunately, big media companies have bought most of those in the last decade. The exec there is very unlikely to champion anything that their superiors did not approve first. Innovation was squashed years ago, and the middle level possible innovators were either pushed out of companies, or made fearful of losing a job for speaking up, or act locally without bucking a large bureaucracy at corporate. And much worse- the high salary execs have been eliminating those people in their companies most likely to come up with the "new idea".

Time to re think the model. While there is still decent income and some time to do it. I predict that the immediate answer will be to fire another 10-20% of the workforce....because high salary execs will try the old way..."cut to profitability" without a real commitment to change anything of real substance. I've been out of the business for a few years, and it really hurts to see my industry commit suicide.


On Jul 15 09:38 AM NSA_Randy wrote:

> They are trying, but have found that nothing drives sales like FSIs.
> It is way too early to write off printed FSIs or newspapers for that
> matter. Email and SEO may be cheaper, but they drive a lot less footsteps
> to the store.