Law 3 – Local: Remap and Reload
Local news companies are getting smaller and more local-oriented in their coverage as they struggle to find survival strategies.
May 3, 2013
Design is an important part of these acquisitive moves. One reason these companies have value on the market is that they stand out. It must be said: For the most part, news companies have once again missed a chance to innovate, to make something new of a new platform. Flipboard, Pulse, and Zite each saw the potential of tablet news and magazine feature reading early and set to work to present it harnessing the glowing touchscreen. Now Flipboard 2.0 (build your own magazine) and Zite 2.0 are moving to a next generation. The best newspaper sites have mastered the utilitarian basics, but they hardly break new presentation ground. They also emphasize a single brand, where plainly many readers relish cross-title variety and a bit of serendipity. Innovation on tablet news design has been minimal, and it’s outsiders who largely deserve the credit for it.
One noteworthy exception: AP Mobile. While it lacks the finesse of Flipboard, it delivers a national and local experience, bringing in hundreds of local news feeds into its tablet and smartphone products, and is one of the top news apps downloaded in Apple’s App Store. AP Mobile is a rare case of newspaper cooperation, building a single customer experience; now it’s up to AP to deliver the next-generation mobile experiences.Read More »
Apr 26, 2013
How did we get here? How did we get to a place where a half dozen of the top newspaper nameplates in America could fall into overtly political hands? What does it tell us about the reshaping of the U.S. daily landscape? How might the Koch brothers’ ownership fare, a lesson applied here that may both confirm worst fears and offer counterintuitive lessons about the nature of local press power in 2013? Finally, what are the newsonomics of the Tribune sale, as its new board ponders its options?Read More »
Apr 25, 2013
As the Times Company readies its sale of the Boston Globe (at the Nieman Lab today, I further explore the sale of the Globe and Tribune metro properties), it’s clear the Globe is underperforming the Times. It was down 6.7% in overall revenue, as its reader revenue lost 1.9% and advertising declined 10.1%. Two takeaways here: 1) the new owners of the Globe face a tough challenge in getting back to growth, given those numbers; 2) as the Times emerges as essentially a standalone entity, its own reader revenue strategy looks better. Without the Globe, it was up 8.2% in circulation dollars.
The national ad market movement from print to digital may be faster than the regional one. As Gannett, the largest newspaper company reported yesterday, it announced a 4.5% decline in ads. Gannett’s ad revenue is more heavily tilted to retail advertisers,, whose movement from print to digital is slower than either classifieds (largely gone) and now national. Significantly, Gannett, also reported a 14.5 percent increase in local market circulation revenue.
In sum, paywalls are working, but will they be enough to turn the industry from red ink to black?
Apr 19, 2013
Let’s look then at the newsonomics of Pulitzers, paywalls, and investing in newsrooms, and think about whether our intuition has any basis in provable fact. If even 20 percent of expense devoted to newsroom seems like a low number, consider that the industry average is about 12.7 percent for the largest dailies. That’s the average newsroom expense, of total expenses, for papers above 100,000 circulation, according to Inland Press Association, the industry’s acknowledged leader in much benchmarking work. Interestingly, those with smaller circulations spend a bit more, and we know their business results over the last 10 years — less decline in ad revenue and in circulation — have been better. We can also see in the data that newspapers overall are spending a smaller percentage of their overall expenses on their newsrooms than they were 10 years ago. (The comparisons are 2011 to 2001; 2012 data will be out soon.Read More »
Apr 13, 2013
All-access circulation revenue is spinning upward, leading to a 5 percent gain in overall circulation revenue in 2012. Print advertising is whirling downward — 9 percent last year — in a seeming death spiral. Digital advertising is growing tepidly at 5 percent. Put those circulation and ad trends together and you end fairly flat on your back. So NAA’s number is that dailies lost 2 percent of revenue overall; I’ve made the point that their big goal, as nothingburger as it may sound, is to get back to zero revenue growth (“The Newsonomics of Zero, and the New York Times”).
Which brings us back to that non-ad, non-circ number. If local news organizations are going to regain growth — and hire — they must find new revenue. They have plumbed marketing services, events, and print-insourcing. Now some are putting a new category on the board: content marketing.
No, not content marketing, you say! It’s already a hackneyed phrase, seemingly identical to “native advertising” and “sponsored content,” both now much-recognized and already much-maligned techniques that bigger brands are using to break through the digital clutter and get to potential customers. Yes, content marketing (and we’ll narrow some definitions below). As news companies rediscover the power of their own content, there is new revenue to be gained. How much, not whether to seek it, will be the major question.Read More »