Those of us in the newspaper industry have been closely following the struggles of the daily newspapers for some time now. Business models have changed, advertising has changed, prices keep going up, and readers are finding their news elsewhere.
However, I'd like to point out (again) that weekly and community papers should notbe listed among these seriously struggling major news entities.
Dan McDonough Jr. and Alan Bauer - founders of a community newspaper/media company based in Haddonfield, N.J. - comment on this topic in a recent article:
The National Newspaper Association (NNA) last month reported on a study that showed community newspapers were far less affected by the challenging economy than the industry in general (or the economy in general, for that matter). The Suburban Newspapers of America and NNA's reporting group showed 2008 fourth-quarter advertising revenue of $428.7 million, only a 6.6 percent decline from the same quarter in 2007. The Glennco Consulting Group estimate was much worse, however, for the overall newspaper industry. There it showed decline in fourth-quarter advertising expenditures of 21 percent, according to the NNA.
So while advertisers cut their spending by 21 percent across the industry, the impact to community newspapers was less than 7 percent.
In addition, 26 percent of the SNA/NNA reporting group launched new products in 2008. Indeed, many community newspaper companies are growing.
Further:
We know that, for advertising to be effective, people have to actually see the ads. Our business model and philosophy of making sure "Everybody Gets It. Everybody Reads It." pushes us to bring local news not found elsewhere to everybody who has an address in town [...]
For instance, huge regional daily newspapers would do better to stop requiring people to subscribe and instead deliver the paper to everybody in their target demographic (the market that key advertisers want to reach). If big newspapers would charge the advertisers, not the readers, they could still turn things around.
I wholeheartedly agree that local news is a product that is never going to get stale. However, I strongly disagree that charging advertisers more will help big newspapers turn things around. The majority of newspaper revenue already comes in from advertising, not reader subscriptions. As someone who works with newspapers daily, I'll tell you that big newspapers already charge their advertisers a ridiculous amount of money, and raising prices any higher would cause some major waves in an already tumultuous industry.
We all know the story - Oprah gives out free KFC coupons, people flock to KFC, and then KFC runs out of chicken, prompting chicken-fueled chaos (or non-chicken, in this case)!
Obviously, this woman has the power to influence people. And I'll tell you, nothing gets people moving like the word FREE, especially when it comes from someone as influential as Oprah.
Well, imagine the pandemonium (riots!) when we find out there isn't enough chicken for America to cash in its free coupons. KFC is out of chicken? Really? Uh-oh, that can't be good...
So in a very obvious "save the campaign" PR move, I start seeing various commercial spots this weekend (like the one below):
From a PR standpoint, great crisis management. Reassure the people, let them know you care and appreciate the overwhelming response, while at the same providing a way to cash in on the freebie.
Oprah said, "Let them eat chicken!" And Roger Eaton replied, "Just not in the next few weeks..."
After hearing rumors a month or so ago that the Boston Globe was going to close, and after their April 4th article explaining how the NYT Company threatened to shut them down unless the unions agree to make concessions, I can't say I was surprised to see this commercial start popping up during recent Red Sox games.
Dan Kennedy of Media Nation quoted a source inside the Globe (from April 4):
...the Globe will launch a new brand campaign that reinforces the value of the Globe's journalism among our core readers. A TV commercial showcases the Globe's award-winning photography while focusing on the compelling stories found in the Globe. The spots (60 sec. & 30 sec.) will initially run on NESN during the highly rated Red Sox games. More than 24 print ads were created to run in the Globe and Metro. On-line ads will run on Boston.com. The campaign also has a Web page with all the creative where readers or advertisers can find more information. The entire campaign was conceived and executed internally by our marketing and creative services teams.
Obviously, the Globe has to do SOMETHING to save the sinking ship. But is this move desperation or optimism? (Dan Kennedy calls it "The Globe's oddly timed ad campaign")
Sure, they're compelling ads and we all appreciate the message. The hometown paper gives you stories that matter in your life, reports of people you care about in your neighborhood, and keeps you connected in the local community. It's a feel-good campaign that just oozes a "We know what you want to read because we live here, too" sentiment. How could you NOT appreciate that feeling and want to stand behind the Globe?
Well, here's one reason - The Globe and Herald just announced that single-copy prices are going up. Sure, it's not much (25 cents on weekdays and a dollar on Sunday), but for a struggling paper that's looking for a strong local backing to keep it afloat, raising prices for the locals is not going to sit well.
I've been with Access To Media since May of 2006 and have found many ways to provide low-cost advertising to clients.
Access To Media is the largest seller of network classified ads in the country, and that means I have access to newspapers in specific DMAs, each of the 50 states, across the U.S., and even around the world.
Being a part of the advertising world allows me to keep up-to-date on current advertising trends, events, and campaigns. And as a woman in the coveted 18-34 age demographic, I have a unique perspective on how advertising influences – and is intended to influence - the world around us.
