A publisher friend called to ask how his Internet department should be organized.
Should it be run by a technical whiz?
By a news guy or gal?
Or, by a marketing/sales specialist?
I think – at most newspapers – the technical and content folks have succeeded in creating online products that are the strongest Internet products in their trade areas.
The problem is that while newspapers “own the Internet” in their respective markets, many don’t know how to leverage that position. They need business plans.
It’s time to put marketing and sales skills to work on behalf of our online newspapers. It’s time that the merchants are allowed to share in the newspapers’ online success. It’s time to share the secret with local merchants: There is no better way to reach an online audience than the local online newspaper.
Many newspapers can make the case that their online newspaper has a better reach than many local radio stations – radio stations that are selling hundreds of thousands of dollars in advertising while online newspapers sell just a small fraction of that amount.
We have all kinds of studies and statistics that demonstrate that the online newspaper is the most often visited local Internet site.
Let’s look at some statistics:
1. The Media Audit recently found in the nation’s 95 largest markets that online newspapers’ market penetration averaged between 20 and 25 percent – roughly half the print product’s penetration.
That means, by my calculations, that one-third of many newspapers’ audience reach is via the Internet. Yet most papers’ online revenue is far from one-third of the papers’ overall revenue.
2. The Newspaper Association of America did a study in 20 markets that showed online newspapers reached two to three times as many customers as did the online city guides.
Yet, the city guides have done a far better job selling online advertising than had the newspapers. Newspapers reach two-thirds of their markets’ Internet users, but only 26.4 percent of the areas’ merchants had even been approached by the newspaper about online advertising. The city guides – with much smaller audiences – had sent sales representatives to almost 40 percent of the merchants, and sold many more ads. Both the newspaper and the merchants suffered.
3. Online newspapers are market places. We know that on our TownNews.com newspaper sites, 20 to 50 percent of all traffic is readers looking at classifieds. Media Metrix has found that visitors to many newspaper web sites spend more money online than the average Internet user.
“Many of these newspaper sites offer a rare opportunity for advertisers to efficiently reach local market audiences that are growing rapidly and spending money more freely,” says Peter Daboll, president of comScore’s Media Metrix division.
4. The National Association of Realtors (NAR) is reporting that 41 percent of home buyers now use the Internet to search for a home – up from just 4 percent in 2000. The NAR is telling its members that the Internet is now as important as newspaper advertising. But too few newspapers are telling their real estate brokers and agents that the local online newspaper is the best place on the Internet to advertise. Too few newspapers know what products and services to offer Realtors.
Newspaper Association of America statistics show that the Internet has caused serious erosion of advertising, most notably employment/recruitment advertising.
Next to go will be real estate and auto advertising – if newspapers don’t protect these categories with Internet solutions..
Loss of employment, real estate, auto advertising hurts not only revenues – it does great damage to readership and circulation. Advertising is a huge part of the content that attracts readers.
Ask yourself: How many people buy our newspaper to look for a job? Shop for a car? Look at real estate prices and open houses?
If/when this advertising erodes from the newspaper, you most certainly will lose readers and circulation.
How should publishers respond?
1. Understand and promote that your online newspaper is the most heavily visited Internet site in the trade area.
2. Accept that some of your advertisers want to spend some of their advertising dollars on the Internet. This is especially true for real estate brokers, car dealers and major employers. Have a solution that bundles online with your print product.
This effort needs to be led by someone who understands and likes advertisers, someone who can develop business plans and marketing solutions that help merchants succeed. This type of leader also will put pressure on the newspaper to have the right products to serve the advertisers.
Remember:
1. Your newspaper is the dominant Internet site in your trade area. You “own the Internet.”
2. Your online newspaper readers are shoppers.
3. Your online offers an electronic reach that equals or surpasses much of the local radio audiences.
4. If you were a merchant who wanted to advertise on the Internet, where would you put your money?
5. Internet works best with print promotion – make sure you sell bundled products.
Put someone in charge of your online department who will leverage these strengths on behalf of the merchants and the newspaper.
(Wilson is ceo/general manager to TownNews.com, which hosts more than 600 online newspapers. He is reachable at 309-743-0816 or marcus@townnews.com)