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Newspapers Should Leap, Not Stand

This morning in the NYT David Carr shares his dream for how newspapers can save themselves.  It involves standing together and trying to stem the tide of the inevitable.  Instead, they should leap to a new model, one that fits with consumer and advertiser behavior and scales long term.

The news and media business is undergoing radical change and yet Carr dreams of turning back the clock to try and undo the bad decisions and missed opportunities made in the past.

Problem is that his wish list misses the point about what’s happening out there and by perpetuating fear, potentially slow down the change that needs to happen.

Here’s what is going on out there:

  • The cost to create and distribute information has dropped to almost zero.
  • Consumers don’t go find news, a recent study (I’ll find attribution) quoted someone saying “if the news is important enough, it will find me!”
  • Audience and therefore ad impressions are diffused to thousands of sites, including, yes, blogs.
  • Ad networks have more inventory in any given market than the big newspaper in town.

Unfortunately, Carr’s wishes for newspaper decisions don’t address any of those crucial needs:

  • “no more free content” — this ship has sailed.  Consumers are not going to pay for something they can get for free elsewhere.  Info and data wants to be free and embracing that will help them grow bigger.

Also, do you think for a second that if every newspaper in us started charging for its web site that there wouldn’t be a huge effort by faster, more nimble, more scalable start-ups to undercut them and take their audience.  Oh wait, that’s already happened.

  • “no more free rides to aggregators”.  This one hits a bit close to home.  At Outside.in we aggregate local media, but we also add value to that media by organizing by location to make it easier for consumers and for newspapers themselves. (We then pass all that extra metadata onto anyone who wants to use it: newspaper or blogger.)  The problem with Carr’s idea here is that consumers have already decided that they expect an incredibly customized and personal news experience.  It’s “Me-centric” not “newspaper centric”.

Consumers are disaggregating the newspaper and folks like Outside.in, the Huffington Post and others are putting it back together in a format that works better.

Now, at Outside.in we’re trying to share this model with newspapers and we hope it helps.

  • “no more commoditized ads”. Carr bemoans the rise of networks and ad exchanges but glosses over the fact that there are billions of impressions in every market that are not being sold by the best sales teams in those markets — the local media companies themselves!  They’ve ceded their leadership in the local market by trying to hang on for too long to high cpms and scarcity.  That’s not going to last.

Local sales needs to embrace the fact that ad networks are a good thing.  They roll up audience at scale that sales teams can bring to their advertisers.  Sure, the margins are different, but ad networks are profitable and growing.

I’m not informed enough about his last point about the Newspaper Preservation Act other than to say it too seems like an effort to save a model that needs to change.

Think less about paying for your existing newsroom and more about what your new newsroom should look like.

Scream less about the impact of ad networks on your revenue and scream more at your sales team to go sell like an ad network.

Newspapers need to make bold decisions and need to rethink their editorial and sales models and their cost structure.

I’m going to the NAA conference this week where, among other things, I’m going to be previewing a new product from Outside.in that attempts to address the needs of local newspapers and present a new model for how they can survive and thrive.

I’ll post the presentation here and look forward to your comments.

  • i can't believe the NYT allowed him to write that. it suggests that they don't understand what's going on and i know they do.
  • charlessmith
    Ironically, it is the indivdual journalists that stand to benefit the most if they approach this correctly- he could be leveraging his own brand.
  • The Guardian is putting on a better face with a column about forward thinking that shows a more sophisticated understanding of the business: http://www.guardian.co.uk/media/pda/2009/mar/09...

    Interesting that they reached out to the digital world to find the author (Nathan Richardson). I wonder what a Guardian mainstay would write.

    Hat tip: @sukova for the link.
  • Fantastic article, thanks for the link, Jared. (And great response by Mark/outside.in to Carr's piece, too - thanks!)
  • Great catch @sukova. What is it about the Brits that they are always one step ahead? ;-)
  • The Ad Network point looks very different to an aggregator vs the content creator because of scale and brand. From the Times point of view the ad networks work against everything they are trying to accomplish -- they create sales channel conflict, allow advertisers to negotiate price, allow data to be used to commoditize their audience, etc. The answer for the Times is to reduce their advertising footprint, reduce clutter on their pages, and show only high-quality, high CPM ads that their audience expects to see in that context.

    For an aggregator it's a different story. Ad Networks provide necessary liquidity and data richness that isn't available otherwise and there's much less brand equity dilution.
  • aripap, i guess that's one answer for the Times. I think the other answer is to try to own and represent ALL of the inventory in their market. Ultimately better rates will flow to better audiences, but why wouldn't a publisher want 10x the impressions?

    To a great extent, we're saying that the brand of the local newspaper needs to evolve from "that printed thing with scarcity-driven advertising" to "the arbiter of what's important in a market -- and -- the ultimate resource for advertisers looking to reach this local audience".
  • There's value to being associated with a brand like the Times. That brand value is diminished when it is a) spread across billions of low value impressions; and b) resold by low value networks using data points that are not generated or integral to the Times experience. As publishers realize this they will reduce or eliminate their use of networks and de-clutter their pages with fewer, but bigger ad units.

    Along a contrary trend, they will, themselves, become ad networks. As you say, they will attempt to "own" the market in advertising both on and off site. They will probably also try to do their own aggregation, though they are less well positioned for this.

    Ari
  • The problem there is that the brand value needs to change bc the paper and a lot of what it stands for today is changing whether they like it or not. (Not specifically talking about the times, per se).

    Newsrooms are being cut. In order to be relevant and scale local papers are going to have to aggregate, curate and build networks. They can be selective networks, but they're goung to have to get bigger and compete for that inventory.
  • I think we're actually agreeing for the most part. My point is that they can't curate and build networks if they are outsourcing their ad sales to third parties who don't have that local presence. They need to become the ad network, not outsource to it.

    Ari
  • Then we DO agree!

    Thanks for all of your great comments.
  • I agree with Fred - the David Carr piece shows close mindedness and a remarkable lack of imagination. Thankfully there are a lot of people within the media/journalism world who embrace networked journalism and open access.
  • I agree. We've talked to some super smart people over there.

    They definitely "get it" better than most.

    If nothing else, it shows that there really is a wall between business and editorial!
  • I'm just picturing an old man waving his cane as he orates these silly philosophies from the podium. What's sickening is that the podium has a big NYT logo on the front of it.

    There's an obvious misunderstanding of the direction the business model is heading in. Newspapers must embrace affiliate/performance based sales model on a micro-niche level. We have the content available but haven't provided the means for local advertisers to OWN it. That's the issue. We can work this out if we can let go of this incessant clinging to the past.

    Aripap has it completely right. Newspaper's can perform better than ad networks and by all means should because of their brand. But there is a definite need for remnant networks. It's finding the balance and that will involve some consolidation along the way.
  • 'Banding together' is usually a good sign that we're getting to the last line of defense (small bookstores, RIAA lawsuits, authors guild, cell phone lock-ins, etc.) and that we're on the fringe of the walls coming down -- it's amazing how fast the tumbling has started actually, after years of hearing about the imminent demise. The Seattle Post-Intelligencer (paper #2 in our market) is in its last days, and others have beat them to it in other metros.
  • News used to be a choice between several monologues, and is now quickly becoming one giant conversation. As that happens, news starts to be more of a meritocracy, and the built in advantage that the news organizations one had is diluted. I think a side effect of this is that there is less need for a huge diversity in news coverage. You can get all the perspective you need via secondary sources that have shown merit.

    Most of these arguments from newspaper people seem targeted not at the generic question "how do news organizations survive and prosper" but at the question "how do we keep as many reporters employed as possible?"
  • Agree 100%. That's the "leap" I was talking about -- start innovating!
  • You hit it spot on. Enough with the WSJ and Consumer Reports "they pay, don't they?" models. In the grand scheme of things, their subscriber bases are limited. And by restricting access to content, they limit their clout. Arguably CR is a service business altogether.

    Full disclosure: I edit a small aggregator that focuses (very broadly) on health issues, humanitarian work and technology as it applies to both: http://www.TrackerNews.net. There are some twists. Stories are not organized by category, nor is there a standard navigation bar. Rather, headlines (breaking news, research papers, blog posts, websites, book reviews, e-books - print, audio, video) are grouped together for contextual relevance. Once stories enter the site, either on the green banner bar or in the left column, they snake up and down the columns for a few days before exiting to the archives.
    It's a beta baby - we'll see how it works.

    As aggregators go, TrackerNews is downright artisanal in its approach. Personally, it has been hugely liberating not to be tied to second-by-second datelines but driven by relevance. Most story links on Tracker haven't gotten broad play. But even if they had, the reality is that most people don't read or even see most stories. The trend has been to niche (give readers what they want) to a point of granular insularity. Tracker is an experiment in mix and match. Every story isn't for everybody, but that doesn't mean a certain level of awareness doesn't have value. And when the connections happen because of Tracker, they can actually be pretty significant.

    Back the point, Tracker, like most aggregators, is delivering readers to publications, including newspapers, that might not otherwise get them. Right now, in its beta phase, there is no advertising on Tracker but so what if there was? The potential value-added is considerably more than any ad revenue garnered. There is no siphoning here.

    Which brings me to a final point on the myth of metrics. How do you quantify the value of being associated with a prestigious publication? Cllcks are important, but in terms of a campaign, especially for the long haul, what is the value of being associated with a New York Times or, or, or? I live in Chicago where opening my daily Tribune has become an exercise in train-wreck witnessing. At this stage in the disaster, who would *want* to be affiliated with them? Newspapers, by ceding that there was only one narrow way to measure value, lost sight of another bow in their collective quiver. Now that bow is all but broken.

    Huffpo's been pretty brilliant about not only aggregating content, but harvesting that prestige. Think about it: They got a question at Obama's very first press conference?! Pretty slick...

    Clearly, newspapers are in a time of radical transition, but it's not the first time. Years ago I curated a big exhibit called The Art of the Message about the evolution of the modern newspaper, which was based on a rare, rag-edition run of Tribunes from the 1870s through WWII. Recently, Maria Popova over at Brain Pickings wrote a wonderful blog about it. Warning: There's lot of art - you're going to be taking your jaw off the floor seeing what newspapers used to be capable of: http://tinyurl.com/c8t9a8
  • stephanie
    Isn't outsoude.in a parasite? without free newspaper online, your site is dead. you better help before they take you under with them
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