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Just An Online Minute... Good News AND Bad For Online Papers
by Wendy Davis, Tuesday, April 24, 2007, 2:45 PM

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Here's the good news. The online readership for newspapers continues to rise.

Last quarter, more than 59 million U.S. Web users visited newspaper Web sites, up 5.3% from the first three months of 2006, according to Nielsen//NetRatings data cited by the Newspaper Association of America. For the quarter, visitors to the newspaper Web sites tracked by the group saw an average of 3 billion pages, up almost 11% from 2006.

But here's the bad news. Online revenue at newspapers isn't growing as fast as the companies had hoped. At Tribune Co., interactive revenue grew 17% in the first quarter -- which, while healthy, marks a steep drop from last year's 30% growth. Gannett Co. also saw dwindling growth, and the New York Times Co. warned that Web ad revenue hadn't climbed 30% for the quarter, as previously predicted.

Clearly, the newspaper industry needs to better monetize its Web traffic. How the industry intends to do so remains murky, but one option -- paid subscriptions -- seems like a particularly bad route. After all, it's unlikely that many people are willing to pay for articles they're used to reading online for free. Besides, the reality is, keeping copyrighted content from surfacing on free sites requires never-ending policing -- as Viacom, Universal Music and others feuding with YouTube have learned.

1 person recommends this article. 

9 comments on "Just An Online Minute... Good News AND Bad For Online Papers"

  1. LG Jolitz from CoolClip Network
    commented on: April 25, 2007 at 2:32 PM
    The bad news is to be expected (see "Death and Rebirth of Traditional Media, Act 2, Scene 1", http://william.telemuse.net/blog/18). The Internet disruption of media makes monetization low value, thus you have to command enormous volume for reasonable revenues. This will improve as we get through the disruption, so we are turning a corner, but its not like anyones ready yet to start dancing about it ...

  2. Andrew Dassing from NMR-US
    commented on: April 25, 2007 at 9:43 AM
    Remember when news wasn't monetized? The ubiquitous infiltration of the Internet into common existence will allow news to return to a non-monetized, public domain, point of occurrence medium.

    Reporting of the news does *not* require: - flashy animation - pretty and handsome anchor people - humorous weather personalities - hourly homicide, suicide, and vehicle fatality totals - f-bomb, n-bomb, b-bomb, and h-bomb notices, although h-bomb used to mean something else - advertising

    As an aside, why the obsession with ?-bomb words? There are no bad words, just misguided people using words badly.

    Modern requirements for reporting news: - Internet access - an honest witness, informant, or researcher (a rarity in commercial news) - someone reasonably familiar with the regional language and grammar

    After all, news simply is edification from the north, east, west, and south--news. With advertising thrown into the acronym, it w.a.n.e.s.

  3. Larry Emsweller from LCE GROUP, LLC
    commented on: April 24, 2007 at 8:44 PM
    We are moving from a hard copy world to an online world. The only problem is the Newspapers continue to regurgitate only what was in the hard copy edition of the newspaper.

    It has less to do with content that is driving traffic to the sites. It has more to do with convenience-at the office, at home, anywhere there is a computer,

    Online newspapers need to be more creative and inventive with their online editions to create more value for advertisers. They have an opportunity to create a multi-media platform for the first time in their history, although they continue to treat it as a simple print and static picture content source. In other words, they offer nothing new, and in many instances they still sell the online edition as a loss leader to drive the advertisers to their dying hard copy editions.

    Until newspapers learn how to play in the online world and treat it as a new playing field and create value for its advertisers that go beyond the regurgitation of what exists in the morning edition, they will not succeed.

    I believe the increase in numbers of online viewing has less to do with the content on the online newspaper editions. A new habit is being formed. They need to set a unit fee for each unique visitor and charge the advertiser a fee for that. It is the old impression game but this time it is played on the Internet. If the number of subscriptions increased, rates for advertising increased. If online visitors increase, then that becomes a selling points and rates should increase/

    It is still an eyeball game. More eyeballs, Higher rates. And on the Internet, you can separate the impressions from the number of people who actually click on to the site.

    Newspapers have to stop thinking like Newspaper people and recognize they have a new toy to play with and a new medium to enjoy. Once they learn that, they have a new world that can open up to them. Until then, they are no different than the early days of TV, trying to marry a picture with a voice. Now they need to add the color, the music, the variety acts, the comedy shows, the sitcoms, etc. In other words, start using the tools available. Stop acting as if you only have ink and still photography.

    Larry Emsweller www.freeofflinetraffic.com

  4. Kevin Halpern from NewspapersNow
    commented on: April 24, 2007 at 6:18 PM
    What is that a particularly bad move? Paid newspapers don't give them away to non-subscribers. You won't find many paid-access local sites who are having their content hacked to any large degree.

  5. Matthew Dooley from Media General
    commented on: April 24, 2007 at 5:45 PM
    The first response is likely to be an increase in the number/size of ad positions. Which is exactly the wrong response. Even though some sites are selling out inventory, they're selling it at wholesale rates. A cutback on the number of ad positions would increase demand for those spots, decrease bandwidth costs, and increase traffic.

  6. Paul Beatty from BTC Inc
    commented on: April 24, 2007 at 4:40 PM
    The power of print today is in the measuring and reporting of the print to web connections. Paul B. Beatty

  7. Ben Smith from DoubleClick
    commented on: April 24, 2007 at 3:59 PM
    In order to better monetize traffic, newspapers (publishers in general) need to first think about reader/consumer experience.

    What does the site look like? how does layout, formatting, interactivity promote contact with the content? how robust is the search function? can i easily share and link to and with content on the site?

    Also, and perhaps most important - how relevant is the advertising? The more the advertising has little to do with content and/or my stated or implied intentions the easier it will be to dismiss it. In the end, I think newspaper don't likely have the in-house talent yet to make substantial progress on this front in the short-term.

  8. Craig McDaniel from Sweepstakes Today LLC
    commented on: April 24, 2007 at 3:30 PM
    Having advertised my company in many online newspapers, it is clear to me that newspapers in general are struck in the past and do not understand how digital can fit into their mix. Example is I have been priced the same banner ad as much as ten times between newspapers of the same size. Many times, I will not even get a telephone call or email returned. Last, many have a "take it or leave it" attitude about where to place the ads.

    Bottom line is many newspapers just don't get it. The majority of online newspapers need a big attitude makeover. This would solve many problems but I doubt it will happen soon.

    Craig McDaniei, Pres. Sweepstakes Today LLC

  9. Richard Libero from NHL
    commented on: April 24, 2007 at 3:17 PM
    Newspapers need to forget the news-on-paper business. The internet has kept them in business, but changed the distribution model -- who needs truck drivers earning 100K a year to deliver yesterday's news?

    Newspapers need to put all their eggs into the online basket. Classifieds, ad sales, search, etc. They need to become online local portals. Local news is quite hard to come by on the web, newspapers could dominate that area.

    The print edition can then become a featurized, almost daily magazine, that supports the website, not the other way around.

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