Not long ago, print publishers looked at the online industry as a way to boost margins and maybe save print media from becoming irrelevant in a digital age. Now many newspaper and magazine
publishers appear to be rethinking the role and value of the Internet, especially in regards to online advertising.
Only 27% of print publishers believe they will see an increase in online
advertising revenue in the next five years, compared to 33% who see no change and 17% who see the business as evenly split five years from now, finds a survey of 423 newspaper and magazine
executives released Wednesday by GartnerG2. Nearly a quarter of the executives (23%) simply did not know what future of online might be.
GartnerG2 analyst Allen Weiner said he's seeing an
uncertainty among print publishers in all sectors - independents, owners of several newspapers and conglomerates - as to the future of online advertising. Weiner calls it "directional disconnect,"
where many parts of newspaper companies - the executive suite, newsroom and new media, for instance - have differing visions on where the future will hold. And few are bringing those visions
together in a way that positions the newspapers for the future.
"Various groups within the publishing organization are on different pages," Weiner said.
Newspaper publishers survived
the first wave of digital competitors, which crashed and burned after the dot-com implosion. Weiner has a feeling they're breathing a sigh of relief instead of looking to the next new thing.
"They have a short window of opportunity to retrench and think of the lessons learned from the first wave of digital competitors," Weiner said.
Take the help-wanted sector of classifieds,
which has taken more than its fair of hits collectively in the media downturn. A lot of publishers say they're confident that help wanted will rebound when the job market does, and that they're
well positioned both in their print and online products to take advantage. And that's important for newspaper publishers, who can convert help-wanted classifieds into some pretty good cash flow.
Weiner said that help-wanted hasn't come back yet and that it's a measure of hubris and ego for newspapers to think that the print side will return without realizing the reality of employment
advertising today. While their brands will survive and could thrive, Weiner said that new business opportunities should be created to build on the newspaper industry's strengths and the new
technology.
The survey found that many newspaper publishers don't have a registration system that would be critical for developing the targeted advertising opportunities and content that
could help newspapers get ready for the future. Less than half of big media companies, the ones that have both newspaper and broadcast properties, and multiple owners of newspapers bundle print and
online. The GartnerG2 report said that means that the other half is left behind in cross-platforming and other marketing opportunities.
Weiner said that some companies are doing better than
others, particularly in developing different channels beyond the traditional newspaper. That can be the free daily tabloids that some big companies are creating to target the 18- to 24-year-old
commuter, news targeted at Spanish-language consumers and even other channels like wireless and online. He said that many online newspapers are just repurposed versions of the offline printed
product, instead of a way to chart a new course that could resonate with the consumer.
"Their focus needs to be in developing a series of channels to complement their print product, be they
Web, be they print, and basically leverage the brand as fully as they can so they can withstand the next wave of digital companies which will certainly have superior technology on their side,"
Weiner said.