NNN Perspectives

Jeff Bezos makes his first trip to The Washington Post today

September 3rd, 2013

In his first interview since the news broke that he had purchased The Washington Post, Jeff Bezos is offering insight into what his plan will be moving forward. The exchange conducted by phone from Seattle over the weekend has generated a lot of excitement from the Post staff, the industry, and the ad marketplace.

While he is not yet prepared to offer a concise and detailed game plan for what he intends to do with the brand, the thoughts he shared provide awareness into what the next few months will look like. “We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient,” he said. “If you replace ‘customer’ with ‘reader,’ that approach, that point of view, can be successful at The Post, too.”

In the coming days Bezos is meeting with senior executives in an effort to begin to better understand the newspaper business. Bezos intends to offer a point of view as discussions take place on how the business model should evolve but at the moment his biggest contribution, as he says, will be the breathing room he gives the brand financially as they develop their course.

For more on what’s happening at The Post this week, click here.

Going head to head in Long Beach

August 20th, 2013

Over the past few weeks there has been a sizeable amount of attention placed on the newspaper industry. Granted, newspapers have certainly received their fair share of coverage over recent  years as their business challenges have grown.  What is different now is that the attention being paid to the medium has been largely positive. With the sale of both The Boston Globe and The Washington Post major media pundits and advertisers began to once again debate the future of newspaper. But this time it was impossible to ignore the inherent power of newspaper brands and the crucial role they play within the communities they serve. Where the conversation had centered before on how much longer most brands could hold on, current conversations are focused on where they could go, how they could evolve, and at times the discourse even moved to how newspaper could lead. It’s been a terrific moment for the industry.

This week the narrative continues. In Long Beach California, Freedom Communications, publisher of The Orange County Register, launched a brand new property. The Long Beach Register debuted yesterday and is positioned directly against The MediaNews Group’s Long Beach Press-Telegram. Suddenly this Los Angeles area market is a two newspaper town and the healthy competition that emerged has directed conversation away from major metro properties to community news services.   There are a lot of people making big bets on newspaper brands, and in the case of Freedom it’s for good reason.

Eric Spitz, president of Freedom wrote an op-ed piece in Monday’s Wall Street Journal and walks the reader through his over-arching business strategy. Freedom has shifted a good amount of the financial burden of reporting the news from the advertiser to the reader.  This change helps demonstrate a sense of reader wantedness and better supports its value proposition to advertisers. The strategy is working. Circulation and ad revenue have both grown and this has helped support the sizeable investment Freedom made in staff, product development, and launches.

If their investment in Long Beach continues to succeed, it will serve as another a testament to the power of the platform. A category only exists when there is more than one player in the space and for anyone involved in the newspaper business, it is great to watch a new brand enter the market. If both papers thrive as a result of the added attention the market receives then it’s good for the medium everywhere.  The conversation can then transition from how these newspaper brands impact and serve their local markets to how advertisers can benefit from put their messaging in the middle of that important exchange.

Read what the local LA tv station is saying about the launch.

Patch can’t patch holes in their business model

August 16th, 2013

Last week the buzz surrounding AOL’s announcement to close or sell 400 out of 900 Patch Network owned and operated sites received lots of media attention, but much of it was focused on the wrong thing. There’s no question that the narrative captured on tape by a staffer is something most people don’t hear every day on business conference call, thus confirming that Patch has a “unique” culture. But the core issue raised by this announcement surrounds the viability of the Patch business model. When over 40 percent of your market profile goes away, it leads the average observer to question whether your model works and moreover whether it ever had the kind of footing that could one day deliver steady and substantial revenue.

When it debuted Patch seemed novel in concept. It would offer a national platform with a symmetrical design and deliver consumers first rate national content and up to the minute news within their community. The visionary design powered by an AOL engine would attract more advertisers, both local and national. The promise of Patch seemed pretty terrific! The problem is that it just never worked.  Each site had a dedicated ad seller and a dedicated editorial director. That’s it – two people per property.  This anemic staff just couldn’t keep up with the need to populate sites with accurate, timely and compelling information; as that started to lag the user experience suffered and ad sales began to wane.

Patch competes with local newspaper brands. With larger staffs that have real journalistic chops and a more committed understanding of the communities that they serve, newspaper brands are in a whole other league. The business side of newspaper operations is managed accordingly and relies on multiple revenue streams for survival. The sheer power, authority, and credible voice that newspaper brands have established were never going to be threatened by a Patch like product because the infrastructure that newspaper has built is terrifically difficult to replicate.

So the news last week was an indirect endorsement of newspaper brands reinforcing the vital role they play in the lives of their readers. For many they operate as a daily companion, offering a healthy diet of news and information that help people lead better lives. As newspaper brands expand into other platforms, the appeal of a tech based asset like Patch begins to wane and we get back to the most significant piece of the equation – content. You can’t just patch the holes in AOL’s game plan. To compete, requires a better business model.

See what Ad Age is saying about the recent downsizing.

Washington Post is Billionaire’s Baby

August 6th, 2013

As you may have already heard, Jeff Bezos bought the Washington Post yesterday for $250 million dollars. So to the good people working at the Washington Post, what does this mean? With the “changes” that Bezos hopes to make, he will be taking what is already a highly respected and authoritative voice in news and expand its voice into platforms that are highly trackable and cater to the reader’s habits and interests.

Bezos will not “be leading the Washington Post day-to-day…the Post already has an excellent leadership team that knows much more about the news business than I.” However, if Bezos carries over the success principles that he’s had in his main enterprise Amazon.com, the Washington Post will have many exciting new chapters to come.

Read more here.

Boston Globe Utilizes Twitter as a Microblog

July 18th, 2013

Keeping true to its award winning journalism while adapting to the way readers consume information, the Boston Globe was in constant dialog with its readers during the pivotal events following the Boston Marathon bombings.  With second to second information updates, journalists updated their Twitter feed virtually as quickly as the events unfolded. In the days of and following the bombing, the impact of @BostonGlobe skyrocketed over regular tweet volume tenfold with over 120,000 mentions on 4/15 and 4/20.

For more stats, read here.

Digital display advertising grows 20% in Q1

June 6th, 2013

IAB released its report on Monday for ad revenue in the first quarter of 2013 which showed  an increase of 15.6% YOY.  Digital Display was the fastest growing category  due in large part to the fact that social media and online video each experienced 30% annual growth within this category.

These large jumps in display revenue bode well for newspaper publishers.

Read more here.

Tablet content is a work of art for publishers and advertisers

May 17th, 2013

Key takeaways from a new NAA report on tablets include:

  • Create a user experience that combines print sensibilities with the functionality of a digital device by having features such as the sensation of turning pages, columns of text and finite pages, along with the ability to update in real time.
  • Cater to tablet user habits by acknowledging usage is mostly in the evening – 5 to 8 p.m. or 8 to 11 p.m. – with the majority using it in the latter timeframe.  Some publishers have reacted to this by creating an “evening app” that updates content specifically to cater to this crowd, a la an evening newscast.
  • Ease of use is of the utmost importance. The ability to download and save content is a feature many media companies are taking on so that users may enjoy content without an Internet connection.
  • Advertising is unique on the tablet. Interactivity with the touchpad makes it more engaging, while the larger screen increases ease of use and visibility. According to Insight Express, tablet advertising effectiveness outweighs that of mobile in awareness, purchase intent and brand favorability.

Click here to download NAA’s report.

America turns to newspaper media when shopping

April 30th, 2013

The recently released How America Shops and Spends report conducted for NAA by Frank N. Magid Associates explores consumer behavior and related attitudes regarding advertising media. Data from 2,000 interviews ensure a well-rounded snapshot as to where people turn when they shop.

The findings revealed:

  • Consumers take action as a result of newspaper advertising: 81 percent in the past 30 days.
  • More than one-third of “non-readers” (35 percent) actually use the newspaper during the week.
  • Newspapers lead all other media sources for seven-day usage to plan shopping.

For more information, please send an e-mail to jim.conaghan@naa.org.

Newspaper media industry report highlights diversified revenue stream

April 15th, 2013

A new report from NAA titled “The American Newspaper Media Industry Revenue Profile 2012” showcases the full newspaper media footprint. For the first time ever, this report contains extensive  data on new revenue sources,  including e-commerce, events, commercial delivery and printing.

The report notes that 40% of total revenue comes from non-advertising sources.  Along with this, circulation revenue is up for the first time in about 10 years.

“America’s newspaper media are transforming themselves,” said Caroline Little, NAA president and CEO. “In virtually every community they serve, newspapers have the biggest newsrooms, the best-known brands and significant audience market share. Now they are building on those to find new ways to serve audiences and local businesses.”

As the way people consume news continues to change, so will the forms of newspapers. Meanwhile, newspapers continue to maintain their integrity and to produce the world-class journalism that keeps readers loyal and informed.

Read more about the trends in the NAA report here.

Nielsen reports well educated viewers watch less TV with their morning coffee

April 5th, 2013

A recent Nielsen study shows that homes with a more educated head of the household were watching 50% less TV in the AM than the lower educated counterparts. “Overall, the report shows that higher education and income levels were correlated with less TV usage, particularly at the early and late parts of the day,  Nielsen said”.

It is plausible that the more educated consumers are actively engaged with their local newspaper in the morning. As the NAA reported last year in their Multiplatform Usage Study, conducted by Frank N. Magid Associates, 31% preferred to consume their paper in print in the AM before work/school.

Intuitively it makes sense no? If you are an advertiser looking to reach an engaged, educated and affluent audience that acts on your messaging, look no further than your local newspaper.

Read the full article about the Nielson study here.

You can download the NAA Multiplatform study on this page