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Archive for May, 2009

Quick Thought on the Cause of Newspapers’ Decline

Posted by Dan Sachar on May 18, 2009

Following up on an earlier post about cause-and-effect of the newspapers’ decline, I wanted say that I realized only recently just how emotions cloud this discussion.

In particular, it’s very difficult to discuss the death of newspapers with the many many people who are emotionally-connected to them as a medium and who are convinced (in some cases rightly) that a lot of in-depth investigative journalism may suffer – if even temporarily – as a result of the death of this business. But more than that, these are people who spent years if not decades waking up and reading their papers in the morning. I still count myself one of those people – I read two papers before I leave the apartment every morning (okay, I skim big chunks of them).

So, for example, in the course of a discussion I had this weekend I mentioned to one person that, at the end of the day, newspapers have no one to blame but themselves for their decline. The reaction I got was pretty strong. Either it’s all the Internet’s fault or the economy’s fault – but the degree to which some people fail to acknowledge that newspapers AS A BUSINESS have just been poorly run is pretty striking.

At the end of the day, there are a confluence of many many factors: corporate consolidation, debt mismanagement, the failure to invest in R&D, the failure to figure out the Internet with well over a decade grace period given to work it out. But there’s something about these things that make it difficult for so many to rationally examine the causes. It’s too emotional a subject, and that blocks coherent analysis and discussion around their downfall. Blaming newspaper execs for mismanagement, for example, isn’t the same as saying “I hate newspapers and think they’re worthless.” But that’s how it sounds to the ears of some listeners.

And that’s one key reason why this particular media debate has stirred up passions to the degree that it has.

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Cause And Effect in the Decline of Newspapers

Posted by Dan Sachar on May 13, 2009

A quick word about my friend Al Giordano’s post about the death of newspapers. Giordano was certainly prescient in his move to Internet journalism many years ago (additionally, Giordano’s work is supported by public fundraising but is not reliant on advertising), so he’s earned the right to crow.

However, I don’t think his analysis as to WHY newspapers are in decline is exactly right, and I think he mixes two different (albeit important) arguments:

I grew up reading a New York Times that no longer exists: Tom Wicker reporting from the Attica prison truthfully and in solidarity with the rebelling inmates, Max Frankel ordering expensive investigations into government wrongdoing, the publication of The Pentagon Papers leaked by Daniel Ellsberg, and I’ll never regret following music critic John Rockwell down Bleeker Street to The Bowery and through those graffiti-covered doors into the future that we inhabit today.

As one who, last year, finally weaned myself off the New York Times Crossword Puzzle – the last section of the Gray Lady that held my attention – I understand that old habits and routines die hard, and that my crocodile tears for the putrid newspaper industry are not well received by all. There is something familiar and comfortable – like warm apple pie – in opening one’s door in the morning and staining one’s fingers with ink. There was a time when reading the local daily made us feel part of something bigger than ourselves: a community, a city, or a metropolitan area. Newspapers used to be the glue that held communities together. Not so much any more.

The first point is that the work of the journalists just isn’t what it used to be and the pure quality of work is in decline. That’s a difficult notion to dispute, although I wouldn’t call myself qualified enough to provide an overview of journalistic quality over the last few decades.

The second point is that newspapers no longer hold the same place in our community that they did in the past. I think that is also certainly true. Take New York city. It used to be you needed to read the NYTimes to stay up on current news, particularly local community news. With millions of commuters choosing between their 2 or 3 free newspapers at subway entrances, not to mention a proliferation of hundreds of other sources online and off, there’s no question that this town isn’t as connected to the Times as it once was.

But can we definitively attribute the reason WHY newspapers don’t hold the same place in our community to the decline in journalism quality? I think that’s a bit of cause-and-effect reasoning, and probably not the only example we can find of someone finding a particular aspect of decline in news journalism and declaring that the reason for the decline of print media (to be fair, Giordano doesn’t declare that the sole reason, but hints strongly at it).

I believe these are all important pieces to analyze, but we should be careful to break out the different factors and assign them their individual importance relevant to ALL the countless reasons newspapers are on the precipice. I’m not disputing the decline in quality, I’m just not convinced that’s really the driving factor behind the decline. Someone conduct a scientific study!

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What Would Micropayments Mean for Journalists?

Posted by Greg on May 12, 2009

Like a bad case of herpes, the idea of micropayments refuse to go away, with News Corp now making noises about rolling them out this fall. To be fair, Murdoch’s plan sounds more realistic than the wishful thinking engaged in by the likes of Isaacson and Brill, since the Journal is proposing to use micropayments as an add-on to its existing subscription business and only apply them to niche subjects (though Jeff Jarvis remains skeptical).

What amazes me, however, is that while there has been much discussion about how micropayments would be bad for consumers, no one seems to have considered the fact that they would be an absolute disaster for journalists.

The argument for micropayments is usually couched in terms of how we must do something to save newspapers and the vital civic role they perform. If they go away, we are told, who will fund the Baghdad bureau? Who will be left to cover the statehouse and the city zoning-board commissions? And so apparently if we adopt micropayments, everything will go back to the way it was. Newspapers will become profitable again, reporters can once again be insulated from all that nasty business stuff that they never cared about in the first place, and everyone will get a pony.

As it happens, I agree that newspapers provide a civic good by covering important but less sexy topics. Which is why I’m dumbfounded that these micropayment enthusiasts haven’t figured out that charging for individual articles not only won’t save the Baghdad bureau, it will hasten its demise. Read the rest of this entry »

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Online Ads and the Future of Journalism

Posted by Dan Sachar on May 8, 2009

This morning I caught this “Morning Joe” segment about this very subject – which got into a sort of interesting discussion around online advertising as a business model between Arianna Huffington and Peggy Noonan. Arianna, who can sometimes be insufferable, but is actually making the attempt to push the envelope when it comes to online investigative journalism, tried her best. But dealing with the incredibly condescending know-it-all tone of Peggy Noonan is difficult.

What is most infuriating about Noonan’s statements are the degree to which she dismisses online advertising and touts the great benefit of offline advertising, and frames that as if it’s ESTABLISHED FACT. Only it’s not. She was speaking for herself (which she basically admits at one point), but used grandiose framing to make it sound like this is the WAY IT IS. Well, online ads have their problems. But they have plenty of success stories too (search and video to just name a couple) and sites such as Huffington Post actually do a decent business based on online ads.

Certainly, overreliance on advertising as a model isn’t a good idea for sites that hope to built profitable, enduring futures, but the dismissal of it by Luddites like Noonan on national TV is even more ridiculous.

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Permission Marketing Turns 10

Posted by Greg on May 8, 2009

Seth Godin takes a well-earned victory lap on the 10th anniversary of the publication of Permission Marketing. Reading that book a year into my marketing career was a true scales-from-my-eyes moment. It made me believe that marketing was about honesty and delivering value rather than sleight-of-hand and emotional manipulation. It has shaped my career, informs every marketing decision I make and is the underlying theme of nearly every one of my posts on this blog.

I re-read the book a couple years ago and realized that some of it sounds dated, as even Godin admits in the post linked above. One could argue that the Cluetrain Manifesto, which also turns 10 this year, was more prescient (the manifesto’s first thesis, “Markets are conversations,” certainly seems like a good description of the Age of Twitter). It’s also ironic that, while Godin has had some modest business wins with Yoyodyne and Squidoo, the only truly successful business he has built by applying his concepts has been Seth Godin, Inc.

Nevertheless, it’s hard to overstate how much the concept he helped popularize has shaped marketing over the past decade. AdWords. RSS. TiVo. Amazon’s recommendation engine. Some of them pre-date the book’s publication, but they all grew out of the notion that businesses should treat their customers not as mindless sheep but as human beings worthy of their respect. Much like the special effects in “Star Wars”, Godin’s ideas have become so widely accepted and copied that we now take most of them for granted (though the battle is far from won, as you could probably tell just by glancing at the number of messages in your spam folder).

If you’ve never read Permission Marketing, I highly recommend picking up a copy. But if you don’t have time, Godin closes his post with a pretty good summary:

Don’t be selfish. You’re not in charge. Make promises and keep them. It’s like dating. It’s an asset, it’s expensive and it’s worth it.

Happy anniversary, Seth. And thanks.

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State of the News Media 2009

Posted by Greg on May 3, 2009

Good overview from the Pew Project for Excellence in Journalism. I’m still working through the complete report (which apparently tops out at 700 pages), so for now I’ll just focus on some of the major trends they identify:

The growing public debate over how to finance the news industry may well be focusing on the wrong remedies while other ideas go largely unexplored.

Forget about micropayments and changing to non-profit status. And forget about a single revenue source being the magic bullet that will save the news business. Most likely, it will take a combination of new ideas, including “online retail malls” and “subscription-based niche products for elite professional audiences.” That last point is an important one; while it’s nearly impossible to get an audience to start paying for a service they’ve been receiving for free, there are always opportunities to upsell premium offerings to segments of your audience.

Power is shifting to the individual journalist and away, by degrees, from journalistic institutions.

This sounds like a good thing for journalists, but as Spider-man would say, with greater power comes greater responsibility; specifically, the responsibilities journalists used to depend on organizations to take care of such as editing, marketing and publicity.

On the Web, news organizations are focusing somewhat less on bringing audiences in and more on pushing content out.

This is another trend that’s potentially liberating, but also scary. When publishers bring users to their content, they also control the options for monetizing it. Even if they are able to place ads in RSS feeds, for example, it’s a completely different type of ad from the one they’re used to selling. And RSS ads are at least quantifiable; even scarier are all the things that can’t be measured. What’s the exact value of providing readers with the information they want at the time and place they want it? It’s impossible to know, but there’s a good chance that it’s greater than the cost of not providing those services.

The rest of the report includes special reports on citizen-based media and new ventures, a survey of online journalists and in-depth studies of a number of media verticals, including newspapers, online, television and magazines. Definitely worth checking out the whole thing.

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Subverting the ‘Mad Men’ Paradigm

Posted by Greg on May 2, 2009

In response to a post on the New York Times’ Bits blog about a well-targeted Facebook ad, commenter EJ tosses out an idea for behavioral targeting done right:

The approach to targeted advertising that would best serve consumers might be to have a central opt-in network where consumers enter information both about ads that they would be interested in and about ads that they don’t want to see…

The network could then disseminate that information to various advertising networks, who would identify your preferences via a single cookie.

Those who have privacy concerns or just don’t want to see targeted ads simply wouldn’t opt in, and would see the regular jumble of random ads (plus maybe an ad or two letting people know about the opt-in network.

I don’t know if advertisers would go for it, but it seems to me that it’s best for the consumers, who would control the information they are giving other companies, instead of those companies automatically trolling through their browsing history for whatever their bots can glean.

(And if anyone has any clue how to actually successfully implement this, Please Steal This Idea.)

I don’t like this idea. I love it. Yeah, there might be some workability issues — I suspect the biggest hurdles would be overcoming privacy fears about centralized data and getting enough people to sign up to make it worthwhile — but if something like this were ever implemented properly, it would provide a great deal of value to both consumers and (despite EJ’s misgivings) advertisers.

But what I like most about it is that it begins to move us past the paradigm that has permeated our culture since the rise of mass-market advertising in the ’50s and ’60s. According to this paradigm, which is so pervasive most of us hardly even give it a second thought, advertisers are mad geniuses who know us better than we know ourselves. They interrupt our media consumption to tell us about products and services we wouldn’t have otherwise considered, and through creativity, timing and sheer brute-force repetition manage to shape our tastes. Read the rest of this entry »

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