Ad sales. Without the sales staff.

Writing for Nieman Journalism Lab, Michael Andersen looks at Flyerboard, which offers online publishers and businesses self-serve advertising. Click over to Boston.com’s Your Town page for Newton and see an example of Flyerboard’s handiwork on the left rail. The image in this post is from the Houston Chronicle website, Chron.com.

What good are page views if you can’t monetize them?

Bill Grueskin, Dean of Academic Affairs at Columbia University, has a must-read article at paidContent that supports the position I took in a recent post about how overrated the quest for page views has become:

What good is Web traffic anyway when the online advertising model is so badly broken? …

… It’s troubling that, even as traffic to news sites is growing, their once-lucrative home pages and article pages are displaying house ads or remnant ads with CPMs of no more than $1. At that rate, even a link from Drudge, which could refer 500,000 page views, generates only $500. …

… In other words, even if it’s true that aggregators are siphoning off users from news sites (and it’s pretty clear that they refer traffic to sites as well as drain traffic from them), does it make a big difference in a world of $1 CPMs? …

… The value of advertising online ought to be measured more by engagement than by sheer numbers, that is, more by metrics like time spent or page views per user than by the sheer number of people coming to the site, many of whom may not assign any value to the journalists who generated the content.

Build your community, not numbers

While it’s easy to spot the news outlets that, desperate to survive in the new media ecosystem, stray outside their local focus and engage in an obvious grab for page views, others have realized they must expand their concept of business operations and provide the communities they serve something of value.

And blogging about whatever’s hot in Google Trends isn’t it — that’s just  playing a short-sighted and pointless numbers game. Sure, a site may see a spike in traffic because a blogger made sure to put up a post about whatever was most popular in Google search that day. But to what end? How long until advertisers see the stats for themselves and discover that they aren’t getting the click-throughs those misleading numbers promised, that all those eyeballs were a just an ephemeral occurrence?

WestSeattleBlog.com tries to build a relationship with local businesses by providing free seminars. Men’s Health offers an iPhone app that users can purchase in order to buy its Workouts. While the The Seattle Courant didn’t have the capital to make good on its ambitious vision, its business strategy is worth filing away for future reference:

Beyond advertising revenue

UPDATE: USA Today regrets not charging for its iPhone app.

Paul Bradshaw, who writes for Online Journalism Blog, says forget about making money from online content (which is what USA Today recently announced it will be doing with its digital edition) and focus instead on value-added services:

Bradshaw’s points about newspapers needing to build new revenue streams is echoed in this post from John Temple, former editor and publisher for the Rocky Mountain News:

I don’t think the industry can get there if all it does is try to hold on to its legacy revenue streams and its legacy business. One thing that concerns me is that newspapers don’t seem to be working with local businesses to help them find their own foothold on the Internet and at the same time possibly place themselves in the middle of transactions. This might enable them to find a new revenue stream they couldn’t have tapped before.

And here’s just one example, provided by the Center for Strategic and International studies, of a news outlet that is going beyond advertising for its income:

European companies have also been finding creative ways to thrive in a changing media environment. Norway’s VG Nett, which is affiliated with the popular Norwegian tabloid, Verdens Gang, rivals Google in Norway and has a profit margin of nearly 30 percent. It does this through charging for services such as a $90-a-year weight-loss club, a pay-for-upgrade social networking site and streaming soccer games.

The last people the news industry needs in a crisis

From Newspaper Death Watch, in its commentary on a meeting of newspaper executives seeking to implement a paid content plan for their websites (emphasis below is mine):

The newspaper industry’s paid content debate sounds more and more like the desperate protests of the music industry when file-sharing began to dismantle its business model. The two industries have some characteristics in common. Both are mature, traditionally stable and highly profitable businesses with predictable growth and high barriers to entry. The people who gravitate to such industries excel at managing costs and limiting risk.

These are the last people you want to run operations at a time of crisis. Crisis demands innovative thinking, fast reaction times and tolerance for risk. One reason we’ve seen so little of this in the newspaper industry is that the people at the top have no capacity for making dramatic changes. The innovation that we’ve seen comes almost entirely from startups or skunkworks operations that publishers have had the sensibility to leave alone.

Thinking outside the paid content box

In his recent post about Journalism Online’s intent in proposing a system for news sites to charge for their online content, Steve Outing notes the absurdity of asking readers to pay for content offered by outlets whose quality has diminished after laying off  thousands of journalists:

The minute paywalls go up on content on the web, all but the most devoted will click elsewhere to find alternatives. Consumer behavior will make an abrupt change online. Brill and his supporters think that newspaper content is so special that bloggers and new news players online won’t match the quality, yet newspaper quality has been sinking badly as thousands of journalists have been pushed onto the street.

Setting aside the issue of quality, news sites that intend to charge for content have their heads in the sand if they think people will pay because “Who else will provide the coverage?”

Plenty will. And plenty are, as Mark Potts pointed out during a panel in Baltimore, titled “The End of Local News? If Communities Lose Newspapers, Who Will Fill the Void?”:

Creative Loafing's Ben Eason talks to Editor & Publisher

Ben Eason, Creative Loafing’s CEO, gets some prime real estate in Editor & Publisher‘s Special Report on newspaper bankruptcy.

The most interesting part of the article is Eason’s revelation that he expects CL to emerge from bankruptcy over the summer, at which time “everyone will know the company’s real worth”:

“As time goes on, people are more realistic in what the company can produce going forward. We have an opportunity. It’s an opportunity to suggest to the creditors, to the judge, to everybody involved what we believe the company will look like going forward and then we have the opportunity to suggest what the capital structure is going to be. We are forced to value the company, not as we would like it to be, or what it was, but what it is today.”

Here's where newspapers need to invest their resources

Of the seven strategies Mark Potts lays out for the news industry to adopt, two in particular stood out for me as of particular importance. His criticism of news sites that spread themselves thin by trying to appeal to all readers is one that bears repeating. See if you agree.

I’m excerpting them here, but I recommend you read the entire post.

Vertical products: One of the most broken things about the newspaper business is the “all things to all people” model. By trying to do a little of everything, newspapers don’t really do anything well—for readers or for advertisers. New products that focus on specific, vertical audiences should be the wave of the future, but so far they’re barely even a trickle (let’s see—there’s Gannett’s MomsLikeMe franchise, and then…not much else).

New forms of advertising: Banner ads are so…1997. Interstitials, pop-ups and intrusive ads are so…obnoxious. Classifieds are so…dead. Meanwhile, Google is making money off of local search, other non-newspaper companies are pioneering things like click-per-call and pay-per-click, and various startups are perfecting cheap ways to create and sell local ads. Could it be that newspapers are having trouble making online advertising revenue grow because they’re selling the wrong kinds of online ads? Hmmm.

Thoughts on journalism's future

Martin Langeveld took notes during a think tank in Washington, D.C. called “The Future of Context.” For the occasional wonky speak about “future-pointed contextual journalism” and “ecosystems,” here are a few observations/commentaries that struck me as fruitful for the future viability of the news industry:

• Advertisers can add context: blogs, newsletter to engage customers in conversation.

• Commenting needs to evolve into conversation.  This can be done by having reporters and editors step in, add context, ask questions, and moderate the discussion flow.

• It’s not the race to be first that counts — its who can become the convenor of the conversation around the story, and can make that conversation solution-oriented.  A collaborative beat blog is in fact a continuous conversation.  Again, we need to turn commenters into contributors and commenting into conversation.

• Radio has always been good at having conversations with its audience.  We are hardwired to learn best through conversations.  Newspapers in the past couldn’t tap into conversations very well, but now we can.  By focusing energy on making people part of the conversation and building community, we raise demand for our product.  (Steve Yelvington, Cox)

Check out this iPhone app to locate real estate

At the Reynolds Journalism Institute Symposium at the University of Missouri, a nifty application called NearBuy won the student iPhone app competition:

The app uses your location to serve up either homes for sale in the area or apartments for rent. They bring in listings from Google Base, Craigslist and Oodle. You can then view info on listings on a map, including photos, property details, contact information. Plus, you can use Twitter to query people for opinions on particular places, and then rate the place. Extras include a rent calculator and a Flickr add-on that lets you see photos geo-coded nearby.

And even though it didn’t win, I really like the sound of The ADverse Network, which offers an enticing business platform for news outlets in need of innovative ways to work with advertisers (particularly local businesses):

They wanted to create a geo-located advertising service, so that you would get local ads based on your location. Ads are inserted into the two apps we developed, iCoMoNews and Vox. For the advertisers, there are tools like a live map that shows where people are accessing the network, and even more granular “heat maps” to show where people are viewing and clicking on ads. They say they got a clickthrough rate on ads of 3.8% which is pretty good.