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Archive for November, 2009

News for tweens? OMG!

Tuesday, November 24th, 2009

Everybody bemoans the absence of the “youth” audience from newspapers, radio, and TV.   How, they ask, can there be any future for legacy media if young people aren’t  reading, listening or watching?  

One answer might be a site called TweenTribune, which should be a local news editor’s dream when it comes to reaching “tomorrow’s” news consumers.  Teachers in six countries are using TweenTribune – including one who happens to teach one of the tweens living in my household.

Let’s talk about tweens for a minute.  There are about 25 million of these confused and generally annoying little people in the U.S. alone.  (I’ve got a lot of experience here.  Two have already passed through this stage at my household.  One is in the throes of Tweendom, and two more are not far behind.)

They are responsible for many things – most of which they’ll deny – but the most important of which is about $150 billion in spending.  I’m talking cell phones, dresses, board shorts, sneakers, T-shirts, sneakers, gum, sweat shirts, video games, skate boards, sneakers, fast-food and ringtones.  That doesn’t count the estimated $170 billion in matching expenditures by parents and relatives on things like braces, sneakers, haircuts, skateboards, text-messaging fees and music downloads.

How in the world does traditional media reach them anymore?  Advertisers have been perplexed for more than a decade, since newspapers cut their comics, radio lost out to iPods and MTV’s reality got too unreal for them.

TweenTribune is the brainchild of Alan Jacobson, a newspaper designer with tweens of his own.  It combines the attraction of totally interesting news (make sure you say “totally” with the right inflection) with the power of social networking on the Web.  And the irony is that, even though it’s sanctioned by both parents and schools, the kids are really into it. Jacobson has pitched the idea to newspapers and TV stations as local partners, but schools are learning about it on their own and coming to him directly.

Traffic has skyrocketed, even though TweenTribune has only been around since last spring and hasn’t been actively promoted since mid-September.  It’s approaching a half-million pageviews per month.   Jacobson says he’s flooded with registration requests from teachers – averaging 100 per week in the past two months – and 10,000 students per month.

The concept is pretty simple.  Take any oddly interesting  news item – like the kid in the runaway balloon, the Octamom, Michael Jackson’s death, or the opening of a new vampire movie – and put it on a protected Web site for a school where teachers can ask kids to log in and comment on one or two stories for a Social Studies grade.  The comments go “live” only when the teacher approves them.  The kids get to read others’ comments as well, and the stories get ranked by the number of kids commenting on them.

The execution is a bit more complicated, but not much.  Space is reserved for advertising, and teachers can print out comment reports for easy grading.  So the ads appear in front of the students, teachers and, often, parents who see the grades.

Wow.  This is the way local media companies ought to be thinking.

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The Lady in the Sweat Suit

Saturday, November 7th, 2009

I was in a 7-Eleven last week and watched a middle-aged woman in a sweat suit pay $1.50 for the Sunday newspaper, then walk outside and dump half of it in the trashcan. Care to guess what part she dumped?

Like 37% of newspaper readers (according to Scarborough Research), she’s interested in the advertising. Her $1.50 was likely to have bought her at least $5 in coupons that she’ll redeem at the grocery store, Rite Aid or Wal-Mart. Smart purchase.

While most of the newspaper industry frets over giving away its precious news content, its most vulnerable franchise is produced by the advertising department. Newspapers should thank their lucky stars that the woman in the sweat suit did what she did. She could have stayed at home and gone to SalesCircular.com or one of the many other sites that would have given her the same thing. If she were in Long Island, she might get her coupons from www.yourli.com, an incredibly useful and popular site run by a group of radio stations. If she were in Bakersfield, Calif., she might go to www.shopkern.com, a shopping and coupon site run by KERO-TV.

I hope publishers learn soon that their most important content isn’t its local news.  It’s advertising. The issue was underscored last week when the president of the Newspaper Association of America sent a e-mail warning that J.C. Penney’s and Sears were threatening to pull their circulars because of lower circulation and the industry’s inability to reach younger demos. Circulars, he said, account for half of all newspaper retail advertising.

Local-allocation

I wouldn’t count newspapers out. Despite layoffs, bankruptcies circulation scandals and thinning classified sections, they are still king when it comes to local advertising. The crown is tarnished, but at the end of the day newspapers still control the largest slice of the $143 billion local ad pie, 26%. The next-closest share: Interactive at 14%. Then broadcast TV at 12%, then Direct Mail at 11%. Advertisers know about the lady in the sweat suit, and they’re eager to meet her on Saturdays and Sundays when she’s got her wallet and credit cards ready.  Newspapers remain the No. 1 source for coupons, representing 50% of all coupon sources.  The Internet represents 11%, but is certainly growing.

Newspapers are vulnerable, but their managers aren’t dumb. Gannett owns ShopLocal.com, an Internet distribution mechanism for its print circulars now plugged into all its newspaper and TV sites. The Suburban Newspapers of America this fall launched www.zip2save.com and is signing up smaller newspapers across the country. It’s modeled after www.flyerland.ca, a highly successful site created by Metroland Newspapers in Canada.

The debate over charging for news content is silly. Rupert Murdoch may be carrying the battle flag, but the legions of publishers following him over the hill appear to be heading into the sunset.  Charging for online access may slow the erosion in print circulation, but it’s never going to lead the industry to riches. Understanding the behavior of the lady in the sweat suit will.

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Is Google going down?

Sunday, November 1st, 2009

So what sets our Top 3 choices — Local.com, Yodle and Yellowbook.com — apart from the pack in terms of revenue growth this year?

These companies have defied gravity by focusing on selling the fastest growing ad categories:  search advertising, online directory listings, and streaming video. They also act as marketing consultants and can help small businesses with all the online marketing tools and advice they might need. They’ll put together a Web site for your business, offer complete analytics, online upgrades through a dashboard or if the advertiser gets stuck — they can just pick up the phone and talk to someone.

Google's in the crosshairs

Setting sights on Google

These companies are poised to beat the pants off traditional media because they see the gap that very few legacy outlets have been willing to commit to — the service gap. I mean, at most newspaper sites if a small business says to the account executive, “I need a way to collect e-mail,” the AE will probably send them to Constant Contact.  The right response should be, “Let’s set up a promotion to collect e-mails then we start mailing your list with specials.”

But, how can a traditional media outlet even compete, when according to our research, barely 60% of them have an online-only AE? That other 40% are trudging into advertisers’ offices with worries about cannibalization of the traditional product.

Back to the Top 3 — these company’s models are very similar and focus on soup-to-nuts interactive marketing for the small business. They have an actual phone number posted on their Web site. (Just try and find a phone number for Google.) In fact, this service-oriented model could disrupt Google, because small businesses need a figurative hand-holding. There is no face of Google and if I were them I’d begin to worry about that. They become vulnerable as advertisers begin to find other companies willing to lend a hand to pull them out of the service gap.

When I go into a market for a local media site and make an online marketing presentation to their potential advertisers, the small businesses are packing in and they are craving to have their questions about online marketing answered. They want to know what their business peers are spending, they want to know why their display ad doesn’t get clicked through and they want to know about the ROI. It is clear that you have to show a small business the whole online marketing picture and that’s exactly what these Top 3 are doing.

Plus these three are going after the most lucrative online ad spending business categories. Our own research data has identified that in most local markets these are lawyers, healthcare providers and home improvement, to name a few. But too many traditional media outlets in local markets are still calling on their traditional advertisers, which are not usually in these categories.

The Top 3 have been doing their research and now are methodically going out to hunt and to plug the service gap in local online advertising. They may have Google in their crosshairs.

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