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Archive for February, 2011

About that report on Web traffic…

Friday, February 18th, 2011

Some days you’re the dog, some days the fire hydrant.   This week it’s the latter.

In case you hadn’t noticed, our recent report on the size of local website traffic threw a curveball into the online media industry.  One of our own clients accused us of “hand grenade tossing.”  The comments on blogs and articles haven’t been very Valentines-ish.   Click here or here to jump in and offer your own gut-kick, or pull some of the hyenas off us, whichever you feel is appropriate.

This type of reaction isn’t new. We often release research that takes people by surprise.  Most people love research that supports their theories and hate research that might shed a bad light on it.  We’ve issued similar “bad news” research for the newspaper, yellow pages and direct mail industries and received snarky comments every time.

We embrace research that gives the media industry actionable insights.  This particular report fit the bill perfectly.  So we put on the flak jacket and published it.

The report, “How Unique Is Unique:  Gauging the (Actual) Size of Web Traffic,” detailed how many actual people were visiting local websites, as opposed to what the entire industry continues to use – unique visitor counts. We believe that’s misleading, and we further believe everybody agrees with us.  The report also detailed how 30% or more of a typical local site’s traffic doesn’t live in the market, and that a large flock of visitors tend to be what we call fly-bys – people who might visit once every six or 12 months.

Unfortunately, a few of the news articles gave the report a very negative spin.  I used to be a newspaper headline writer and understand how five or six words above the story can jade someone before he or she reads the first sentence.  In one case, the headline read, “Local website traffic neither large nor loyal.”  In addition to being negative, it was flat wrong.

One revelation in particular spurred us to write this report.  It was a big opportunity that we wanted to uncover for smart people in the industry.  The opportunity stems from the fact that local businesses increasingly feel that they are being duped by advertising.  They are besieged by sales pitches regarding the Internet and have grown skeptical of the claims.

The first person who comes to them and says, “Let me tell you the truth about unique visitors and help demystify online advertising for you,” is the person who’s going to begin stealing business away from boastful competitors.  As the last line of the Executive Summary says, “That form of education builds trust, and trust is one of the most important components of advertising sales.”

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Albritton’s Misfire: ‘The TV Guys Have Won.’

Thursday, February 10th, 2011

I hate to make a case study of one company’s misfire, but Albritton Communications recently did the exact wrong for a company to do in this age of digital innovation. It put responsibility for the evolution of a “communications” company in the hands of “television” managers.

The issue is one that many local media companies struggle with:  Who should control the website – the legacy media managers, or hired entrepreneurs?  It’s something we’ll debate next month at our conference in New York, employing the foremost authority on the issue – Clay Christensen of Harvard Business School, and follow up with a real-world example from Clark Gilbert, the CEO at Deseret Media (KSL-TV) who has put entrepreneurs squarely in control and has produced stunning results.

Blogger and digital news analyst Terry Heaton from AR&D brought the Albritton story to my attention this week. Here is a reprint of his recent blog on Albritton’s action.

By Terry Heaton, AR&D

“ According to reports out of Washington, Albritton Communications is transferring control of its experimental news start-up, TBD.com, back to its TV station in the market, WJLA-TV, where GM and News Director Bill Lord will now be in charge. The news was not unexpected. In December, TBD GM Jim Brady quit suddenly over differences with senior Albritton executives, primarily the direction of the site and noted at the time that his biggest burden while running the site was fighting with “the TV guys.” As Jay Rosen tweeted today, the TV guys have won.

(more…)

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Clay Christensen: Local Media is Booming

Tuesday, February 1st, 2011

Pete Conti and I traveled to the ivory tower of Harvard last week to talk to a guru.  We needed his help.  We needed to understand why so many media companies see the Internet as a convergence play and put “new media” responsibility in the hands of their traditional managers.

Our key question was, Why do smart media companies have such a difficult time investing in new staffing and doubling down on the Internet—a medium that has shown such reliable, consistent growth?  Our own database of 4,400 media companies’ Internet revenues has zeros all over the column headed, “number of online-only salespeople.”  That’s pretty damned depressing.

The guru was Clay Christensen, whom I’ve known since the late 1990s when I worked at Landmark Communications.  His groundbreaking book, The Innovator’s Dilemma, formed the foundation for what I believe will be the next new wave of local media innovation – companies that “get it” and invest heavily in new people, new systems and new processes.  Frankly, I’ve been frustrated as local media companies have eliminates new-media staffs and folded them into their existing operations.  It’s exactly the wrong thing to do.

Clay will be keynoting our 2011 Local Online Advertising Conference next month in New York.  If you’d like to jump right to my interview with him last week in Boston, click here. Here are the highlights of what Clay told me:

  • Local media is actually in a boom. (Huh?) Thinking about it, he’s right.  The amount that people are spending for information is 10x more than the amount that advertisers are spending.  They want more cable.  More Internet.  More subscriptions to websites.  The BIG problem is that traditional media companies continue to see the Internet as a way to promote their own products, whether it’s broadcast or print.
  • The big opportunity is figuring out “the job to be done.” The job is providing news and information, not providing more viewers or readers.  What are consumers “hiring” local media to provide?  Examiner.com, Patch.com, Craigslist.com, and Autotrader.com are being hired to provide information and are thus becoming successful.  Meanwhile, legacy local media companies are focusing on preserving their existing business models, not on the job that their customers are trying to get done.
  • Innovation doesn’t come from existing managers. Existing managers have been trained to protect and grow the existing business model.   They will necessarily squelch or retard opportunities that Facebook and Twitter might offer, or at the very best try to mold them to the needs of the core product. 

Clay is right – we need to focus on the job that media consumers are hiring us to do.  Providing information about news and information – and not define that as narrowly as what the City Council or School Board did yesterday, or how the high school lacrosse team did.  Information extends to things like big sales in the market, or little things like marriages, births and bar mitzvahs.

I’m looking forward to Clay’s keynote at our conference next month.  I’m very eager to see local media companies make the transition, and I’m convinced that they’re going to need his help to make it.

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