Study: Newspapers Need to ‘Shed Legacy Costs’ to Capture Online Ad Spending – The Business of Journalism
Study: Newspapers Need to ‘Shed Legacy Costs’ to Capture Online Ad Spending
Bill Mitchell talks about who newspapers will need to transition from print to online, bringing its community with them and finding new innovative ways to produce a revenue.
This is almost obvious to a point, but what could be scarier is that some publishers don’t realize it. Smaller newspapers are putting up pay walls to protect print circulation, instead of using creativity to find new revenue streams.
This has to be the biggest challenge and the highest task on the agenda of every journalism thinker. Online journalism will have a difficult time surviving online if it doesn’t find different ways to produce.
The arguments against strict pay walls aren’t new, in fact they’re at least a decade old at this point. They leave out a portion of the population, do a disservice to the community and encourage free sites to start up that may not cover the community with as much vigor.
Mitchell says 8 percent of advertising dollars are spent online, while 30 percent of people consume information online. This gap will close, Mitchell says, to the dismay of print publications as they lose the print advertising dollars.
While one may say that the dollars may move online, but stay within the organization, they must look at the Internet in a different light. No longer does an advertiser need a news organization as a platform to get a message out. That advertiser could launch a social media campaign on YouTube, Twitter and Facebook. They could team together with other businesses and form a self-servicing site.
In other words, journalism shouldn’t count on advertisers to keep them as business partners when they make the switch to the online world.
New ideas are needed, but more importantly, well thought out and concrete ones.Posted at 6:30pm Permalink ∞