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Nieman Journalism Lab
Nieman Journalism Lab
Pushing to the future of journalism — A project of the Nieman Foundation at Harvard

Revenue 2.0: Practical solutions

As almost everyone is well aware by now, there’s been a never-ending roll call of doom in the newspaper business for some time — papers closing, companies filing for bankruptcy, massive layoffs and so on. Some have chosen to deal with this by clinging to the old “accentuate the positive” approach, but the most optimistic signs by far have been the journalists who are forging ahead (such as the InDenverTimes, an online startup staffed by laid-off Rocky Mountain News reporters and editors) and trying to come up with concrete solutions, instead of moaning about how much better everything would be if we could only convince people to pay 50 cents every time they read a story on a newspaper’s website.

One of the most recent efforts at developing practical solutions was the Revenue 2.0 project, which came together for a brainstorming session last weekend in Washington, D.C. aimed at revenue-generating ideas that newspapers of all kinds could implement right now. The project started with a manifesto, in which the group declared that “unlike recent confabs of executives, editors and academics, we are hands-on professionals charged with delivering media solutions every day” and added:

We reject the belief that media companies should pursue models based on pay-for-content plans or philanthropy. The latest report from Pew concurs. Instead, we believe the best hope for media companies to make money is the old-fashioned way — by earning it from advertising.

The group was brought together by Alan Jacobson of Brass Tacks Design and Matt Mansfield of Northwestern University’s Medill School of Journalism, a former deputy managing editor of the San Jose Mercury News. They set out four practical goals:

  • Build an effective advertising model for news content delivered on smart phones, such as Apple’s iPhone;

  • Create a better CraigsList;

  • Show newspaper-centric companies how they can better meet the advertising needs of small- and medium-sized businesses and

  • Re-imagine the homepage and display advertising.

The group included journalists such as Vernon Loeb from The Philadelphia Inquirer, Chrys Wu from Washington Post Digital, Patrick Cooper from USA Today and Chris Courtney from Tribune Interactive. The key — using a phrase coined by Matt Waite of Politifact — was “demos, not memos.” Those demos and screenshots are all available at the Revenue 2.0 site, and while they are not perfect, they are definitely a step in the right direction. It might be hubris to think that newspapers can turn their classifieds into Craigslist-killers given the size of that company’s hold on the market, but they can certainly put up a better fight. The reality is that no one has really tried to improve the way they function on a newspaper website. Revenue 2.0 has some ideas that are definitely worth exploring, such as better search.

The same goes for the project’s recommendations about appealing to small business, and to remaking home pages: practical suggestions that are not complicated to implement, and could have an effect right now. Most of all, the group — which is primarily made up of journalists, not advertising or marketing people — advocated that more publishers have to start thinking of advertising as content, instead of as an after-thought that gets dumped wherever it fits. Only then can newspapers start to improve the kinds of pathetic CPM rates they are getting.

Will all of these suggestions work? Likely not. But if they get some newspapers thinking about practical changes they can make, instead of grieving over the good old days, then they will have achieved something worthwhile.

                                   
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Justin Ellis    February 2, 2012
The experimental mobile app from The Wall Street Journal skims homepages for the top news from a universe of sources.
  • http://brasstacksdesign.com Alan Jacobson

    Classified advertising — which includes cars, jobs and homes — used to account for 25-50 percent of newspaper revenue. The current crisis was brought on by the virtual loss of this franchise. If newspapers could recapture this franchise, it could be a game changer.

    To do so, newspapers need to aggregate from all sources of local classifieds — including CraigsList — to provide the largest local marketplace.

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  • http://www.mathewingram.com/ Mathew Ingram

    I agree, Alan — I’m not sure papers can win back all of that market share, but it’s certainly worth putting up a fight. And congrats to you and the rest of the Revenue 2.0 team for digging in to the practical details and coming up with real-world suggestions.

  • http://tedshelton.blogspot.com Ted Shelton

    Following on the craigslist point — I am surprised on the one hand and not so much on the other that there really hasn’t been an effective threat to craigslist raised by any of the newspapers. Surprised because this is such an important source of revenue. Unsurprised because Newspapers have forgotten what business they are in. And to innovate and beat craigslist takes a technology and product approach that is not in a newspaper’s DNA.

    Someone out there with a newspaper please listen — you can take on craigslist. It is not a perfect model. Study their product, understand why, as BJ Fogg says motivation, ability, and trigger all come together ( http://www.behaviormodel.org/ ) in craigslist, and then BEAT THEM.

    Apologies to Craig, who is a friend – but I think would agree, (To paraphrase Sir Winston) craigslist is the worst classifieds product except for all the rest :-)

  • http://postrank.com Jim Murphy – PostRank

    Finally someone talking about real solutions – exciting to see.

  • http://www.paycheckr.com Allan Hoving

    A user-centric model could let the consumer choose which among a variety of choices he/she would prefer to support the site/content. See more at PayCheckr.com

  • vanderleun

    “Build a better Craigslist”

    That already exists. It is called “Craigslist.”

    As sad and pathetic a “goal” as “Build a better Drudgereport.”

  • jeremy

    Paid newspaper classifieds are dead. Craigslist killed them. Expanding your classified section to aggregate from sources that aren’t paying you will lead people to advertise at those free spots, effectively making your section a free extension to Craigslist. It won’t work any more.

    Advertising and micropayments are the future. That and unbiased reporting. Newspapers have a the potential for unique products, they still don’t have a clue on how to market and profit from it.

  • http://sellingprint.blogspot.com MichaelJ

    Actually if you look at the very successful shoppers, local advertising is alive and well. The problem is a sales process and prices evolved when newspapers were a monopoly.

    One very interesting approach to streamline ad placement is mediabids.com

    From their website:

    MediaBids.com is the premier marketplace for buying and selling print advertising. Advertisers and publications can interact to buy and sell advertising in a wide-variety of print media (newspapers, magazines, journals, directories, shoppers, newsletters, trade magazines, college newspapers and direct mail) using patented online tools.

  • http://www.chrisamico.com Chris Amico

    Here’s one thing that really impressed me among the people at Rev2.0 (I was in the classifieds group): With every proposal, there was someone asking, “How can this work with what others are building? How can improved classifieds help small businesses? How can we get people from the home page to classifieds? Would this work with mobile?”

    Sure, we can pick apart what won’t succeed. I have my own list. But this was eight hours of work. I’ll take another eight hours of demo building over another decade of hand-wringing.

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