Local Media in a Web 2.0 World

Entries from January 2008

Local Media; more un-imaginable change in 2008

January 31, 2008 · 1 Comment

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More un-imaginable change. Who da thunk it? The picture above is both funny and prophetic at the same time. (what the heck is that steering wheel for?) Think the gent standing in front of that 1950’s contraption, had any idea what the future would hold in regards to ‘computing’ machines? 

Jump ahead 50+ years……The Web now attracts more revenue than Radio, Newspaper reps are working with Yahoo, and much of prime time TV is online for free. The rest of 2008 promises even more, un-imaginable changes.

Web no longer plays second fiddle. Internet strategy and revenue generation  is now a TOP priority for all media. Oh, and just dumping your offline content… online…. is not gonna be enough. And one more thing….you may be growing revenue, but you’re losing share. Yikes. Mainstream media will continue to re-train and re-deploy it’s resources towards all things digital. It will shed any assets (human or otherwise) that does not fit into this new, Internet based trajectory.

Management Shuffle. What got us here, won’t get us there. Translation: the web people and web processes that worked over the past 10 years were great. Yet, some of these people and processes are likely to be ill-equipped for the next 10 years.

More downsizing, and cost cutting. Can’t hit budget through top line revenue growth? No problem. Just cut expenses. Clear Channel Radio is once again in the public eye for the memo that went out last week from CEO; John Hogan. It went something like this: Q1 looks extra bleak. Thus, managers must freeze hiring, (even sales) and cut everything from travel to research to advertising. Have a nice day. Read the memo here.

Even the Web leaders are under pressure: Yahoo just announced a massive layoff of 1000 employees. “This is a necessary step in our transformation,” says chief Yahoo; Jerry Yang. The big Y being forced to see the downside of being a bloated, general interest portal. The new svelte, somewhat more nimble company, will have better shot at growth.

Purge of the feet draggers. Know somebody in your organization that always finds reasons to NOT fully embrace and leverage the Web and other digital tools? Watch this luddite either convieniently wake up, or be shown the door. Job descriptions and compensation packages will be tweaked to make web a basic, mandatory function of all positions within a media company.

Newspapers and multi-media. You’ll be seeing more job positions like this in 2008: The New York Times seeks an experienced professional with top-notch journalistic and technical skills to produce audio for New York Times Radio newscasts, podcasts, and other platforms. ‘Nuff said. Click here to see entire job post for this opportunity. Free registration may be required.  

Local TV feeling massive pain too. Local TV broadcasters can no longer rely on network programming and the 6 & 11p newscast to survive. How serious is this? Right before the important ratings sweep, WTEN in Albany let 10 on-air staffers go. Read more here.

Cable titan getting beat up. Beloved Comcast CEO; Brian Roberts, taking serious heat from unhappy shareholders. Stock down 40%, old school leadership culture/dual-class voting rights, and it’s iffy plan to grow in this fast moving digital space…. is being challenged. Read more here.

Categories: Traditional media

Radio Struggles to Build Web Business.

January 21, 2008 · 4 Comments

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Ever taken a really good look at a Radio station website? Aside from the questionable layout and content, (some call them a train-wreck) have you ever wondered how Radio can build a business, and drive Internet revenue from those efforts? These are the issues that over worked Radio managers are trying to come to grips with.

The pressure is on. Radio’s primary revenue stream of selling spots is really taking a beating. The latest RAB (Radio Adverting Bureau) revenue numbers are in. Business was down 2% last year – its worst decline since 2001. December was down 5% – that’s now 8 down months in a row. Local rev down 4% and national down a whopping 12%. Where’s the upside ? Web-driven non-spot revenues – up a very healthy 12%.

Revenue UP, Share DOWN. While that 12% web increase looks nice, bear in mind that Radio web revenue SHARE is actually down. Radio could literally double its web rev, and still being leaving a ton of money on the table. The latest Borrell report on local online revenue report shows that Radio only gets about 1% of local online ad expenditures. That’s DOWN from last year. So, is there any good news ? Yes, a little. And it comes from Clear Channel.

Somebody at Clear Channel deserves a raise. Who ever got Fox to buy this should be promoted. For the season debut of American Idol last week, Fox took over every single ad unit available on the web sites of 250 Clear Channel stations, in 40 markets That was a deal for 13 million impressions using leaderboards, skyscrapers, and pre-roll video….with NO on-air buy. This is a sign of things to come.

According to Radio Business Report: CL King & Associates analyst Jim Boyle says “it’s time to monetize the P-1s, time for dual-revenue streams. That means enticing loyal fans to interact with the station on its website, utilizing the tech savvy and cultural intimacy of its youngest employees to lead the way.”

How can Radio seriously get into the game? First, it must admit that they need more outside help. There are too few people inside of the Radio industry that have a handle on the fast changing digital landscape. Just relying on the local sales managers, or the GM’s to develop a strong web plan will only delay the pain of making a serious investment in hiring and re-training. 

Finding web experts to help Radio will not be easy. It will take alot of money too. In the meantime, here are some questions that will help Radio understand what their web plan needs to consist of:

  • Does each seller have a mandatory web budget? Penalties for not hitting it?
  • Commission structure similar or better than your NEW BIZ commission?
  • Do your reps know their clients online strategy?
  • What is total local online spend in your market? What is your share?
  • Managers have strong grasp of web? If not, how will they effectively manage the effort?

    • >> Radio needs to fix these types of issues…..asap…..

    Categories: Local Media · Radio · Revenue · Staffing · Traditional media · Training

    Newspaper/Web Conference to consider: E-EDGE

    January 17, 2008 · Leave a Comment

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    It’s no secret. I’m bullish on the future of Newspapers. Not necessarily about it’s current print form, but it’s future as hyper-local, multi-media news/info organizations.

    Reverse publishing strategy, development of PROFITABLE online video/audio applications, and the re-training/re-deployment of sales & editorial staffs are just some of the areas that I am very enthusiastic about. So, I’ve ramped up my efforts in moderating more conferences that focus on these emerging, revenue generating trends.

    Whether you’re a Newspaper exec, or you’re competing against them, you will want to attend this important Web-focused conference. It’s called “e-Edge”. It’s part of the upcoming America East Newspaper Conference, starting March 10, in Hershey, Pa.

    I’ll be moderating a panel called “Peek under the Hood”. It’s a look at what Radio & TV are doing to attract business to their websites, and how Newspaper is successfully fighting back with innovative video and audio initiatives.

    The panel features:

    • Mike Sechrist; former GM of WKRN-TV in Nashville. This web-savvy TV veteran is THE pioneer in the world of TV and Internet. Notable achievements: the local blogger aggregation of Nashville is Talking, and installing the controversial, yet smart VJ/Mobile Journalist model into the newsroom. Mike will highlight some ways that Newspaper can pull advertising dollars away from local TV and Cable.
    • Ron James, Content Manager, SignOnSanDiego.com. Ron oversees the San Diego Union Tribune’s groundbreaking online radio efforts; www.SignonRadio.com, and www.AmplifySD.com. Radio is asleep at the wheel in this area, and Newspapers are moving quickly into this space. Ron will share his experience in the start-up efforts, and evolving strategy behind Newspaper’s revenue driven move, into online Radio and Podcasting.
    • Ken Dardis, VP, Marketing, Spacial Audio. A veteran radio broadcaster that has lead the charge in helping Radio evolve it’s mature business model to the Web. Ken will share his thoughts on where Radio is going in regards to the Internet, and where they’re making HUGE mistakes.  www.AudioGraphics.com

    Click here for a detailed schedule of sessions and speakers.

    Click here to register.

    Categories: Local Media · Newspapers · Online Video · Philadelphia · Revenue · Traditional media · Training
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    Bootstrapping Mobile Journalism for Revenue

    January 14, 2008 · 3 Comments

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    Two common things I hear when talking to local Newspaper and pure-play clients about video:

    • We’d LOVE to get an online video initiative started; but it’s cost & manpower prohibitive right now.
    • We’re shooting video and posting it our site….but haven’t made much revenue from it yet.

    Show me the money! What will it cost? For some newspaper groups like Tribune that have the finances, they’re equipping their newsrooms with digital cameras, universal news desks and a more web-focused culture. Click here to read about what’s happening at Tribune’s Allentown Morning Call. On the other hand, for publishers with tight budgets, there just isn’t alot of investment capital to put into a huge online video initiative right now. So I thought I would share the basics of a quick and easy way to get started in the world of online video for Newspaper, on a bootstrap budget.

    Equipment, Software and Hosting: Click above to watch a video I produced employing many of the bootstrap recommendations in this post. The package I did is of the 2008 Philadelphia Mummers Parade. I shot all stills and video with a Canon Power Shot 800, (pictured above, with carrying case, extra battery and 2gig memory card: $500). I carry this thing everywhere. So should your reporters…..ya never know when you’ll be near news worthy subject matter! Video quality is surprisingly good. Piece was edited with Adobe Premier Pro (could have easily used Movie Maker or Apple’s i-Movie.), ……..used Picasa for free photo editing……used Blip.TV for free hosting since they have better quality streaming than YouTube. (will still use YouTube in order to have this video a part of that massive community)

    Let’s get viral. I then imagined what a smart, web-savvy marketing exec at Southwest Airlines would likely want to buy in regards to this online video. (Southwest is the official sponsor of the TV broadcast on MyPHL-17) So I added logo and audio mentions thru-out the production. Not only is Southwest getting a brand sponsorship of a topical event via TV and online video, but they now get a highly viral, evergreen sponsorship of hyper-local content that will be embedded on countless blogs and websites, shared with friends, and archived for the long-term. 

    What to shoot?  Start with stories that cry out for sound and motion. Look for local stories that mainstream media usually misses. Stay away from shooting talking-head reports, or using video when a still shot would more than suffice. Avoid mimicking the tactics of local TV; which currently do not translate well to a non-linear, on-demand video world. Click here to read about some of TV’s online challenges.

    Who will shoot? Optimally, the writer/reporter should; they have the best understanding of the story and subject matter. They’ll know who to grab for sound bites, what b-roll and cut aways to shoot, what would make for good natural sound. While it would be nice to have a dedicated photog or videographer, that dramatically raises the cost of doing the story. Basic training is key to ensure half-decent footage. The last thing you want is footage full of zooming, searching, panning, poor composition, etc.  TIP: Hire a local wedding videographer for some basic training of your staff.

    How to monetize? Pre/post-roll video, as well as overlays, are just a few ways to drive revenue from your newsroom video efforts. Yet if you are relying on a CPM sales model, you will likely find that you don’t have enough video views to make a decent buck. Creation of video sponsorships and bundled packages will prove to be a better short term revenue solution.

    Highly recommended: When your digital video equipment is not being used by the editorial staff, put it to good use with the sales staff. Short form info-mercials, adver-torials, sponsor supported video tours, etc. Shoot content that is pre-approved and pre-purchased by clients. Much like you would sell a client sponsorship of a print section focused on specific content, why not sell them a sponsorship of a video section devoted to local hot-spots, travel destinations, health-care or automotive content, etc. ? This is a great way to take rev share from local broadcast and cable tv.

    If video is still too much of a leap, start with slide shows embedded within your text story. Add some natural sound, maybe a sound bite, maybe a little basic narration. Take a look at the award winning video and slide work of the Lexington Herald Leader’s and their website: Kentucky.com. Amazing use of video, audio, slides, blogs…all from a Newspaper!

    Categories: Newspapers · Online Video · Pure Plays · Revenue · Staffing · Traditional media · Training

    Local Media Issues to Watch in 2008

    January 4, 2008 · Leave a Comment

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    Instead of a list of predictions for 2008, I thought it would be better to point out some trends/issues that will come to the forefront over the next 12 months. 

    ISSUE #1     Local Media Websites: revenue UP….share DOWN

    Alan Mutter from Reflections of a Newsosaur dissects the latest Borrell report on local online revenue shares; research that seems to have gone un-noticed by mainstream local media. SEE GRAPH ABOVE. For the first time ever, pure-play media companies (Google, Weather.com, etc,) took more money out of the local marketplace…..than incumbent, local media players (Broadcast and Print). Alarm bells should be going off with every local media publisher in the country. Here’s a quick look at Alan’s piece. Click here to read Alan’s full blog report.

    If newspapers (and others) want a brighter future than appears to be in prospect, they need to begin leveraging their rich reservoirs of unique local content to create inexpensive-to-produce sites that can serve readers, non-readers and advertisers alike.

    They also need to empower the smartest net-savvy people they can find to create, market and sell modern Internet and mobile products that will enable them to compete with a straight face with the interlopers who, at the moment, are beating them rather soundly at their own game

    ISSUE #2     Journalism students ill-equipped for Web world ? 

    Steve Boriss  from ‘The Future of News’ voices his dismay with the current crop of graduates that Journalism schools are churning out. Are they ready for an online future, or were they taught out of date theory and practices, by old school professors? Here’s a peek:

    Should those seeking careers in news go to journalism school? Can today’s j-schools – with faculties that consist almost entirely of Old Media experts and practitioners, courses about conventional media tactics, and premises built upon now-failing models of objectivity and verification – prepare students for the new world of New Media? Of course not. Here’s a list of courses that j-schools should be teaching.

    Click here to read full article from Steve.

    Categories: Traditional media