PR 101 – Lesson 23 How Social Media and the Kindle Can Save Newspapers
Jeff Cole | August 10, 2009I hate it when I agree with press baron Rupert Murdoch. But The Alien (as the late, great Chicago newspaper columnist Mike Royko called him) is correct. Newspapers should start charging for their online efforts. However, Murdoch’s suggestion is half-uh, planned. In my view, newspapers should stop printing completely and go exclusively on line. Think Kindles and IPods. Throw in a heaping helping of social media and I think newspapers would again be successful. I feel it is going to take something that radical to save quality journalism.
What’s killing newspapers is that the so-called Millennials get their information from the Internet – primarily from social media. They make decisions on purchases by reading other customers’ online comments, and get their news from sites such as Google News, Twitter, Digg and Facebook and go to Craigslist for classified ads. Their lifestyle does not lend itself to reading a newspaper as they sip a cup of coffee at the breakfast table.
Editors around the world have tried valiantly to reach out to those readers. Hiring younger reporters, creating special sections aimed (hopefully) at younger reader’s interest and sponsoring concerts and other events. None of it has worked.
Newspapers need to survive. I could talk watchdogs and the Fourth Estate, Thomas Jefferson and others. But, for the Internet generation, I will provide a major reason. Where do you think all of the aggregated content on news sites comes from? It comes from journalists around the world gathering that information. Who will provide that if news organizations go away?
As marketers, we still need news outlets. It is still one of the best ways to reach potential customers.
“By undermining the financial viability of traditional media, marketers are jeopardizing the only viable means currently available for reaching mass audiences,” Karlene Lukovitz wrote in the Aug. 4 issue of MarketingDaily, “That’s the core premise of “The CMO’s Dilemma: Can You Reach the Masses Without Mass Media?,” a new white paper co-authored by John Rose and Neal Zuckerman of The Boston Consulting Group. Rose and Zuckerman argue that it’s critical that marketers, agencies and media companies start addressing the issues surrounding this dilemma together.”
So, what to do? Well, I would scrap the presses and everything else physical used to produce a newspaper. In their place, I would provide every reader with a Kindle or IPod. I would sell subscribers the electronic reader at a reduced rate and then provide everything from breaking news to crossword puzzles on the Web.
“Wireless can offer newspapers a distribution platform that can provide a new source of revenue, as well as replace revenue loss from a readership transitioning from a physical to a digital product by providing enhanced value,” Mark Desautels, of The Wireless Association wrote in an NAA blog.
I agree and it also would save a lot of money for newspapers, I think. I could not find an aggregated figure for newspaper production costs. But, the Business Insider estimated it costs the New York Times twice as much to print the paper as it would to give all 800,000-plus readers a Kindle. The blog estimates the Times spends approximately $644 million a year in production costs – that’s printing and distribution.
It currently costs $680 a year to subscribe to the New York Times, according to its website. According to Amazon’s website, a Kindle retails for $299. When I was a reporter, it was assumed that four people read each paper. So, the Times would need to procure 200,000 kindles, give or take. I am willing to bet Amazon would discount the price for buying in that kind of bulk. And that’s a one-time expense.
So, the Times cuts $644 million in expenses by going to an electronic only newspaper. It also has the means to reach out to all those Gen-Yers who wouldn’t be caught dead getting newsprint all over their fingers. This is a generation who gets its information from the Internet. So go where they are and give them the news by sending out The Electronic Gazette.
My Electronic Gazette would send out news 24-hours-a-day, seven-days-a-week. There would be podcasts and video. The advantage it would have over current Internet news sites is that it would be news geared toward where it was based. That’s key. It’s easy to get national and international news. What’s hard to find out is what is happening in your community. As newspapers have made cuts, one of the things that has been thrown over the side is in-depth coverage of local news.
It is well documented that newspaper websites are recording millions of hits. The market is already there. It just needs to be monetized.
“Surprisingly, research conducted by Frank N. Magid Associates in June indicates that consumers are willing to pay for access to the content they enjoy,” Lindsey Schutte wrote in the Aug. 7 edition EngageGenY, a Media:Post blog. “In fact, members of Gen Y are more likely to say they will spend money than Gen Xers and Baby Boomers.
“For instance, 80% of Gen Yers say they would pay for music, whereas only 52% of Baby Boomers say the same,” Schutte wrote. “Sixty-nine percent of Gen Yers would pay for professionally produced television programming, whereas only 51% of Baby Boomers say the same. The gap narrows when it comes to news and information, 43% of Gen Yers say they would pay versus 36% of Baby Boomers — but the gap still exists. Paying is defined as exchanging money; it does not include accepting ads for content.”
Social media would need to be part of the mix. I think electronic papers could drive circulation up by social media. If I were the publisher of The Electronic Gazette, I would make sure links our stories were tweeted, Dugg, and were on Friendfeed. I would invite bloggers to link to our site. Facebook would be a big part of my effort. I think social media would deliver the so-called “golden readers” advertisers want: the 18- to 25-year-olds who do not yet have much brand loyalty.
What this would do would be to create a community around the newspaper – the same has been built around Apple or Zappos shoes. Once that happens, newspapers might actually survive.
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