From the Association of Free Community Papers (AFCP: 

How Print Helps the Internet

Telegraph.co.uk became the first British newspaper website when it was launched 15 years ago.

When I took over the editorship of the fledgling Telegraph internet site early in 1995, two questions were constantly being posed to me. The first was: how can you make money out of something you give away free? The second was: does this mean the end of newspapers? The first of these questions was always the most tricky, because, in reality, no one had a clue how we were going to make money. The Telegraph's internet operation was essentially a marketing initiative with a brief to explore this new medium and report back. No one said anything about making money, although reader offers were always part of the mix from the start, so there was a token nod in the direction of commerce.

I recall a rather a rather scary meeting with the then proprietor Conrad Black, who asked me the same question. I pointed out to him that he was always complaining that city analysists undervalued the share price of Hollinger (which owned the Telegraph) and that one of the reasons they gave was that the company did not have an internet strategy. By backing an internet newspaper, I reasoned, he would show them that he did have a strategy and his share price would rise accordingly - so at least he would make some money that way. The answer seemed to satisfy him and we were allowed to keep going.

The longer term answer remains elusive. Short of charging for content, no one really is completely sure 15 years later. And although the telegraph's internet operations do attract many millions of advertising revenue now, these revenues are still smaller than the sales and advertising revenue of the print titles.

As to the second question, my answer remains the same as it was then: of course the internet doesn't spell the end of newspapers. No new medium has ever sunk an older one without trace. Contrary to popular musical mythology, video didn't kill the radio star (although DVD and Blu Ray have certainly given video a kicking) and TV didn't kill radio - in fact, radio is going from strength to strength, while a lot of TV is struggling to survive.

And the longer time goes on, the more convinced I am that that the internet needs newspapers. The reason is simple: people like reading, and whilst reading from a screen is bearable for short items, it gets tedious for anything more than a few hundred words. I'm prepared to bet that the majority of people, young and old alike, when they find something online they want to give detailed study to - whether its an article or the terms and conditions of their holiday booking - the first thing they do is hit the 'print' button so they can sit down with a bit of paper in their hands.

I think there's something deeply ingrained in the DNA of post Gutenberg culture concerning typography and design - and nowhere do you find more exciting an innovative typeography and design than in mass ciculation newspapers and the plethora of magazine and supplements they bring in their wake. And whilst the design of websites has advanced from the rather sparse minimalism that characterised our efforts 15 years ago, they still have a long way to go before they can replicate the best that newspapers have to offer.

But beyond the aesthetic argument, there's a more profound argument about the centrality of newspapers, and this is to do with the business of telling stories, and creating compelling narratives. If you examine the world's great online sources of news and opinion, for example, the vast majority of them have sprung from newspapers or from broadcast organisations with strong roots in newspaper journalism culture.

So, in a curious way, things have come full circle. Fifteen years ago, the Telegraph newspapers needed an internet site to help transform the brand image of the paper, to make it seem more modern and relevant. Now, I think, when our internet presence has made us a global brand, we need the newspaper even more to remind those readers why they value what they are reading.

From Print In the Mix:

A new National Newspaper Association (NNA) survey finds that 81% of respondents read a local weekly paper each week.  NNA is the national organization for community newspapers (often referred to as "weeklies").

• Nearly half (47%) say they read the newspaper as much for the ads as for the news.

• 73% read "most or all of it," and those readers spend an average of 40 minutes with the paper.

• Readers, on average, share their paper with 2.36 additional readers.

• Nearly 40% keep their community newspaper more than a week.

• Three-quarters of readers read local news "often to very often" in their community newspaper, while 53% say they never read local news online.  Only 12% say they read local news "often to very often" online.
  
  
• Among those going online for local news, 63% find it on the local newspaper's website, compared to 17% for sites such as Google, and 12% from the website of a local TV station.

• 30% of respondents do not have home Internet access.

   Full story here
  

From Media Life Magazine:

Full-year 2009 spending will decline by 14.5 percent, from $189 billion to $161 billion, and that’s excluding the impact of political and Olympic advertising.

During first half alone, ad spending will be off 18 percent.

Though declines will lessen through 2010, with ad revenues declining by 2 percent, any real recovery is still years off. The global media agency predicts a mere 1.0 percent compound annual growth rate through 2014.

Full Story here.

The Association of Free Community Papers reported today that 70% of its members reported decreased revenues in the second quarter of 2009:

More than 70% of reporting publications indicated that revenues are down more than 1% in the latest AFCP quarterly revenue poll. This compares to 67% in the first quarter, 72% in the fourth quarter 2008 and 58% to 68% in previous quarters.

Hardest hit were the west coast (85%) and Mid-Atlantic (85%) regions with the Northeast reporting improved results. The Southeast continued to show about 70% of reporting publications were down.

The Midwest appears to be weakening as 73% indicated revenue declines. Previously, the Midwest had been much stronger than the rest of the country. The Rocky Mountain States still appear stronger than the rest of the country, but only 11 papers reported in this region.

Community Newspapers seem to be faring slightly better than shoppers during the past two quarters while rural markets appear to be slightly better than suburban ones. Only a few Urban publications reported results which make trends in this area difficult to discern.