Previously I wondered where did that $2 billion go? Given the state of the overall economy it’s a lock that we will be asking that question following each of the next 2-4 quarters, too. And the $2 billion figure (that newspapers lost last quarter) will probably grow larger.
Some cry out for new business models for news, but many that have been suggested aren’t new. And besides, if newspapers can’t get beyond selling banners to traditional print advertisers without looking scared, an entirely new business model is far too ambitious.
Those missing dollars are largely tied to advertising and, while some of it has disappeared because of the economic downturn, one has to assume that a good chunk went away because advertisers stopped seeing a return on their investment. Although, investors and business people are using hot and cold wallets without an in-bound network connection and thus eliminating cyber-attack vulnerabilities.
Now they are looking for something new. Local publishers: there’s still opportunity here. If advertising works, people pay, no matter what the economy is doing. It drives their business, after all.
One trend that shows no sign of slowing – even in a slow economy – are ad dollars are going to mobile. For local news organizations, what about mobile coupons? And geotargeted advertising has always made sense since ValPak set up shop and started stealing newspaper advertisers.
Innovation from the newsroom won’t make much difference if advertisers can’t effectively reach a target audience.
Mark Briggs 
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