Showing posts with label ad revenue. Show all posts
Showing posts with label ad revenue. Show all posts

Tuesday, July 29, 2008

Now the newspaper fits in your Pocket



This story in The New York Times states that Verve Wireless has come up with a way to help local newspapers bring their product to the 40 million people in the U.S. that actively use their cell phone to go online. Verve Wireless provides publishing technologies to create newspaper websites for cell phones in exchange for a share of the ad revenue.

The Associated Press, Verve's biggest customer, made an investment of $3 million to finance the company, based Encinitas, CA. Verve already provides mobile versions of 4,000 newspapers from 140 publishers.

Verve's chief executive, Art Howe said mobile versions of Web sites “cannot just be Internet lite,” they must be redesigned to better fit this new medium of cell phones and PDAs. Verve designed a application for the iPhone one that lets users look through the day's headlines, save articles to read later and send articles to friends.

“Mobile is actually a better way to reach people than print or even Web. It’s versatile, immediate, travels and is just as compelling,” said Howe. With Verve' software publishers can place national ad campaigns on their sites or upload local ads to their cellphone sites.

Philadelphia Magazine, for example, sent readers of its Verve-developed Web site a text message offering $4 grapefruit cocktails and half-price appetizers at a local bar.

Mobile companies hope the ad customization that cellphones offer will encourage advertisers to spend more for ads on cellphones.

Advertisers will spend only $1.6 billion on mobile ads this year, while spending $26 billion online, predicts eMarketer, a marketing research firm.

While their is a hugh potential for growth in mobile readership and advertising I think it will take a three to five years for this market to really take off and for companies to realize that they can reach potential customers by advertising on mobile sites.

My personal cell phone, a cheap, Samsung SGH A707 only lets me look up news on
CNN.com and it only lets you browse through a list of different news categories. Even people who have the iPhone run into areas where their internet connection is slow or does not work because they cannot find a wireless network.

Reading a newspaper or a book on the small scree of a cellphone or PDA or a electronic book reader is never going to be as easy as reading on a laptop or reading the print copy. Its like watching a movie on a big screen TV and then watching it on a portable DVD player.

I think that most people who have iPhones only use it to surf the internet when they have to. They use when they are at work, stung in an airport or, taking the subway. Most people would rather open up their laptop or buy a print copy then read on a screen so small that you have to squint at it if they really wanted to spend a few minutes reading the paper. I think most people would rather watch a movie on a big screen TV rather then their laptop or a portable DVD player.

Surfing the web on your cell phones is good for finding out quick facts like the weather, sports scores and stock updates if you cannot get to you computer or you do not want to wait for your laptop to start up. How many "
CrackBerry" do you that spend several hours every week reading the paper? The PDA and the cellphone are great devices for keeping in touch with friends no matter how far away you are but not for reading.

I think that people who do spend a lot of time surfing the internet on their cellphone get most of their news from TV news and rarely read any of the copy below the headlines when they glance at the local paper.

Creating mobile websites for local newspapers will help them to increase their ad revenues but I think it will do little to help them improve circulation or increase the number of people who read the paper everyday.

This is another tool that newspapers should jump on to make their product more accessible to more readers but in the end it will do little to solve the revenue problems that the newspaper industry is facing.




Tuesday, April 24, 2007

Media: Fire newstaff Hire Programmers

Here is the Trib. vs. Sun-times ad Mocking the Mac Vs. PC ads



Tribune only recent Triumph Red Eye?


Look for our classmate in video.

Excutives at the Chicago Tribune have announced another round of firings at its Flagship and the Los Angeles Times with both papers hit by declining advertising revenues and a first quarter loss of 4 percent.

Its hard to believe that this latest round of "spring cleaning" by the Trib. has nothing to do with, real estate mogul Sam Zell purchasing the Tribune Media Group. Last year on August 25, the Trib . laid off 250 jobs and another 120 on July 14. In 2005 they dropped 900 jobs on December 7, and over 200 jobs on July 7 2004. So over the last three years they have laid off a total of 1,720 employees according to I Want Media.

While newspaper ad revenue and circulation is down in almost every category you can break it up to according to The State of the News Media 2006. Many people believe that online ad revenue will one day like 2018 surpass print advertising. Lets hope that day comes a little sooner for anyone who still has dreams of becoming a reporter at a major newspaper. Like me. Damn you Tribune Dream squasher.

While the Trib. is worried about the decline stock price since its peak on 12/32/04 at $82 a share some people other newspapers are exploring new ways to use the Internet to cash in on new ad revenue.

Daily newspapers laid off around 600 people during 2005 which is about half of the 1,200 to 1,500 reduction that is projected for 2006 by the state of the media report that comes in March.

there are a few special cases where newspapers are actually transitions from print to web and gaining in profit at the same time.

The Wall Street Journal is a special case with more than 764,000 paid subscribers to its online version, and profits of its extended online operations, including indexes and “Marketwatch,” now outstripping those of the print edition.

The report had a warning about the effect of cutting staff has on the quality of newspapers.

Our sense based on the data is that deep news-staff cuts, however logical a response to tough times, may be undermining the core product in dangerous ways. The practice is certainly eating away at the range and depth of newspaper journalism in many communities.


What is inspiring the recent layoffs in the newspaper industry? not falling revenue but stagnate revenue growth.

The threat to newspapers now appears from nearly every indicator. From 1950 through 1999, for instance, newspaper revenue grew seven percent a year. From 2000 through 2006, by contrast, it has grown by just 0.5%. Then in the first quarter of 2006, growth was even less: 0.35%.


Newspapers people have been hiring
Journalist-Programmers who can make their website more user friendly and using their web sites to cover stories from all angles using interactive graphics. On example of a newspaper that has done this is TheNewsTribune.com Tacoma, Washington.

One other thing that might be causing the Tribune to cut its workforce
Moody's cuts Tribune rating deeper into junk since the deal with Sam Zell's will give them $8.4 billion in dept. Which means should they evertake out a loan on anything the interest on it will go throw the roof.