Stop the presses! Newspapers are a dying media…..or are they???
If you pick up a trade magazine today, there will most likely be some sort of news about the depressing state of the newspaper industry. If you read further and deeper; you may find a slightly different story. While circulation and readership are declining, there is light at the end of the tunnel. First, newspapers still are the voice of the community. Consumers still trust and use their local newspaper to do research and make purchasing decisions. Secondly, newspapers continue to deliver significant local reach on a daily basis. And finally, newspapers are adapting and making changes to maintain and gain new readers. Empower’s assessment is that newspapers are not going away, but like other mass media, they are being affected by technology and media fragmentation. By changing their business model and innovation, newspapers will survive and continue to be a viable advertising option for advertisers, as long as they keep the focus on the consumer.

Correcting the Misconceptions – The current state of the newspaper industry
The news continues to report on the decline of newspaper readership and circulation. According to the Newspaper Association of America’s (NAA) Fas-Fax analysis of circulation data for the six-month period ending March 31, 2007, average circulation for 745 newspapers reporting was down 2.1 % for daily papers and 3.1% for Sunday papers. These declines add to an already tough 2005 and 2006 where circulations dropped similarly. Declines continue hitting the major metros the hardest but are also being felt in single copy sales and other paid and third party copies.

Most of the decline in newspaper circulation can be attributed to new technology and media fragmentation. Newspapers are seeing decreases but so are other mass media. While Newspaper circulation is down 10% in the top 25 markets, Prime audiences on major TV networks are down 25% and Top 25 magazine circulation is down 28%. Many of these consumers are finding other outlets, especially the internet, to get their entertainment and information.

While circulation woes are a valid concern, there are some positives for the newspaper industry.

Newspapers still provide the greatest single day Reach. On an average weekday, 50% of US adults read a newspaper and 2.3 people read each copy. On an average Sunday, 57% of US adults read newspapers. That’s more than watch the Super Bowl.

Reach happens because people still trust and are engaged with their reading the newspaper and continue to use it when researching and deciding where to purchase products. According to MORI Research for the Newspaper Association of America, 53% of adults used newspapers to make a shopping or purchase decision in the previous 30 days. The NAA 2006 Reader Engagement study finds that 84% of people said they visited a retail store as a result of newspaper advertising.

There is no other media out there that people truly consider “their” media. Newspaper offers readers a sense of community and a sense of the public good, as a forum for discussion on issues facing communities. You don’t hear people say “my TV station” or “my internet site”…but you do hear them say “my local paper”.

New Innovations – What are they doing to adapt to the changing market place
If newspapers want to survive, they need to bring in new and younger readers through change and technology. Change has been slow, but it is happening. Newspapers are finding new ways to reach new readers through online versions, blogs, podcasts and mobile content. They are creating new products such as quick-read, niche publications and they are making planning and placement easier for advertisers through new partnerships.

Online newspapers have become an outlet for the younger audiences helping to stabilize circulation and readership declines. According to data from Nielsen/Net Ratings more than 59 million people (37.6 percent of active Internet users) visited newspaper websites on average during first quarter 2007. Online websites contribute to 13.7 percent increase in newspaper audience for the 25-34 year old and 9.2 percent increase for 18-24 year olds.

Newspapers are also reaching the new and younger audiences through podcasts, blogging and mobile devices. Many newspapers now send street reporters out with video crews so that news can not only be written about but also posted on their websites. Blogging and citizen journalism, where the consumer is not only contributing to editorial but also getting issues discussed, have deepened the newspaper’s sense of community. And now, newspapers are reaching the on-the-go consumer via mobile content. People can get updates on their phones…which will then drive them online or to the hard copy of the newspaper to find out more.

Niche titles, quick-reads and free papers are also reaching a whole new audience. Most of these papers are targeted to a subset of the major newspaper. They tend to come out less often, but they tailor their content to what is quick and easy to read and relevant. Editorial tends to focus on news, local events and community.

Hoping to pull in “print advertising abandoners” or new advertisers, Newspapers have also formed partnerships with companies such as
Google, Yahoo and Monster.com. Newspaper planning and placement is notorious for being difficult and time consuming, which makes some advertisers steer clear. These partnerships hope to use online technology to make the process easier and less time consuming.

Google now provides an online bidding service where advertisers can bid at 50-80% off rate card to secure space in 200+ daily newspapers. Empower is currently working with Google to beta test this software and will have input in the final product when it is released in the coming year. Yahoo also has partnered with papers to use its technology to help newspapers and Monster.com’s employment site has agreements to power online line job listing for daily newspapers throughout the country.

The Future – Will they survive?
So newspapers aren’t a dying breed…and not all presses are shutting down…they just need to adjust to the changing times. Newspapers need to leverage their content because consumers will always want the news, will always want to research community events and happenings and need to know what products are available. Newspapers will continue to provide the content …how this information is accessed is the evolution.

Empower has been working with Gannet properties to understand how newspapers are evolving and what products need to be introduced to creatively approach the consumer. Through this relationship, Empower continues to believe that due to their content, newspapers have a role in media plans. The question is what is the right outlet for your target….is it the major daily, the local quick-read or the online version?