Don MacAskill recently ranted on how much of a closed community traditional print media companies impose on their users. While I would agree that some if not most large media groups are seriously lacking the insight necessary to monetize today’s generation of consumers, it is a little too early to say that all traditional media is doomed.
Gannett and Tribune recently invested more capital in MetroMix, the Tribune’s original foray into the hyper-local scene. While the site may not have the best functionality or user interaction, it is a good start. You cannot ride the subway in NYC without seeing their ads plastered all over the inside of the trains. The question is not how traditional media companies will succeed or participate in the web 2.0 space, but when. These companies are sitting on a large regional or national footprint and an executive guard that does not understant how publishing content online can bring in revenue.
Web 2.0 Is Not That Obvious To Most
For most of us it sounds very obvious, we see the online space as unlimited “print” real estate….pages upon pages of space to throw edgy content and targetted advertising. So its obvious right? Not as much as you would think. Do any of you remember trying to teach your parents, mostly successful business men and women, how to use a computer? Even to this day they struggle just doing basic things on the internet. They are definitely not part of the Digg Nation.
Imagine how the executives at Print Company Inc feel when they hear Facebook, created and run by a 20 something Harvard drop-out is going to put them out of business very soon. They will come around because they have to. Zell did not buy the Tribune because he believed in a rejuvination of print media, he has an idea (we assume its a dam good one), of how to leverage this vast media empire in today’s world. I would be very shocked if upon hearing about the Digg mis-functionality on the LA Times website Zell brushed it off his shoulders as if it was nothing.
Tech M&A Is Not Always The Best Strategy
Acquisitions are one way to enter this arena, but once a Media News or a McClatchy acquires a hot up-coming web 2.0 property, then what? You have a sexy sirloin and no one to supervise the grill…that is to say, the staff on hand that understands the technology and how to leverage it across the existing properties is not there. Online ad-sales folks are in high demand right now, and for good reason. Someone inside those companies needs to really understand the power of users, their attraction to content and how to charge advertisers for it. Looking back, it would have made more sense for Double Click to have been purchased by one of the old print companies than Google. Imagine the power of having access to that online-ad sales force!? Perhaps there are something Mastercard can’t buy.
Herd Mentality
I think that a sudden panic attack will happen sooner than later. Just looking at how much better the internet has become in the past year in terms of delivering relevant content, we should expect even more ad dollars to shift online than we saw in 2007. It is at the point the point where a web 2.0 love bug bites the print guys, where they start acquiring as much as they can; headcount, aggregators, bloggers, startups, you name it. You are all marked. I mean at this point it’s either them or Google.
2 comments
Comments feed for this article
February 26, 2008 at 3:03 pm
Connor Fee
As I’ve read through this blog, I can’t help but agree with Francesco and Kyle wholeheartedly.
Traditional ‘print’ media is caught in a difficult cycle where they recognize that their core business is declining and that they need to look to adjacencies for growth. While the Internet is definitely on their short list, it is rarely at the top. This is no surprise however, because it is an area where they have limited experience and lack a monetization strategy comparable to their offline revenues.
Traditional ‘print’ media is made up of individuals who have moved up the ranks internally. Often the VPs are ex-beat reporters from years past that have made a career in the business. This may be good for their print side, but it often stifles their innovation and likelihood for success in a new medium. If the major players want to make a splash in the online space, they will need to rethink how they approach the Internet – how to deliver content and who is the target consumer.
Personally, I believe there are vast amounts of value in the information that these companies maintain. No one knows local events and activities better than the local paper. If they are willing to toss out their pre-conceived notions about how they need to deliver this content and consider a sophisticated new type of event calendar geared towards consumers, then they just might bring something to the Internet that no one else can compete with.
Thanks for your thoughts gentlemen, keep them coming.
April 22, 2008 at 10:03 am
John
Digital revaluation in print media is worked well. Online readership is increased dramatically from the past three years. All the publishers are presenting their publications through online and some publishers are using the companies like http://www.pressmart.net in distribution of publication over the new technology mediums. Digitization becomes the revenue generation tool for all print publishers.