Newspaper Revenue from National Advertisers Part I

When I talk with sales representatives for national accounts what I hear more often than not is that they want 1 digital buy with all local news media, not 300 or 800 local buys.

In Part I, I will review one solution the newspaper industry agreed to launch in 2012:  Acquiring & Merging ShopLocal & Travidia, because the best way to solve any problem is to combine 2 products that have failed so far. To me, this is a solution in search of a problem.  Why do we have ads for products from national retailers in the paper?  Because that is how people have historically found sales.

How do people find sales online? 

1. Search Google, Yahoo, Bing, 
2. Social: Facebook, Twitter, 
3. Shop: Amazon, eBay, Buy.com or going directly to the retailer site.  

ShopLocal & Travidia provide some interactive representation of the print ads online, but by mimicking the Print experience, they are not meeting customer expectations.  The quote below essentially restates, with some positive spin exactly the same thing.

“Circulars continue to be a key driver of traffic in today’s retail environment. By creating this joint venture, these eight media companies are affording advertisers a unique, scalable and turnkey solution for local consumer engagement across all platforms – print and digital.”

Why can't the newspapers sell actual digital products like email campaigns, online display, sponsored tweets or Facebook posts?  Because agencies that work with newspapers, besides the NYT, WSJ, and a few others, are print focused.  The digital buy goes to another company or directly from ad networks.

From the announcement:

“We have enjoyed working with these world class media brands for years and applaud their efforts to come together to solve their customers' needs and drive more traffic to our clients' stores and online circulars," said Christopher Cope, CEO at American Communications Group (ACG), the second largest print media agency in the U.S. representing such national retailers as JCPenney, Michaels and Belk."

Customers are now shopping and comparing items in store and on the go.  In-Store Search Proves Costly for Retailers,  a survey of shopping habits released in January 2012 by Prosper Mobile Insights, shows how behavior has changed.  People who use tablets and smartphones while shopping are 33% more likely to buy from another store. A further 25.6% of respondents say they have compared prices while in-store and purchased from another retailer’s website using their device. 

Just getting them to the store or circular is not enough.  The Find 'n Save product has 5 features/benefits listed on the main website, and all but one is 10 years old, see if you can find it:

• Get email alerts on the hot deals in your area.
• Purchase the deeply discounted Deal of the Day
• Clip and print coupons for products and services in your area
• Search local sales and promotions
• Shop your local store's inventory before you leave home

There is a solution: revenue from audience profiles & brand data at the national, regional, and local level.  Only the news media, facebook, google, and a few retail sites like amazon have the reach to get this kind of real-time data.