How can print publications compete against the Internet in an age when the average consumer spends 14 hours a week online and only two reading newspapers? You don't have to compete, says Peter Conti, vice-president of Borrell Associates. Instead, newspapers should start thinking of the Internet as a source of revenue. This requires rethinking the role of the Web site in the newspaper's business strategy. Indeed, some community newspaper Web sites already capture over 40% of their respective community's local ad dollars. Conti identified five characteristics of these "green zone" Web sites at the recent American Press Institute seminar, "Revenues and Costs."
Executive-Level Commitment
To improve Web site revenue, you must first recognize the potential. It's not surprising then that high-earning Web sites have top-level support. This support translates into the right allocation of resources. Executive excitement also permeates the entire organization, getting all employees to focus on the larger goal.
Autonomy of the Digital Product
Separate your Internet product from your print product. This will encourage independent and innovative thinking by your Web people. Since print newspaper audiences barely overlap with online users, it makes sense for the digital product to have different designers from the print product. You can even have multiple Web sites for multiple audiences. The Lawrence Journal World's website, ljworld.com features the print news stories online while its offshoot, lawrence.com targets a younger audience with its focus on things to do for the young adult.
Multiple Revenue StreamsCash in on the versatility of the Internet. With the Internet, you can provide advertisers with the knowledge that their advertising works. Instead of charging flat rates for display ads based on estimated page views, charge advertisers more for lead generation in classifieds, click-throughs on display ads, and contextual advertising. When someone searches for restaurants, have a local eatery's ad show up in addition to the restaurant reviews.
Tap into your email databases by sending text advertisements along with e-newsletters.
Little Reliance on Up-sells
More successful Web sites don't rely on the print product for advertising. Up-selling print ads to online often devalues the online ad, says Conti. On the other hand, "down"selling an online advertisement to a print product may bring in more revenue. Conti has found that some community papers saw a growth in classified revenue after two to three months of selling free classifieds online. The online advertisers often bought a print ad as an impulse buy when given the option online.
Online-only Salespeople
Online is a different medium that requires different skills. Having an online-only sales team eliminates the conflict of interest print salespeople feel when asked to sell for the Web site since the difference in price is so great. Conti suggests hiring online salespeople with a TV or radio background.
