Background

As you may have read, printed newspapers continue to see circulation and readership declines. The good news for newspapers is the audience is not completely lost. The growth of the Internet and digital reading has been positive for newspapers with many readers simply migrating from the printed version to the digital version to get their local news.

Newspapers are a relatively profitable business even with the circulation and readership declines. This profitability has allowed newspapers to change their business models and develop their local Web sites. Newspapers’ Web sites, together with other off-line products provide a powerful advertising platform for advertisers.

Empower believes the future newspaper plan must “follow the screens” and adapt to the changing newspaper landscape by incorporating advertising in both off- line and digital versions.

Growth

While circulations for printed newspaper have declined, digital newspapers are helping to regain some of these loses. In Q2 of this year, the number of unique visitors to newspaper Web sites increased 12.2% compared to the same period last year. This equates to 66.4 million people, or 40% of all Internet users in the US. While the growth has begun to slow, the industry is most likely on track for double digital online revenue this year.  Newspaper revenue in 2007 grew about 19%, which is less than its 31% rate of growth in 2005 and 2006.

By capitalizing on the newspaper brand, newspapers can continue to grow their off-line and online readership as well as advertising business.

Off-line newspapers are making strides to retain customers and add new readers by introducing free publications, new formats and niche titles. In addition, they are getting back to their roots and providing more local content and more in-depth, long form reporting.  

Digital newspapers are already strong and can continue to grow through innovation. Their current strength is evident when you consider the number one Web site in the top 10 DMAs is the newspaper Web site. To continue to grow, digital newspapers are investing in features such as keyword search, article sharing through email and blogs, audio, back issues access and integration with new social networking services.

Digital editions are becoming portable to multiple platforms and easier to navigate so they can be read and accessed by the on-the-go reader. The Wall Street Journal just launched a wireless application for BlackBerry smart phones which will let users view headlines, summaries and full articles. The Journal plans to begin showing ads from an unnamed advertiser beginning next month.  Also, earlier this year, the Associated Press launched an ad-supported service to make news stories available on Apple Inc’s iPhone and other mobile devices.

Opportunities for Advertisers

With the changes to both off-line and digital newspapers, advertisers can also benefit.

New off-line products and increased Web site traffic provide increased impressions and frequency to media plans. With seventy percent of newspaper Web site visitors also reading the printed publication, brands now have new cross-promotional opportunities, as people are interacting with newspapers in multiple ways; reading up-to-the minute news on the web either on their computer or phone and reading the long form stories when they relax at home.

Newspaper Web sites also provide engaged readers to advertisers. According to NAA/MORI Power Users Study, the digital newspaper Web site user spends more than twice as many hours online than general users. In addition, newspaper Web sites have an advantage over all other media as they can reach readers during the work day when they are out of reach from most other media.

The Future Newspaper Buy

With a continued commitment by newspapers to invest in technology and be innovative, Empower believes newspapers will survive and evolve into an integrated print and digital media.

Consumers will always trust their newspapers and will go to some form to read the news and find local information. To ensure they see advertising messages, Empower recommends print advertisers invest a portion of their print dollars on digital newspaper.

By: Stacy Anderson - Newspaper Director, Empower MediaMarketing