Community
newspapers are ultimately going to replace larger publications such as The New York Times and The Los Angeles Times. The news
consumers are going to continue their interest in local stories at a fraction
of the cost of larger publications. Community newspapers, however, need to
tackle the issue of funding.
Michael Liedtke, AP
business writer of phys.org wrote, “Newspapers
are hurting all over the United States, but the pain is less severe at small
publications.” “CNN isn’t coming to my town to cover the news. Community
newspapers are still a great investment because we provide something you can’t
get anywhere else,” said Liedtke. He also noted that the potential for success
at community newspapers is increased due to a lack of competition, which is
present at the larger publications.
Rebecca Pocklington of the Reading
Chronicle said that politicians as far away as the United Kingdom are
stressing the importance of community papers. Pocklington mentioned Finance
Secretary to the Treasury, Greg Clark, who said, "Local
papers are vital to a community, they are almost required for it to function as
a community at all.” The Secretary of State for Communities and Government,
Eric Pickles, also weighed in on the issue, “Local papers are just as important
as national papers and local news provides a voice for the community,” he said.
In class we
discussed the current success of community newspapers. Community newspapers are
able to get some investors who believe in hyper-localization.
Hyper-localization is the idea of publishing extremely local news, such as the
scores of little league games. According to Matt Daugherty, publisher of local
papers, Kearney Courier, Smithville
Herald and Liberty Tribune,
communities will always have a vested interest in local news because it
features their family members or other acquaintances.
While investors
who believe in hyper-localization are present, the current conflict faced by
community papers is how to fully fund their operations. Luckily for consumers,
these papers can be offered at a lower rate. It is not necessary to pay the local
reporters as much to drive ten minutes, as it is for the industry-wide papers
that may have to send their reporters overseas or across the country. Christopher
Helman of Forbes magazine, said:
It doesn’t take a lot of personnel to put
out a monthly, especially when half its content is ads and coupons. Each
edition usually has one editor and one reporter, plus a general manager, a
couple of account executives and a graphic designer. No big-name columnists, no
newspaper union members and no pension funds to worry about. The editorial
voice is about as earnest and devoid of irony as you can get in this business.
Community
newspapers have another leg up on the larger papers. Matt Daugherty observed, “The industry shot
itself in the head by allowing free online access to their papers.” Some community
newspapers never allowed free access to their content and those that did have
plans for change. Daugherty allows just fifty percent of his publications to be
put online and is currently working on a “pay wall” to further offset expenses.
A “pay wall” allows the audience to
access a monthly allotment of stories before they are charged to view more.
Internet cookies
currently monitor Daugherty’s “pay wall”. He noted, however, that the system is
not yet perfect, “technically readers could clear the cookies in their browsers
and potentially be able to read infinite stories.” Each individual computer
contains an IP address, but Daugherty has already foreseen the problems of
monitoring his readers via IP address. “If I were to monitor by IP address then
I would be blocking students at schools if their classmates have already read
the paper. People at libraries could be blocked from seeing their grandson’s
winning science fair story,” said Daugherty.
When asked if his
audience would be offended or apprehensive about a “pay-wall,” Daugherty said
he was confident it would not cost him any readers in the long run. “Generally
if you communicate the message well of why you need to be charging, it will be
received well too.” He allowed that readers could potentially be put-off at
first about being charged, but they would eventually come around. “The problem
is that people have begun to think that they deserve quality news for free,”
said Daugherty.
Matthew Debord of scpr.org
wrote, “The verdict on
pay-walls seems to be that they're moderately despised but that if your content
is good enough, then people will break out the credit cards. They just won't
pay enough to save the print side.”
Advertising can be
a driving force behind the funding of papers, but the current transition to
technology has proved problematic for advertisers. According to The Huffington Post, 2011 marked the
first year that news was officially consumed online more so than in paper form,
“In December (of 2011), 41 percent of
Americans said they got most of their news about national and international
issues on the Internet, more than double the 17 percent who said that a year
earlier.” The Huffington Post also
stated that tablets were “the fastest-growing new digital technology, ahead of
cell phones when they were introduced.”
Daugherty noted
that all papers have to be prepared to adapt to the medium in which the
audience prefers to consume the news, but “online advertising has been proved
less successful than print.” He explained that advertisers monitor their
success with a statistic known as the “click-through rate.” If an advertiser
finds that they have a half percent “click-through rate,” for example, that
means that one person has clicked on the ad for every two hundred people that
have read the article. A half percent “click-through rate” is considered
positive for a community newspaper.
In the most
desperate of times, some papers will resort to writing a story about a company
in exchange for purchased advertising space. Daugherty said he considered this
practice unethical, but was unprepared to judge a company that found themselves
in such dire conditions. Communities can only hope for a publisher as honest as
Daugherty. Discussing John Garrett, community news publisher in Texas, Christopher
Helman wrote:
Garrett doesn’t scruple publishing nice
articles about his accounts. Ken Moncebaiz, who operates K&M Steam Cleaning
in Austin, bought an ad in the first issue of Impact (Garrett’s publication) and has
bought the inside back cover of the paper ever since, shelling out $11,000 a
month. He has been rewarded with the occasional story. With ten trucks to keep
busy, “I buy advertising for a living,” says Moncebaiz; most of his
$33,000-a-month spend goes online to Google Ads and PaperClick. He doesn’t
hesitate to call up Garrett when he sees ads for too many competing carpet
cleaners in the paper.
While
industry-wide publications are struggling to stay in business, community papers
continue to thrive. If only the financial aspect could be quickly solved,
readers would begin to realize the impact and potential of the local papers.