Tuesday, February 19, 2008

Who Pays the NewsPiper?

We read today of the demise of the Nielson booktrade web site The Book Standard. There are certainly many wishing to compete within this crowded space and with limited financial reward many face uncertain futures.

The web is redefining journalism. It is changing the content, how it is delivered and the business model that has long underpinned it.

Newspapers now have to develop better ways to sell their ad space online and have to compete with new gorillas such as Google, Yahoo and Microsoft. Yahoo has over 264 US newspapers distributing their content on their portal. Google's PrintAds program enables its customers place ads in 600 daily and weekly U.S. newspapers. These programmes are among others that are redefining the landscape.

Now four major U.S. newspaper groups have launched an online ad network that enables customers to book national campaigns to over 50 million readers a month in the US through a single point of contact. This group includes flagship newspapers such as the Chicago Tribune, USA Today, the San Francisco Chronicle, and the New York Times. This move is clearly aimed at protecting the business model and control over both web and print property.

This collaborative approach may negate the need for them to share revenue with the likes of Yahoo and Google. Both corporate and classified advertising is changing and being redefined online.