National Newspaper Advertising
Newspaper Publishers Moving to Multimedia to Increase Ad Revenue
Newspaper publishers hope to increase revenue by acquiring new media and by rebranding newspapers as consumer-friendly opt-in media in an opt-out ad world.
Encouraged by a Federal Communications Commission ruling that says they can buy radio and television stations, America’s newspapers are now aggressively projecting themselves as multi-dimensional advertising vehicles.
With the Newspaper Association of America (NAA) guiding the way, newspaper publishers are not only promoting their traditional printed editions, but also their:
- "Robust" websites
- Ability to generate word-of-mouth advertising
- Wireless access to niche publications
- Kiosks
- Podcasts
Not all newspaper publishers can offer all of those advertising services, but a growing number are heading in that direction.
Publishers May Be Able to Acquire TV and Radio Stations
If the December 2007 FCC ruling holds up against challenges in both Congress and the courts, at least some publishers will add television and radio stations to their stable of advertising vehicles. They are, in effect, preparing to buy some of their competition.
The multimedia strategy represents a radical turnaround for what was once a staid, one-dimensional industry. Old timers remember when newspapers thought the best way to compete with television was not to even mention TV in their news columns.
Newspapers See Large Market in National Advertising
Going into 2008, the newspaper industry appeared particularly interested in increasing national advertising.
Sheryl Oliver, NAA director of national advertising, said in an industry report that newspaper ad executives have to adopt "an innovative multi-media mindset" to sell national advertising.
Newspapers, she said, account for "only 3.7 percent of total national advertising dollars so there are significant opportunities to grow this category."
Number of Advertising Vehicles Has Proliferated Sharply
NAA says the entire advertising industry, particularly the national advertising segment, has been challenged by tremendous "channel proliferation" in the past 25 years. It points out in a sales presentation that:
- Television has grown from three networks to over 100 TV channels;
- The number of magazine titles has increased from 18,000 to 45,000;
- The number of radio stations in local markets has typically increased from 18 to more than 40;
- The Internet has grown from zero websites to more than 20 million sites.
That channel proliferation is accompanied by additional ad clutter, by greater audience fragmentation, by consumer use of new technologies to avoid ads and by growing consumer reliance on word of mouth communications.
Oliver said national advertisers are seeking integrated media to cope with the proliferation. They "want to engage consumers when and where they are actively seeking advertising," she said.
NAA Projecting Newspapers as "A Destination, Not A Distraction"
Newspaper publishers hope to meet those needs by offering multimeda advertising services that are consumer-friendly and generate word of mouth advertising for clients.
Looking at some of the image problems facing other ad media, publishers have reevaluated their own strengths and are projecting newspaper advertising as:
- An "opt-in media in an increasingly opt-out world."
- "A destination, and not a distraction."
They will be challenged to maintain those qualities as they move into other high-pressure media that have less friendly reputations and which engage in more distractive advertising.
