A Modest Proposal for Newspapers

I place over 3 million in local newspaper advertising annually.  That number has dropped steadily over the last decade.  When other media salespeople tell me that it's a bad purchase, I tell them a home delivered, age targeted, local content rich, advertising vehicle that still delivers a respectable ROI.  In short it's the cheapest direct mail available.  But I know a day is coming when I'll get an email saying that XYZ newspaper is ceasing operations and I will lose the coverage in that area.

I follow the Paper Cuts blog at and watch paper after paper cutting staff from the their payrolls to keep afloat.  That includes editorial staff.  Newspaper dimensions have shrunk, too.  Some are resorting to putting cards in their vending machine windows to avoid showing exactly how much they've decreased the size.  The the story from my local reps over the last several years has been that decrease advertising dollars is really putting the pinch on the local newspaper economics.  I'm sure it is.  I'm spending less.  Grocery stores are spending less.  Automotive is spending less in spite of the increase in car sales over the last two years.  The irony is that the local newspaper still has a product that the consumer wants.  But the cost structure of the product has been built around the "paper" part of the newspaper rather than the "news" part of it.

I've seen estimates of 55% cost of newspaper production dedicated to paper, printing and distribution.  As the cost of delivery goes up due to higher minimum wage and gasoline costs that will climb even higher putting more pressure on newspapers to cut costs in editorial.  Well that's the root of the problem... the newspapers business model emphasizes the "paper" over the "news".

My modest proposal is that newspapers stop printing.  Last year the New York Times publisher said as much would happen sooner or later.  I know that's not an easy thing to do, but my proposal is that during an accelerated wind down of the printed product local newspapers begin signing wireless phone style contracts with subscribers.  In return for a 3 year contract the reader will receive a Kindle or an iPad.  In this way a newspaper can have a reasonable assurance that it can operate its newsroom for the next several years and the consumer gets what they really wanted all along... the news.  I haven't quite figured out the numbers, but I can assure you that people want local, timely content... and people like nifty gadgets too.  This model has worked exceedingly well in the wireless phone industry, it will work in this one too.

Content is king and if local newspapers are only regurgitating AP wire stories they are only reducing the value to readers and by extension advertisers.  With a contracted reader base the local newspaper will be reinvigorated with younger readers.  Resulting analytics will give both newspaper and advertiser new ways to reach the consumer and improve ROI.

So there it is, my modest proposal.  I challenge the local newspapers to focus on what the consumer is really buying... the news... not the paper.