Adios Print Media

My first internship, which was in the print advertising division of a large marketing firm, taught me a lot about the inner workings of media sales. I got a chance to see first-hand how much money was spent on major market newspaper advertising and I learned the value of print in the overall context of an ad campaign.

But I also observed how, over the course of my year long internship, clients were beginning to pull out of papers sooner or buying smaller placements. With the Internet having completely changed the way we consume media I began asking myself, as well as my co-workers and my boss, "What is the future of newspapers?" In the wake of the Christian Science Monitor's decision to cease printing of their 100 year old paper in favor of an entirely online product, many pundits in the advertising and media industries have been asking the same thing. Here's some of the opinions.

Here's the AdAge's analysis of CSM's move:

With Time Inc. announcing layoffs ranging from 300 to 700 positions; Gannett promising to lay off 10% of its local-newspaper staffers; Condé Nast cutting Men's Vogue down to a biannual and paring Portfolio and its website; and even Radar shutting its doors again, turning its anniversary party into a good-bye party, it was a week that needed that title's gallows humor just to get publishing types through it.

Clearly, the changes to publishing's business model aren't going away, so publishers are going to have to adapt to a new reality. As Time Inc. Chairman-CEO Ann Moore said in a speech last week, "If you're sitting on your five-year plan, you're delusional." But just what should publishers be planning for?

The best-case scenario now facing print publishers is that the events of last week will eventually be revealed to be mainly the product of a familiar economic cycle, a temporary downturn that exacerbated the trends already challenging print media. After the economy recovers, probably by the end of 2009, advertisers will regain their interest in print as well as their ability to buy space there.

Some more analysis from TechDirt:

In a lot of ways, this setup probably makes a lot more sense for many people. Newspapers have long since lost their ability to be the source of "breaking news" in print. News breaks online, and by the time it's in the newspaper the next morning, it's old hat. The days of paperboys screaming "Extra! Extra!" are long gone. Still, many may question the timing of the move. Online advertising, while growing rapidly for many, still doesn't make up a huge percentage of revenue for most newspapers. Decreasing the costs significantly means that the revenue doesn't have to match, but there may still be quite a gap there, and I'd imagine some may have been more comfortable waiting for the gap to close before leaping out of the plane without much of a parachute.

However, in taking that plunge, it will force the CSMonitor to really focus in on making its website as good as it can be, both for readers and for advertisers. That sort of hyperfocus could be quite useful, as we've seen too many newspapers find themselves in a struggle for resources and attention between the (dwindling) cash cow print business, and the small, but growing, online markets. No matter what, you can bet that other big (and small) newspapers will be watching the CSM's leap with great interest as they plan their own strategies for a changing media world.

Last but not least, the whizzes at Mashable:

Given what they’re doing and their willingness to continue to push the edges of what’s possible for an online publication, it’s my opinion that we’ll be seeing quite a bit more of this news organization, and that they’ll be around for quite a while in their new format. It’s a little to early to say that they’re going to be the model of what a newspaper should look like as they makes their transition to a New Media organization, but for those interested in this arena, this is definitely an organization to keep an eye on.

So what is the opinion of Rob Frappier, super blogger for Experience.com? Well, generally speaking, I believe that the Internet is the only logical move for news media. I love having a newspaper in my hands as much as the next guy, but it just doesn't seem like a sustainable business model given the ubiquity of the Internet. With Blackberries, iPhones and free wireless at every corner cafe, it's easier than ever to get on the web. And, not only is it everywhere, but the Internet also allows individuals to specifically tailor their news interests and gives marketers the opportunity for highly targeted ad buys.

But enough about me. What do you think? Are papers passé?