Internet Marketing & the Newspaper Industry Crisis

Newspapers are facing tough challenges from the Internet and New Media.   Over the past few years, many newspapers companies in Europe and particularly the US have been facing financial difficulties due to the decline in subscription, retail sales and advertising revenue.  Some of these previously daily papers are now circulated weekly, while a fair number of newspaper companies have gone out of business completely.  The factors that are commonly attributed to the decline in profitability for newspapers include changing demographics, the choice of alternative sources of news and of course the Internet.

So, What Happened?

The Internet has radically changed the way we obtain our news.   Countless news sites are offering on-the-minute stories through various formats like audio, video or text, all for free.  Don’t visit a news site?  Chances are you will have heard about breaking news items through your friends who are connected by instant messengers or social networks like Twitter or Facebook.

The definition of editors, journalists and reporters are also blurred, with anyone having a digital camera or even a camera phone uploading news from anywhere in the world at any single moment, all effectively becoming a competitor for a newspaper.  What’s the point of buying the papers tomorrow morning when you’ve read all the news tonight?

Lesson 1: The Business Landscape is Changing Very Dramatically

If it could happen to some of the US’s largest state newspapers with daily circulations of above 350000, who’s to say there a possibility of smaller businesses being eroded by these changing times.  With news being so readily available and for free, are newspapers income model of advertising and subscription still effective?

Lesson 2: Transparency and Quality of Services/Products

We posts news, reviews and opinions on blogs and forums.  In a channel where everyone has a voice, it is becoming easier to access brands, companies and their products and services.  It is easier to make comparisons based on merit, prices and to source for alternatives.  Even if you do not have an active presence on the Internet, your customers will be discussing about you.  Do you have any reputation management plans in place? Can your offerings stand up to and beyond the critiques?

Lesson 3: Timeliness and Delivery

With the ease of access to information and the Internet, customers are expecting to receive their services and products faster, if not immediately.  Many websites are offering web applications where customers can self-serve themselves to the services they need, reducing the likelihood of losing a customer because offices are closed at 2 in the morning.  It’s scary to learn that in a mere 6 hours (till you open for business), your customer may have fulfilled his need and no longer require your services.  Also, if your product or service requires a physical presence, can you engage the customer until the delivery is completed?

Bonus Lesson: Evolve and Prosper

This has been said so many times by so many people, but when you’re involoved in the 24/7 planning and operations of a business, it’s hard to take a moment to look at what’s happening all around.  Think in ahead though, may pay off big time.  In spite of all the gloom in the newspaper industry, the Guardian in the U.K recognized the threat and possibilities that new media offered, and was quick to adjust their business models.  Guardian’s “online news provider first, newspapers second” model has helped paved the way to a larger and international audience.  In Jan 2009, Guardian’s circulation was around 358844, while it received an average of 20 million viewers monthly online.