I had to dash out for a lunch meeting, but I was happy to make it back for Marc Reeves keynote. He is the editor of TheBusinessDesk.com West Midlands. I found myself applauding over my morning coffee when I read his recent speech to the CBI. His frankness and lack of sentimentality was refreshing. He started that speech with this statement:
Journalism has no God-given right to exist and journalists are owed a living by nobody.
Here is summary (not word perfect and and many places paraphrase) of his keynote at NewsRewired. It was nice to hear his lack of sentimentality in person:
Three main points, in a niche not enough to be a journalist, have to provide other stuff too. Need to provide more than just information. Niche audience needs a niche approach not a mass market approach. Why has this subject risen up the agenda?
The internet didn’t create this. We publishers forced them into buckets because it was more profitable for us. By lassoing 100 interests, we deluded ourselves into thinking they were a unified whole. It actually created some ineffectual and inefficient advertising models.
Not all niches created equal. Football readers deliver half of the audience. Most of the advertising wasn’t on those football pages. Many readers online bypassed the home page and went straight to football pages.
Now, the internet has revealed the niches in the mass. Financial model is there. Can’t talk about journalistic approaches to serving audiences without talking about how the businesses are organised and how they relate to their audiences, and I include advertises as an audiences.
Are you going to hope that by sitting back and writing about what they do in those niches? No. You have to produce other content that is relevant to their lives. In business terms, it’s always been about the relationship you have with your audiences. You turn acquaintances to transactions. Once you have attracted them, you need to think of other ways to interact with them. Events, get them to sell things to each other, get them to interact with each and sell services to them.
To people who say that I’m just a journalist and I don’t do events, he said: “Tough. That’s the way it is now.” By putting the noisy people called advertising in one room and the studious in another room was a big mistake. Just giving the audience journalism alone is not enough in the long term.
They now have 40,000 registered users across their regions. They hit their target of registered users in Birmingham in four and a half months. They have a daily email in the morning that drives 80% of their traffic.
We ignore the CPM race and refuse to become SEO tarts
At the centre of their business is the intelligence that they have about their users. He tries to personally review every new sign-up. He calls up some and thanks them for registering.
As a small business, we avoid waste. I reject things that don’t deliver audience, revenue or attention.
He says that this might be a way to support journalism in the future.
Q: Do newspapers not get the ‘net?
A: Yes, I’m afraid so. That is not because there aren’t brilliant individuals and editors who do get it. Structurally, I don’t think they can turn themselves around to make money on the internet.
I asked him to follow up with that. It is said you loose a pound in print for a penny online. That’s often true, but he said that the high fixed costs of newspapers – print plant, pensions, staff costs – make it almost impossible to ‘turn that super-tanker around’ and sustain their business with a digital revenue.
He uses Google Analytics to monitor his traffic and track the performance of their morning email.
Q: What is there that helps you re-engineer the cost base?
A: I’m not dragging behind a 100 ton press behind me or having to manufacture the most perishable product daily. Taking that cost out of the business makes all the difference. When we launched in February, it was me and my deputy in a serviced office with two laptops. In terms of when we scale up, we’ll keep on that trajectory.
One thing that stands out is their focus on keeping costs low and developing multiple revenue streams. They hold physical events. They do mail shots for promotion.