Category Archives: Innovation

05.08.19
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Choosing the right membership (or subscription) model

Members only, friendly yet authoritative sign, by John Bell, from Flickr, Some Rights Reserved

As I mentioned yesterday, my friend Suchandrika Chakrabarti has an excellent overview for freelancers on writing your own bio through writing ones for her first year of being freelance.

In addition to that post, the other highlight from my newsletter today is an excellent look at the hottest issues in media right now: Membership and subscriptions. It’s a comprehensive look at various subscription models and services, but they also talk about a membership model in Albany New York. The newspaper there has tiers, “providing options for the customer”, according to Brad Hunt sales and retention manager for Albany (N.Y.) Times Union. “Instead of losing them outright or feeling like we were forcing them to go to a higher frequency in order to get to that gold status, we wanted to provide the means for the customer to choose,” he said.

More tomorrow, and remember, if you want to highlight a story for me, let me know on Twitter @kevglobal.

07.31.18
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Editorial experimentation on the fly isn’t necessarily sexy

People always ask what advice would you give a younger self, and I think one of the things that I’ve learned over the years working is that so much innovation is simple experimentation and execution. It’s not particularly sexy, but in the end, it works. And success is infectious.

In the past few weeks, I’ve learned a half dozen things that will help me make help ideastream, my current employer, make better decisions. We are trying things and testing them rigorously with data.

Here are just a few things that we’ve learned:

  • We don’t have the biggest Facebook following in the world, and we’ve stopped boosting posts because we’re not comfortable with Facebook labelling our journalism as political advertising. Like everyone else, this has impacted our reach and to a lesser extent our referral traffic. Facebook Lives are helping us with organic reach, especially Lives that tap into the networks of those we’re doing the Lives with. However, viewing length isn’t brilliant. Facebook video audiences are still a mercurial bunch. They don’t stick around for long, but we got a lot of good engagement with the Lives so we’re going play around with them more. The next nut to crack is to get test ways to get people to spend more time with us.
  • YouTube is an interesting space for a public TV broadcaster to play in. This isn’t breaking news, but people do watch longer form content on the platform. And we’re mining our prodigious archives to engage YouTube viewers with that longer, lean back content.
  • And for the first time in a full-time position (I did do this with clients and loved it), I am working with our marketing department, and we’ve been testing YouTube ads. This has been really interesting because it’s helping us reach people we haven’t been reaching. Our video audience tends to skew older and, in terms of digital, more to desktops. With our YouTube ad campaign, almost 97 per cent of the audience we’re reaching is mobile and tablet based. And it’s cost effective for us.

This is just what I’ve learned in the last week, and in this position, I’m able to do this kind of experimentation all of the time. We try little new things and get better with them every day. As I said, it’s not sexy, but as anyone working in innovation and succeeding will tell you, execution is a large part of the game.

04.04.17
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WAN-IFRA Webinar: Here come the chatbots and more strategic insights

Last Thursday, I hosted a webinar focusing on the chatbots and conversational interfaces section of the report that I did for the Reuters Institute for the Study of Journalism at Oxford, Beyond the Article: Frontiers of Editorial and Commercial Innovation.

In the webinar, I gave an overview of the strategic motivations that publishers – including Rappler of the Philippines, Nyt, the youth section of Helsingin Sanomat of Finland, and Quartz of the US – had for launching chatbots and developing conversational apps. I also looked at how they developed these projects and what business models they were using to support their journalism.

I’ll just review their strategic motivations briefly here:

    • Rappler launched a Facebook chatbot for three reasons: One, audiences had shifted rapidly from Twitter to Facebook over the last year in the Philippines. Two, they wanted to use the chatbot to both increase discovery of their content for Facebook audiences, and three, they also wanted to better communicate their editorial features – straight news, analysis and comment – to readers.
    • Helsingin Sanomat’s youth-focused Nyt noticed in 2014 that Facebook was no longer helping them reach teens and, based on research that showed that 80 percent of their target audience used WhatsApp, they launched an experiment on the messaging platform. The experiment was successful but unsustainable, so they developed their own conversational app.
    • When Quartz launched four years ago, the mobile-focused news service did not launch with an app because they found that app usage fell off quickly. However, with the rising importance of notifications, they wanted to get onto the lockscreen of their users. Inspired by Lark, a conversational fitness coaching app, they launched a conversational news app.

Is WhatsApp going to develop tools for news companies?

One of the questions that came up during the webinar is whether WhatsApp was developing editorial tools to make its service manageable for news groups using the service to broadcast updates to users. I had heard rumours, but nothing firm. After the webinar, I did a quick search, and I found a Reuters report in early March that said that WhatsApp was trialling tools for businesses, and had launched a pilot with Y Combinator. Neither WhatsApp nor Y Combinator confirmed the trial, but one of Y Combinator’s companies provided details.

However, this trial was couched in terms of WhatsApp going in search of a business model, rather than helping news organisations. (I was in Asia in March, and Chinese messaging platform WeChat does have editorial tools. It’s really worth looking at what the Chinese messaging and weibo, Twitter-esque platforms, are doing. They have developed a far richer experience than Twitter or WhatsApp.) In the end, WhatsApp’s trial seems much more focused on helping businesses connect with their customers, rather than serving the needs of editorial organisations. Moreover, as a paid service, it doesn’t really address one of Nyt’s primary issues with WhatsApp: they couldn’t drive users from WhatsApp to their site, felt unsure about advertising on the platform, and so couldn’t really monetise that attention.

Moreover, Facebook, WhatsApp’s owner, seems much more focused on Messenger as a platform for editorial organisations. I do wonder how long Facebook will see value in having two messaging platforms.

Strategic insights beyond the report

Apart from the webinar, my good friend Damian Radcliffe summarised not only some questions he asked me about the report but also comments that I made to The Media Briefing in a podcast last month.

I’ll highlight some of the top level observations from Damian. What really struck me in the research for the report is that media companies are starting to embrace product thinking. Bar one of the examples, every case study in the report highlighted a strategic challenge or opportunity as the basis for these projects.

I want to emphasise a point that Damian highlighted from my conversation with Chris Sutcliffe and Esther Kezia of The Media Briefing for the podcast: Innovation requires rationalisation. The most successful media groups I work with are working hard to figure out what they do and, just as importantly, what they stop doing. Focus is critical to successful execution. I told Chris and Esther:

Often the resources of an organisation are fully committed, and this is especially true for news organisations going through cuts. To free up resources for innovation, those groups must figure out what they stop doing.

Quartz exemplifies this. Last year, they decided to quit producing a high-end tech conference, not because it wasn’t successful but because it wasn’t successful enough. They are a start-up operating as part of a legacy media company, Atlantic Media, and as a start-up, they are focused on their highest growth areas. This is a critical lesson for media companies. They have to focus on areas where they can find growth, and they need to be fully focused on those areas.

If you haven’t read it already, you can download the report from the Reuters Institute. And if you have any questions including enquiries about speaking opportunities or consulting engagements, feel free to get in touch in the comments below, or via Twitter, LinkedIn or email.

03.23.17
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Join me for a webinar about my recent Reuters Institute report on news innovation

Since I first said it at Hacks/Hackers London last summer, I’ve become fond of saying, “If you don’t have revenue, then you don’t have a product.”

When Dr. Rasmus Kleis Nielsen, the research director at the Reuters Institute for the Study of Journalism at Oxford, started to talking to me about writing a report about journalism innovation, I mentioned my comment about revenue and products, and he asked, “Can we put that on the front page?”

Rasmus wanted to look at digitally native innovation at news organisations, and we used projects that went “Beyond the Article” as a lens to focus the project. Rasmus and I also wanted to focus not just on the coolness of innovation but also the business: How were companies managing it, and more importantly how were they monetising it.

We eventually settled on three areas to focus on:

  • Radically distributed publishing.
  • Chatbots and conversational interfaces.
  • Visual journalism and VR.

The report was supposed to be 5,000 words, and it topped out at about 11,400. To be honest, I could have written a book. There is a lot of innovation going on right now in journalism. But I think we’ve given a good sample of projects and innovation.

If you want to read a brief introduction focusing on the chabots and conversational interfaces and apps section, here is post I wrote for WAN-IFRA. For a broader overview, here is a summary that I wrote for the Nieman Lab at Harvard. If listening is more your style, I also did a podcast on the report with Chris and Esther at the Media Briefing.

Next week, 30 March at 3-4 p.m. CEST, 2-3 p.m. BST or 9-10 a.m. EDT, I’ll be doing a webinar for WAN-IFRA focusing on the chatbots and conversational interfaces section. Register here to join. I’ll do a presentation, but we’ll have plenty of time for you to ask questions. See you there!

03.12.17
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Outlining the formula for Josh Topolsky’s Outline at #SXSW

There are a lot of lessons here for media companies, whether legacy businesses or start-ups, from The Outline. You might not have heard of The Outline, but it has pedigree. It’s founder Josh Topolsky has form with The Verge and Bloomberg. Now, he wants to launch the next-gen New Yorker or the New Yorker for millennials, as Shan Wang reported in Nieman Lab.

Simplifying their formula even further from their slide at SXSW, I would say that the key lessons are:

  • Collaborative working relationship with edit/dev/rev team.
  • Focused on a “specific, finite, meaningful audience”. And a laser focus on that audience.
  • Ad experiences as distinctive as its content.

I don’t think that everyone needs to build their own editorial tech or ad tech. That’s something that a figure like Topolsky can do at launch, but it isn’t something that every media start-up or even legacy group can or should do. Obviously, the technology focus can deliver a distinctive editorial and commercial product, but I think knowing that you’re trying to do is a necessary prerequisite to build or choose the tech.

But that’s a niggle. Overall, this tight set of bullet points is a good starting place for media companies in the 21st Century. It’s not a rigid recipe, but it’s a great starting point for companies looking for a strong digital launch.

09.01.16
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The Olympic medal for media innovation goes to…

New York Times Fine Line Simone Biles

A version of this post first appeared on The Media Briefing, where I write about the media developments in North America, especially as they pertain to the search for new media business models. 

The Olympics are over, and the medals have all been handed out. But for me, the Games are not just an opportunity to see the best athletes in the world but also to see some of the most cutting edge digital media innovation. The 2016 Rio games also showed some of the tectonic shifts in media with viewership dipping on traditional TV platforms and up on on-demand and mobile platforms.

These are not simply vanity projects. As we saw recently with Politico’s Apple Wallet-powered EU Tracker project in the lead-up to the Brexit vote, a smart strategy executed well during major events can help you reach new audiences and power your growth to the next level.

Not to mention, that just like gold medal athletes hoping for lucrative endorsement deals after the games, media organisations are hoping to cash in, and this Olympics also showed how organisations are seeking new sources of revenue through digital commercial innovation.

New York Times’ The Fine Line

The Olympics are one of those big set piece events when top news groups, start-ups and the digital platform giants have time to plan and create trail-breaking digital media experiences.

Amongst the legacy media groups, the New York Times has once again made as much of a splash with digital media watchers as Michael Phelps and Katie Ledecky have made in the pool.

One of the most talked about and ground-breaking Olympics features by the Times were a series of visually-led features called, The Fine Line. In addition to the Fine Line features, the Times also created incredibly simple but effective animations to show how the swimming races played out, for instance how teen phenom Katie Ledecky dominated in the pool.

New York Times Olympics Bodies Rio Olympics 2016 featureBut that wasn’t all the Times did. Another feature effectively gave a game-like feel to the content with a visual quiz in which the audience was asked to guess what sport the athlete or para-athlete was involved in by their body characteristics. Did they have muscular legs and or arms? Were they tall or short and powerful? It was really nicely done, and the Times made a point to say that the athletes and para-athletes wore as many or as few clothes as they felt comfortable with.

Commercial innovation to drive digital revenue growth

But, as we’ve seen so often in 2016, the best editorial innovation isn’t enough to guarantee a sustainable business. Fortunately, the New York Times also displayed some incredible commercial innovation as well.

In the middle of the Fine Line features is a native advertising feature for Infiniti’s Q60 that seems right at home in the format. In addition to flowing the Infiniti ad into the middle of the stories, it is peppered throughout them, appearing both in the navigation and on the front of every Fine Line segment. The ad even fits thematically with the content: The “Making an Ironman” native advertising video shows a man training for the triathlon world championships with product placement of the Infiniti Q60.

Infiniti’s content also appears in various New York Times’ social channels, including Youtube and the NYTVR app.

VR, mobile, programmatic and native advertising are all part of the New York Times’ strategy to dramatically increase non-display digital ad revenue because display has shown lingering softness for many legacy print publishers in the face of the dominance of Google and Facebook.

The New York Times has not been immune, and it reported in its most recent quarterly results that digital ad revenue dropped 6.8 percent, which looks bad but not when compared with the 14.1 percent swoon in print adrevenue.

The Infiniti native advertising package across multiple digital channels looks like the kind of bigger deal that New York Times CEO Mark Thompson talked about recently when he predicted dramatic digital ad growth in the third quarter.

Thompson and Chief Revenue Officer Meredith Kopit Levien told Ad Age that these bigger, multifaceted packages were taking longer to close, slowing the pace of ad deals in the short term, but dramatically increasing revenue in the longer term.

Thompson said that these bigger deals were in the “million-plus range”, and they both said that the revenue would start to be reflected in the NYT’s second half results. It gave Thompson the confidence to predict that the NYT would deliver double-digit growth in digital ad revenue in the third quarter.

Power to the platforms

Rio Olympics media innovation

In its recent results, The New York Times pointed out that mobile was powering a lot of their growth, and Thompson said mobile is “growing at rates that even Mr. Zuckerberg’s little firm would recognise”.

Mobile content took centre stage at Rio 2016, and Facebook and other major  digital platforms were seen as key to helping Olympic broadcaster NBC to make sure that its content reaches younger, more mobile audiences.

Before the games, NBC’s deal with Buzzfeed and mobile messaging darling Snapchat grabbed a lot of coverage. Buzzfeed is curating content from Snapchat, and Snaps from Rio appear prominently in its Discover section. Buzzfeed’s involvement makes sense in light of NBCUniversal’s $200 m investment in the company.

This kind of distribution is officially a very big deal as it was was the first time that Olympics content would appear on a non-NBC platform, according to Gerry Smith of Bloomberg News. More than that, NBC isn’t requiring Snapchat to pay anything for the privilege, but the broadcaster, which paid $1.23 B for the broadcast rights, negotiated an ad revenue share with the mobile messaging and content platform.

Facebook’s ambitions in Rio were much more global, and it struck a deal with the IOC and 20 official Olympics broadcasters to offer content on Facebook Live and recap content on both Facebook and Instagram, according to L&F Capital Management on the investment blog Seeking Alpha. Facebook also reportedly paid some athletes, including Michael Phelps, to provide exclusive live interviews.

Looking to make live events and sports a bigger part of its offering, Twitter announced content across Moments, Vine and Periscope in its coverage before the games. Twitter also announced a pivot in the Moments product as well, as it said that Olympic Moments would stick around in users’ timelines for weeks rather than days.

When I wrote the piece for the Media Briefing, we really didn’t have a full picture of viewership on traditional linear TV and also how audiences were turning to consuming video on mobile platforms. But we quickly got a sense, and for NBC, it wasn’t entirely good.

Bloomberg noted that ratings were down 17 percent overall in primetime and down by 25 percent in the 18-49 demographic. Gerry Smith of Bloomberg questioned whether NBC Universal had got its money’s worth in terms of their $12 bn investment in the Olympics. Smith went on to say:

The Summer Olympics ratings slip, the first since 2000, raises fresh doubts about what used to be a sure thing: live sports would be a huge and growing draw no matter what.

But while traditional TV viewership was down, online viewership was up by 25 percent. Regardless of the obvious switch from linear TV to on-demand formats, NBC still ended up having to give away some air time to advertisers to make up for the viewership shortfall on traditional TV.

Of course, if you want a stinging rebuttal of Bloomberg’s thesis, read this Medium post on how terrible the NBC streaming experience was by Brenton Henry. The real issue for Henry seemed was that the streaming options were really only available for cable subscribers.

I was tempted to shorten this article, but then the lengths of measure I had to take to view something that is available for free over the airwaves show there is clearly a problem. I’m sure NBC were patting themselves on the backs for how easy it would be to watch online this year, but that’s only true for cable subscribers, a slowly shrinking percentage of the US population, especially for Millennials.

As we’ve seen with ESPN’s woes, pay TV use is starting to decline as more people rebel against the ever rising costs of a bundle of channels and services they simply don’t want. The business model for paid TV is going to come under increasing pressure. The Olympics and NBC’s model only highlights that.

04.30.16
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Journalism and innovation: “Never outsource your future”

 Piechota quotes Clayton Christensen, the esteemed chronicler of corporate change, saying: “Never outsource the future.”

Ken Doctor does a great summary of a report by Grzegorz Piechota for the INMA. I met Grzegorz Piechota in Prague years ago now, probably 2007. We were both presenting at a small workshop for journalists hosted by the Transitions Online.

Rather than doing a full-blown summary of a summary, I’ll just highlight this because it is so relevant and important.

Greg doesn’t pull punches, and he is saying something that needs to be said but that almost no staffer or senior manager who wants to keep their job can say:

Today we pay the price for the sins of the past. Users are destroying publishers’ revenues with adblockers. Internet giants have sniffed the opportunity to drag us into their walled gardens and eat us alive. It’s high time for news publishers to give strategic priority to mobile and improve the user experience…Can we stop discussing in our newsrooms whether every reporter should be on Facebook or Twitter and move the debate on social media to the boardroom?

I know of a major news company in which the staff have to use ad blockers so that they can simply do their jobs and manage their sites. If your staff cannot use your own site without destroying your business model, does that take anyone even a second to realise how ridiculously broken your user experience and ultimately your business is?

The time for half measures is long past. This is a senior board level discussion, and the leadership and managers need to start listening to people on staff who are saying these uncomfortable things. I’m making quite a tidy living at the moment telling companies things they need to hear, that many of their staffs are telling but that they wouldn’t countenance from a staff member or members of their management team.

We didn’t need to get to this moment a moment when major companies are going to go to the wall because they couldn’t deal with the reality that was so clearly before them. Instead, they chose to listen to the people who whispered that it would all be OK in their ears. To steal one more line from Greg. He quotes a Polish proverb:

When someone tells you that you’re drunk, she might be wrong. When three different people tell you, you’d better shut up and go to bed.

The industry is drunk. It needs to wake up and come back with a plan to deal with 21st Century realities. Build a digital business or get ready for the deadpool.

10.08.15
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For Hire: Heading back to the future

Nearly two years after I joined Gannett, and as a result of the ongoing restructuring and latest wave of cuts, I now find myself back on the job market. My job as Executive Editor of the Sheboygan Press, Manitowoc Herald Times Reporter, Oshkosh Northwestern and Fond du Lac Reporter has been eliminated, and my responsibilities shared out amongst other staff.

I feel lucky to have worked with some amazing people, and I want to pay tribute to my former colleagues at all of the sites that I oversaw at some point during the 20 months. You delivered the best journalism that you possibly could; you pushed the envelope and tried new things; you were visible on social media and in the communities; and you rolled with the punches. I’d thank every one of you personally, but they’d start playing the Oscars end-the-speech music. I must thank one person in particular, though: Lowell Johnson, the general manager of Sheboygan and Manitowoc. He taught me a lot about management and the business of local media. More than that, he is a champion for his communities and a great guy. I really will miss working with him.

I saw the handwriting on the wall several months ago, so was already in the process of developing a Plan B. It is essential these days, no matter if you work in legacy media or a VC-funded start-up, to have an eye on other opportunities. Luckily, the market is much better now than in 2013, when I was last looking and the world had barely begun its slow climb out recession. In the past 36 hours, I’ve already discussed some options that have me more excited than I’ve been in years.

That being said, I really want to think broadly about my next steps and I am very much open to exploring other ideas and opportunities. In 1996, I went boldly towards digital because I had seen the future, and knew it was digital. A decade ago, I was sitting in the BBC News Online newsroom chatting with Paul Brannan, then the deputy editor of the site, and he expressed succinctly why we were passionate about what we were doing. “Everyday, we get up and get to create the future of media,” he said. Damn straight. It was thrilling then, and it’s just as thrilling now. My future still is digital.

That’s about the only filter I’ll put on this job search. Here’s my goal:

To find a position that fully utilises my two decades of global experience as a media innovator, leader and executive. That position could be with a disruptive project at a major news organisation, a communications position with a progressive company, a leadership position with a media start-up or a teaching and research position at a forward-thinking higher education institution.

For those of you who don’t know my background, here’s my potted bio and achievements:

  • In 1998, I became the BBC’s first online journalist outside of the UK. We pioneered multi-platform storytelling and audience engagement techniques years before they became mainstream.
  • In 2005, I was part of the launch team of the BBC World Service interactive radio programme, World Have Your Say.
  • In 2006, I became The Guardian’s first blogs editor, and I was part of a team that oversaw a dramatic explosion in the blog network at The Guardian.
  • In 2010, I took a buyout from the Guardian to join Suw and take our media consultancy global. I trained hundreds of Al Jazeera journalists in engagement and social media verification techniques before and during the Arab Spring. Suw and I were part of the launch team for Firstpost.com for India’s Network 18.
  • Since 2011, I have been and continue to be an in-demand data journalism trainer and consultant, working with CNN International, Reed Business International, Czech TV, Singapore Press Holdings and WAN-IFRA.
  • Since 2012, I have been a faculty member for the Eurovision Academy, the training centre for the European Broadcasting Union. I have done data journalism and multi-platform newsroom management courses and am co-presenting a seminar on innovative converged newsrooms.
  • In 2012, I was a member of the management team of the Media Development Investment Fund, which invests in independent media in countries without a history of free media. I was the editorial lead and a on staff consultant for the Fund’s Knowledge Bridge, which was created to help clients in the portfolio transition successfully to digital.
  • From 2014 until recently, I was a regional local media executive with Gannett, overseeing a handful of news sites in Wisconsin. In the first year, we grew reach at the two sites I initially oversaw off the back of strong digital growth. At HTR News Media, we grew reach from 84 percent to an astounding 87 percent.

In an ideal world, Suw and I would love to stay put in Sheboygan. We love where we’ve landed, our lovely little corner of Wisconsin, but we are both realistic and are willing, albeit reluctantly, to relocate.

Good talent is hard to find, and the depth of global, digital experience I have is very rare.  If you’re interested, get in touch.

07.08.15
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Saving local journalism with vision

Local journalism is struggling. It’s struggling to develop revenue streams that will replace the classified and print display ads that it has lost over the past two decade, and I know that we also have a challenge to engage our audiences in this media saturated environment. 

Tom Grubisich of Street Fight Mag gives a great overview of some of the deep thinking going on about local media in the US on his way to laying out his prescription. 

I think the entire local news industry – both “legacy” newspapers and broadcasters and entrepreneurial and corporate “pure plays” – need to get out of their journalistic, Fourth Estate mindset and show their communities that they are all-in. They have to do this not only with residents they want as readers but also local merchants as advertisers. And with everybody else in the civic space. Otherwise, they’ll continue to be minor players in the otherwise thriving local digital space.

Amen, brother. As journalists, we have an almost religious belief in The Mission, but in local media, we must connect with our communities. This week, I’m having the third community forum for my four newsrooms. We’re going out to meet our communities, and this isn’t just a one-off. We’re going to be at farmers’ markets and other community events. We want to show our commitment to our communities and be visible, not just as individuals but as a team. 

Grubisich highlights how Steven Waldman has recommended in his “Report for America” that national and local philanthropic groups should support investigative reporters on two-year placements on short-staffed local news teams to do deep accountability journalism.

But Grubisich believes that “communities deserve more”, and he believes that they news organisations need vision. They need “an auspicious mission”, and he believes that to capture the imagination of Millennials and donors, this mission needs to be something like tracking the huge demographic shifts in the US. 

I think that this is one vision, and I believe that these large thematic stories are important. They help drive conversations in communities and build context for audiences that drive engagement. 

In our regional news group, Gannett Wisconsin Media, we did this with our State of Opportunity project. This project looked at the recruiting challenge companies have in our communities. We’ve getting hit with a double whammy. Our employers can’t fill the openings they have due to a number of factors – drugs, skills gap and the ’Silver Tsunami’. What’s the Silver Tsunami? I’ve spoken to major employers in our communities, and they say that up to 30 percent of their workers may retire in the next five years. That’s not only a huge hit in terms of numbers, but these are their most experienced workers. A lot of talent and skill will walk out the door. If we don’t find a way to meet this challenge in the coming years, our communities will get hit by a huge economic drag when some haven’t recovered from the Great Recession. The next five years are pivotal and will set the future course of these communities. Will they grow and thrive or enter decline? 

And that brings up one caveat that I have about vision. I like Tom Grubisich’s idea, but the vision you choose has to be rooted in your community. We can talk about grand visions and national trends, but these visions have to have local relevance. Otherwise, what’s the point of a local news outlet? That may sound obvious, but with consolidation and centralisation, a lot of these grand visions are driven from the centre to the periphery. What sounds good at larger cities or at HQ may not mean a jot to local audiences. That is a huge, but obvious danger with these macro-trends being the focus of the centralised editorial strategies. 

02.03.15
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Local journalism: Business models that don’t rely on scale

Emily Bell hired me at The Guardian, and she has just delivered a speech in which she says what I already know.

The demands of web scale economics have torpedoed the local news model; they have also driven great invention and a new set of entrepreneurial skills into journalism.

Later she elaborates what web scale means.

A viral story is the holy grail. And viral does not mean a couple of hundred thousand any more, it means millions. Sometimes tens of millions.

I know Emily is right that one successful digital business model is scale, but I don’t believe that is the only business model. It’s just one that works right now, in some contexts. Scale isn’t new – it has always been successful, long before the internet and mobile media came along.

But I’ll sketch out the challenge for local media. I am the editor of a number of local newspapers in the US, and I’ll take one, the Sheboygan Press as an example. The total population of Sheboygan County is 114,922. That’s not even a million, much less tens of millions. And, to make things worse, the internet has undermined many of the geographical advantages that local newspapers used to enjoy.

On this basis, I might as well throw in the towel, but I’m nowhere near ready to do that. The challenge for local news is to create a new range of products for audiences born digital and mobile. For too long we’ve been trying to find a market for the same products that we used to deliver in print, and that just won’t work. We can’t simply write that local council story the same way that we used to and hope that social media will be enough to market it. I’m really not sure that those incremental, process-based stories actually engage audiences. Instead, we need thematic stories and engagement opportunities that tackle big issues in sticky ways.

There will not be a single source of revenue that will replace the fat revenues that we used to earn from print. But I have the insane, audacious belief that I can come up with another business model with multiple lines of new revenue: Digital marketing services, events and social strategies that deeply engage local audiences and make money. As Jim Brady once said to me, there is no silver bullet to save local media, just a lot of shiny shrapnel.

As I did when I was at The Guardian, I’m using third party services, the duck tape and spit of the internet, to bring the cost of experimentation down as close to zero as possible. I’m relentlessly measuring what I do, and I’m ruthless and unsentimental about failure. Learn from things that work and things that don’t work. Learn fast rather than fail fast. And, when we hit on something that works, we’re going to scale as much as we possibly can.

And we in journalism need to get over our aversion to selling. We’re being outsold at every turn, and in order to survive, we need to sell the value of the public service we provide, sell so hard that it will make P.T. Barnum blush. This is an existential battle for attention, and we need to sell a vision of local journalism rooted in service to our communities. And I’m not going to pussyfoot around this, we need to get over our aversion to making some coin.

No, I don’t think that every journalist needs to be out there selling subscriptions and ads, but every journalist needs to realise that the battle for attention that we’re fighting. Every journalist needs to understand the business we’re in and how it is changing.

I know that this is a daunting challenge, but I’ve never shirked from a challenge. Bring it on.