The blog post below, from the Suburban Newspaper Association of America, unintentionally offers the perfect illustration of the illogical thinking of many publications in regards to pay walls on web sites. On one hand, the author, Deb Shaw, points out that newspapers are the primary initiators of local content and that other mediums, including citizen-written efforts and blogs are ill equipped to displace newspapers in this role. On the other hand, the author ominously quotes a survey showing that most Americans want their news for free and would search elsewhere for content if it was not given away free by publications.

Search where? If local newspapers are not writing it, readers can search all they want, it won't exist. I want a new car to be free but no matter how many auto dealers I go to the darn things still cost money. Besides, am I missing something, hasn't the last 10 years taught publications that the cost of creating content and distributing it free on websites outweighs the revenue that can be generated by online ads of any form? On some level it is supply and demand- online advertisers are buying traffic and there are so many online opportunities that supply online has far outstripped demand, thereby deflating ad rates and that will make it tough for originally produced free content to be paid for entirely by paid advertising anytime in the near future. 

If you disagree with me and want to read more of the "give-it-away-free-because-someday-traffic-will-result-in-revenue" philosophy go to the SNA's website, here.

Weathering The Perfect Storm

As many Mediabids.com publication users know, in addition to our conventional sales, we have been offering per-response advertising for the past three years. It is not for everyone but for many publications it is a great way to supplement revenue and get some real data on the results generated by their print editions. For any registered Mediabids publication interested in finding out more, click on "Place a per-inquiry ad" on the left hand side of your home page (www.mediabids.com) for a complete listing of advertisers we offer. 

The Suburban News Association recently announced a partnership with Valassis that is similar in it's intent. They intend to place coupons on publications websites and pay the publications per-printing of the coupons. Clever idea. It is interesting that SNA decided to bring this to their membership, since most pay-per-response advertising is best for publications when it generates new revenue from advertisers who would never, otherwise, use the publciations as a marketing tool. In the case of Valassis they are offering grocery coupons that are not uncommon in local newspapers on a per-response basis. So it is two steps forward, one step back. That being said, overall it is a move in the right direction.

We continue to believe that print publications and their websites work - too often publications are afraid to take the steps necessary to prove it.