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paulbradshaw
How the web changed the economics of news - in all media

June 4th, 2009 by paulbradshaw

Listening to news executives talk about micropayments, Kindles, public subsidies, micropaymentscollusion, blocking Google and anything else that might save their businesses, it occurs to me that they may have missed some developments in, ah, well, the past ten years. For those and anyone else who is interested, I offer the following primer on how things have changed.

Any attempt to create a viable news operation needs to recognise and take advantage of these changes. I will probably have missed some - I’m hoping you can add them.

UPDATE: Jay Rosen suggests reading this post alongside this one by David Sull: “newspapers are essentially a logistics business that happens to employ journalists”. He’s right - it makes some great points.

1. Atomisation of news consumption

In the physical world news came as a generic package. You had your politics with your sport; finance news next to film reviews. You might buy a paper for one match report. No longer.

It’s probably no coincidence that majority news consumption recently shifted from regular consumption to sporadic ‘grazing‘.

2. Measurability of users

If you placed an ad on page 3 in a newspaper with a circulation of 100,000 or a broadcast watched by 5million, you didn’t think about the readers who only bought that paper for the sport; or the viewers who popped out to put the kettle on - and that’s before we talk about circulation figures inflated by the assumption that every paper was read by 3 or 4 people.

Online you know exactly how many have looked at a specific page. Not only that, you know exactly how many have clicked on an ad. And you know exactly how many made a purchase (etc.) as a result.

There’s more: you know what page the user was coming from and went to; you know what search terms they were using; you know what country they are in, how high spec their computer; and depending on how much data they’re provided, a whole lot more besides.

There are two huge implications of this measurability (which many advertisers are only just waking up to). 

Firstly, advertisers expect more. Online, advertising has moved from a print/broadcast model of paying per thousand viewers (CPM) to paying per thousand clicks (CPC) to paying per action - i.e. purchases, etc. (CPA).

Secondly, it means that editors and managers now know in much more detail not only what readers actually read - but what they want to read (what they are searching for). My name’s Britney Spears, by the way.

3. Mutually conflicting business models

In print you could have your cover price and your ads; online, any paywall means vastly reduced readership because you are cutting out distribution channels - not just Google, but the readers themselves who would otherwise pass it on, link to it and blog about it. You either square that circle, or look for other revenue streams.

4. Reduced cost of newsgathering and production

The technologies were dropping in price long before the internet - satellite technologies , desktop publishing. But the web - and now mobile - technology has reduced the cost of newsgathering, production and distribution to almost nil. And new tools are being made all the time that reduce the cost in time even further. When publishing is as easy as making a phonecall, that causes problems for any business that has to maintain or pay debts on costly legacy production systems.

UPDATE: Robert Brand takes me to task on this one in the comments but also on his blog, where I have responded in more detail.

5. End of scarcity of time and space

Sometimes people need reminding of the basic laws of supply and demand. From a limited availability of journalism to more than you can ever read, any attempt to ’sell content’ must come up against this basic problem.

6. Devaluation of certain types of journalism

If a reader wants a book review most will go to Amazon. Music? Your social networks, Last.fm, iTunes or MySpace. Sport - any forum. Anyone producing journalism in those or similar areas faces a real issue. 

7. The end of monopolies

Just as the scarcity of space has been broken; the scarcity of distribution networks has been blown apart. To distribute information in a pre-web era required significant investment. To distribute information in the web era requires an email account or a mobile phone. Social networks are more powerful and efficient than delivery vans, and you don’t need to sell a certain amount of information to make them viable. 

Oh yes, and that makes news even more perishable than it was before.

Meanwhile, the monopoly on advertising has gone. Where before an advertiser might have had a choice between you and a local freesheet, now they can choose from dozens of local media outlets, national directories, international outlets, search engines, social networks, or spending money on becoming media producers themselves. This competition has driven the cost down and innovation up. What have you done to stay competitive?

8. Cutting out middlemen

Because anyone can publish and anyone can distribute, retailers can talk to customers directly. If Threshers can release a money off voucher directly to customers and it become wildly (too) successful, why should they advertise in a newspaper or magazine? If councils can publish news on their own website, or indeed publish and distribute their own publications, why should they publish announcements in a newspaper? If Coca-Cola can create a ‘brand experience’ on its website, and gather consumer data at the same time, why should they limit themselves to 30 seconds in the middle of Britain’s Got Talent?

9. Creating new monopolies

Google rules this space, not you. Amazon rules this space. iTunes rules this space. eBay rules this space. Facebook rules this space. Craigslist rules this space. If you want to thrive in the new environments you have to understand the contexts within which users operate. Search Engine Optimisation is one aspect of that. Social Media Marketing should be another. Understand how one website’s domination of a particular space of the web impacts on your strategies, and acknowledge you no longer control your own destiny. Yep, Google stole the delivery trucks and Amazon stole the newsstand. Oh, and you gave away a whole lot more too.

10. Digitisation and convergence

When everything is digital, new things become possible. Audio, video, text, photography, animation - all becomes 1 and 0. You need to understand the efficiencies that makes possible, from broadcasting live from your mobile phone to releasing images on a Creative Commons licence or publishing raw data to allow users to add value through mashups. The value of your organisation lies not just within its walls but beyond them too.

11. The rise of the PR industry

The PR industry is often overlooked as an economic influence on the news industry.  Its first influence lies in the way it has provided cheap copy for news organisations, meaning an increased reliance by news organisations on fake events, reports and releases. This will become increasingly problematic as the PR industry starts to cut out the middleman and appeal directly to audiences.

Secondly, the PR industry has an enormous effect on recruitment and retaining of talent in the news industry. In short, news organisations have become a training ground for the PR industry. Journalists who cannot live on newspaper wages have been leaving for PR for some time now, meaning increased costs of training and recruitment (partly because there are few older journalists able to train informally). Furthermore, good graduates of journalism schools are often recruited by PR even before they enter the news industry, meaning the news industry has a problem attracting the very brains that could save them.

12. A new currency

Oh yes, and that money thing? It has competition. The rise of social capital is a key development that must be considered. Anyone who thinks nonprofessional media is not important because it doesn’t have a ‘brand’ or because people will lose interest, doesn’t understand the dynamics of social capital. Many people read blogs and other UGC because they trust the person, not the ‘brand’; many people self-publish because of the benefits in terms of reputation, knowledge and connections. And many people link to news articles or contribute user generated content because a journalist invested social capital in their communities, or an organisation built a platform that helped users create it.

That’s it. Unless you can come up with some more…?

malcolmcoles
Telegraph drops to 5th place in Google results for MPs expenses

May 18th, 2009 by malcolmcoles

Google has dropped the Telegraph to 5th place when you search for MPs expenses for some reason, as revealed here.

Last week Google had pages from the BBC 1st and the Telegraph 2nd - even though the Telegraph is the primary source of all this material.

Today the search results are even worse:

  1. In first place, we have the BBC, with one page from yesterday and from October 2004 - is this what seachers want?
  2. Then comes the Guardian, with its MPs’-expenses landing page followed by a story from Saturday. That might be fair enough for 2nd place.
  3. Then theyworkforyou.com - tangentially interesting I suppose, but the page is dated 2004.
  4. Then the Daily Record from Saturday. I’ve nothing against Scottish newspapers. But really - ahead of the Telegraph?
  5. And finally, the Telegraph with one page from Sunday and its MPs’-expenses landing page.

The Telegraph is benefiting from the 3 news stories above the normal results. And Google is probably having trouble identifying the original source because no mainstream news organisations link back to the Telegraph. But for a topical news story, this set of web search results is really bad.

Search results for MPs expenses at Google

Search results for MPs expenses at Google

paulbradshaw
Search Options: Google adds more intuitive search tools, ‘takes on Twitter’

May 12th, 2009 by paulbradshaw

It’s often said that Twitter’s big advantage over Google is its ability to allow you to conduct ‘real time search’ - if an event is happening right now, you don’t search Google, you search Twitter.

But today Google has announced a series of features that, while still not offering real time search, take it just that bit closer. For me it is the most significant change to Google’s core service in years. 

Here’s the video:

This week, while talking to my students about the ability to search by date in Google, the computer assisted reporting blogger Murray Dick mentioned how unreliable the feature was, so I wouldn’t get too excited. 

What is new, however, is the ‘recent search’ facility, which brings up results from the past hour or two. [Read more]

paulbradshaw
Google’s Schmidt to news execs: You’re great. Join us.

April 7th, 2009 by paulbradshaw

I’m growing tired of waiting for genuine words of insight to come from Google CEO Eric Schmidt when it comes to the news industry. An hour ago he made a speech to the Newspaper Association of America’s annual convention in San Diego, spouting the usual stuff about how great newspapers and journalists are, and providing gems of advice like ”Try to figure out what your consumer wants” and advertising is king.

As for paying for content, he suggested a future of news based on

“three layers of revenue for news content itself - a free model where the majority of readers would converge, a subscription model where readers would pay to access news stories and a micropayment model where news outlets could charge pennies for access to specific topics or content.”

Well there you go.

But he also suggested a future in which the news organisations work with Google to provide a personalised experience for readers (I would link to the WSJ report which included the quote I was to use, but both disappeared behind a paywall as I was writing this - video will appear here, however). 

It’s easy to see how this would work. Marry Google’s personal data on users (location, browsing habits, words used in emails, friends, times of access) and its processing power with a well tagged database of news and you could serve up highly personalised journalism, not just in terms of content but in terms of timing and delivery platforms (”Sarah hasn’t been online all day so she won’t know about the story that broke at 9am, and she is checking her social network now so that’s where she needs it”).

It would of course make Google the iTunes of news, and I’m not sure anyone’s ready to let that happen, least of all the NAA.

UPDATE: Steve Outing makes a more developed argument on what Google should do to help news.

paulbradshaw
War is coming – and AP mustn’t be allowed to win

April 7th, 2009 by paulbradshaw

The tanks are massing at the borders. The officers are drawing up “rules of engagement”. Soldiers are “rattling their sabres”. When times are hard, empires go to war. And so in the coming months we can expect to see “the web’s news cop” The Associated Press ignore the lessons of history and declare war against their perceived enemies.

The AP’s announcement yesterday that it will police the web for what it sees as “illegally” published content is so worrying, on so many levels, that I will struggle to cover everything here. [Read more]

malcolmcoles
Do blogs make reporting restrictions pointless?

March 31st, 2009 by malcolmcoles

The leaked DNA test on 13-year-old alleged dad Alfie Patten has revealed a big problem with court-ordered reporting restrictions in the internet age. (NB This is a cut down version of a much longer original post on blogging and reporting restrictions).

Court orders forbidding publication of certain facts apply only to people or companies who have been sent them. But this means there is nothing to stop bloggers publishing material that mainstream news organisations would risk fines and prison for publishing.

Even if a blogger knows that there is an order, and so could be considered bound by it, an absurd catch 22 means they can’t found out the details of the order - and so they risk contempt of court and prison.

Despite the obvious problem the Ministry of Justice have told me they have no plans to address the issue. [Read more]

michaelhaddon
The next step to the ’semantic web’

March 22nd, 2009 by michaelhaddon

There are billions of pages of unsorted and unclassified information online, which make up millions of terabytes of data with almost no organisation.  It is not necessarily true that some of this information is valuable whilst some is worthless, that’s just a judgement for who desires it.  At the moment, the most common way to access any information is through the hegemonic search engines which act as an entry point.

Yet, despite Google’s dominace of the market and culture, the methodology of search still isn’t satisfactory.  Leading technologists see the next stage of development coming, where computers will become capable of effectively analysing and understanding data rather than just presenting it to us.  Search engine optimisation will eventually be replaced by the ‘semantic web’.

[Read more]

paulbradshaw
3 weeks in: launching a Midlands environmental news site

March 19th, 2009 by paulbradshaw

3 weeks ago my class of online journalism students were introduced to the website they were going to be working on: BirminghamRecycled.co.uk - environmental news for Birmingham and the West Midlands.

The site has been built by final year journalism degree student Kasper Sorensen, who studied the online journalism module last year.

In building and running the service Kasper has done a number of clever, networked things I thought I should highlight. They include:

  • Creating a Delicious network for the site - every journalist in the team has a Delicious account; this gathers together all of the useful webpages that journalists are bookmarking
  • Tweetgrid of all journalists’ tweets - again, every journalist has a Twitter account. This pulls them all together.
  • Twitter account @bhamrecycled
  • Kasper sent the whole team an OPML file of subscriptions to RSS feeds of searches for every Midlands area and environmentally related keywords. In other words, journalists could import this into their Google Reader and at a stroke be monitoring any mention of certain key words (e.g. ‘pollution’, ‘recycling’) in Birmingham areas.
  • He also shared a Google calendar of relevant events

The site itself is clever too.

  • The About page has a list of all contributing journalists with individual RSS feeds.
  • In addition, each author has a link to their own profile page which not only displays their articles but pulls Twitter tweets, Delicious bookmarks and blog posts.

Kasper wanted to explicitly follow a Mashable-style model rather than a traditional news service: he felt an overly formal appearance would undermine his attempts to build a community around the site.

And community is key. When unveiling the site to the journalists Kasper made the following presentation - a wonderful distillation of how journalists need to approach news in a networked world:

malcolmcoles
ABCe website embarrassingly bad

March 9th, 2009 by malcolmcoles

The website of the ABCe, the Audit Bureau of Circulations (ABC) subsidiary responsible for website traffic measurement standards, is embarrassingly bad. [Read more]

paulbradshaw
What won’t happen in 2009 - and what might

December 19th, 2008 by paulbradshaw

This month’s Carnival of Journalism looks forward to new media developments in the coming year. Here are my no doubt misguided and naive predictions:

2009 will not be the year of the mobile web

Every year we make end of year predictions that the coming year will finally see the mobile web hit the mainstream. In many ways, it already has. But any expectations of there being some significant spread in 2009 will be scuppered by the credit crunch: users will be increasingly reluctant to spend money on a smart phone as the purse strings tighten. We’re not all going to be carrying around iPhones.

On the plus side, as a result of that slowdown we can expect mobile service providers to become more competitive in their data rates and packages, so that those who do have smart phones will have more reason to take out a mobile web package. [Read more]

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