Schmidt's Advice to Publishers

I was stuck at home with the flu so couldn't get out to the Newspaper Association of America's conference in San Diego. Bad one to miss. Most of recent years' events would have tested an insomniac's affliction, but this year, Eric Schmidt was brought in as a headliner to kick some -- er, motivate publishers to seek new ways to reach out to readers and focus on, wait for it, advertising.

Now, really, that is priceless: The 10-year old Internet prodigy telling the century old media scions a thing or two about audience development and making money from eyeballs. According to my friend and Nstein colleague, Christopher Hill, who bore witness to Schmidt's carefully chosen words in his closing keynote, Schmidt attempted to move the dial from foe to friend, appealing to publishers' egos by calling papers trustworthy and curators of the public record. He almost sycophantically exalted the printed form versus the web presentation. Simultaneously he wove in bits on cloud computing, networking and data mining. All of these strings were tied up with the meme of innovation. With these technological tools and newspapers' strengths for story-telling, he gave advice on how newspapers be more relevant -- and make money. But the fun began when the Q&A started. Someone asked Schmidt to speak frankly about what newspapers have done right -- and what would he do if his 'fantasy' came true and he woke up to find himself a publisher! He praised them for getting onto the web back in the 90s. Then he took a circuitous path to a direct hit: "What have you done for a second act?"

He said that first and foremost he would try and figure out what his reader wanted. Ha!! Those words transported me back to 1995 -- when we were launching two new "ezines" for IN Jersey's portal: The Surf Report and Neo. The duo were unapologetic in its embrace of Gen Xers who shunned pro-sport coverage (a staple of newspapers) in favor of X-treme action like surfing and (snow & skate) boarding. Our coverage was superb (yes we used real writers) and our national and even international following for both were robust and enthusiastic. At the time we asked our sister dailies if they wanted to repurpose our efforts in print. I might have just as well asked them if they would like to pepper their food with cockroach feces.

Newspapers thought they could shovel their product from their editorial systems to their web content management systems, and all would be right with the world. Any attempt to create content outside the bastion of the newsroom was met with contempt. There was no room for innovation for a newsroom back then. Neither in how they presented the news online - nor in their understanding of what was news.

While everyone blames the Internet for eroding print sales, could it be that the real problem was that newspapers didn't adopt coverage to their changing audiences? As if playing hot potato with NFL and MBA coverage "no, really, you take it" the major tv networks realized they just couldn't get the fan following particularly in the 18-35 audience -- and cut back accordingly. And that was a decade ago. And yet, papers devote proportionally massive real estate and man-power to covering pro sports, yet are derisive when they cover surfers who "flaunt the laws, and surf during rough weather." Just whom are they appealing to?

Last month at NAA's MediaExchange, Chris Dorsey, Digital Media Sales Director for Forum Communications paper in Fargo, ND was on a panel on contextual advertising. Dorsey was explaining how contextually speaking, Fargo is a cold place, and what is of interest to his constituents is what to do when it is cold -- or when the river rises. Beer blasts and drying up wet basements. So Dorsey created a home-page product called "Marketplace Offers." For $149 a month, businesses can advertise Ladies' Nite Specials or offers to remove mold. Every listing has a print or mobile response -- all facilitated by the paper -- a vendor doesn't need to have an IT staff at the ready to do this. Readers can subscribe for daily emails of specials. This morning's count: 125 business offers, or nearly $20,000 in monthly revenue for something with that should be exceedingly high margin (self-serve sales origination page).

This is what Schmidt was talking about. Know your audience and create a service that reaches it. Don't try and lock your content behind a paywall -- unless you cover a niche market and have created value for that information. What information do people find valuable? Is it alerts to buy a new car or to be notified of job opportunities?

The lesson is not just for newspapers, but magazines, bloggers, ecommerce folks, anyone. People pay for that which they perceive to be valuable – whether it is a lead, a job tip, where the ladies' night specials are -- or how to dry a wet cellar.