Community papers faring better than metro dailies

Community papers faring better than metro dailies

By Jeremy Stoltz
News Editor

Amidst all the talk of falling revenues and staff reductions at the large metropolitan daily papers, community newspapers, while affected by the challenging economy, are still performing much better than the industry as a whole.

“Community papers are much more optimistic,” said Ray Carlson, executive director of the Inland Press Association. “I think most of them are disappointed that they are being tarred and painted with the same brush that the metros that are having trouble are.”

According to fourth quarter 2008 financial data collected by Suburban Newspapers of America (SNA) and the National Newspaper Association, total advertising revenue for community newspapers was $428.7 million, a 6.6 percent decline from the same quarter in 2007. In comparison, overall industry decline in the fourth quarter was 21 percent.

SNA reports showed a 2.7 percent decline in the first quarter of 2008 compared to 2007, a decline of 2.4 percent in the second quarter and a decline of 1.7 percent in the third quarter. These are substantially better numbers than the overall industry declines reported by the Newspaper Association of America of 12.85 percent, 15.11 percent and 18.11 percent respectively.

According to SNA figures, full year 2008 decline for community papers was 3.6 percent, compared to double digit decreases for the industry in general.

Additionally, SNA reports show that only half of the reporting companies had staff reductions in 2008, while 26 percent launched new products in 2008.

“The majority of community newspaper companies have not laid off staff,” said Nancy M. Lane, SNA president. “Many have made reductions through attrition.”

Community newspapers are benefiting from their ability to deliver local audiences for local advertisers, many of which have a more conservative approach to expenditures and have not rushed to move their ad dollars online, unlike many national brands.

Focusing only on local news has aided community papers as well by virtually monopolizing local news reporting and not allowing room for competitors to siphon profits.

“The big problem with the larger companies is they present themselves as big targets for competitors,” Carlson said. “They also have, in most cases, engaged in a lot of borrowing and leveraging that is haunting them right now.”

For community papers, the shift from print to online has not been as dramatic.

“I don’t know of very many, if any, smaller operations that are very profitable in the online operation,” said Carlson. “Most of them are hopeful but not productive of profit.”

Most local papers still see less than 10 percent of their revenue from the online product, said Lane.

“Community publishers do not see the print business going away,” she said. “Print is extremely important to the future success of the community newspaper industry. Truly local news, at the neighborhood level, has not migrated to the Web in a big way.”

Therein lies a big factor for the continued success of community papers: their published information cannot be found elsewhere. The front page of the Chicago Tribune or Sun-Times is typically national and international news, most of which a reader can find from numerous other sources.

In comparison, if Market Day shifts from Saturday to Sunday, the community paper, or its accompanying Web site, is the only place for area residents to find that information.

Another positive sign for the industry is that the success of local papers has shifted the marketing strategies of large advertisers, like big-box retailers and other national chains.

“The future is bright,” said Lane. “Major and national advertisers are shifting more and more dollars into community papers and their Web sites. That is going to continue for many years.”

Posted on Thursday, June 25, 2009 (Archive on Thursday, July 02, 2009)
Posted by jstoltz Contributed by jstoltz

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