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A couple of separate reports caught our eye this morning, which we suspect might be related.
Johnston Press, publisher of over 300 regional titles in the UK, is going to start a trial to see if its readers are willing to pay for its online content. The websites of local papers like the Whitby Gazette will apparently charge for full access to stories in a similar way to wsj.com.
It will be interesting to see if smaller publishers like Johnston start talking to search engines in the same day WSJ owner Rupert Murdoch reportedly is. While readers still are able to get around paying for ‘premium content' by accessing it via a search engine, the case for paying remains far less compelling.
Just to remind you why all these novel revenue streams are being explored, it's not just end-users that are showing a reluctance to support the media. The global recession has accelerated a trend that was already underway - a drop-off in overall ad spend. While companies have as great a need as ever to communicate with the market, they seem to be increasingly unwilling to invest in the media to help them do so.
Another report out recently from the IAB (Internet Advertising Bureau) revealed that 86 percent of UK companies plan to increase their spend on social media next year. In other words, advertisers are increasingly trying to bypass the media and communicate directly with their market.
From a marketing directors point of view this must be a tempting proposition: reallocate the money you would previously have spent on the media to a team of in-house social media specialists, who you have complete control over, and who spend all day online, spouting evangelical hyperbole about your company and its products.
There's just one problem with this strategy: people want independent, third-party advice. Yes, through social media you can ask your ‘friends' what they think of a product or brand, but everyone's got an opinion.
The community of trusted, professional, third-party journalists forms the foundation of any PR and even social media strategy. If advertisers don't wake up and smell the coffee soon, they will be forced to confront the limitations of direct marketing to an increasingly savvy and sceptical audience. Good luck with that.
