Unique Challenges in the Local Media Space

A conversation with Peter Krasilovsky, Program Director, The Kelsey Group

For those of you that tuned into yesterday's Webinar, you heard how IYPs are developing innovative programs to prove performance across channels for their advertisers.  Recently, we spoke with Peter Krasilovsky (who filled in yesterday for Matt Booth) about some of the unique challenges in the local media space, particularly facing the newspaper industry.

Peter, who has recently rejoined the Kelsey Group as its program director for the Interactive Local Media Conference, also blogs at The Local Onliner and this year wrote an in-depth report on the state of local newspaper advertising for the Newspaper Association of America.  Next week, Peter will be hosting a Webinar with the NAA where he will dive into more detail on that report. 

eStara: We've seen studies that show more than 75% of consumers use online research to influence offline (in store) purchases. This seems like a big opportunity for newspaper to leverage their positioning with local retailers. What are some of the things they're doing to enhance these relationships?

PK: Newspapers used to take for granted that retailers would give them ‘credit’ for store walk-ins. But with circulation dropping, and so many sources of information out there, newspapers need to prove their impact. Some of the things we’ve seen newspapers do include things like extending distribution via out of home kiosks; partnering with retailers on coupon programs; and adding sponsored directory assistance services. But relatively few newspapers are doing these things now. They are kind of a pain to prove a simple thing: their value.

eStara: You've said on your blog that ROI for local advertising is generally measured by tracking phone calls, and yet you also state that it remains a challenge for these local ad sellers to figure out where calls are coming from and the conversion rate of calls. What are some suggestions you have for improving this process?

PK: We’ve seen newspapers have great results with two phone-based approaches. One is dedicated phone lines, using call tracking vendors. These provide a distinct phone line for every ad. They are expensive, but if there is a large advertising budget, it pays for itself pretty quickly. Another approach that we like is to have click to call functionality built right into the website. There really is no better way of seeing results from advertising than a phone call delivered right off the home page.

eStara: As the online world grows, are print media concerned about cannibalization of advertisers? How are traditional media companies approaching these potential conflicts with their channel offerings? And how are they dealing with the emerging threat of Internet brands such as Ebay and Google?

PK: Newspapers have been challenged by advertisers that seek to replace a very lucrative revenue stream (run of print advertising) with cheaper alternatives, such as online ads. But our recommendation is that they hold on to their advertisers at all costs, and provide a consultative sales environment that acknowledges all the great alternatives that advertisers have. Newspapers should focus on what’s best for their advertisers today. Then they can worry about up-selling additional value components later. For instance, we believe newspapers are well positioned to sell contextual search placements, vertical placements, directory placements and coupons. Just hold on to the customer. You know, the funny thing about national companies like Google is they are very pleased to have local media companies sell for them. Yellow Pages do it all the time. They know they don’t have the effective sales reach into the community that newspapers have.