Archive for the ‘Newspapers’ Category

Gary Pruitt lies to stockholders

Thursday, May 20th, 2010

Gary Pruitt, at McClatchy’s shareholders meeting Wednesday, boasted of “McClatchy’s unwavering commitment to public service journalism” and vowed that the publishing company would continue to “provide relevant, high quality journalism.”

Anyone who reads a McClatchy newspaper knows the quality of the journalism has declined precipitously as the company has cut positions, and anyone who works for, or has worked for, McClatchy knows that its management is committed only to the bottom line — money.

Pruitt bases his claim of ongoing quality on national recognition of the work of three McClatchy papers: The Kansas City Star winning the Robert F. Kennedy Award, the Belleville (Ill.) News-Democrat winning the George Polk Award and the McClatchy Washington Bureau being named as a Pulitzer Prize finalist for national reporting. But this work, and other solid reporting at McClatchy newspapers, is the work of local journalists who remain dedicated to their profession, not McClatchy. Pruitt gloms onto their efforts while he has eliminated the jobs of about a third of their colleagues and makes plans to eliminate more.

Perhaps the job cuts were inevitable given the economy and the changes in the newspaper industry. But to maintain that they have not adversely affected the quality of the newspapers is simply a lie and an insult to those whose lives have been disrupted by these layoffs.

Pruitt is every bit as despicable as the CEOs of BP, Wall Street banks, Big Tobacco and other industries who care solely about profits and don’t give a thought about who they use or hurt along the way.

Newspaper circulation fall is slowing

Tuesday, April 27th, 2010

Newspaper circulation fell again in the last six months recorded but not as precipitously as it had the six months before, figures released Monday by the Audit Bureau of Circulations show.

“[A]verage weekday circulation fell 8.7 percent in the six months that ended March 31, compared with the same period a year earlier,” the Associated Press reported. “Sunday circulation fell 6.5 percent.That’s a slight improvement from April through September of last year, when average weekday circulation dropped 10.6 percent from a year earlier and Sunday circulation fell 7.5 percent.”

“In a way,” the AP report continues,  “the new circulation figures mirror the industry’s advertising trends. While most major newspapers continue to see ad revenue decline compared with year-ago figures, the drop is becoming less extreme. Newspapers are getting some help from easy comparisons — they are holding their latest ad numbers up to results from the depths of the recession — but economic improvement is also starting to restore advertising budgets.”

Some of the loss comes from a shift in focus, according to Advertising Age. “Newspapers have, on the other hand, gotten smarter about managing their paid circulations — sometimes abandoning areas outside their core markets, for example, where advertisers were less interested in appearing and distribution costs were greater. Some have increased newsstand and subscription prices, too, in an effort to improve circulation economics. Those factors combine to depress paid circulations.”

The Ad Age report, at the link above, includes a chart with figures from the nation’s top 25 papers based on circulation.

Gannett leads off 1Q reports with a hit

Friday, April 16th, 2010

Cost cutting and a not-as-bad advertising climate in the first quarter made Gannett Co. look good in its 1Q earnings report Friday, and the tide lifted not all but some boats.

“Gannett did not issue formal earnings guidance for the current quarter or the rest of the year, and CEO Craig Dubow declined to give specifics on how ad revenue is shaping up in April,” The Associated Press said. “But he told analysts on a conference call that the year was ‘off to a great start.’ He added: ‘The momentum that we had at the end of the year continued through the first quarter.’

“Gannett was the first major publisher to report earnings for the January-March period and could offer a preview of what will come next week from McClatchy Co., Lee Enterprises Inc. and The New York Times Co.”

After surging to a new 52-week high of $19.68 in early trading, Gannett shares retreated to $18.04 Friday afternoon, down $0.10 on the day. McClatchy rose $0.42 to $6.46, and Lee shares jumped $0.31 to $4.35. The New York Times was down $0.36 to $12.35.

Gannett, which owns USA Today and more than 80 other daily newspapers along with TV stations, said its net income jumped 51 percent despite a 4 percent decline in revenue. Last year it cut 1,400 jobs, or about 3 percent of its work force.

As for McClatchy, which reports April 22, “JP Morgan forecasts that ads will be off by 8.4 percent as circulation continues to grow,” says PaidContent.org. “While the circulation gains might not offset negativity on the ad front, cost-cuts should help margins jump to 25 percent from 1Q ’09’s 12 percent. Ebitda should rise 91 percent to $83 million.

“In general, McClatchy’s heavy presence in Florida and California means that its fortunes are directly tied to the economic winds in those two troubled states. Ultimately, that will add to the general industry-wide woes affecting the publisher.”

Christian Science Monitor growing, earning online

Wednesday, April 7th, 2010

The Christian Science Monitor, which stopped publishing a daily print edition in March 2009 and is mostly a Web-only operation, has seen a 60 percent increase in traffic but has earned about half of the projected ad revenue, says Media Jobs Daily quoting Media Matters.

The CSM actually maintains a weekly print edition, which has seen 79 percent circulation growth since its launch, Media Jobs Daily says.

Meanwhile, the company projected $870,000 in online ad revenue in its first year, but only brought in $490,000.

“The paper also extended a buyout offer to its 85 editorial employees, and four accepted,” says the blog, which focuses on media industry employment, recruitment and career development.

“But … there’s still 81 newsmen and women working at this paper, which is a heck of a lot more than the number of people at any other online-only outfit we can think of.”

News & Observer records solid first quarter

Tuesday, April 6th, 2010

Employees at The News & Observer in Raleigh fearing a new round of cuts with the end of the year’s first quarter were able to exhale Monday. A memo  to employees from Publisher Orage Quarles III says the newspaper exceeded “budgeted goals in all categories” during the first three months of 2010.

The note gives few details, but credits “better than expected advertising revenue performance and a continued focus on expenses.” The Advertising Department’s “third annual online sales blitz” racked up “more than $1 million in annualized sales,” Quarles adds.

“There are still question marks about the economy and its effect on our ad revenues, but we are seeing signs that the worst may be behind us.  We certainly hope so,” the memo says.

Newspaper revenue sinks to 23-year low

Thursday, March 25th, 2010

Another bad report about newspaper ad revenue: the Newspaper Association of America, a group that some accuse of spinning too positively for its industry, said this week that ad revenue hit its lowest level since 1986 after a drop of 27 percent in 2009.

But the $27.6 billion in 2009 revenue looks worse when you adjust for inflation, the Associated Press’ report says. The $27 billion earned in 1986 “would equal nearly $53 billion in today’s dollars.”

On the other hand, “ad revenue in the final three months of the year fell 24 percent from a year earlier to $7.7 billion — the smallest quarterly percentage decline of 2009.

“‘Unfavorable trends for newspaper ad spending continued to diminish as the fourth quarter progressed, a sign that business conditions have begun to gradually improve,’ NAA President and CEO John Sturm said in a statement.”

Coupon software bypasses design staff

Friday, March 19th, 2010

In another move sure to lead to cost savings through job cuts, Media General has launched software that allows advertisers to create their own coupons and run them in the newspaper.

The program, which debuted at the Richmond Times-Dispatch and could be rolled out to the rest of the chain’s properties this year,  is enabling more small businesses to advertise in the paper, says Newspapers & Technology magazine.

Weekly Clipper is built on the AdLizard self-service ad platform. Users log in and are taken through four steps that allow them to build their coupon using a template or to upload their own ready-made design.

Denise Ballinger, director of self-service and the ad product marketplace for Media General, told News & Tech she “hopes to implement even more of the self-service features AdLizard can provide to allow advertisers to completely manage their own accounts.”

Ad spending fell 12.3 percent in 2009

Thursday, March 18th, 2010

We’ve been out-of-pocket for a few days and we’re shoveling through the e-mail. Most significant so far is the report from Kantar Media, formerly known as TNS Media Intelligence.

“Ad spending in 2009 came in at $125.3 billion, a drop of 12.3 percent compared to the prior year,” the report says, according to Crain’s New York Business.

“The good news was that fourth-quarter ad spending fell by only 6 percent. In addition, preliminary numbers for the first quarter of 2010 show most media categories doing better than they were a year ago, said Jon Swallen, a senior vice president at Kantar Media.”

This is worse than a previous report from Medill Reports that said overall U.S. advertising spending was down 9 percent for the year last year. (Kantar isn’t limiting its number to the U.S., perhaps.)

According to Kantar Media, “radio fell 20.3 percent, local television plunged 23.7 percent, magazines dropped 17.4 percent and newspapers 19.7 percent.” Network television was down 7.6 percent for the year but turned around in the fourth quarter to rise 4.1 percent. Cable TV was  down just 1.4 percent.

Internet display advertising rose 7.3 percent.

“The biggest turnaround may be taking place among newspapers,” Crain’s says. “According to Mr. Swallen, advertising is flat so far this year, which puts the category on track to record its best quarter in two-and-a-half years.”

European papers understand added-value

Monday, March 1st, 2010

Advertising Age takes a look at how European newspapers are charging for content online. “The consensus … is that a hybrid model is the best option for most businesses as publications seek to develop potentially lucrative relationships with paying customers without losing the volume that comes from offering free content.”

The top example: “Le Figaro’s approach, 14 months in the making, keeps the main newspaper content free but offers two other options at $10 and $20 a month. Premium users get access to in-depth information, special offers, twice-daily newsletters, roundtable discussions with journalists, the opportunity to see their own content on the home page of the site and a concierge service that can arrange everything from theater tickets to shirt cleaning.”

Premiums are key, the report says. “In 52 countries around the world, 71 percent told Nielsen that online content would have to be better than what is available free before they would pay for it, and 79 percent would not use a site that charges them if they can find the same information at no cost.”

Lots of numbers, most of them bad

Friday, February 26th, 2010

Medill Reports presents a roundup of advertising spending for newspapers and magazines from 2009, including a couple of graphs and, as anyone who’s paying attention could tell you, it’s not a pleasant sight.

On the deep end, according to Nielsen figures, local Sunday newspaper supplements show a 45 percent drop in ad revenue. Business-to-business magazines show a 33 percent plunge, and local magazines sank 24 percent. (Sunday supplements and local magazines. This is why we have time to write this blog.)

The bright spots were a 32.2 percent jump for Spanish-language cable television and a 15 percent gain for cable television. FSI coupons were up 12 percent.

In a trend that extends to 2006 at least, overall U.S. advertising spending was down 9 percent for the year last year. In 2008, U.S. ad spending fell 2.6 percent.