As
media consumers and communicators become more and more selfish with their time
and space, the tailored newspaper may be moving from dream to reality.
Case
in point: At last month’s IfraExpo in Leipzig, Germany, delegates from all
over the world were able to obtain their local newspaper from home, at the time
that it was produced at home.
Printed
locally on OcŽ’s latest Web-fed local digital printing press, each copy
included a section devoted to the show that contained a range of content of
professional and social interest to the delegates.
The
purpose is to demonstrate the integration of on-time international presence and
local relevance, tailored to the needs of a special interest group. No doubt
NewspaperDirect, which has offered digitally printed newspapers through hotels,
and Satellite Newspapers (previously PEPC Worldwide), which provides digital
printing “kiosks” in hotels and airports, will have promoted their wares.
The notion of digital printing is beginning to emerge. Within two years it will
have arrived.
Factors
coming together
But,
I hear you say, digital printing has been two years away for the last 15 years.
What is so different now? In fact a number of factors are coming together that
will accelerate not only the availability of appropriate technology, but also
its adoption by publishers and readers.
First,
manufacturers are reaching a point of viable production, where full-color
newspapers can be produced at acceptable speed and cost, on technologies akin to
those used within computer printers and photocopiers.
Costs
per copy are falling as equipment prices, in particular ink and toner, continue
to fall to earth.
The
second is the realization by publishers that an alternative business model
exists, driven by the specialist needs of readers and advertisers.
Until
now, all parties have accepted the notion of the newspaper as a compendium of
minority interests, where much if not most of the content appealed to different
minorities among the readership. In this model, everyone was happy, because
there was something for everyone.
More
relevance
Readers
and advertisers are demanding more relevance and less wastage.
Readers
increasingly only have time for things that interest them. In Scotland, where I
live, a reader typically only reads a quarter of his newspaper’s content.
Fewer than 25 percent ever read the business pages and less than a third ever
read the real estate section. About 35 percent read the help-wanted ads.
What’s more, average issue readership of these issues is far lower.
As
a result, advertisers are turning to direct marketing methods as a means of
reaching more of their target audience at less cost.
Consider
the following: A typical U.S. daily newspaper generates $830 in advertising
revenue per copy sold, per year, or $2.70 a day.
But
given that not everyone reads every section, and that readership of supplements
or sections containing many of the key advertising categories is a only a small
proportion of the readership, I would estimate that advertising revenue in one
read copy of a real estate supplement is probably well in excess of $10, in a
read copy of a recruitment section as high as $15.
The
economics of read advertising as opposed to distributed advertising are very
different. The value of tailored copy would seem to justify some increase in the
cost of production. And then there is the issue of the amount of money saved in
unread, undistributed newsprint.
Opens
the door
More
interestingly, this approach opens the door to expanding the readership of those
people interested in real estate but not so interested in subscribing to the
newspaper.
In
the United Kingdom (where 87 percent of newspapers sales are single-copy), most
publishers have little knowledge of who their readers are, relying on retailers
to sell single copies or in some cases take on their own home deliveries.
Profiling
readers’ needs is difficult and the means to distribute a copy tailored to
those needs is, in most cases, impossible. But this is not the case in the
United States, where 76 percent of newspapers are delivered to named
individuals.
Yet
another factor in the march toward the tailored newspaper is the role that XML
is increasingly playing in newspaper production.
I
was looking at a system recently that automatically selected, and placed,
stories according to the reader’s needs and priorities on a formatted page.
Using XML, newspapers can tag articles according to subject and priority of
position. That means it is now possible to produce a copy of a newspaper that
contains only those stories of interest to a reader.
With
this strategy in place, an editor could decide to provide key news stories plus
only the additional material that the reader has selected and paid for - giving birth to the a la carte newspaper.
Targeted
ads
Similarly,
advertising could be selected and placed according to the readers’ interests
or advertisers’ targeting. The digital printing machine would then produce and
label that copy to that specification.
Digital
printing has applications in less adventurous, but potentially interesting ways.
In
Finland, one newspaper is experimenting with a digital printer to produce 200
copies for a town at the edge of its circulation area, which is difficult to
reach in winter.
Such
an application can be used to greatly reduce the costs and times of
distribution. Another option is to produce highly localized supplements for one
neighborhood, or even to insert pages of a newspaper from another country in
order to appeal to an ethnic minority group living in a neighborhood of another.
Jim
Chisholm is strategy advisor to the World Association of Newspapers and director
of the association’s Shaping the Future of the Newspaper project, which looks
at new developments in the newspaper industry. He can be reached via e-mail at jim.chishold@futureofthenewspaper.com.
More information about the project is available at www.futureofthenewspaper.com.