Mark Zagorski, chief marketing officer of MediaSpan Group, says newspapers come from a position of real strength when it comes to offering users quality content. But why aren’t they exploiting that advantage?

Mark Zagorski
 

What are some of the issues facing newspapers in the online advertising market?

Versus standalone Web properties and portals, newspapers come from a position of real strength when it comes to quality of content and audience — two things that national advertisers (particularly leading brands) love.

 

However, they have done a poor job communicating these advantages, keeping them lost in the clutter of the “other 30 percent” — that is those properties not amongst the top 10 Web sites that generate 70 percent of online revenue. Part of this problem comes down to reach — individual newspapers and even small groups on their own have a tough time getting noticed because they just aren’t big enough to demand the attention of media buyers.

Local media networks and some of the new newspaper consortiums are helping in this effort, but there is still a long way to go before newspapers can claim their deserved share of national dollars.

How has online advertising changed over the past few years?

Over the last several years, advertisers have moved away from trying out online advertising to shifting large chunks of their dollars to their online efforts. And these budgets have begun to trend to the extreme ends of the impact spectrum. They are either exceptionally back-end focused or, by contrast, focused on cross-media brand plays embodied in viral ad campaigns typified by such stunts as home page takeovers or integrated sponsorships.

Sometimes the same brand pursues both strategies. What is clear is that standard, CPM-based display ad sales are rapidly becoming a thing of the past.

What trends do you see with online advertising technology?

1. Better targeting through behavioral marketing solutions, contextual programs and more database consolidation efforts amongst large publishers and networks.

2. More extensive integration and tie ins. Product placement isn’t just for television. Advertisers are demanding to become more a part of the fabric of Web sites. Sponsored advertorials, custom microsites, and integrated promotions will grow as a percentage of the overall spend.

3. Richer, more immersive ads. What does run in unit will most likely feature compressed video, dynamically changing messaging based on user activity and the ability to receive more information or even transact within the unit itself.

4. More participatory ad activity. Advertisers have cautiously waded into the world of user-generated content, sometimes with questionable results. However, as content moderation and filtering techniques improve, advertisers will become more comfortable with leveraging users’ content in their online activity.

5. Transportable audience data. Much to the chagrin of privacy experts, user information will be moved from Web to wireless to set-top box. Ad serving technology will begin to cross media to leverage this.

What are some of ways newspapers can maintain their online advertising base?

1. Innovate. Don’t fear new ways to engage advertisers with integrated sponsorships, rich media vehicles and special online programs and content.

2. Move out of your comfort zone. Embrace video, user-generated content, social networking solutions and other applications that engage your audience with content and your advertisers with the audience.

3. Don’t cede your brand to anyone. It is still a newspaper’s strongest asset and should be leveraged and promoted. Partnerships are great, but not at the expense of what you have built offline.

4. Continue to focus on your core clients — local advertisers — and don’t underestimate how savvy they are. The big guys  like Google and Yahoo are already courting them with innovative, measurable online products. You must respond in-kind.

5. Build more connections between your print product and your Web product, between your editors and your readers, between your advertisers and your audience. Break down the walls that separate them and advertisers will embrace the enhanced engagement.