Posts about newbiznews

In the End Was the Word and the Word Was the Sponsor’s

and-now-a-word-from-our-sponsor1
We used to know what ads were. They had borders around them — black lines in print, a rare millisecond of dead air on TV, the moment when the radio host’s voice became even friendlier, letting us know he was now being paid to peddle.

Today, under many ruses and many namessponsored content, native advertising, brand voice, thought leadership, content marketing, even brand journalism — advertisers are conspiring with desperate publishers to erase the black lines identifying ads.

When I started Entertainment Weekly, a sage editor sat me down and summarized in one sentence the magazine industry’s voluminous rules about labeling what we then called “advertorials”: “The reader must never be confused about the source of content.”

Confusing the audience is clearly the goal of native-sponsored-brand-content-voice-advertising. And the result has to be a dilution of the value of news brands.

Some say those brands are diminishing anyway. So sponsored content is just another way to milk the old cows as they die. Lately I’ve been shocked to hear some executives at news organizations, as well as some journalism students and even teachers, shrug at the risk. If I’m the guy who argues that news must find new paths to profitability, then what’s my problem?

Well, I fear that in the end we all become the Times of India, where paid advertising and news content are allegedly mixed so smoothly in some areas that readers can’t tell one from the other. Worse, at some news organizations, editorial staff do the work of writing this sponsored content. They become copywriters.

Mad Men Don Draper Peggy Olsen

At the same time, many of these news organizations are using their brands as candy to attract legions of new contributors, which can drastically lower the cost of content. Mind you, I’ve applauded that spirit of openness and collaboration as well as that newfound efficiency.

But here’s the issue: Some media properties have taught me to pause before following a link to them. Sometimes, I’ll find good information from a staffer or one of many contributors who brings real reporting or expertise. Sometimes, I’ll find a weak contributor — or staff — piece that adds no reporting or insight; it merely regurgitates what others have written when a link would be better. (Beware headlines that start with “how” or “why” or include the words “future of” or “death of” or end with a question mark; chances are, they add nothing.) And then sometimes I’ll find one of those sponsor-brand-native pieces only vaguely labeled to let me know its source.

My problems with these trends in news media:

Inconsistency. I no longer know what to expect from news organizations that do this. Yes, I’ve heard editors claim that they work with both contributors and sponsors to improve the quality of their submissions — but apparently, not enough.

Brands used to be selective both because the scarcity of paper or time forced them to be and because that became key to their value. Now they want more and more content. Making content to chase unique users and their page views rewards volume over value.

Conflict of interest. First, let me say that I think we in news became haughty and fetishistic about our church/state walls. The reason I teach entrepreneurial journalism is so that students learn about the business of journalism so they can become more responsible stewards of it. I argue that editors, too, must understand the business value and thus sustainability of what they produce.

That said, I worry about journalists who spend one day writing to serve the public and the next writing to serve sponsors. News organizations should never do that with staff, but I’m sorry to say that today, a few do. Freelance journalists are also turning to making sponsored content to pay the bills.

Thus, I hear of some journalism educators who wonder whether they should be teaching their students to write for brands. Please, no. My journalism school doesn’t do that. Others schools already include courses in PR and advertising, so I suppose the leap isn’t so far. In any case, brands will hire our students because of the media skills we teach them and we need to prepare them for the ethical challenge that brings.

Brand value. Some news companies are exchanging their brand equity for free or cheap content of questionable quality and advertising dollars of questionable intent. As someone who champions disruption in the news industry, you’d think I wouldn’t care about dying legacy media brands. But I do. I see how legacy news companies can bring value to the growing news ecosystem around them through sharing content and audience and someday soon, I hope, revenue. If the legacy institutions lose their value — their trust, their audience, their advertisers — then they have less to give, and if they die, there’s more to replace.

Now here’s the funny part: Brands are chasing the wrong goal. Marketers shouldn’t want to make content. Don’t they know that content is a lousy business? As adman Rishad Tobaccowala said to me in an email, content is not scalable for advertisers, either. He says the future of marketing isn’t advertising but utilities and services. I say the same for news: It is a service.

I’ve been arguing to news organizations that they should stop thinking of themselves as content businesses and start understanding that they are in a relationship business.

News organizations should not treat people as a mass now that they — like Google, Amazon, and Facebook — can learn to serve them as individuals. Can’t the same be said of the brands that are now rushing to make content? They’re listening to too many tweeted media aphorisms: that content is king, that brands are media. Bull.

A brand is a relationship. It signifies trust and value. Advertising and public relations disintermediated the relationship that commercial enterprises used to have with customers over the cracker barrel. Mass media helped them bring scale to marketing. But now the net enables brands to return to having direct relationships with customers. That’s what we see happening on Twitter. Smart companies are using it not to make content but to talk one-on-one with customers.

Here’s where I fear this lands: As news brands continue to believe in their content imperative, they dilute their equity by using cheap-content tricks to build volume and by handing their brand value to advertisers to replace lost ad revenue. Marketers help publishers milk those brands. And the public? We’re smarter than they think we are. We’ll understand when news organizations become paid shills. We understand that marketers would still rather force-feed us their messages than simply serve us.

What to do? The reflex in my industries — journalism and education — is to convene august groups to compose rules. But rules are made to be pushed, stretched, and broken. That is why that wise Time Inc. editor over me at Entertainment Weekly (as opposed to the oily ones who tried to force me to force my critics to write nicer reviews) summed up those rules as a statement of ethics. Again: “The reader must never be confused about the source of content.”

Well, if we’re not in the content business, then what is the ethic by which we should operate now? I think it’s even simpler: “We serve the public.”

If we’re doing what we do to fool the public, to sell them crappy content or a shill’s swill, to prioritize paying customers’ interests over readers’, then we will cannibalize whatever credibility, trust, and value our brands have until they dry up.

So am I merely drawing a black rule around advertising again? Don’t we hear contributors to a hundred news sites rewrite the same story every day — that advertising is dead? Well, yes, advertising as one-way messaging is as outmoded as one-way media. Oh, we in media will milk advertising as long as advertisers are willing to pay for it. But we know where this is headed.

Then do media companies have any commercial connection with brands? Can we still get money from them to support news? I think it’s possible for media companies to help brands understand how to use the net to build honest, open relationships with people as individuals. But we can teach them that only if we first learn how to do it ourselves.

Some will accuse me of chronic Google fanboyism for suggesting this, but we can learn that lesson from Google. It makes 98% of its fortune from advertising but it does so by serving us, each of us, first. It addresses its obvious conflict with the admonition, “Don’t be evil.” (When Google has failed to live up to that ethic — and it has — its fall came not from taking advertisers’ dollars but instead from seeking growth with the help of malevolent telcos or tyrannical governments.) Note well that Google sees the danger of sponsored content, which is why it has banned such content from Google News.

Whether you like Google or you don’t, know well that it provides service over content, enabling it to build relationships with each of us as individuals while also serving advertisers without creating confusion. Google is taking over huge swaths of the ad market by providing service to users and sharing risk with advertisers, not by selling its soul in exchange for this quarter’s revenue, as some news organizations are doing.

My advice to news organizations: Move out of the content — and sponsored content — business and get into the service business, where content is just one of your tools to serve the public.

downton1

(Crossposted from Medium.)

Selling ads by time, not space

I just saw some mind-bending work Chartbeat is about to release about measuring the time users spend exposed to an ad online.

As background, to quote Chartbeat CEO Tony Haile: “Chartbeat monitors activity by checking in with users every second and looking for signals (mouse movement, key strokes, etc) that show they are actively consuming the content in front of them. This means they can measure how long readers spend actively engaged on a page and what parts they’re reading. Because of this Chartbeat knows how long are actively reading while an ad is in view — both for an average user and the cumulative time of all users.” Chartbeat then did some internal research that found high correlation between engaged time exposed and a user’s ability to recall the advertiser’s brand and message. This has many implications:

* Measured this way, ads that appear down alongside the middle of a story turn out to be more valuable than the supposedly premium banners at the top of the page. That’s because people quickly scroll past those banners and all the big hair on the top of the page — logos, promos, and all that — to get to the substance of an article, where they spend time. So inventory that was undervalued becomes more valuable.

* Chartbeat suggests this means that quality content that engages people longer yields better ad performance. That, they say, would be a good thing for better content makers everywhere.

* Now web publishers can sell time like broadcasters — only this is assured exposure time. Advertisers like buying time. Will this make them more comfortable with buying on the web?

* I think this enables publishers to take on some risk for advertisers — guaranteeing them assured exposure time — thus increasing the value of what they sell.

* I wonder whether this spells trouble for the big-ass ads and takeovers we users try to escape as quickly as possible.

* I also wonder whether this spells trouble for the slideshows and other gimmicks that pump page views without increasing time spent exposed to an ad.

* I’d like to think this opens opportunities to find new value in ads next to videos and games and also — this could be important — mobile pages (though don’t think that mobile’s value will come from exposure to messaging; it will still come from knowing people and serving them relevance and value). The longer we spend on a page, the longer we see the ad, the more valuable the ad should be, right?

* I can only hope that this is another nail in the coffin of the dangerous, old-media-like metrics of unique users and pageviews. Engagement will matter more.

A sample report on an ad location:

Screenshot 2013-05-15 at 8.20.04 PM

Those who declare advertising dead are Mark-Twaining-it, I think. There are still many things to learn to find more effectiveness and value in advertising online. This is just one lesson. I say the real value of the net and mobile is in relationships: in learning more about people by delivering them more value so we can be trusted to deliver them greater relevance and value and, in turn, extract greater value from the interaction. More on that later….

It’s not about content: Part I

Brands (read: advertisers) are following media down the wrong path, deciding that they, too, are media now and that they, too, should make content to draw customers to their messages (thereby, by the way, getting rid of that middleman, media).

I’ve been arguing that media should build their futures around relationships, using content as a tool to that end. I’d say that is even more true of brands.

Yesterday, Samir Arora, CEO of Glam (where — full disclosure — I’ve been an adviser), tweeted a link to Marc Andreessen arguing that Ning, the company he cofounded and sold to Glam, is about to come into its own as it is remade for brands. That got me thinking about brands’ direction.

Whatever platform they use — Ning, Facebook, Google+, Twitter, blogs or all of the above — is less the issue than the culture that enables its brands and its employees — every one — to talk with and build relationships of value and trust with customers.

We’ve all seen this happen on Twitter when we get pissed off at some unfair or unrighteous action by a company; we appeal to sanity; an employee — sometimes the official tweeter, sometimes just a decent soul — rescues us; our relationship with the company is redeemed.

That is the model for brands online. I thought we’d learned that years go. Apparently not quite. Today not only are brands making content in their own domains but they now want to make content in media’s space; we used to call that an advertorial but now that is apparently called — in jargon that appeared from nowhere — “native advertising.” WTF does that mean?

Mind you, brands should indeed create content and make it available — about their products so we can find every question we have answered. But that’s utility. That’s not what brands talk about when they become media. They make this:

Screenshot 2013-03-12 at 11.24.24 AM

Huh? How is that really any different from slapping a banner onto content? Oh, yes, it’s supposed to make us associate the Droid Razr Maxx HD with exotic locales and long battery life. But Motorola would do better to finally produce a decent phone, in which case, we the users would advertise it. I do hope that’s a lesson Google teaches them. Google understands the value of building relationships with individuals and using knowledge about them to deliver relevance and value. Isn’t that the wise future of media … and marketing?

Hyperlocal cooties

Another hyperlocal venture is struggling, and each time this happens, I fear hyperlocal gets more cooties. But I refuse to give up hope because there’s a reason for each fall, there’s much still to do, and it’s still early.

The latest: Carll Tucker’s Daily Voice (née Main Street Connect) closed 11 of its sites, lost its CEO and other executives, shut some offices, and fired a bunch of people to cut its burn from $500k to $150k per month, according to Street Fight.

In hyperlocaland, Tucker was known to be particularly cocksure, saying he had the secret and — in the surest sign of hubris — raising large amounts from investors. Some smirk at his fall. But if he can now survive, then I’ll celebrate.

Tucker’s mistake, like Patch’s, I believe, was in thinking too big too fast. Before they nailed the business and knew what worked, they multiplied the model and thus the mistakes, which only threw accelerant on their burns. Perhaps they also thought too big. I’m not sure hyperlocal can be big — that it can scale, in the argot and desire of investors. More on that in a minute.

But first, in other cootie news: Patch recently cut staff and I’ll argue as I long have that they are creating closed sites when they should be building open (and more efficient) networks. NBC* closed Everyblock, though I was never sure why it fit there. Village Soup died, and I would still like to know more about its specifics. TBD was murdered before it ever had a chance to live thanks to parental politics. Add these to earlier cootied corpses: The Chicago News Cooperative had neither a business model nor cash from donors. Bayosphere failed sometime ago and I think its founder Dan Gillmor would acknowledge a lack of a business model. It was sold to Backfence, and its founder, Mark Potts, has very generously shared his lessons learned. There’s a reason behind each one of these.

At the same time, there are hyperlocal sites that are proving to be sustainable. Unfortunately, it’s pretty much the same list we’ve had for sometime: Baristanet, West Seattle Blog, NJ’s TheAlternativePress, Red Bank Green…. We analyzed these blogs a few years ago at the Tow-Knight Center for Entrepreneurial Journalism at CUNY, and found local blogs that then were able to bring in upwards of $250k in ad and other revenue.

There’s something that ties the survivors together:
1. They are small.
2. They are the products of a great deal of hard work by very dedicated journalists/publishers.
3. They are very much a part of their communities (which makes it difficult to parachute in any kid just out of J-school, I’m afraid).

Hyperlocal is going to be built this way, a town or city neighborhood at a time, I think. Are there enough dedicated journalists willing to do this hard work and to risk and sacrifice better paying alternatives (read: PR or flipping burgers, for that matter) and to learn how to do culturally distasteful things for journalists like sell ads and do business? In New Jersey alone, we have 565 towns and given this state, each is an opportunity ripe for corruption that needs to be covered. Even if we say that one hyperlocal site could cover three towns (some are small), that’s still more than 150 bloggers needed. I’d say we have a bit more than a dozen in the state now. Is it reasonable to think we could get 10+ times more? No. But I’d be ecstatic three three or four or fives times more.

I think we see a model for what’s possible in blog-rich Brooklyn, where there are scores of local blogs. CUNY runs The Local there, now solo, after The New York Times pulled out of its hyperlocal endeavors (another cootie). One of my entrepreneurial students is on the way to starting what I think will be a great service there (more bragging about him when he’s ready). It is possible. But they all need help.

This is why I worked with Montclair State and the Dodge Foundation (where — disclosure — I’m an advisor) to help start the NJ News Commons in New Jersey. My hope — OK, call it a dream — is that it and others (like NJ.com, which — disclosure — I helped start and where I’m now an advisor) can help make it feasible for an unemployed journalist — and we have lots of them — or a caring community member to start a site to serve a community bound by geography or interest. Among the things the Commons will do to help:
1. Aggregate, curate, promote, and distribute the best of the content created by independent members of the New Jersey news ecosystem. Debbie Galant has started a content sharing network enabled by Repost.US.
2. Train local publishers in the skills they need: new media, journalism, and especially business. That’s just beginning.
3. Coordinate collaborative projects so the independent members of the ecosystem can do together more than any one can do apart. That is beginning and I think it will grow with coverage of Hurricane Sandy recovery, which will be helped along with grants coordinated by Dodge and the NJ Community Foundation.
4. Provide services, which we hope may include everything from health and libel insurance to technology platforms to make it easier for sites to start with less effort and risk.

All that is well and good but it doesn’t address the key question, the only question of hyperlocal: revenue. This is where commercial endeavors must enter. In our modeling at CUNY, we saw the need for this work in revenue:
1. Better ad sales by hyperlocal sites serving merchants with more than just banners but also helping them with their digital presences. At CUNY, we looked at the digital lives of 1,000 merchants in a city neighborhood and a suburban town and saw great opportunity to help them. I don’t expect every hyperlocal publisher to innovate this. They need help. But I see big business opportunity here for entrepreneurs (or Patch).
2. Ad networks that aggregate audience from independent sites so they can for the first time get a piece of revenue from larger advertisers. This is likely something that needs to be done by a larger local media company (e.g., a newspaper or broadcast outlet).
3. Explore new revenue opportunities, such as events and newsletters. We are sharing lessons from sites that have found these to be surprisingly successful.

Still, this is hard work. It’s guerrilla warfare, a hill at a time. And that gets us back to the question of scale and one more need: funding. Hyperlocal ventures are caught in a terrible chicken-egg omelette. Funders will back ventures only if they scale, if they’re bigger than one town. Promising scale is how Daily Voice, Patch, Backfence, Everyblock, and other local ventures got funding. Striving for scale is what made them each perhaps grow too far too fast. Maybe the truth is that hyperlocal won’t scale. One entity won’t own thousands of towns and their sites because the successful site is very much a part of the community. OK, but each of those small ventures still needs funding to at least cover loses until an audience and a set of advertisers can be served. Where will that money come from? Journalists aren’t rich — especially now — and don’t have rich friends and family.

The more we can create the hyperlocal-site-in-a-box for would-be local entrepreneurs, the better — giving them membership in larger revenue networks, methodology, technology, and services like insurance. That will lessen the start-up cost and the risk. But they’ll still likely need some money to get them started.

This is where I believe that local patrons, local media companies, and especially foundations should be putting their resources: not into supporting journalistic charities or into building yet more gee-whiz cool tools but into helping to start sustainable journalistic enterprises with grants or convertible loans. Some will be gifts. Some will be investments — not big, scalable, exit-strategy, Silicon-Valley, technology platform investments but investments the size of a bakery. We need more bakeries for news.

When it comes to the information needs of communities, I’m less concerned about national coverage — Washington will always be overpopulated by scribes and cable will overcover disasters — and more concerned about local, especially the very local. That is where I hope we turn our attention. I also hope we do not get discouraged by the occasional cooties.

* Note: I changed the reference to Everyblock from MSNBC to NBC at the suggestion of Everyblock founder Adrian Holovaty.

Voluntary media

Two important but too-unsung women in media — performer Amanda Palmer and Google ad exec Susan Wojcicki — met at an idea this week: that media and advertising are becoming voluntary.

They also touch on ideas I’ve been trying to write about: that media should be in the relationship business, not just the content business. In other words, media’s value isn’t necessarily intrinsic in content — as in, “you should pay for this product because the work to create it has value” — but can be realized in the relationships that form around content.

First, the amazing Amanda: She gave a rousingly received TED talk that has been seen almost half a million times already in which she argues that artists should not be afraid to ask for support, a lesson she learned as a street and stage performer and on Kickstarter. The nut of it via BoingBoing: “By asking people, you connect with them, and by connecting with them, they want to help you. ‘When we really see each other, we want to help each other. People have been obsessed with the wrong question, which is, How do we make people pay for music? What if we started asking, How do we let people pay for music?’”

Value comes to Amanda through relationships. Given the opportunity, people want to support her. In a very good post today, Reuters’ Felix Salmon contrasts her model with Andrew Sullivan’s. His purposefully mimics big media’s — from The New York Times to The Times of London: building a pay wall around content because content is valuable, damnit.

I’ve been arguing to media that relationships are more valuable. Knowing people because you have their trust and give them value builds a rich and deep relationship — builds data about that relationship — that can be far more valuable for far longer than a mere transaction.

The problem in media is that we are not built for that. We are built to serve the masses. Hell, we made the masses. Our manufacturing and investment and technology and business models have all been aimed at serving people in bulk, never as individuals because that wouldn’t scale, not in the age of presses and broadcast towers.

But now relationships do scale. See: Google. Now serving individuals scales even better and is even more valuable than mass media. Enter Susan Wojcicki, senior VP of advertising at Google, who wrote an important post on Google+ about the future of advertising. The nut of it: “In years to come, most ad views will effectively become voluntary.” Or as she also put it, choice shifts to the user in both content and advertising.

Just as it becomes difficult — in an abundance-based media world — to force people to pay for content, which is no longer scarce, it also becomes impossible to force them to see advertising, which may become more scarce (and perhaps more valuable). That means it won’t be advertising. It will be something no one — including Google — has invented yet. But Wojcicki’s thinking about what that can be. I’d bet on her finding it over a legacy media company just as I’d bet on Palmer finding a new model faster than a record company can.

The argument about paywalls — and copyright and the value of content — is the wrong argument. It’s an argument about trying to preserve old, industrial media model in a very different technological reality. I get accused of trying to kill paywalls or free content. I’m not. I’m just arguing that we need to recognize new opportunities because if we don’t, someone else will. Read: Google. Read: a street performer.

The discussion we should be having is how better to build valuable relationships of trust with people as people, not masses, and then how to exploit that value to support the work they want us to do. We can’t force them to do what we want anymore. For now, media are voluntary.

Why The Daily is counting its days

The Guardian asked for my take on the death of The Daily. Here it is (with links that fell out on the way to London):

On Twitter, I’ve already been accused of schadenfreude over the death of News Corp.’s soon-to-die, pay-walled, tablet-only, once-a-day news venture called The Daily.

Not so. I’d have loved to have seen an online-only news service make it. But The Daily was, in my view, doomed from the start because of all the adjectival modifiers listed above.

First, the pay wall: News Corp. proprietor Rupert Murdoch has elevated charging for content to a religion. He says people should pay for his products (though I’ve never seen a successful business plan in a competitive market built on the verb “should”). He turned his Times from an internet presence of note into a footnote because he insisted upon putting it behind a wall.

With The Daily, Murdoch wanted to prove that he could start and we would buy a news product online. But he forgot a key lesson of selling subscriptions, one he surely learned when he owned magazines: that it takes a lot of marketing expense to acquire customers. It costs money to charge money.

When it started, I calculated that The Daily would need to net at least 750,000 subscriptions — 1 million when accounting for cancellations (aka “churn”) — to break even on an operating basis, what with a share of sales going to Apple on the iPad. Murdoch promised he would sell “millions.” In the end, it reached 100,000 subscribers, not nearly enough to compensate for a reported $30 million in development cost and $500,000 per week burn rate.

Mind you, I am not against charging for content. I will happily sell you my books. But The Daily wasn’t much worth paying for. Though it looked quite nice and its content was competent, that content was all-in-all just news and news is a commodity available for free in many other places. Larry Kramer, publisher of the much-larger USA Today, just said with admirable candor that he can’t put up a pay wall online because his product “isn’t unique enough.” Ditto The Daily.

Next, The Daily started as an iPad-only offering. Eventually, it branched out to the iPhone and to Android tablets (but only for Verizon telephone customers) and the Kindle. I hope that other publishers learn from this misguided “mobile” strategy. Too many have dreamed that the tablet would return to them the control over brand, experience, and business model that the web and its links took from them. Too many think they need to create new products just for so-called mobile devices (though we actually often use them when stationary, at desk or on couch).

No, a news organization should have a strategy built around relationships with individuals, serving them wherever, whenever, and on whatever platform they like. My needs don’t change just because the device in my hands does.

Finally, there was the absolutely befuddling decision to make The Daily daily. News was only ever daily because it was forced into that limitation by the means of production and distribution of print. The internet freed us from those shackles of time. Why put them on again? Nostalgia?

In the breakup of News Corp. that is the real outcome of the London news scandals and the Leveson inquiry, the new company had to start cleaning up its books, getting rid of money-losing ventures. The Daily was the first to go. But there are more in that stable, starting with the New York Post, which loses, by one account, $110 million a year just to give Murdoch what he has long called his “bully pulpit.” Now he has a bully pulpit with almost four times more subscribers for free on Twitter. Can The Post’s obit be far behind?

The news we can afford

I want to see news organizations grow again. But first, they must finish shrinking. They must decide what they can afford to be.

That is what is happening with Advance reducing publication schedules and resources in New Orleans and other of its markets. That is what happening with Journal Register as it declares bankruptcy to restructure its liabilities given present reality. I recommend you read Josh Benton’s and Rick Edmonds’ analyses of this latest business move.

Now please take what I say here not just with a grain of salt but with a salt lick as I advise both Journal Register and Advance, where I also worked for a dozen years. I was not part of these decisions. But I support them because I want to see newspaper companies find their water level of sustainability so they can again invest in the future.

Of course, there is not one answer to the question of what they can afford. In his statement on Journal Register’s move, CEO John Paton said that legacy costs undertaken under different circumstances are now unsustainable. Bankruptcy presents an opportunity to renegotiate many of those costs, including leases, contracts, and pensions.

These are hard decisions with difficult consequences for many people. But not addressing the issue will only turn out worse, squandering dollars every day the tough decisions are put off.

After too many years in denial, we all know now that newspapers, no longer monopolies and having lost their pricing power in the face of abundant competition, must be smaller if they have any hope to survive; there is no magic bullet that will set things “right” and return the business to what it was. They must find new efficiencies through consolidation (see Digital First’s Project Thunderdome and other companies bringing together shared work), collaboration (with the community and a larger news ecosystem), and specialization (do what you do best — in the case of local newspapers, that is being local — and link to the rest). They must reconsider their business models, looking for new opportunities, and also their relationships with the public.

I do believe that newspapers, rethought, can be sustainable — that is, profitable. The first step is to make hard financial decisions such as the ones discussed here. The next is to make the transition to digital, to put digital first, to become sustainable digital enterprises.

But all that gets us is survival. Then comes the real work: rethinking what a newspaper is, what its relationship with its community can be, where it adds value and how it may then — and only then — extract value. That is why I also spend my time trying to challenge assumptions about the forms, relationships, and models of news, asking unpopular questions such as whether we should even consider ourselves a content business. That is why I teach entrepreneurial journalism: to empower students to start new businesses based on new visions without the drag of legacy assumptions and obligations. But I do believe that newspaper companies can also find their sustainable future. That’s why I work with them as well. I want to see them survive and once again prosper, innovate, and grow.

None of this is easy. Much of it is unpleasant. But it is necessary.

Reporters: Why are you in Tampa?

I challenge every journalist in Tampa for the Republican convention — every one of the 15-16,000 of you — to answer this:
* Why are you there?
* What will we learn from you?
* What actual reporting can you possibly do that delivers anything of value more than the infomercial — light on the info, heavy on the ‘mercial — that the conventions have become?
* Would you be better off back at home covering voters and their issues?
* Can we in the strapped news business afford this luxury?

Figure that those 15k journos spend $300 a night each on a hotel room times five nights, plus $500 for transportion. That’s $2,000. And I’m figuring they’ll be slurping up free meals and drinks. So $2,000 is probably (pardon me) conservative. That’s $30,000,000. Now multiply that times two conventions. That’s $60,000,000.

Why? For what?

Note that even while newspapers and news organizations have shrunken drastically, we are sending the same number of journalists to the conventions that we sent in 2008 and 2004.

Why? Editorial ego: It’s fun to be there, in the pack. It’s fun for a paper or station to say, “We have our man/woman in Tampa/Charlotte.” Well goody for you.

It’s a waste.

Take that $60,000,000 and divide it by a fully loaded labor cost of, say, $100,000 per head and it would pay for 600 reporters for a year. At $50,000 for a hyperlocal reporter, we’d get 1,200 towns covered — more than Patch! What could they do versus what you will do in Tampa and Charlotte transcribing marketing messages and horrid memes?

Or we could pay for Homicide Watch 1,500 times over, instead of just paying attention to a shooting that happens where tourists wander.

Those 15,000 journos will — three-to-one — cover 2,286 delegates (6,000 for those spendthrift Democrats) wearing funny hats, saying nothing new.

At least 3,775 newspaper jobs were lost last year; 39,806 since mid-2007; one in three newsroom jobs have been eliminated since 1989. How’s that make you feel, convention press corps?

We can see whatever we want to see on C-SPAN (and I don’t begrudge the networks for giving us America’s Got Talent instead of the conventions since at least AGT has surprises; the conventions are scripted).

Commentary? There’ll be more than we can possibly use this year on Twitter and Google+ and blogs and everywhere. We don’t need to pundits’ palaver. Citizens will comment this year.

So enjoy yourself, hacks. You’re living off the last dollars of your business. And for what? Tradition? Where has that gotten us?

Please prove me wrong. In a week, show me the amazing reporting we couldn’t have gotten if you weren’t there.