May 17, 2012

Main Street Connect Takes a Slower Approach to National Hyperlocal

The dream of building a national network of hyperlocal websites is still alive and well. Main Street Connect is hoping to take on AOL’s Patch, and according to Ellie Behling, they’re taking a more slow-and-steady approach to growth:

Main Street’s hyperlocal model, Tucker explained, is focused first on building profitability in one group (or “pod”) of 10 sites in Connecticut’s Fairfield County (e.g. TheDailyNorwalk.com). He said they’re on track to be profitable in 12 months, enabling them to raise a second round of funding.

This makes more sense to me than Patch’s fast expansion, but I’m still not convinced any national network of hyperlocal sites will pan out financially. The value of hyperlocal is not just in the news coverage, but in the relationship a hyperlocal journalist has with local business owners. A regional sales rep can never emulate that relationship, and without it, I don’t think most hyperlocal websites can turn a profit.

What do you think? Are Patch or Main Street Connect viable options financially? Or does the sales staff have to be as hyperlocal as the journalist?

The Psychology of Bloggers vs. Journalists: The Flip Side

Jay Rosen has a long and thoughtful post about what drives the ongoing rivalry between “bloggers” and “journalists.”   He points to five sources of stress on journalists, driven by the rise of blogging:

One: A collapsing economic model, as print and broadcast dollars are exchanged for digital dimes.

Two: New competition (the loss of monopoly) as a disruptive technology, the Internet, does its thing.

Three. A shift in power. The tools of the modern media have been distributed to the people formerly known as the audience.

Four: A new pattern of information flow, in which “stuff” moves horizontally, peer to peer, as effectively as it moves vertically, from producer to consumer. Audience atomization overcome, I call it.

Five. The erosion of trust (which started a long time ago but accelerated after 2002) and the loss of authority.

From my time in a newsroom, this list rings true. All the stuff  above is stressing out the journalists I worked with, whether they fully realize it or not.

But what’s stressful for traditional journalists is liberating for bloggers who are doing journalism themselves. And that outlook is what motivates a lot of the bloggers with hyperlocal news sites.

Here’s the flip side of Rosen’s list, seen from a blogging journalist’s perspective:

  • One: The collapse of the traditional advertising model frees up money for blogging journalists, many of whom have other jobs, and who started their sites as a hobby.  Digital dimes don’t feed the family, but they can help blogging journalists buy a few extra things they couldn’t have afforded otherwise.
  • Two: Competition? What competition? Blogging journalists have nothing to lose, so they’re usually ready to cooperate at every turn. Being open to cooperation, instead of protective of an existing business, leads to innovation in coverage, and a better product.
  • Three: As beneficiaries of the media power shift, blogging journalists don’t often think in terms of “us” and “the audience.” For many hyperlocal sites, for example, the concept of audience participation is baked into the coverage from the beginning. Besides, when you’re a 1-person operation, accepting help from others is not really optional.
  • Four: The peer-to-peer spread of information is great for blogging journalists, partly because audiences have shifted their expectations about what they’re reading in the news. Starting with the rise of 24/7 coverage, readers have begun to realize that real-time journalism can lead to some speculation — and they’re okay with that, as long as the speculation is clearly labeled. Blogging journalists are often more willing to post a piece of the story, letting readers in on the coverage process as it happens.
  • Five: Trust is much easier to build as a person than as an institution. And this is where blogging journalists shine.  Hyperlocal bloggers are part of the community. The most successful ones don’t remain detached, but let their personalities seep into the news coverage. People respond to that — and earning the trust of a community is invigorating. That trust alone is enough to keep many blogging journalists motivated.

The stresses of hyperlocal bloggers are entirely different from those of traditional journalists. For the most part, they’re self-imposed: “I need to post more often,” or “I could be making more sales calls on clients.”

For traditional journalists, the stresses are institutional–built into the nature of their jobs and the businesses they work for. That’s why the rivalry between “journalists” and “bloggers” will continue to exist, even after most of the other distinctions between the two have broken down.

Is Hyperlocal Media Really “Seriously Challenged” Financially?

Another Negative Nancy about hyperlocal journalism. This time it’s analyst Claire Enders, who says hyperlocal funding is “seriously challenged,” in remarks reported at Journalism.co.uk:

Speaking at a Westminster Media Forum event on local media, the founder and chief executive of Enders Analysis said hyperlocal websites could learn from the model succesfully used in community radio, where hundreds of volunteers give up their time because they “care a lot about their communities”.

I have a couple of issues with this analysis. First, what does Enders even mean when she says “seriously challenged?” This is a key question, because “seriously challenged” to one entity might be “well-funded” to another. For example, if a newspaper or radio station makes $30,000 on a hyperlocal venture, it probably considers that funding “seriously challenged.” If I make $30,000 on my 1-man media outlet in the Midwestern US, that’s a pretty good start.

The trouble with analyzing hyperlocal news sites financially is that the baseline for success is usually set as if the sites are traditional media operations. They’re not — or at least they don’t have to be, if they’re started by an entrepreneurial journalist. There’s plenty of local funding out there to turn a hyperlocal media outlet into a business. You just have to work hard and be creative to find it. Engaging the community — both readers and businesses — is the first step in doing that.

Why Big Media Shouldn’t Worry Your Hyperlocal Site

An article in The New Yorker says the AOL hyperlocal venture Patch is probably too costly to last very long. In a nutshell, author Ken Auletta says the hyperlocal sites created by Patch are not creating compelling enough content to stay in business — not without spending a lot more money to pay people to create that content.

He’s right, I think, that there’s not enough money in ad revenue to make Patch worthwhile. But that’s not an indictment of the hyperlocal concept. The thing that makes hyperlocal coverage valuable is not the national aggregation of hundreds of little-bitty audiences for national advertisers. It’s the customer service offered to local advertisers by a local media outlet operated by a local businessperson. Patch can gather local content, but until it can reach into each community and offer personal service to each business, the hyperlocal nut will remain uncracked.

Scannable Advertisers

To build a successful hyperlocal media business, you need to know more about marketing than your clients. That allows you to come up with lots of creative marketing projects they haven’t thought about before. QR codes are one example.

What are QR Codes?

You know how everything in the grocery store is tagged with a scannable barcode that includes tons of information about a product? Now there’s a way to pack that kind of information just about anywhere. And it’s a huge opportunity for your local media outlet to stand out as a marketing expert for your business partners.

QR (“quick response”) codes are similar to standard UPC codes. You can generate codes for just about anything, and those codes are linked automatically to a website, or a phone number, or a block of text. Anyone with a code scanner — you can download free ones for your smartphone — can scan the code. Their phone will automatically open the website, or call the phone number, or display the text linked to that code.

What Does This Mean for Your Media Business and Clients?

There are endless possibilities with QR codes. ReadWriteWeb published a list of 5 ideas. Here are three other ideas:

1. For a client’s Facebook fans, create a QR code that links to a special, “secret” page that offers them 10% off their next purchase. Only by subscribing to the Facebook page can they access the discount.
2. Create a series of fliers branded with your media website’s name. On each flier, put a different QR code. Post them inside your sponsor’s businesses, and encourage your readers to collect all the codes. Put a different clue in each location and give away a prize to the person who solves the puzzle.
3. When you’re at a public event, hand out information telling people what QR codes are and how they work. Put a QR code on the handout, and link it to a page on your site that lists a special offer from an advertiser.

If anyone has successfully used QR codes in a campaign, I’d love to hear about it in the comments.