Detroit Newspaper Has Sad Event

Increasingly, the idea of going out in your front yard to get a newspaper in a plastic bag that is littering, is outdated before it hits the grass, and you paid for, seems ridiculous. It appears I am not alone as circulation for such publications are decreasing dramatically and advertising revenues shrink. The only ones who seem to be slow at "getting it" are the newspapers themselves. That finally seems to be changing.

I grew up in Michigan at a time in which some of my neighbors received the Detroit Free Press daily, while others got the Detroit News. Some even had the morning or evening edition. My father liked the Free Press in the evening. We even received the Daily Tribune which focused on Oakland County. Now the only real player in Detroit newspaper news is the Free Press (they have had a marketing agreement with the Detroit News for around two decades) and it made an announcement that would have been unheard of a decade ago, but seems long over due today.

Paul Anger, Editor of the Detroit Free Press wrote:

"The newspaper industry can identify with the American auto industry -- we have important products and similar emergencies that demand bold, immediate action. The transformation announced Tuesday by the Detroit Free Press and the Detroit Media Partnership is such an action, unique in the country. Some newspapers have reacted to crushing business realities by not publishing on certain days, or drastically slashing their news-gathering staffs, or exploring outsourcing of local reporting and editing jobs overseas -- or all of the above. The Free Press chooses a path not traveled."

With that eloquent introduction I expected something really big. Anger, unfortunately, disappoints. Their description of the up coming changes are filled with hyperbole, but not much substance and certainly not the paradigm shift that is necessary for tackling the onslaught being brought on by the Internet. Even as Anger details the heart of the changes, it is done in the context of inevitable defeat, stating "we do not make these moves lightly. We know that delivering the Free Press to homes three days a week -- Thursday, Friday and Sunday -- instead of seven will disrupt many breakfast-table routines. Fact is, though, those routines have already changed as many people tune in to the news by laptop or cell phone." In sum, since your not missing the newspaper, why deliver it seven days a week? The likely retort to this is, if that's the case, why deliver it at all?

The new Free Press encourages you to take action, pointing out that they are "offering a digital subscription to the Free Press that combines both worlds -- a way to go online and see the newspaper pages, including ads, exactly as they appear in print. You can sign up at freep.com." Unfortunately, the new Free Press -- like the old -- is anything but free. Unlimited monthly access is $12.50 a month. Unfortunately, that goes against the prevailing trend that has made the Internet so popular. People don't want to pay for such content and because of competition, typically don't have to.

Following these few details, Anger serves up a great deal of information on the research that went into the decision. This includes surveys, consultants, and other methodologies to assure us that this decision is in all of our best interest. In the end, Anger's well written document makes one conclude that the writing is already written on the wall for traditional media. The Free Press' current efforts are only trying to slow down the ink from drying.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Meet the Accumulators and How to Reach Them

The economy and market place are changing rapidly. The growth of the Internet are making consumers more demanding than ever. As a result, marketers have begun to identify a class of people that is quickly being defined as the "Accumulator Class." This group is one of two major trends in marketing that this article will focus on and it has has the following unique characteristics:

• Typically, they are in their mid 30s to early 50s.
• They are one of the top income generating groups. They are affluent or are optimistic in their ability to be affluent and want to leverage their time towards that objective.
• They are at the point in their careers where earning income for their families and future are among their greatest goals.
• They have come to realize that the leveraging of their time is the most important thing they can do to increase their wealth. Therefore, unlike earlier generations that would be inclined to do it themselves, this group realizes it makes more sense to pay someone else to do it (whatever "it" is). They tend to center their lives around convenience and are very demanding.
• This group takes control over as much of their time as possible. No longer do they read stale weeklies with yesterday's news or agree to meet Brian Williams or even Katie Couric at a specific time for information. Many go to the web and tie a few video or audio programs into their own, customized, news broadcast (or podcast). In fact, the average viewer of nightly news is 60 years old. This group is still comfortable with being where its told to be to get the information they want, but they are of little interest to most marketers.
• If you are interested in reaching this group of Accumulators, you are going to have to design your marketing towards meeting the specific demands of these drivers.
  

A second major trend after recognizing the accumulators is the rise of educational marketing. In many respects, this is the corollary to the first point. People have grown impatient with advertising and will usually only trade their time for information. Currently, radio stations are trying to persuade listeners to stay with so-called free radio rather than paying for it. Currently, approximately 10 million Americans, most in the demanding Accumulator Class, have made the shift to XM or Sirius. They are willing to pay not to hear advertising. So how are advertisers reaching a reluctant audience? The following are a few examples:

• They are sponsoring shows and putting their name on it, like the old days.
• They are requiring the audience to look at advertising before they can get their information. Apparently, busy consumers are willing to make a trade off, since recent data has shown that the fastest growing way for getting news is through on-demand resources.
• Increasingly, businesses are buying air time in order to convey information, rather than merely doing an infomercial. Many of the radio and TV shows you now see are far more sophisticated than their infomercial ancestors. They know that people will not watch a 30 minute commercial any more than a 30 second one.
• These same sources take a multi-informational approach. They provide free newsletters, have programs on TV and/or radio, and virtually always have a website.
• Virtually every business is developing innovative ways to use educational marketing and find it essential to their future success.

In sum, highly sophisticated consumers are forcing advertisers to give them what they want, the way they want it, and when they want it. These individuals drive the new marketing environment. The only businesses that will thrive are those who develop a marketing plan that acknowledges such.