News is a commodity. However, the average person may not agree. You may see news as an unalienable right – a piece of public property that can and should be consumed by the masses on a daily basis. But to news organizations, like Austin American-Statesman, KXAN-TV, NPR, or even Perez Hilton, lots of money is made from news every day. The money, of course, comes from many different pockets – subscription services, ad revenue, charitable donations, merchandise sales, etc. Though the news is out there, we must view it through these media filters – and the color of that filter has always been relatively green.
This is a bow-on-top view of how the news industry has profited over the last hundred years. But, as we all know, the world is changing. So news organizations have to change right along with it.
Monday, INK sponsored a Social Media Breakfast at the Statesman offices. The discussion focused on how news and social media can combine seamlessly to bring news to the online community. However, an important question was raised during the conversation that got me thinking: “How can news organizations use social media to make money?”
This question has plagued many print newspapers as they have shifted content to the online space. It is easy (and free) to go on Statesman.com and read headlines on the topic of your choice – whether it is UT Football, K-12 education, or simply how to be a good mom. With this content right at our fingertips, more and more people are getting their news online, which means print subscription services are plummeting. Yes, the economy is part of it, but a changing media landscape is also to blame. Reporters are still writing, calling sources, researching, fact-checking and editing. The labor is consistent. In fact, with more layoffs occurring, reporters now have to work even longer and harder to make up for the HR changes. But are news media companies seeing the same profits? Answer: no.
Now, news content is infiltrating social media as well. Almost all of the major news sources have a Twitter account and consistently update it with breaking news stories (i.e. more time being spent by reporters). However, the difference between this form of readership and viewing Statesman.com is revenue. Sure, it would be great if everyone read headlines on Twitter and then linked to the corresponding web page (and then became so enamored with the publication that they bought a year subscription), but is that really happening? Or do followers simply read the tweet, re-tweet it, and be done with it? And if they are doing the latter, what has the Statesman gained by tweeting the news at all? Certainly no advertising or subscription money – but isn’t there more than just money?
The panel spoke of qualitative results. If “tweeps” follow @statesman and see them as a trustworthy news source, they are gaining an audience, credibility and a brand for themselves. This is definitely important in the social media sphere. Having a presence there means having a presence with millions of plugged-in consumers and thus building a positive brand reputation. But is it a smart business move? Does it contribute to the bottom line?
At first, the answer may be no, but that is a tricky question with a lot of marketing decisions. The Statesman seems to view its social media presence as more of a PR move, rather than a for-profit move. The company wants to build community and personality. It wants to be a news source that is more than just headlines, but a trusted friend. For those goals, social media is the perfect way to go. Rob Quigley, the social media editor at the Statesman, compared social media to a new version of “Letters to the Editor.” The feedback is now instantaneous. Social media gives readers a voice and an opinion. It creates a dialogue. Rather than simply consuming news, they can interact and help shape what they read. From what the panel described, the reporters like it too. They can receive tips, photos and inside information from readers, and can use social media to find the perfect interview candidate for a specific story. Though the endeavor may be labor-intensive, these panelists found social media to be one of the more fun aspects of their job.
From a business standpoint, the venture may be costly, with little up-front profit. But as with other successful marketing/PR efforts, the money will come. Consumers will almost always support a brand if they are truly loyal to it. A social media endeavor may not bring a company a ton of money at the start, but the value of a positive and sustainable relationship between a news organization and its constituents may turn out to be truly priceless.