Web Impact on Newspapers (MCG Research News - May 15.08) In recent conversations with newspaper insiders, we found the mood somewhat downbeat as we discussed the future, ie newspaper circulation, ad linage, and income are plummeting. Perhaps less known is that more people than ever are reading newspaper – it’s just that they are doing so on-line.  Newspaper web sites are among the most frequently visited sites, garnering more than enough visits to offset the many who have cancelled their print subscriptions. The problem, is that the papers have proven unable to translate these web visits into advertising revenue. Classified ads have moved to "Craigslist, Cars.com or Auto Trader", and the biggest stores are diverting more of their advertising to in-store promos. Which leaves the papers more and more dependent on that oft-neglected stalwart, the independent local retailer. Retailers however are not uninformed, and they recognize the declining readership of traditional papers, and therefore question the value of continuing to advertise there, especially given the rates the papers charge. Offsetting declining circulation revenue by raising ad rates is not the answer.  But, to return to the retailer, they can’t move to the web because they don’t have the experience of how to create a web ad and also because vendors may be reluctant to pay for it. Vendors may not pay for it because often they don’t trust the rates for web advertising, and because they’re tired of the administrative burden of dealer co-op generally and have no intention of adding another difficult medium. Vendors however, do trust newspaper advertising and while they are getting more understanding of web advertising, they are for now, more attracted to web advertising via the newspaper website. To survive, the newspapers need to move their advertisers to the web, and to do so, they need to offer the manufacturers three things: - Transparent pricing - Reduced administration - Measurable results Concurrently, they need to offer the retailer three things: - Ease of use - Reasonable pricing - Measurable results These things are do-able. Although the newspaper industry offers a wide range of flexible rate cards, the web offers the capability to offer measurable pricing via pay-per-click. Enter a unique bridging solution. New technology that provides an easy to read exact duplicate of the printed newspaper for online readers. Active Paper Daily, distributed in the US by Olive software and Canada by Media Communications Group. Further, APD offers many extended features for the reader and advertiser, like being able to read, search, print or email articles or ads. Advertisers ads are linked back to the advertisers site for as long as they are on the web, giving the advertiser extendability. Breaking the switch to Craigslist, MCG is promoting AuctionSoft to newspapers to engage in their own "local" auction site for regional bidding. Once again, eliminating readers from moving away from the newspaper site to Craigslist. As far as revenue building, SalesBuilder from MCG provides over 85,000 US and 17,000 Cdn brand contact, co-op and MDF (manufacturer development fund) programs to help media find ad dollars to top up and increase retailer advertising. Online AdTracker to manage. Powerful products to keep readers attached to the newspaper website and build revenue. The newspaper web site should be "the focus of a one-stop shopping website". Read todays news, yesterdays, check for what's playing at the movies, on TV or what's happening around town. Yes, the newspaper web site will be the "key component" for future growth. Manufacturers would have their transparent pricing, no administrative burden, and measurable results. The dealers would have ease of use, reasonable pricing (since the web is, for now at least, much cheaper than print), and measurable results. The newspaper would have improved advertising and a solid foundation for building a better future. It’s win-win-win.