Mon, September 17, 2007
Well, it’s official – the NYTimes.com is waiving it’s paid service. I guess the rumor was true.
Let me start with saying that I’m a fan of the NY Times online. They have a great group of people that we work with and their online advertising has shown proven results in the past for us. Also, I love the editorial.
But, I am deeply concerned about this move. With more open access, comes a less-targeted audience. When I say less-targeted, I’m saying you are not talking to the traditionally more affluent ‘Times Reader.' You’re talking to someone interested in that particular story they are reading – the new audiences they will be pulling through search engines have no brand connection to the NY Times editorial. There is a large difference in the audiences and I think you will see the effect in the advertising results. I totally get the need to expand revenue channels but they must think long-term. Why not create stronger connections between the paper in print and online? Why not create real services online that warrant payment other than just the content? Why not create more inventory within the existing content they are offering?
I don’t know why it frustrates me so much, because the decision they are making really is consistent with what the rest of the industry is doing. I guess overall, everything just feels like a short-term, knee-jerk reaction. Print advertising is down – shrink the newspaper. Overall revenue is down, give away the content to create more of the advertising inventory that is selling right now. But what’s the bigger, long-term plan? What’s the plan in building equity as a brand?
Again, I’m actually one of the ‘believers’ in the NY Times print and online edition both from a personal and business standpoint. But, the assumption that online advertising rates along with effectiveness will continue to increase is simply not something I would bet on.
Read On
Signup 
About 
Archives
