Journalists continue to search for a viable business model that supports online hyperlocal publications, but they won’t ever reach the threshold of revenues to maintain operations if they rely solely on traditional advertising fees from local merchants. That doesn’t mean local advertising is also poised to fall off a cliff. On the contrary, BIA/Kelsey states [...]
The classic, and perhaps only business model supporting hyperlocal journalistic efforts like Patch.com and other local media is local advertising. On StreetFightMag.com last week, Ted Mann, Digital Development Director for Gannett NJ, discusses why Gannett’s hyperlocal experiment InJersey.com failed. The main and obvious reason is simply local advertising cannot adequately cover expenses. So… What if [...]
Local community news has always been hard to produce profitably with scale. Local news is only relevant to those who live within the community, and it makes cost per thousand based advertising models untenable when readership may log in the hundreds. Without a revenue model to hire editors and writers, the cheapest way to source [...]
AOL’s acquisition of the Huffington Post firmly entrenches AOL as a journalistic media endeavor eye-to-eye with Gannett, Murdoch and, gasp, the other newspapers. What is strikingly different about Huffington Post is that content is sourced from celebrities – politicians, actors, college professors, locals – and not from the ivory news desks that still embody the [...]
“Social commerce” became a buzz word in the summer of 2010: Here are eight new trends in social commerce that will appear in 2011: 1) Demand based shopping applications Groupon demonstrated how supply in the form of retail inventory can be packaged into deep discount opportunities. Demand is the inverse – how many people in [...]
Facebook announced yesterday that businesses can add deals and rewards for their customers who check in through Facebook Places. The impact on local advertising is huge: 1. Deals will be everywhere The “Deal” becomes the currency of local advertising because it is performance based, efficient for reaching the customer and isn’t burdened with the CPM-based [...]
Groupon‘s nationwide rollout of $25 for $50 worth of Gap merchandise got a lot of mainstream media airplay and sold 441,000 Groupons, netting $11 million. The net effect is the mainstream buzz that introduces Groupon to America. The “daily deal” is becoming institutionalized as the advertising medium most compatible with the Great Recession. Here is [...]
Google is talking about interactive video ads at this weekend’s Allen & Co. conference. Today, Twitvid is launching its video advertising platform over Twitter (press release). What’s important to know about video is that there is already an institutional history of the video format in the form of the :30 television spot. Like television, the [...]
The landscape of online local advertising has been changing dramatically since Groupon announced its powerhouse VC investment less than three months ago in April. Groupon and its gaggle of imitator couponing systems have forced traditional media to re-examine their CPM-based banner ad models, and they’re now adding the same kind of Daily Deals to their [...]
Patrick Kitano is founding Principal of Brand into Media, a unique strategy group working with corporations and organizations to develop social and media-based strategies that engage hyperlocal communities.
I'm the author of Media Transparent, and contributor to Street Fight, Social Media Today, Daily Deal Media, The Customer Collective, and Quora.
I speak on the future of social commerce at conferences associated with social media, local advertising and real estate.
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