Newspapers Lose Relevance as Ad Medium

Like an aged copy of the local newspaper that turns yellow over time, newspapers are losing relevance as an advertising medium. A survey by credit ratings firm Fitch found sharp declines in advertising in the number of ad pages at large dailies published by Gannett Co., Tribune Co., McClatchy Co., and Dow Jones & Co. The declines are alarming because they are attributed to fewer ad pages in key product categories such as automotive, real estate, and technology products.

It is apparent that large daily newspapers are in the decline stage of the product life cycle, at least in their print formats. Why? It's the same reason as when any other product loses market share: it loses relevance with its audience. One of the strengths of newspapers has always been their ability to provide great coverage of local news. That's a newspaper's point of difference, and while it seems most newspapers in small town America still grasp their role, too many large daily papers have become too broad in the scope of information provided. Let CNN and Fox News fill the role of national/global news coverage. Alternative newspapers have popped up all over the country and many are succeeding at what the legacy newspaper in the market forgets: it's in the local news business! Link