| The Positive Side of the Balance Sheet
Published: October 12, 1998
Last Updated: January 12, 2000
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This chapter discusses the industry's greatest competitive assets. As we
shall see, these assets - as strong and as important as they are - need
to be leveraged even more aggressively in the future.
Top Newspaper Assets
There are two newspaper strengths that lead all others: local coverage
and utility. But, even here, there is work to be done to further strengthen
the position of the industry.
-
Local Coverage Newspapers get far higher scores than any other medium
for community/neighborhood coverage and providing news/information that
helps their community solve problems. But, that said, newspapers get scores
that fall far below the level of expectations that people have for local
coverage.
INTEREST AND RATINGS FOR LOCAL CONTENT
|
|
Rated Excellent/Very Good
|
| |
EXTREMELY/ VERY
INTERESTING
|
NEWSPAPERS
|
TV
|
>RADIO
|
MAGAZINES
|
| |
%
|
%
|
%
|
%
|
%
|
| LOCAL NEWS (AVERAGE) |
66
|
65
|
53
|
45
|
33
|
NEWS ABOUT YOUR LOCAL COMMUNITY/
NEIGHBORHOOD |
76
|
64
|
41
|
40
|
27
|
| NEWS AND INFORMATION THAT HELPS YOUR LOCAL
COMMUNITY TO DEAL WITH PROBLEMS |
74
|
55
|
39
|
38
|
26
|
| LOCAL GOVERNMENT AND POLITICAL NEWS |
57
|
67
|
55
|
47
|
37
|
| CRIME NEWS |
56
|
72
|
75
|
56
|
40
|
In addition, when it comes to problem-solving news/information, a subject
which has the same level of stated importance as community/neighborhood
coverage, newspapers' ratings drop to 55% excellent/very good. And, even
when it comes to community/neighborhood news, a separate battery of questions
indicate that dailies barely beat out weekly newspapers, with 39% saying
they rely most on daily newspapers for local news versus 34% for weeklies.
For crime news, which is mostly local, TV beats daily newspapers as the
preferred news source: 57% select the former as their most relied on source
vs. 27% for daily papers.
-
Utility
The findings for perceived utility also present a basically positive
story, but with an important qualifying clause.
When it comes to the utility of advertising content, papers swamp the
competition and come very close to meeting consumer expectations.
IMPORTANCE AND RATINGS OF SERVICE/UTILITY OF ADVERTISING
|
Rated Excellent/Very Good
|
| |
EXTREMELY/VERY IMPORTANT
|
NEWSPAPERS
|
TV
|
RADIO
|
MAGAZINES
|
DIRECT MAIL
|
| |
%
|
%
|
%
|
%
|
%
|
%
|
| SERVICE/UTILITY (AVERAGE) |
63
|
57
|
49
|
33
|
48
|
42
|
| MAKING IT EASY TO KNOW WHERE TO GO TO FIND
THE PRODUCTS YOU WANT |
72
|
67
|
52
|
40
|
43
|
45
|
| GIVING PRICES OF PRODUCTS AND SERVICES |
69
|
65
|
40
|
32
|
43
|
49
|
| HELPING YOU TO SAVE MONEY |
69
|
62
|
39
|
33
|
43
|
42
|
| LETTING YOU DO COMPARISON SHOPPING |
63
|
63
|
37
|
27
|
36
|
36
|
| GIVING YOU AS GOOD AN IDEA AS POSSIBLE OF
WHAT PRODUCTS ACTUALLY LOOK LIKE |
62
|
50
|
69
|
22
|
62
|
47
|
| HELPING YOU TO SAVE TIME |
61
|
51
|
41
|
36
|
40
|
36
|
| LETTING YOU KNOW ABOUT NEW PRODUCTS AND PRODUCT
FEATURES |
60
|
53
|
60
|
35
|
62
|
45
|
| MAKING YOU FEEL GOOD ABOUT THE PRODUCTS IT
ADVERTISES |
44
|
48
|
56
|
38
|
54
|
39
|
However, when it comes to the more general rating of helpfulness - providing
"service journalism" that helps you get through the day - newspapers fall
short of expectations and have only a slight edge over the competition.
Here are the figures:
IMPORTANCE AND RATINGS FOR GENERAL HELPFULNESS
|
Rated Excellent/Very Good
|
| |
EXTREMELY/VERY IMPORTANT
|
NEWSPAPERS |
TV
|
RADIO
|
MAGAZINES
|
| |
%
|
%
|
%
|
%
|
%
|
| CONTAINS INFORMATION THAT IS HELPFUL IN YOUR
DAILY LIFE |
68
|
59
|
51
|
53
|
55
|
Clearly, newspapers have a strong story to tell regarding helpfulness
that can help build the industry's overall reputation in this area.
-
Used By Those You Respect Here, too, we find a strength that can
be leveraged further. Newspapers generally meet expectations and win against
other media, but not by much.
IMPORTANCE AND RATINGS FOR USED BY PEOPLE YOU RESPECT
|
Rated Excellent/Very Good
|
| |
EXTREMELY/VERY IMPORTANT
|
NEWSPAPERS
|
TV
|
RADIO
|
MAGAZINES
|
| |
%
|
%
|
%
|
%
|
%
|
| USED BY PEOPLE YOU RESPECT |
63
|
68
|
60
|
61
|
62
|
Secondary Strengths
The next tier of strengths includes two areas in which papers do well
and better than the competition, but they are secondary strengths because
the public attaches less importance to them.
Newspapers' win for specific advertising content and entertainment is
resounding. These categories fall into the secondary strengths area only
because they are of somewhat lower interest overall.
-
Specific Ad Categories Newspapers both swamp all competitors for
the topics tested and exceed expectations.
IMPORTANCE AND RATINGS FOR SPECIFIC AD CATEGORIES
| |
Rated Excellent/Very Good
|
| |
EXTREMELY/VERY IMPORTANT
|
NEWSPAPERS
|
TV
|
RADIO
|
MAGAZINES
|
DIRECT MAIL
|
| |
%
|
%
|
%
|
%
|
%
|
%
|
| SPECIFIC AD CATEGORIES
(AVERAGE) |
41
|
63
|
44
|
33
|
41
|
35
|
| FOOD AND GROCERY ADS |
58
|
77
|
43
|
33
|
38
|
46
|
| ADS FOR ENTERTAINMENT EVENTS/ACTIVITIES |
53
|
66
|
48
|
50
|
41
|
32
|
| ADS FOR STORES, OTHER THAN SUPERMARKETS,
THAT YOU SHOP IN |
51
|
62
|
46
|
31
|
37
|
41
|
| ADS FOR JOB OPPORTUNITIES |
45
|
72
|
23
|
25
|
29
|
24
|
| CLOTHING ADS |
37
|
56
|
43
|
23
|
50
|
44
|
| ADS FOR SPORTING EVENTS |
35
|
65
|
56
|
49
|
40
|
29
|
| HEALTH AND BEAUTY ADS |
32
|
47
|
51
|
26
|
54
|
38
|
| AUTO ADS |
31
|
63
|
52
|
33
|
45
|
30
|
| REAL ESTATE ADS |
26
|
63
|
32
|
24
|
32
|
28
|
The pattern that emerges here is borne out by a more detailed battery
of questions in which people were asked to identify the one source of advertising
that they most rely on for different product/shopping categories. Newspapers
are the across-the-board winners for every category tested.
MAIN SOURCE RELY ON MOST FOR ADVERTISING AND INFORMATION
|
DAILY
OR
SUNDAY
NEWSPAPER
|
WEEKLY NEWSPAPER OR
SHOPPER
|
TV
|
RADIO
|
MAGAZINES
|
DIRECT MAIL, INCLUDING CATALOGS
|
INTERNET OR ONLINE SERVICE
|
| |
%
|
%
|
%
|
%
|
%
|
%
|
%
|
| LOOKED FOR EMPLOYMENT OPPORTUNITIES |
78
|
17
|
1
|
1
|
1
|
*
|
2
|
| HOME/APARTMENT FOR RENT |
69
|
24
|
1
|
*
|
2
|
3
|
1
|
| NEW AND EXISTING HOMES |
68
|
21
|
2
|
*
|
5
|
3
|
1
|
| TICKETS TO A MOVIE OR A LIVE ENTERTAINMENT
EVENT |
68
|
16
|
5
|
7
|
1
|
2
|
1
|
| GROCERIES |
64
|
26
|
4
|
1
|
1
|
4
|
*
|
| USED CARS |
60
|
23
|
5
|
1
|
8
|
2
|
1
|
| MEAL AT A RESTAURANT |
58
|
21
|
10
|
5
|
2
|
4
|
*
|
| HOME APPLIANCES, SUCH AS A WASHER/DRYER,
REFRIGERATOR, BLENDER, COFFEE MAKER, ETC. |
53
|
18
|
10
|
*
|
9
|
10
|
*
|
| NEW CARS |
52
|
11
|
15
|
1
|
16
|
3
|
2
|
| FURNITURE AND HOME FURNISHINGS |
51
|
16
|
8
|
1
|
8
|
16
|
*
|
| AUTOMOBILE PARTS AND ACCESSORIES |
51
|
17
|
4
|
2
|
9
|
17
|
*
|
| TRAVEL AND TRAVEL SERVICES |
49
|
8
|
8
|
2
|
16
|
13
|
4
|
| MEN'S AND BOYS' CLOTHING AND ACCESSORIES |
49
|
12
|
4
|
1
|
8
|
26
|
*
|
| WOMEN'S AND GIRLS' CLOTHING AND ACCESSORIES |
47
|
13
|
4
|
*
|
8
|
28
|
*
|
| FINANCIAL SERVICES |
45
|
11
|
9
|
4
|
17
|
11
|
3
|
| HOME IMPROVEMENT AND GARDENING SUPPLIES |
45
|
16
|
7
|
1
|
13
|
18
|
*
|
| PRESCRIPTION AND OVER-THE-COUNTER MEDICATION |
45
|
15
|
15
|
1
|
12
|
11
|
1
|
| HEALTH AND BEAUTY AIDS |
45
|
15
|
12
|
1
|
17
|
10
|
*
|
| TOYS |
43
|
12
|
14
|
1
|
8
|
22
|
*
|
| SPORTING GOODS AND EXERCISE EQUIPMENT |
42
|
14
|
16
|
*
|
15
|
13
|
*
|
| HOME ELECTRONICS, CDS, AUDIO CASSETTES, VIDEO
CASSETTES, ETC. |
42
|
12
|
8
|
4
|
15
|
18
|
1
|
| HEALTH CARE SERVICES - ANYTHING FROM HOSPITALS
AND HMOS TO PHYSICIANS |
37
|
12
|
12
|
3
|
16
|
19
|
1
|
| TELECOMMUNICATIONS EQUIPMENT OR SERVICES
- TELEPHONES, FAX MACHINES, LONG DISTANCE SERVICE, VOICE MAIL, ETC. |
37
|
8
|
16
|
3
|
11
|
22
|
3
|
| PERSONAL COMPUTERS, ACCESSORIES, AND SOFTWARE |
37
|
9
|
8
|
1
|
23
|
20
|
2
|
* = Less than 1%.
1/ Based on those responding.
Weak Performance of Direct Mail
The generally limited reliance on direct mail is also reflected in reported
usage of direct mail when in the market to purchase a particular item or
when simply browsing. In both cases, newspaper inserts are much more likely
to be used than mailed circulars.
ADVERTISING INSERTS AND DIRECT MAIL
|
REGULARLY
|
OCCASIONALLY
|
ALMOST NEVER
|
NEVER
|
| |
%
|
%
|
%
|
%
|
| WHEN YOU'RE IN THE MARKET TO PURCHASE
A PARTICULAR ITEM, HOW OFTEN DO YOU ... |
|
|
|
|
| READ THE ADVERTISING SECTIONS INSERTED INTO
THE DAILY OR SUNDAY NEWSPAPER |
57
|
28
|
9
|
6
|
| READ MAILED CIRCULARS |
36
|
38
|
18
|
8
|
| AND HOW OFTEN DO YOU JUST LOOK THROUGH ... |
|
|
|
|
| ADVERTISING SECTIONS INSERTED INTO THE DAILY
OR SUNDAY NEWSPAPER |
52
|
33
|
11
|
4
|
| MAILED CIRCULARS |
38
|
42
|
15
|
5
|
-
Entertainment
Part of the utility of newspapers is the role they play in helping
to shape how Americans spend their leisure time. Included here is what
they watch on TV.
INTEREST AND RATINGS FOR ENTERTAINMENT AND TELEVISION
| |
RATED EXCELLENT/VERY GOOD
|
| |
EXTREMELY/VERY INTERESTING
|
NEWSPAPERS
|
TV
|
RADIO
|
MAGAZINES
|
| |
%
|
%
|
%
|
%
|
%
|
| ENTERTAINMENT |
45
|
70
|
46
|
43
|
38
|
| NEWS AND INFORMATION ABOUT ENTERTAINMENT
AVAILABLE IN YOUR AREA SUCH AS MOVIES, CONCERTS, RESTAURANTS, ETC. |
50
|
71
|
38
|
43
|
33
|
| TV LISTINGS AND NEWS ABOUT TV |
39
|
68
|
54
|
NA
|
42
|
Sports: The Third Tier
Sports is of lesser importance than the other topics discussed but,
for sports fans - mostly men - interest tends to be intense.
Newspapers' overall rating is higher than other media but, when we look
at specific areas of coverage, the picture is more of a mixed bag, with
TV presenting a real challenge for non-local sports and weeklies for local
high school sports. Newspapers score for local high school sports is better
than TV's, radio's, and magazines'. This comes across in both the comparative
rating, shown below, and in the selection for most relied on source. However,
even here, local weeklies pose a real challenge. Daily newspapers are most
relied on by 43% compared to 32% for weeklies.
However, newspapers fall behind TV for professional sports in the comparative
rating and when we look at most relied on source (62% for TV vs. 26% for
daily/Sunday papers). For college sports, TV and newspapers tie in the
comparative ratings and papers fall behind TV for most relied on source
(52% vs. 34%). For sports scores, the two media are about tied.
INTEREST AND RATINGS FOR SPORTS
| |
RATED EXCELLENT/VERY GOOD
|
| |
EXTREMELY/VERY INTERESTING
|
NEWSPAPERS
|
TV
|
RADIO
|
MAGAZINES
|
| |
%
|
%
|
%
|
%
|
%
|
| SPORTS (AVERAGE) |
34
|
70
|
65
|
53
|
48
|
| PROFESSIONAL SPORTS |
40
|
71
|
78
|
62
|
60
|
| SPORTS SCORES AND STATISTICS |
36
|
74
|
70
|
55
|
46
|
| COLLEGE SPORTS |
33
|
67
|
67
|
51
|
50
|
| HIGH SCHOOL SPORTS |
25
|
67
|
46
|
44
|
34
|
|