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Page Location: Home » Archives » Publications » 1998 » Leveraging Newspaper Assets
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

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