Opinion

Stories I’d like to see

Ad technolology that may threaten newspapers; winners and losers of the fiscal cliff

Steven Brill
Nov 20, 2012 12:51 UTC

1. Another threat to newspapers’ business models?

This article in the New York Times last Friday and this one in the National Journal pinpoint two important developments in the media business that could collide to pose yet another threat to the financial viability of journalism.

The Times article describes the rise of “programmatic advertising,” in which new online tracking technologies allow an advertiser to follow a consumer whose profile fits the advertiser’s targeted demographics wherever the consumer goes online rather than just make an educated guess about the websites that consumer is most likely to visit.

Before programmatic advertising, if an upscale restaurant chain decided that its best prospects were well-to-do men who live in major metropolitan areas and travel a lot, it might buy ads in the business sections of high-end newspapers or on business travel sites. Now the restaurant chain can follow those targeted people to any website they visit. It doesn’t have to buy ads on the sites where the target is most likely to be found but can instead simply bid on an electronic ad exchange to buy the cheapest ad that will reach someone with those demographics no matter where he or she goes (a gossip site, for example).

This erodes the premium  upscale newspaper sites can charge. The individual consumer is what’s important and now identifiable, not the place where he sees the ad.

Thus, the Times reports in this article, “The shift is punishing traditional online publishers,” and that online advertising revenue at its own newspaper actually fell 2.2 percent in the last quarter as a result of a decline in the rates the Times is able to charge for Web advertising. That’s a trend reflected lately in the results of most other major newspapers.

Tracking the battleground wars

Steven Brill
Sep 11, 2012 11:42 UTC

I always tell my students that the best stories come from what you’re most curious about. And for all the coverage of the presidential campaign we’ve been getting in print, online and on cable, my curiosity about what’s really going on in the battleground states and in their most evenly divided precincts hasn’t come close to being satisfied. With all the time and money CNN, Politico and the major newspapers are spending letting the usual suspects opine on the horse race, they should zero in on the people who count by doing some of the following:

a. The voters: Why haven’t the news organizations most heavily invested in campaign coverage selected representative samples of voters (undecided, as well as voters leaning to one side or the other) in three or four battleground precincts across the country – from Colorado to Ohio and New Hampshire to Florida – to ask them in focus groups what, if anything, is persuading them or turning them off? This should be video programming, but that doesn’t mean Politico or the New York Times or the Wall Street Journal (or even Reuters or Bloomberg) – in addition to the cable news networks – couldn’t do it, given that they all now have robust online video programming. There’s almost an infinite number of questions I’d want to hear these voters asked, among them:

Have field workers called or knocked on their doors? If so, what are the canvassers saying? Is it persuasive?

A trove of stories from the Facebook IPO

Steven Brill
Feb 6, 2012 16:19 UTC

Facebook’s landmark IPO filing suggests lots of meaty stories. Among them:

1. Facebook, third parties and data security:

Embedded in the typically long recitation of “risk factors” designed to shield IPO issuers from shareholder suits should things go wrong is a section of the prospectus that warns:

Our efforts to protect the information that our users have chosen to share using Facebook may be unsuccessful due to the actions of third parties … If these third parties or Platform developers fail to adopt or adhere to adequate data security practices or fail to comply with our terms and policies, or in the event of a breach of their networks, our users’ data may be improperly accessed or disclosed. Any incidents involving unauthorized access to or improper use of the information of our users could damage our reputation and our brand and diminish our competitive position. In addition, the affected users or government authorities could initiate legal or regulatory action against us in connection with such incidents, which could cause us to incur significant expense and liability or result in orders or consent decrees forcing us to modify our business practices….

Not explained here is what protective mechanisms Facebook has to prevent these kinds of third-party security breaches and other abuses. Is the privacy and data protection of Facebook users only as strong as the weakest link among these third parties? Is there an Internet equivalent of the Gulf oil spill out there waiting to happen, after which Facebook points fingers at these third parties?

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