When speaking with newspaper publishers from across the country, one of the first questions for SmallTownPapers is “how do you make money if you give access to the archive for free?”  That is often followed by a natural curiosity about how a “free site” generates revenue to be shared with publishers.  After all, the SmallTownPapers website is noticeably absent of the advertising which is found on most online content sites.

These days, it is ineffective to depend solely on either subscriptions or advertising.  Most content publishers today are looking at blended or hybrid models.  The industry is in “experimentation” mode and no one has discovered a formula which works for everyone.

Newspaper publishers have long realized the value of the blended model drawing revenue from both subscribers and advertisers.  A newly release report from the Project for Excellence in Journalism “The State of the News Media 2006” shows that in 2005, newspapers received 20% of their revenue from circulation and the remaining 80% from advertising.  But things are changing fast.  Traditional revenue methods aren’t dependable.  Even revenue once assured from classified ads and job announcements is dropping with people turning to internet sites like Ebay, Craigslist, Careerbuilder and more.  The annual news media report suggests new business models are needed to keep up with the changing times.

Dave Solomon, publisher of The Cabinet in Milford, New Hampshire knows that reality. While his local merchant advertisers remain steady, there is concern about what’s happening with the classified section.

“Classified ads like auto, real estate and help wanted are our bread and butter,” explains Solomon.  “Merchants and businesses in those categories are convinced a lot of traffic is over the internet and, of course, they’re right.  If we don’t offer something for them, someone else will and any many cases, already is.”

Solomon is looking to his newspaper’s website to address the market changes.  Currently advertisers receive a link to their websites and a PDF ad but The Cabinet is in the process of transitioning to a more sophisticated system which will enhance the advertiser’s experience by allowing them to see just how many website hits are the result of a given ad.

Recognizing that the real advantage the paper has over classified websites is that it is “intensely local,” The Cabinet will also offer consumers an easier way of retrieving local classified information.  “We can bundle or aggregate individual merchant websites into a single portal on our website giving (consumers) an easy, one-stop shop.”

It’s similar to the concept at the root of SmallTownPapers.  It is the collection of archives from small towns across the country, rather than each individually, which has true marketable value.  

“I knew that while revenue from consumer subscriptions and advertising was surely limited, significant revenue potential existed when you look to the content distribution industry,” said Paul Jeffko, president and founder of SmallTownPapers.  “These businesses are looking for unique, local content and have money to spend to get it.  Whereas it would be impractical for content aggregators to approach the country’s newspapers individually to discuss distribution agreements, the ballgame changes entirely when you have nearly 300 newspapers available through a single program.”

The idea of marketing a collection of newspapers becomes more exciting when you add in highly-marketable, valuable content.  “Access to archives is one of the few things people are willing to pay for on the website,” noted Dave Solomon.

This is exactly the case with SmallTownPapers which has a rapidly growing archive and increasing list of business end-users seeking repeat access to the archive asset.  License agreements with those organizations will create revenue to be shared with our participating publishers.

SmallTownPapers is being approached by the legal, investigative, genealogical and other industries which are looking for access to specific information published in local newspapers.  Additionally, the entire archive asset can be licensed to search engines or others who could then create individual access portals.

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About SmallTownPapers®

SmallTownPapers is an online gateway to newspapers from small town America — past and present.  Working with publishers from across the country, the company digitally scans current and archived newspapers and then provides online access.  Through the SmallTownPapers website, the newspaper archives can be searched by keyword or phrase and viewed as originally printed.  SmallTownPapers, Inc. is based in Seattle, WA.  For more information visit www.smalltownpapers.com.