PRIVATE AND CONFIDENTIAL

CONSOLIDATED COMMUNICATIONS, INC.

To: Conrad Fink

From: DeShaun Maria Harris

Subj: Athens Banner-Herald, First Report, Market Analysis Executive Summary

Date: Sept. 24, 2007

After living in Athens, Ga. for a little over two weeks, I have found that the retail trading zone population is shifting away from the city’s commercial core and into the surrounding counties. There are multiple reasons for this, but it can be summed up by the word “urbanization”. Affluent individuals do not want to live in city school districts with negative reputations or a city with a dwindling tax base and greater tax needs.

The Banner-Herald is financially healthy. Household penetration is high and the advertising department produces total market coverage pieces to supplement paid circulation. The editorial side, however, definitely could be improved. It caters to its core conservative readership while largely neglecting a substantial youth market, which may not be necessary. Online strategy is not at its full potential. The leadership is still formulating where to go with it editorially and how to make it financially viable.

Following are my findings. My next report will explore the paper’s competition.

The Market: Athens-Clarke County Retail Trading Zone

1. Athens-Clarke County (City Zone)

Population: 112,787

The county is 120.79 square miles. The 2000 U.S. Census, put population at 101, 489; a population density then of about 840 people per square mile. In 2006, the U.S. Census Bureau estimated the population to be 112,787 – an 11.1 percent growth over six years. A population density of about 934 per square mile. For comparison, Paulding County, Ga., 30 miles west of Atlanta with a little less than triple the land area of Athens-Clarke County and similar characteristics (education, utilities and some municipal services), almost doubled its population over the same time period (see Population Growth 1.1).

Clarke’s relatively slow growth rate may be attributable partially to the limited land area available. Jeff Wilson, publisher of the Athens Banner-Herald, said in an interview that growth inside state Route10 Loop/Athens Perimeter Highway is reaching capacity. Dirk Howell, a residential realtor at Upchurch Realty in Athens, agreed. He said the small land area, the community’s repeated expressed aversion to high-population density living, the public school system’s poor reputation and the decreasing tax base relative to increasing tax needs all contribute to the population outlook.

Howell said, and U.S. Census information (see Population Growth 2.1) both indicated, the fastest-growing counties in the retail trading zone are Jackson (34.1 percent growth from 2000 to 2006) and Oconee (17.7 percent growth from 2000 to 2006). These counties are where the people are moving.

Number of Households: 41,432 Avg. Number of People per Household: 2.7

(Number of Households figure, 2006 Audit Bureau of Circulation estimate.)

Age: Children – 17.3 percent; Adults – 74.2 percent; Seniors – 8.5 percent

(Age figures, 2005 U.S. Census Bureau QuickFacts. Children are under 18; seniors are over 65.)

Athens-Clarke County has an exceptionally large number of young adults, due to the presence of The University of Georgia, with its more than 25,000 undergraduate alleged students. This keeps the average age on the younger end of the spectrum, but it has been tempered by the lower-than-average percentage of people under 18 years old. All surrounding counties, the state and the nation, have significantly larger percentages of children. Once again, this may be attributable to the public school system reputation. How the age makeup affects the content of the newspaper is interesting, as I discuss in the second part of this report (see The Newspaper: Athens Banner-Herald).

Ethnicity: White – 69.1 percent; Black – 26 percent; Hispanic – 8.3 percent

(Ethnicity figures, 2005 U.S. Census Bureau QuickFacts. Some white Hispanics report both ethnicities.)

Athens-Clarke County has a substantial black population – double that of most areas in the country. The county’s demographic composition is about average for Georgia. However, the racial makeup of the county is disparate. For example, north Athens (zip code 30601) is 54.8 percent black, according to the Environmental Systems Research Institute, Inc.’s Community Tapestry. South Athens (zip code 30609) is 83.5 percent white. One area of the county that eventually could become multicultural – northwest Athens and part of Jackson County (zip code 30607), where the black population is 30.4 percent and the Hispanic population, 22.2 percent. Most households in this area are multigenerational or consist of young families. In the future, northwest Athens could be a prime area for multi-segmentation of the market. I will discuss this potential in a later report.

Education: High School Diploma – 81 percent; College Degree – 39.8 percent

(Education figures, 2000 U.S. Census)

The presence of an institute of higher education within the city limits and several technical colleges nearby boosts the percentage of people who have at least a bachelor’s degree. However, the public school system has a negative reputation within the metropolitan statistical area. On average, 29 percent of students in the Clarke County school system did not pass the state reading and math proficiency tests, according to Standard & Poor’s. All other county school systems in the retail trading zone reported higher proficiency rates. In fact, in Jackson County 10.6 percent did not pass and in Oconee County only 7.1 percent did not pass. SAT and ACT scores were also on the lower end relative to the surrounding counties, as well.

In all fairness, Clarke County had the highest enrollment of economically disadvantaged students (66.6 percent compared to 16.9 percent in Oconee), students with learning disabilities (17.2 percent compared to 11.4 percent in Oconee) and English as a Second Language (9.4 percent compared to 0.7 percent in Oglethorpe) within the retail trading zone.

“I don’t think there is anything fundamentally wrong with the school system,” said Realtor Howell, a father of two who have gone through the Clarke County public school system. A resident of Oconee County, he said nothing prevents students who want to achieve from doing so in the Clarke County system.

“Parents just flock to Oconee schools because everybody looks the same over there. There isn’t much diversity,” he said.

Jenny Wofford, branch manager at Bank of Athens said she disagreed. She said she does not want her children to suffer unnecessarily by being surrounded by a high percentage of underachieving students, although she said they could achieve in that environment regardless. She stated that enrolling her son in a higher performing school system is the reason she is in the process of moving to Madison County.

Employment: 96.1 percent

(Employment figure, 2006 U.S. Bureau of Labor Statistics)

Employment in the county is strong. Most non-college student adults have full-time jobs in blue-collar or professional fields. However, north Athens (zip code 30601), has inconsistent part-time employment as high as 20 percent sometimes according to the ESRI’s Community Tapestry data. Coupled with resultant low income, this geographic market segment is not financially attractive to would-be advertisers. The newspaper’s current solution to this problem is discussed in the second part of this report (see The Newspaper: Athens Banner-Herald), and potential future solutions will further be discussed in a later report.

Median Household Income: $29,751

(Median Household Income figure, 2004 U.S. Census Bureau QuickFacts)

From 1999 to 2004, Clarke’s median household income rose 5.8 percent ($28,118 to $29,751), according to the U.S. Census Bureau. Median household income in the state rose 0.6 percent ($42,433 to $42,679) during the same time period. So, while the median household income still is significantly below the state and national averages, it has grown at a fairly fast rate.

Median Household Value: $111,300

(Median Household Value figure, 2000 U.S. Census Bureau Quickfacts)

Retail Sales: $1,461,556 (in thousands); Retail Sales Per Capita: $14,299

(Retail Sales figures, 2002 U.S. Census Bureau QuickFacts)

In 2005, Clarke County’s retail sales ranked 18^th out of Georgia’s 159 counties, according to the Georgia Statistics System operated by The University of Georgia. Its retail sales were 98 percent higher than those of Jackson County – the only other county in the retail trading zone to rank safely in the state’s top 50. However, as further evidence of the growth saturation of Athens-Clarke County, the amount grew only a little more than 10 percent (roughly $1.46 billion to $1.61 billion). Relative to the surrounding counties, this growth is minute.

Building Permits: 941

(Building Permits figure, 2006 U.S. Census Bureau QuickFacts)

Compared to the RTZ, construction in Clarke County is slow. A main reason is the lack of available land space. More recently, the barrier has been the downturn in the mortgage market.

“While Athens was immune to the national real estate trend because of the college students,” Howell said. “Investors bought and developers built condos to rent to them. So a lot of the developers over built.”

Now, there are far too many residential properties on the market. Howell said sellers are having trouble getting a 90 percent return on their investment. No one is turning a profit, he said. His employer – Upchurch Realty – has 40 houses under contract for the month, half the normal number. Bankers are not as quick to lend and builders are not building for fear of having to pay interest on houses they cannot sell. Two areas that are growing, however, are west Athens (zip code 30606) near Athens Regional Medical Center and north Athens (zip code 30601) near Arch Street. West Athens arguably is the most attractive area of the city zone, with its families and professionals who lead active, upscale lifestyles. Growth there is desirable and will most likely be profitable, according to Howell. He said the area will be the “it” place for the city’s liberal elite, as the Five Points area (zip code 30606) was from 1995 to 2005. On the other hand, outside developers are sparking growth in north Athens, which will likely garner negative results. Howell said the area near Arch Street is crime infested and no local person will move there in the long run.

2. Jackson

Population: 55,778

(Population figure, 2006 U.S. Census Bureau QuickFacts)

Jackson county is the fastest-growing area in the RTZ, with 34.1 percent growth in the past year alone (see Population Growth 2.1). This trend can be attributed to the county’s proximity to Interstate 85, which makes Atlanta more easily accessible to commuters, and its superior public school system reputation relative to Clarke County’s system. Most residents who relocate to Jackson County do so from Gwinnett County.

“Atlanta’s suburbs are spreading closer and closer to Athens,” said Rob Wilson, from Athens First Bank & Trust – Butler’s Crossing Branch. “Many people are deciding that if they can’t be as close to Atlanta, they might as well move closer to Athens – without moving into it.”

Number of Households: 19,072 Avg. Number of People per Household: 2.9

(Number of Households figure, 2006 Audit Bureau of Circulation estimate)

Age: Children – 25.3 percent; Adults – 64.1 percent; Seniors – 10.6 percent

(Age figures, 2005 U.S. Census Bureau QuickFacts. Children are under 18; seniors are over 65.)

Ethnicity: White – 90.6 percent; Black – 7.1 percent; Hispanic – 3.8 percent

(Ethnicity figures, 2005 U.S. Census Bureau QuickFacts. Some white Hispanics report both ethnicities.)

Education: High School Diploma – 68.1 percent; College Degree – 11.7 percent

(Education figures, 2000 U.S. Census)

Employment: 96.1 percent

(Employment figure, 2006 U.S. Bureau of Labor Statistics)

Median Household Income: $43,896

(Median Household Income figure, 2004 U.S. Census Bureau QuickFacts)

Median household income is growing in Jackson County, the area with the highest household income and thus the most attractive to potential advertisers, is on the fringe of the Athens Banner-Herald’s reach, according to Wilson. The median household income in Hoschton, Ga. (zip code 30548) is $62,672, according to the ESRI’s Community Tapestry data.

Median Household Value: $102,900

(Median Household Value figure, 2000 U.S. Census Bureau Quickfacts)

The median household value in Jackson County is steadily increasing as people move in. For now, however, values are not nearly as high as those in Clarke or Oconee counties.

Retail Sales: $519,021 (in thousands); Retail Sales Per Capita: $11,402

(Retail Sales figures, 2002 U.S. Census Bureau QuickFacts)

Growth in retail sales from 2002 to 2005 was about 57 percent, according to the Georgia Statistics System. This is evidence of strong commercial growth in the county.

Building Permits: 1,388

(Building Permits figure, 2006 U.S. Census Bureau QuickFacts)

3. Madison

Population: 27,837

(Population figure, 2006 U.S. Census Bureau QuickFacts)

Because of the lack of a large retail structure and the slow growth along Interstate 78, Madison County is not growing as fast as Jackson and Oconee counties. However, there should be plans to strengthen the retail structure soon, in hopes that it will encourage residential expansion.

Number of Households: 10,723 Avg. Number of People per Household: 2.6

(Number of Households figure, 2006 Audit Bureau of Circulation estimate)

Age: Children – 24.7 percent; Adults – 63.9 percent; Seniors – 11.4 percent

(Age figures, 2005 U.S. Census Bureau QuickFacts. Children are under 18; seniors are over 65.)

Ethnicity: White – 89.7 percent; Black – 8.6 percent; Hispanic – 2.4 percent

(Ethnicity figures, 2005 U.S. Census Bureau QuickFacts. Some white Hispanics report both ethnicities.)

Education: High School Diploma – 70.8 percent; College Degree – 10.9 percent

(Education figures, 2000 U.S. Census)

Employment: 96.4 percent

(Employment figure, 2006 U.S. Bureau of Labor Statistics)

Median Household Income: $37,677

(Median Household Income figure, 2004 U.S. Census Bureau QuickFacts)

Median Household Value: $87,300

(Median Household Value figure, 2000 U.S. Census Bureau Quickfacts)

Retail Sales: $93,822 (in thousands); Retail Sales Per Capita: $3,515

(Retail Sales figures, 2002 U.S. Census Bureau QuickFacts)

Growth in retails from 2005 to 2005 was about 83 percent, according to the Georgia Statistics System. However, this is still low comparatively, due to the lack of a retail structure in the county.

Building Permits: 248

(Building Permits figure, 2006 U.S. Census Bureau QuickFacts)

4. Oconee

Population: 30,858

(Population figure, 2006 U.S. Census Bureau QuickFacts)

Oconee County was recently the fastest growing county in the RTZ – 17.7 percent from 2000 to 2006. The growth could be attributed to the high land value and highest performing public school system in the area, which drew the affluent from the core of Athens-Clarke County. Wilson said, however, growth has slowed because the county lacks a retail structure that would alleviate part of the property tax burden. High property taxes combined with stagnation and area-saturation in the high-end housing market – no houses are being built under the $300,000 range – has caused the slow down.

Number of Households: 10,320 Avg. Number of People per Household: 3.0

(Number of Households figure, 2006 Audit Bureau of Circulation estimate)

Age: Children – 26.5 percent; Adults – 64.6 percent; Seniors – 8.9 percent

(Age figures, 2005 U.S. Census Bureau QuickFacts. Children are under 18; seniors are over 65.)

Ethnicity: White – 90.7 percent; Black – 6.3 percent; Hispanic – 3.3 percent

(Ethnicity figures, 2005 U.S. Census Bureau QuickFacts. Some white Hispanics report both ethnicities.)

Education: High School Diploma – 86.7 percent; College Degree – 39.8 percent

(Education figures, 2000 U.S. Census)

Employment: 96.9 percent

(Employment figure, 2006 U.S. Bureau of Labor Statistics)

Median Household Income: $61,966

(Median Household Income figure, 2004 U.S. Census Bureau QuickFacts)

Median Household Value: $151,600

(Median Household Value figure, 2000 U.S. Census Bureau Quickfacts)

Retail Sales: $170,140 (in thousands); Retail Sales Per Capita: $6,233

(Retail Sales figures, 2002 U.S. Census Bureau QuickFacts)

Growth in retail sales from 2002 to 2005 was about 125 percent, according to the Georgia Statistics System. This is evidence of a growing commercial economy.

Building Permits: 542

(Building Permits figure, 2006 U.S. Census Bureau QuickFacts)

5. Oglethorpe

Population: 13,997

(Population figure, 2006 U.S. Census Bureau QuickFacts)

There is not much economic activity in Oglethorpe County, according to Wilson. However, Howell estimates that in 10 to 15 years there will be growth.

Number of Households: 5,430 Avg. Number of People per Household: 2.6

(Number of Households figure, 2006 Audit Bureau of Circulation estimate)

Age: Children – 24.5 percent; Adults – 63.6 percent; Seniors – 11.9 percent

(Age figures, 2005 U.S. Census Bureau QuickFacts. Children are under 18; seniors are over 65.)

Ethnicity: White – 80.3 percent; Black – 18.8 percent; Hispanic – 2.8 percent

(Ethnicity figures, 2005 U.S. Census Bureau QuickFacts. Some white Hispanics report both ethnicities.)

Education: High School Diploma – 72.1 percent; College Degree – 15.6 percent

(Education figures, 2000 U.S. Census)

Employment: 96.4 percent

(Employment figure, 2006 U.S. Bureau of Labor Statistics)

Median Household Income: $37,523

(Median Household Income figure, 2004 U.S. Census Bureau QuickFacts)

Median Household Value: $87,500

(Median Household Value figure, 2000 U.S. Census Bureau Quickfacts)

Retail Sales: $37,932 (in thousands); Retail Sales Per Capita: $2,887

(Retail Sales figures, 2002 U.S. Census Bureau QuickFacts)

Growth in retail sales from 2002 to 2005 was about 41 percent, according to the Georgia Statistics System.

Building Permits: 160

(Building Permits figure, 2006 U.S. Census Bureau QuickFacts)

The Newspaper: Athens Banner-Herald

Ø Circulation/Household Penetration

Total Average Paid Circulation: Sun – 30,441; Mon-Fri – 27,229; Sat – 26,288

(Total Average Paid Circulation figures, Audit Bureau of Circulations March 31, 2007 Report)

Total Approx. Circulation Revenue: $17 million

(Total Approx. Circulation Revenue, Jeff Wilson, Athens-Banner Herald Publisher)

		Sun		Mon-Fri		Sat
	Number of Households	Total Circ.	Household Penetration	Total Circ.	Household Penetration	Total Circ.	Household Penetration
City Zone	41,432	13,702	33.07%	13,092	31.60%	12,095	29.19%
Retail Trading Zone	45,545	11,882	26.09%	9,903	21.74%	9,982	21.92%
Total CZ & RTZ	86,977	25,584	29.41%	22,995	26.44%	22,077	25.38%
All Other		4,857		4,234		4,211
Total Paid		30,441		27,229		26,288

[Circulation 1.1] Data taken from Audit Bureau of Circulations March 31, 2007 Report, based on 2006 estimates. Number of Households represent occupied houses. Mon-Fri is a combined average.

The Banner-Herald penetrates about a third of households in the city and retail trading zones. During the work week it reaches 26.44 percent of RTZ household and 4,234 households outside of it, compared to the Atlanta Journal Constitution’s weekday penetration rate of 21.75 percent inside the newspaper designated market, according to the Audit Bureau of Circulations September 30, 2006 Report. On Sundays, however, the Banner-Herald lags behind the Atlanta Journal-Constitution with 29.41 percent penetration inside the retail trading zone, compared to Atlanta’s 30.52 percent in its newspaper designated market. To give advertisers more viewers, however, the Banner-Herald produces total market coverage pieces, Wilson said. Amanda Burnett, marketing manager at the Athens Banner-Herald, the paper penetrates about 68 percent of its retail trading zone in some form or fashion. In a future report I will discuss how to increase actual publication circulation, especially in fringe areas that are not heavily penetrated.

Ø Advertisement Analysis

Based on a news-to-ad ratio analysis of the newspapers I conducted Tuesday, September 4 to Tuesday, September 11, 2007 (see Advertising 1.1), I ultimately found that the Athens Banner-Herald must have a higher percentage of ads of higher quality (i.e. double-trucks, full page and color). This conclusion is based purely on a news-to-ad ratio basis, and has nothing to do with rate card information (see Advertisement 1.3) or concrete ad revenue, because a lot of that specific information varies according to individual ad rate contracts.

Tuesday, September 4, 2007
Section/Page	Column Inches	Advertisements (In.)	Editorial Content (In.)	Advertisement Percentage
A-1 (Front Page)	129	0	129	0%
A-2	129	0	129	0%
A-3	129	73.5	55.5	57%
A-4	129	50.6	78.4	39%
A-5	129	55.5	73.5	43%
A-6	129	75.3	53.6	58%
A-7	129	55.6	73.4	43%
A-8 Editorial Sec.	129	0	129	0%
A-9	129	1	128	1%
A-10	129	78	51	60%
B-1	129	0	129	0%
B-2	129	0	129	0%
B-3	129	10	119	8%
C-1	129	6	123	5%
C-2	129	68.5	60.5	53%
C-3	129	129	0	100%
C-4	129	6	123	5%
C-5	129	6	123	5%
C-6 Full-Page Ad	129	129	0	100%
C-7	129	51.5	77.5	40%
C-8	129	6	123	5%
C-9	129	129	0	100%
C-10	129	111.8	12.2	87%
D-1	129	0	129	0%
D-2	129	121	8	94%
D-3	129	129	0	100%
D-4	129	100.5	28.5	78%
Overall	3483	1392.8	2090.2	40%
*Analysis: The paper doesn't have enough advertising to support this edition of the publication. The
ad-to-news ratio is actually the inverse of what a healthy newspaper should have (40 to 60; not 60 to 40).
*Other: National insert from Kohl's dept. store; local ad flyer from health organization [Advertisement 1.1] Data collected from personal observation of newspaper

Major Advertisers

[Advertisement 1.2] Data collected from personal newspaper observation.

§ National: Macy’s, Suntrust, Sherwin-Williams, AT&T, Wachovia, Wolf Camera & Image, Lowe’s

§ Regional: Georgia Power, Blue Laser Group, Fairway Outdoor Advertising

§ Local: Five Point’s Bottle Shop, Athens Regional Medical Center, Foster’s Jewelers, The Peoples Bank, Phil Hughes Honda, Athens-Clarke County, Hyundai of Athens, Heyward Allen, The University of Georgia

§ Make Kids Count: Ashley Furniture HomeStore, Georgia Power, The University of Georgia, News Channel WNEG-TV, Fairway Outdoor Advertising, 14 other contributing sponsors

Burnett said local ad sales generate the most ad revenue for the paper, but national sales contribute significantly. On a local level, the Athens Banner-Herald relies partially on its advertising department to fulfill the philanthropic element of good “corporate” citizenship, by managing the Make Kids Count umbrella program. Through five major sponsors and 14 other contributing sponsors (see Advertisement 1.2) the paper funds its Newspapers in Education program and Youth Activities Page in the print edition. It also manages an almost $20,000 per cycle youth scholarship fund, ‘Spotlight Kid’ of the week and ‘Super Star’ program.

Standard Retail Ad Rate Card

[Advertisement 1.3] Data taken from the Athens Banner-Herald Print Media Kit

Black and White Rates

Retail daily rate (Monday-Thursday). . . . . . .$23.92 per column inch

Retail weekend rate (Friday-Sunday). . . . . . .$25.16 pci

Co-op Daily Rate. . . . . . . . . . . . . . . . . . . . . . $29.70 pci

Co-op Weekend Rate. . . . . . . . . . . . . . . . . . .$30.20 pci

Color Rates

One color (plus black). . . . . . . . . . . . . . . . . . . . . . . . . . . . .$260

Two colors (plus black). . . . . . . . . . . . . . . . . . . . . . . . . . . . $310

Three colors (plus black). . . . . . . . . . . . . . . . . . . . . . . . . . .$345

Special Colors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $345

Ø Editorial Analysis

Major Area Employers/News Generators

[Editorial 1.1] Data taken from Georgia Dept. of Labor, 2006 Area Labor Profile

§ Athens Regional Medical

§ Merial Limited

§ Pilgrims Pride Corporation

§ St. Mary’s Hospital

§ The University of Georgia

§ Gold Kist, Inc.

§ Wal-Mart Associates, Inc.

§ Harrison Poultry, Inc.

§ Michaels & Associates, Inc.

§ Wayne Poultry

Local Coverage: Good The content coverage of the Athens Banner-Herald is designed to be “hyper local,” according to Jeff Wilson, publisher, and Jason Winders, editor. To this end, it succeeds wonderfully.

“We don’t think anyone comes to our paper for breaking national and international news,” said Winders. “People come to read what’s going on in their community – who’s having a church picnic and the like – so that’s what we give them.”

The paper has a rule to be severely local in its main coverage and rarely strays from that precedent. In the short time I have been here, I have not seen a national or international story on the front page more than once, and definitely never above the fold.

National/International Coverage: Poor While this may work for the majority of coverage, there are times the newspaper fails to capitalize on local spin potential because of its narrow focus. For instance, the paper did not highlight President Bush’s announcement that he would create a solid time table to withdraw a group of troops in Iraq after several years at war. A reporter could have found a local family who has a son or daughter in the military and built the national news story on a local angle. Also, the Federal Reserve Board lowered the federal fund rate by half a point last week and the paper did not breakdown how this could affect the local housing market or regional economy.

Youth Market Coverage/Appeal: Poor Although about 32,000 people in the 18-24 age category live in the center of the city zone at The University of Georgia – one of the area’s top employers – the newspaper largely ignores this demographic purposely.

Wilson said his paper’s “dream” demographic is a traditional nuclear family with parents in their late 30s who each earn about $45,000 a year and have elementary school age children.

His desired demographic is mainly conservative and would not react positively toward most of the content that would appeal to the youth market.

“I don’t want to be another Savannah Morning News,” he said, in reference to another Morris Communications publication that attempted to capture the youth market at the expense of its core readership. He also said an endeavor to increase readership amongst young adults may not be economical. “I would have to hire an entirely new staff for something like that because my current writers wouldn’t connect with (that demographic),” he said. In the long run, I think that an effort to capture part of this market will be a worthy task. In a later report I will discuss my ideas for changing this situation and the competition the paper will face in this target market.

Female Market Coverage/Appeal: Fair A 2004 Top 50 Market Report conducted by Scarborough Research, found the section of a newspaper that draws women in the most after general and local news is the entertainment section (71 percent of women who read the paper read entertainment content compared with 61 percent of men). In this area, the Athens Banner-Herald does a decent job of appealing to female readers. It includes a daily Living section and weekly zoned market coverage Living sections in its Oconee and Madison County editions.

“The local Living sections have been extremely popular,” Wilson said. The Oconee County section turns a profit and the Madison County section, the younger of the two, is projected to do so by next year. Nevertheless, a problem with appealing to women with the Living section is that content is still largely a mixed-bag that the advertising department cannot neatly sell to advertisers. In a later report I will discuss my ideas for improving this situation.

Business Market Coverage/Appeal: Fair Because advertisers have not shown a major interest in supporting a daily Business section for the paper, there is none, Wilson said. As of now, business news is only given its own section on Sundays and largely consists of local stories and stock quotes – not national trends pieces.

Rob Wilson and Jenny Wofford, both area bankers, said they have no problem with the paper’s business news coverage. “I usually go to the (Atlanta Journal-Constitution for my daily business news. I don’t really go to the Athens Banner-Herald for that; it’s a community newspaper,” Rob Wilson said. Wofford said that she relies on her company’s internal communications to hear about the latest rate changes and does not believe she would want to read the Athens Banner-Herald for important business news. I think both opinions prove that the Athens Banner-Herald has positioned itself as almost a polar opposite to the largest neighboring newspaper – the Atlanta Journal-Constitution. While in the case of covering extremely local content this is a good fact, however in the case of business news I think the paper needs to reposition itself to protect its professional and higher-income readership. In a future report I will discuss ways the Athens Banner-Herald can find its own niche in the business news coverage market and draw local readers back to its own pages for their business news needs.

Ø Online Analysis

Both the publisher and the editor are unsure as to the direction they will ultimately take with the newspaper’s online strategy. As it stands, there is no superior method to find out who the online users are. To the publisher’s knowledge, 25 percent of users live in the retail trading zone. A majority of the 75 percent of other users visit the site for college sports news, found mainly in the Dog Bytes section. National advertisers do not mind the uncertainty in user demographics as much, but local advertisers have not been quick to convert to online. They want to know exactly who will view their ads, and until the paper gets a better analytical system in place, local advertisers will be a lost potential. On the other side, editorial control is an ethical issue. According to Winders, there is no censorship system or formal editing process for bloggers. This raises libel concerns. In a future report I will explore solutions to both the business and editorial problems with the burgeoning online forum.