PRIVATE AND CONFIDENTIAL

CONSOLIDATED COMMUNICATIONS, INC.

To: Conrad Fink

From: DeShaun Maria Harris

Subj: Athens Banner-Herald, Third Report, Acquisition Plan    Executive Summary

Date: November 19, 2007

            If chosen to publish the Banner-Herald, there are several changes I would make in the first six months, let alone the first two years. Immediately, I would scout locations for news bureaus in Oconee and Jackson counties, with one to follow in a year in Madison County if return on investment figures were promising. I would also expand the online staff to accommodate the multimedia goals of www.onlineathens.com that I would enact immediately. Then, I would conduct primary research and look at secondary research to determine the feasibility of starting several niche publications that would eliminate the hole in the Banner-Herald brand’s product line. If all seemed promising from an advertising and editorial standpoint, I would begin publication of them – City Vibes for the youth market, Peachy-Keen Magazine for women, Closing Bell Quarterly for professionals and investors and Echo and Eco for black and Hispanic residents. Last, to mitigate internal and external resistance to change, I would work with the marketing specialist to create a promotional campaign for the Banner-Herald brand.

            I look forward to hearing your critique of my ideas and I hope Consolidated Communications comes to a decision expeditiously, as I am ready to lead.

 

 

Organizational Structure and Human Capital Needs

            A large percentage of an average news organization’s cost is generated by its staffing needs – reporters, photographers, advertising representatives and circulation specialists included. The Banner-Herald is no different. The following is a breakdown of the current editorial staff as of November 12, according to the newspaper’s online masthead. Because I did not find that any structural changes need to be made on the advertising and circulation sides, I have not included details about them in this report. I have also chosen not to include details about the personnel, accounting and newspapers in education departments and Athens Magazine staff because I could not detect any immediate issues in those areas. However, if you would like to view their structures, visit www.onlineathens.com/contactus/.

Newsroom

  • Editors: eight (not including Executive Editor)

    • News
    • Sports
    • Business
    • Arts & Entertainment
    • Metro
    • Oconee County
    • Features
    • Editorial

 


  • Assistant Editors: two
  • Copy Editors: three (one doubles as a designer)

 


  • Reporters: 10

    • Criminal Justice
    • Education
    • General Reporter
    • Athens-Clarke County
    • Oconee County
    • Jackson/Barrow Counties
    • General Sports
    • High School Sports
    • UGA Football
    • Features

 


  • News Director: one
  • Administrative Assistant: one

News Service


  • News Reporters: four
  • Sports Reporters: three

 

Online


  • Director: one
  • Editor: one
  • Assistant Editor: one
  • Web Designer: one

Photography


  • Director: one
  • Staff Photographers: four

As you can see, Online is the least staffed of the Banner-Herald’s editorial departments. In light of current and anticipated trends in the way audiences choose to receive their news, this is not an advantageous staffing strategy on the newspaper’s part. In 2008, eMarketer, a leading internet market research firm, estimates that 64.7 percent of the U.S. population, age three and above, will be internet users. It also estimates that 56.3 percent of all U.S. households will have broadband internet – a high-speed connection format that enables users to receive updates online almost instantaneously. And, regardless of what old-line newspapermen may wish to believe, people are taking advantage of the technology to find out what is going on in their communities and the world. The category of websites that people visit most on the internet is multi-service portals (ex. MSN, Yahoo and AOL), based on TNS Media Intelligence 2005 ad revenue figures. These sites consist heavily of aggregated news from newspapers, broadcasters and news services. Their advantage is that they also are a gateway to the World Wide Web for many users, serving as consumers’ homepages oftentimes. The second most visited category is news and current events. Also in the top ten web site categories are business, entertainment, sports, local news and health – all generators of traditional newspaper beat stories. From these statistics, I have concluded that multi-service portals are quickly becoming substitutes for newspapers online by using the very sources’ content against them. Their graphics are better, their aggregating skills are advanced and their ability to adapt to individual users’ needs is superior. However, newspaper websites can still beat multi-service portals on the basic content – which is news – if they sufficiently invest in quality journalism for the internet, which requires more staffing. This is an immediate issue that I would address as soon as Consolidated bought the company. Below is an organizational chart that shows the changes I would make:

Organization Chart

[Online Department Organizational Structure] Created by DeShaun Maria Harris

            First, I would continue to have the online director report directly to me, the publisher, because online is a separate function from the print product and should be recognized and treated as such. However, I would also keep the news director, who Jason Winders, the executive editor, said serves as a liaison between the print and online staffs. I would do so because the two departments are still connected and need to communicate efficiently, as they are both news products under the Banner-Herald name and should complement each other, not compete. Next, I would get rid of the assistant online editor position and create two new ones in its place: online sports editor and topic editor. I would then create a rich media editor position and give them two multimedia reporters who must be skilled in photography, videography and traditional reporting. I could not compromise on the required skill set. Online users are largely not the traditional newspaper readers, demographically and in terms of their needs. They want basic highlights and in-depth coverage presented in a multitude of ways; the written word alone will no longer suffice, and any new staff member I would hire would have to be able to navigate the new media sea (see Sample Job Post). I explain my reasons for all of these changes in the Online Potential section of this report. 

Latest jobs on Journalism.co.uk

Date posted: 31/10/07 Closing date: 30/11/07

Job title: Multimedia journalist

Full details: A startup English-language newspaper based in Abu Dhabi, United Arab Emirates, is looking for multimedia journalists for its new media team to write, edit and update online articles, moderate and manage online communities, and publish content on a wide variety of new media platforms. Both entry-level positions and senior positions are available within the team.

Led by Martin Newland, former editor of London’s The Daily Telegraph, the new newspaper includes staff from some of the most prominent news organizations in North America and Europe, including the New York Times, the National Post of Canada and the Daily Telegraph.

Applicants must have several years’ of experience working on the web, be able to work across text, audio and video formats and have a strong grasp of journalistic style. Knowledge of the Middle East and foreign languages are a plus.


Applicants must be willing to relocate to the UAE.


Please email your CV and a covering letter, under the subject heading: multimedia journalist.


Please quote journalism.co.uk when applying for this position.


Apply to:
Email: abudhabipaper@yahoo.com

[Sample Job Post] Job post taken from www.journalism.co.uk

In addition to large changes in the Online department, I would shift around a few positions in the Newsroom to accommodate the eventual creation of three news bureaus in the Retail Trading Zone, which I discuss at length in the Zoning and Expansion section of this report. To sum up the human resource needs in this area, however: I would get rid of the metro editor and assistant editor positions within 6 months; hire a Jackson County editor within that time, as well; hire two additional reporters to cover Oconee and Jackson counties within a year;  hire a Madison County editor and two reporters within two years; and hire an additional copy editor to account for the additional stories that will surely follow the creation of news bureaus.

Overall, the net human resource changes I would implement would require nine new employees over two years. Though the industry trend for the past few years has been to downsize newspaper staffs, I think the Banner-Herald could successfully support the additional costs (i.e. salary, benefits, etc.) because of the additional revenue my other product ideas and changes would create.

Zoning and Expansion

        As I mentioned in my first report on the Banner-Herald’s market conditions, the metro area’s population is shifting from the Athens’ commercial core and into the surrounding RTZ counties. Dirk Howell, a residential realtor at Upchurch Realty in Athens said, and U.S. Census information confirmed, that 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). Jackson County’s growth can be attributed to its proximity to Interstate 85, which is an accessible commuter route for Atlanta workers. Oconee County, on the other hand, has proven attractive because of its demographic exclusivity – houses there do not sale for less than $300,000 – and superior public school system. Madison County is also beginning to grow at a noticeable rate (8 percent growth from 2000 to 2006) and has plans to strengthen its retail structure, in hopes that doing so will stimulate residential growth.

            Because of these combined findings, I think it would be in the newspaper’s best financial and editorial interests to create news bureaus for zoned editions in these counties within the next two years. The following are my proposals for each operation, including timelines for key implementations and contingency plans.

Oconee County News Bureau

Location: Watkinsville, Ga.

Staff:   Editors – one              Reporters – two         Photographers – one

Coverage Area: Bogart, Bishop, High Shoals, Watkinsville

Specialized Content Coverage: county government, city government, Oconee County Schools, Warrior high school sports, Titan high school sports

Specialized Content Focus: home improvement, fine dining, domestic travel, golfing, hunting, financial investing

(Based on zip code analysis by the Environmental Systems Research Institute Community Tapestry.)

 

Ideal Local Advertisers: Home Depot, Lowe’s, Harry Bissetts Bayou Grill, DePalma’s Italian Café, Lane Creek Golf Club, The Georgia Club, Miller’s Sporting Goods

Realization/Contingency Plan:

  • January 2008: Consolidated Communications purchases Banner-Herald Co. Begin search for news bureau location and lease building. Put metro editor and assistant metro editor on notice about the reorganization.
  • February 2008: Move Oconee editor and reporter into the news bureau building. A staff photographer will work out of this bureau part-time, as well, until the acquisition of the Oconee Enterprise can be negotiated and a photographer from that staff integrated into the news bureau staff (acquisition information later in Zoning and Expansion section of this report). Discontinue the Oconee Living Section of the main newspaper edition. Start zoned edition publication.
  • June 2008: Evaluate the progress of the zoned edition. Look at marginal advertising revenue, reader susceptiveness based on a conducted focus group and reader response. If findings are positive, begin search for an additional reporter to better cover the area and hire them. If findings are negative, abandon bureau.
  •  December 2008: Reevaluate the progress of the zoned edition. Make staffing decisions (hire, dismiss, remain the same). Find out if any special projects or features need to be included.
  • June 2009: Revaluate the progress of the zoned edition. Determine if it is projected to turn a marginal profit by December, if not, abandon bureau.
  • December 2009: Reevaluate the progress of the zoned edition. Write an executive report of the bureau’s progress and offer suggestions that can bolster the chances of a Madison County zoned edition reaching profitability.

Jackson County News Bureau

Location: Jefferson, Ga.

Staff:   Editors – one              Reporters – two         Photographers – one

Coverage Area: Commerce, Hoschton, Jefferson, Maysville, Nicholson, Arcade

Specialized Content Coverage: county government, city government, Jackson County Schools, Commerce City Schools, Jefferson City Schools, Tiger high school sports, Dragon high school sports, Panther high school sports, Eagles high school sports

Specialized Content Focus: home improvement, gardening, hunting, fishing, sporting events, religious activities, parenting, country music

(Based on zip code analysis by the Environmental Systems Research Institute Community Tapestry.)

 

Ideal Local Advertisers: Home Depot, Lowe’s, Shirley’s Feed & Seed Inc., Miller’s Sporting Goods, First Baptist Church, UGA Athletics Association, Pro Cheer Inc.

Realization/Contingency Plan:

  • January 2008: Consolidated Communications purchases Banner-Herald Co. Begin search for news bureau location and lease building. Put metro editor and assistant metro editor on notice about the reorganization. Relieve Jackson/Barrow counties reporter of their Barrow County beat, because the county is not in the RTZ. If newsworthy events happen there, send the general reporter to cover them. Begin search for a bureau editor and hire.
  • February 2008: Move new Jackson County editor and reporter into the news bureau building. A staff photographer will work out of this bureau part-time, as well, until the acquisition of MainStreet Newspapers Inc. can be negotiated and a photographer from that staff integrated into the news bureau staff (acquisition information later in Zoning and Expansion section of this report). Start zoned edition publication.
  • June 2008 – December 2009: Same as the Realization Plan for an Oconee County news bureau.

Madison County News Bureau

Location: Danielsville, Ga.

Staff:   Editors – one              Reporters – two         Photographers – one

Coverage Area: Ila, Danielsville, Comer, Colbert, Carlton, Hull

Specialized Content Coverage: county government, city government, Madison County Schools, Red Raider high school sports

Specialized Content Focus: home improvement, fishing, hunting, gardening, auto racing, sporting events, farming

(Based on zip code analysis by the Environmental Systems Research Institute Community Tapestry.)

 

Ideal Local Advertisers: Home Depot, Lowe’s, Miller’s Sporting Goods, Shirley’s Feed & Seed Inc., Georgia Mountain Roots & Music Festival

Realization/Contingency Plan:

  • December 2008: Begin search for news bureau location and lease building. Begin search for a bureau editor and two reporters and hire.
  • February 2009: Move new Madison editor and reporters into the news bureau building. The staff photographer for the weekly publication acquired from MainStreet Newspapers Inc. would also serve as a photographer for the bureau. Discontinue the Madison Living section of the main newspaper edition. Start zoned edition publication.
  • June 2009 – December 2010: Evaluate the progress of the zoned edition every six months during this period. Look at marginal advertising revenue, reader susceptiveness based on a conducted focus group and reader response. If findings are positive, continue zoned edition and manning of the bureau. If findings are negative, abandon bureau.

In addition to safeguarding the Banner-Herald by creating zoned editions, I would further protect the newspaper’s market dominance through diversification – by acquiring a weekly in each of the RTZ counties.

As I mentioned in my second report on the newspaper’s competition, I project that MainStreet Newspapers Inc. is perfectly positioned to compete directly with the Banner-Herald for reader time and advertising dollars (on the weekend) in two of the counties that are contiguous to Athens-Clarke County. The company has three newspapers in Jackson County: the Jackson Herald, Commerce News and Braselton News. Each weekly delivers unique content that is hiperlocal; for instance, the Herald boasts that it is the “legal organ of Jackson County”.  MainStreet Newspapers Inc. also owns the Madison County Journal and the Banks County News. In an acquisition of this company, I would first divest the Banks County News operation because its reader base is outside of the Banner-Herald’s RTZ and it could not easily be integrated into the newspaper’s advertising strategy, as its readers would not be attractive to many local advertisers. Initially, I would monitor and evaluate the current organizational structures and staffing of each weekly to determine if changes needed to be made. I would also move operations into the Jackson and Madison counties news bureaus, as outlined in the realization/contingency plans previously discussed in this section of the report. Consolidating operations would decrease unnecessary overhead costs and allow for creative and resource collaboration between the main newspaper and the subsidiary news products.

 In Oconee County there is the Oconee Enterprise. It has been around for a long time and seems to have a strong brand reputation. Because of this, I would definitely not seek to make major changes in it initially. Once again, I would only move operations to the established news bureau. In Oglethorpe County there is the Oglethorpe Echo, which I would also purchase but change the delivering media. Because I do not think the advertising support would initially exist for a publication in this county, I would make it an online product. By doing this, I could garner more advertising revenue on the content because of the differing digital ad rate structure. 

Editorial Content Quality and Structure

            Because I provided you with a detailed editorial analysis of the Banner-Herald in its current state in my first report, I will not waste your time by stating it all again. The highlights, however, are as follows:

  • Issue: Insufficient National and International News Coverage
    • Solution: Publisher conveys to the Executive Editor the importance of solid news judgment. Executive Editor, in turn, makes better decisions on balancing local content with national stories with local angles with national trends (conveying this down the chain to the entire news staff).
  •  Issue: Insufficient Youth Market Coverage/Appeal
    • Solution: Standalone print product and connected website (see New Product Potential and “Disruptive Innovation” section)
  • Issue: Marginally Sufficient Female Market Coverage/Appeal
    • Solution: Standalone print product, website columnist and special event series (see New Product Potential and “Disruptive Innovation” section)
  • Issue: Marginally Sufficient Business Market Coverage/Appeal
    • Solution: Standalone print product and special event (see New Product Potential and “Disruptive Innovation” section)

As you can see, I would create niche products to close the gaps in the newspaper’s present community coverage. Still, these changes are not good enough. From my observations, I have concluded that the newspaper carries a few “deadweight” sections in its pages and online. These areas must either be revised or eliminated to streamline the editorial content and quality of the newspaper and www.onlineathens.com. The main print section I would revamp is Marquee, the Banner-Herald’s arts and entertainment offering. Right now it is amazingly predictable and not interactive at all. I would request a redesign of the print section and create an online discussion forum for readers and users to explore their arts and entertainment desires with each other (further information in on this in Online section of report). The other Banner-Herald offering I would change would be www.athensmusic.com. It has a stagnant design and little original content that a savy web user would find entertaining. I would eliminate this website and replace it with another product, which I discuss in the New Product Potential and “Disruptive Innovation” section of this report.

New Product Potential and “Disruptive Innovation”

            In conversation with James E. Smith, vice president of Research & Development for Morris Communications – the present owner of the Banner-Herald – I learned about “disruptive innovation” and the product and circulation strategies Morris Communications is testing across its holdings. “Disruptive innovation” is a phrase used greatly by Newspaper Next – a business model development project by the American Press Institute – that means a technological innovation, product or service that eventually overturns the existing dominant technology or status quo product in the market. In photography, this is the digital camera taking the place of low resolution film cameras. In classified advertising, this is websites like www.Craigslist.com taking the place of newspaper classified ads as the premier source for local job and trade postings. The disruption occurs in one of two ways: (1) a low-end, perhaps low-quality product enters the market and satisfies the needs of consumers who can not afford or do not desire a high-end, high quality product in the same category (see Disruptive Innovation) or (2) a superior product enters the market and satisfies unmet or unknown needs of consumers. 

Image:Disruptivetechnology.gif                                                [Disruptive Innovation] Graph from www.wikipedia.com, “Disruptive Technology” webpage

My plans for new products under the Banner-Herald brand include both kinds of “disruptive innovators”. I would seek to meet the news and entertainment needs of everyone in the Athens metro area, not with the same products but with niche offerings. The following are the products I would like to create within the first two years of Consolidated Communications taking over the company. For each of the products, I would conduct consumer and field research to constantly monitor the progressive growth or decline in advertising revenue and consumer interest. Upon each evaluation, I would create “bail out” points; if the enterprise were not showing signs of reaching profitability after an estimated time, based on similar product life cycle findings, I would abandon the undertaking.

City Vibes

Target Audience: College students and young professionals (under 30)

Content: Athens bar-scene lifestyle, entertainment (clubs and music) and fashion

Format: glossy magazine and website

Frequency: monthly (with frequent updates online)

Newsstand Price/Subscription/Online Price: free/to be determined/free

Ideal Advertisers: Shokitini sushi restaurant, Level 131, The Reserve, Encore, Helix

Distribution: Newsstands, “trendy” boutiques and coffee shops in Athens-Clarke County (downtown, UGA campus, Five Points); internet

Competition: Flagpole magazine, The Red & Black, Myspace.com, Facebook.com

            City Vibes would be a slick lifestyle magazine targeted at Athens’ large young adult population. Stories would mainly focus on nightlife and entertainment for this audience. The print publication would feature local band profiles, multiple columns, or “voices” from the target audience and fashion trend pieces. Online, City Vibes would host a local music blog, video podcast and direct links to band websites. Another feature would be live online interviews with bands the day before or the day of a scheduled performance in Athens. A staff reporter would moderate interviews; however users would ask the majority of the questions – creating an interactive, Web 2.0 experience. There would also be a fashion blog, written by an owner of a boutique clothing shop in downtown Athens.

            In order to remain authentic and true to its audience, the majority of the staff of City Vibes would have to be under 30. To satisfy this staffing need, the Banner-Herald could utilize a great resource they have less than two miles away from the current office – UGA students, specifically from the Grady College of Journalism and Mass Communication. The newspaper could offer an internship program for aspiring journalists (newspaper, magazine, broadcast and telecommunications) and music aficionados who want to share their experiences in Athens with their peers.

Peachy-Keen Magazine

Target Audience: 35 to 55 year old women who are home and garden enthusiasts

Content: Interior decorating, landscaping, gardening, cooking, civic life, Southern lifestyle

Format: newsprint tabloid

Frequency: bi-monthly

Newsstand Price/Subscription: free/to be determined

Ideal Advertisers: Goodness Grows Inc., Big City Bread, Hogan Builders Inc., Slippers

Distribution: Total market coverage

Additional Product Features: Special event series and www.onlineathens.com column

Competition: Athena magazine

            As the name implies, Peachy-Keen Magazine would take a decidedly optimistic and positive view towards every subject it would cover. It would be an uplifting supplement to the hard news found on the pages of the Banner-Herald. This new product would be heavily integrated into the newspaper’s current offerings, as it would collaborate with the Living section on a special event series and a Peachy-Keen Magazine writer would have their own column on the newspaper’s website.

            The special event series would focus on three areas: home improvement, self improvement and community improvement. Local business owners and managers would team up with Peachy-Keen Magazine and the Banner-Herald Living section to offer area women workshops on topics like “Remodeling the backyard on a budget,” “How to Deal with Menopause” and “Fundraising for Non-Profits”. While demand for a product like this would be highest in distinct parts of Oconee, Jackson and Madison counties mainly, I would position it as a free TMC publication to draw in women of the widest demographic segments available – women who would probably like a light-hearted magazine targeted at them, but who do not see their lifestyles reflected on the more upscale pages of Athens magazine, Southern Distinction and Lake Oconee Living. Special event series, however, would not be free. There would be an entrance fee for readers and business owners and managers who would like to share their expertise would have to help sponsor the events.

Closing Bell Quarterly

Target Audience: Households with yearly incomes $50,000 or more in the RTZ

Content: business news, finance, investing, trade, local commerce

Format: low-gloss digest

Frequency: quarterly

Newsstand Price/Subscription: to be determined/to be determined

Ideal Advertisers: local business owners, Athens First Bank & Trust: Synovus Securities

Distribution: direct mail, financial institutions, chambers of commerce, major businesses

Additional Product Features: Reader’s Choice Awards Gala

Competition: not available

            As I mentioned in my first report to you, the Banner-Herald has positioned itself as almost a polar opposite to the largest neighboring newspaper – the Atlanta Journal Constitution (which has a satisfactory business section for Athens-Clarke County metro area readers). In the case of covering extremely local content this is good for the Banner-Herald; however, in the case of business news I think the newspaper needs to reposition itself to protect its professional and higher-income readership. Filling this niche is where Closing Bell Quarterly would come into the picture. It would be a digest-size publication that offers local readers a summary and analysis-style profile of major securities and bonds traded in Northeast Georgia for that fiscal quarter. It would also tell the stories of local businessmen and business; give advice on portfolio diversification and the like – from a local investment banker; and provide more technical and “high-brow” business news than would ever reach the pages of the general audience newspaper.

            In addition to the print product, Closing Bell Quarterly would continue and expand the Reader’s Choice Awards conducted each year by the Banner-Herald. Currently, the newspaper produces a broadsheet insert that runs in September “where the finest area businesses are chosen by our readers,” according to the Banner-Herald’s 2007 Special Section Calendar. With Closing Bell Quarterly, chambers of commerce in the RTZ would co-sponsor – with the newspaper and the digest – an awards gala for the winners. The event would be upscale, say plated dinners that cost $100 per chair. There would still be a section noting it in the general newspaper, however, higher-quality color ads could be taken out in the Closing Bell Quarterly by businesses wanting to congratulate other businesses on winning. Playing up the honor by hosting a gala would also evolve into a desired distinction among area business owners – a mark of approval.

               Distribution would be through direct mail mainly. The Banner-Herald’s circulation specialists could rely on the newspaper’s current subscriber list to initially pinpoint households with incomes $50,000 and over, who would likely be investors and professionals. According to my own research, I think a publication like this would be best received in Watkinsville (Zip Code 30677), the rest of Oconee County and the southwestern corner of Jackson County. Of course, basic marketing principles hold that people also consume what they aspire to have or be, meaning that young professionals and people who wish to move up in the tax bracket would also likely be interested in purchasing the publication. Because of this, the digest would also be available at local financial institutions, doctors’ offices, chambers of commerce and high-end retailers.

Echo and Eco

 Target Audience: Black and Hispanic residents of the RTZ

Content: black and Hispanic local community news, national trends, music and entertainment, food, lifestyle and political issues pertinent to the audience

Format: newsprint tabloids

Frequency: weekly

Newsstand Price/Subscription: free/unavailable

Ideal Advertisers: El Guanaco restaurant, Wal-mart, BJ Hardy Hair Salon, Sisters of the Oasis Catalico Santa Rafaela, Peaches Fine Foods

Distribution: Newsstands in select zip codes of the RTZ

Additional Product Features: www.onlineathens.com webpages

Competition: Mundo Hispanico, Zebra Magazine

            Though these two demographic segments do not contribute the most to the per capita income figures for the counties within the RTZ, they do contribute significantly to the population numbers and are gaining spending power at a notable rate. Also, a lot of them are newspaper readers who desire local content. Seventy percent of African Americans in the RTZ read the Banner-Herald, according to the 2004 Athens Market Study conducted by an independent company for the Banner-Herald. This figure is above the national average for daily African American newspaper readership (national average for households making $75,000 or more: 59 percent), according to the 2004 Top 50 Market Report by Scarborough Research – not bad at all for a general audience news product. The same Top 50 Market Report also indicated that 77 percent of African American newspaper consumers read the local news, second only to the 80 percent of readers who read main news. Hispanic readers also engage in main (80 percent) and local (73 percent) news at high rates. However, nationally, Hispanics do not consume mainstream newspapers at as high a rate as blacks (national average for households making $75,000 or more: 48 percent daily readership). With Echo and Eco, this gap can be closed.

            Content would focus on issues important to the audience – their civic events, their social activities, their concerns. Each publication would standalone, in recognition that the two audiences are distinct. However, they would be distributed mainly in the same zip codes because of the demographic make-ups of the areas. For example, in my first report I forecasted that Northwest Athens (Zip Code 30607) has the potential to become a truly multicultural area within the next few years, and would need multi-segmentation of the market. As it is, 30.4 percent of the population in this area is black and 22.2 percent is Hispanic. Their households are young, multi-generational family-oriented units. Though media household income is $43,963, according to  the ESRI Community Tapestry zip code analysis, household penetration is only 20 percent on Monday through Friday. Another zip code with potential to reach these audiences is 30601, North Athens. The median income is low, $27,339, yet household penetration is 40 percent daily, according to the latest Audit Bureau Circulation report for the Banner-Herald. Households there are mainly comprised of young, single parents.

            In light of these findings, I would make sure advertisers understand that these audiences would readily engage in products tailored to them and would more than likely respond even better than mainstream consumers to coupons and special saving offers. I would also host webpages for each publication on www.onlineathens.com, to create a virtual sense of community for these audiences as well.

 

 

Online Potential

With the technological possibilities growing through the internet every day, it is difficult to properly imagine all the innovations that would make in the intermediate future. However, below are some of the changes and additions I would make to www.onlineathens.com and the Banner-Herald’s entire brand identity online:

Website Redesign

            At first glance, I think the current Banner-Herald website homepage is too dark and overcrowded. Though I am sure the color scheme has to do with the geographic location’s spirit for the home team – UGA Bulldogs – it is not visually appealing on its own. The black background would have to go. Also, I don’t think the website makes optimum use of white space. As in print, the presence of blank space is a powerful tool to move readers around a page and give them a break from text. This should be monitored more carefully. Overall, readers prefer shorter lines of text, but do not want to scroll down a page excessively, according to the 2006 Research-Based Web Design and Usability Guide published by the U.S. Department of Health and Human Services. Right now, there is a lot scrolling necessary to get through a section of the online Banner-Herald. To remedy this, I would conduct a workshop to review usability for the online news staff as soon as Consolidated purchased the company. The staff would then create a mock-up of the redesigned website and conduct usability testing on potential users of a variety of backgrounds (ex. Senior citizen, elementary school student, high school student, local businessman, etc.). If results prove favorable, I would approve the new design and monitor the change in site visits and individual page views. I would also solicit feedback from readers and users to determine if the new design is a success and should be maintained.

Organizing Website into Topics

            On MediaShift, a blog hosted by the Public Broadcasting Service (www.pbs.org/mediashift), journalist and blogger Mark Glaser predicts that the future of newspaper website organization is in “topic hosting”. He states that blogging about neighborhoods and niche subjects will satisfy users’ increasingly non-civic minded desires. I think he might be on to something, which is why I would hire a topic editor to serve under the online editor. This individual’s job would be to find staff and community members to run small online communities within the Banner-Herald’s website. The Business community, for instance, could be run by the business editor – because it would include all of the business news for the newspaper – with a regular column by a chamber of commerce member and a discussion forum hosted by a local business person. The Health community could be run by Athens Regional Medical Center guest staffers, with weekly hour-long live advice sessions from an area doctor. The possibilities for topics are numerous, but would have no problem getting advertising as long as there were sufficient readership in the narrowly defined target audience.

Creating more Multimedia Packages

            The largest undertaking I would like to test in this area would be a weekly high school sports webcast, modeled after the one currently in place at the Augusta Chronicle (www.chronicle.augusta.com/sports/highschool/blitz/). Residents in the Athens RTZ, especially in Jackson County where there are four public high schools and the level of sports enthusiasm is high overall, would flock to a video production featuring their hometown heroes. Currently, no other media outlet delivers what a webcast like the one I propose could. As I informed you in my second report, there are no broadcast stations in the immediate area, accept News Source 15 – a college student-produced station – and radio cannot show live action. Potential advertisers for this would include school parent organizations, sports equipment and apparel stores, auto dealers, chiropractors and institutes of higher education.

            In this area, I would also request that my news director maintain constant contact with the online director (and, in turn, the rich media editor) to think of ways the multimedia reporters can interact with the editorial reporters to enrich particular topic coverage online.  

Utilizing Web 2.0 Technology

            Also on Media Shift, Glaser has shared the San Jose, Ca. Mecury News’ approach to citizen journalism. Included are the following, which I would like to incorporate into the Banner-Herald’s online strategy. Some are already in place under Morris Communications ownership, but I would also like to continue them because I think they are positive for the newspaper:

  • Readers can contact reporters via telephone, email and postal mail.
  • Readers can upload their photos to the newspaper website, vote on their favorites and trade them. (Note: The Banner-Herald currently uses Spotted (www.spotted.onlineathens.com), where users can post their photos and newspaper staff photographers post photos of community events also. While the Banner-Herald does not make users pay for any of the service, the Augusta Chronicle has a function where users can order prints for a fee. I would test this revenue-generating model.)
  • Create a social-networking platform that lets people share their personal tastes, local restaurant reviews and music they like. Modeled on Facebook.com, but more in-depth.

Circulation and Price Structure

Historically, greatly altering price structure for newspapers has not fared well. The Banner-Herald currently makes about $17 million revenue on circulation, according to Jeff Wilson, the publisher. It’s household penetration reaches about a third of RTZ households on its best days, however this is not low relative to the industry. Because of this, I would not seek to make any changes in circulation and pricing structure within the first two years of Consolidated Communications ownership.

Advertising and Ad Rate Structure

            In my first report I gave you a news-to-ad ratio analysis and told you that the Banner-Herald must gain a higher percentage of ads of higher quality (i.e. double-trucks, full-page and color), if it is to continue to support itself. This is still true. In my first six months of serving as publisher, I would meet with my advertising director and devise a strategy with measurable short-term goals to make this necessity into a reality. One of the possibilities would definitely involve leveraging the redesigned website – with topic sections – by promising and delivering advertisers the more precise, narrow target audiences they seek.

News Cycle Appropriateness

            Since 1950, the number of evening newspapers has steadily declined because of a national lifestyle shift. People left the factories and began to work in offices; therefore they began to have time to read a morning newspaper over coffee. Also, metropolitan distribution logistics made it harder to deliver newspapers in the far-flung surburbs in afternoon rush hour traffic. All of this goes to justify the Banner-Herald remaining a morning publication. By the afternoon news is “cold”; a lot has happened the night before and during the day, which makes any afternoon publication a recall and analysis rag.

            I would leave the print news cycle as is, but set a goal to update the main news on the website at least once every hour and the other sections at least once during the day. This would go a ways to satisfy the audiences craving for 24-hour news.

Brand and Product Marketing

            To ease the transition of the new ownership and the changes I would make, I would work with my marketing coordinator to create an internal and external promotional campaign for the first year. I would want to convey two things: (1) that the Banner-Herald and its subsidiary products combine to service each and every person in the community – making it the most comprehensive source for anything happening in Clarke and surrounding counties and (2) that the newspaper is moving forward into the digital age while maintaining the strong journalistic integrity that only it can deliver. A trial unique selling proposition that would encompass my communication goals would be:

“We don’t define ourselves by our newsprint. We define ourselves by our community.”

Actions in the plan would include the following:

  • January 2008: Have initial staff meeting with newsroom, online, advertising and circulation. Convey to the staff that they know their community best and still should be the ones covering it, however, now along with community “journalists” – serving as guides to them. Ask for staff suggestions for the promotional campaign; direct them to share them with the marketing specialist.
  • February 2008: Publish a center spread in the newspaper about the new ownership and planned changes. Be transparent and ask for reader feedback. Offer readers the chance to “Meet the Press” on a Saturday morning – including all editors and as many reporters as possible. Operate a webpage on www.onlineathens.com where readers can track changes and comment on them as they take place. This lets them feel a part of the change, and offers great primary research.
  • April 2008: Evaluate success of initial actions. Gauge reader and community response. Host a formal focus group. If the campaign is working, continue. If not, reformulate plan and implement.
  •  May 2008- December 2008: Continue with promotional campaign. Upon conclusion, evaluate success and determine if some actions can and should be continued into the future.