Hyperlocal News Was Supposed to Thrive -- But Now It's Not. So What Happened?

Several years ago, as regional newspapers began shutting down in droves, the smart money was that hyperlocal media would not survive, it would thrive. As we wrote in  "The Prospect for Hyperlocal Continues to Look Good -- But Can It Capture the Ad Market?" back in 2009!, the reason was "because while there will always be sources for national news, people still want local news."

Many top national media wrote about the gleaming prospects for hyperlocal media. For example, Fast Company wondered: "Can Anyone Tap the $100 Billion Potential of Hyperlocal News? Community-driven news services have been the next big thing online for years. Can The New York Times or AOL find the $100 billion local-advertising pot of gold?"

So we weren't alone in thinking that hyperlocal would survive a meltdown among local media. After all, there are many competing sources for local and regional news but generally only one voice for hyperlocal media.

(By the way, it's worth pointing out that the subhead in the Fast Company article references AOL -- as an example of how much may have changed since 2009.)

We have a nonprofit client for whom hyperlocal is critically important to their work so we've been paying close attention. Over the past year, there's been a lot of cutbacks in hyperlocal media. The problem isn't interest in or support of hyperlocal media from readers. In many cases, the subscribers still want hyperlocal news but the economics outside the community remain terrible.

That's in part because newspaper chains like Gannett borrowed billions to acquire hyperlocal media to generate growth only to find out they had taken on too much debt and needed to make cutbacks.

Lots of cutbacks. According to a Boston Business Journal article, "Northeastern professor Dan Kennedy... referred to the latest round of layoffs as a ‘bloodbath.’ The company has closed at least 19 Greater Boston weeklies this year and has replaced much of the local coverage with regional stories."

The BBJ further noted "80 terminations across more than 50 newsrooms — but the full picture of what local readers across the country lost has yet to emerge."

19 community weeklies closed = news deserts?

That doesn't include layoffs at other hyperlocal papers, which has led to fewer reporters having to cover larger territories. That has led to fewer hyperlocal news and feature articles, which have been replaced by regional trend articles. A recent example: a look at the wobbly post-COVID locally owned restaurant market (as opposed to fast food chains) actually didn't quote any hometown restaurateur; instead, the article provided quotes from owners from several different communities -- some of them that may be an hour away. While the article was still interesting, it was not hyperlocal. The benefit for the editors is that that single regional article was published in different hyperlocal papers. That's how understaffed newsrooms can continue to publish news. It's just not hyperlocal news.

And that means that communities are not getting the kind of hyperlocal information they want or expect.

They've been what's been called "news deserts," defined by the UNC School of Media and Journalism's Center for Innovation and Sustainability in Local Media, as "a community, either rural or urban, with limited access to the sort of credible and comprehensive news and information that feeds democracy at the grassroots level." News deserts are a problem because it means communities aren’t getting critical information related to civic life, government services, etc.

Once limited to rural communities, news deserts now include suburban communities and even larger cities where alternate weeklies have closed, affecting large parts of those communities.

The reason this is significant is that hyperlocal newspapers support their communities, the businesses and the nonprofits, the students and the seniors -- it helps bind communities. 

Here's an example of how this plays out using Marblehead, the North Shore community in which we've maintained our global world headquarters because we've experienced some of the problem of a news desert.

We've been served by the Marblehead Reporter, a print weekly that has become thinner, with less hyperlocal coverage. Please keep in mind: we're not blaming editors or reporters; they're working under difficult conditions; but we do blame Gannett and hedge funds like the Alden Group that purchase newspapers and extract value while decimating the newsroom and the quality of the product.

We're also served by the Marblehead Patch, which seems to produce one actual news story about the community per day but does a better job of sending alerts than the Marblehead Reporter. The the email newsletter from the Patch makes it seem like there's a lot of new content but most of the newsletter features regional coverage. The Patch is good about fires, school closings, etc. -- which is useful information but we don't recall seeing a lot of articles that requires in-depth reporting about issues affecting the town. That would be information residents can't get elsewhere. (We can get school closing information from Boston TV stations, which post that information on their websites.)

With fewer hyperlocal news articles, residents tend to feel less connected. It also means that the paper is less important because some readers figure they don't need to read it closely because there's less info about the town -- replaced by more content about other communities (that they don't have time to visit). 

As a result, Marblehead has three new initiatives to build hyperlocal media outlets. We hope they take hold but there are issues with all three.

• Marblehead Weekly News, which is published by Essex Media Group, which publishes the Daily Item of Lynn, Lynnfield Weekly News, Peabody Weekly News, and other local media. It is staffed by reporters who also work on other Essex Media properties. We've seen one print edition, mostly focused on the upcoming primary so it's too early to judge. One problem is that there's not a website yet for the publication, just a weekly print edition. So there's currently nothing available at MarbleheadWeeklyNews.com. There's also not even a listing for the Marblehead Weekly News on the Essex website's listing of its various properties. We're sure that will happen. The weekly also includes some sports and features on the "Historic Building of the Week"; in a town with a starling number of pre-Revolutionary homes, the first choice was a local movie theater. On the other hand, the Marblehead Weekly News has brought out the Police Blotter, something the Marblehead Reporter used to publish and seemed to be quite popular (because the items reported included a report of spilled Cheerios in front of the Post Office). But, so far, and it's early yet -- no real news coverage.
• Meanwhile Marblehead News has an actual website. But it may not have a name because it posted an item in June 20, 2022 that it's crowdsourcing for a permanent name. Which is a good thing. We found it only because we were searching for Marblehead Weekly News and found them instead. Most of the news currently available on the site is campaign statements. Plus one article about the local movie theater -- we don't know who's handling its PR, but kudos! One thing that makes Marblehead News interesting is that two of the founding staff formerly worked for the Marblehead Reporter so we think that's a good sign because they know the town and they know journalism. But it's also a nonprofit that will try supporting itself by raising donations. Also, it seems like a part-time gig for them, and we don't blame them because they're taking on a risk  by working on this at all.  
• The third new outlet is called the Marblehead Beacon, which also launched in June 2022, and is run as a "citizen-based news site." As of press time (this article was written a couple of weeks before the updated blog and website were finalized), because the Massachusetts primary are a week away, the Beacon has a lot of content about local candidates. While we're hopeful about the Beacon, it is run by two businesswomen with limited journalism experience and other business interests along with a high school student who is handling technology (as one might expect). 

When we started thinking about this blog, we did not realize there were three news startups trying to provide a variety of print and online news for a community of some 20,000 residents. That's kind of a problem since we're media junkies who live in the community -- so we know they're not having significant impact yet. But we hope that will change.

Right now, political candidates are getting the most attention but it will be interesting to see how this plays out. Will the Marblehead Reporter respond, and if so, how? (We assume the Patch won't be able to.) And we don't know how closely part-time journalists will be able to cover the community news and issues beyond fires, roadwork/construction issues, etc.   

We're using Marblehead as an example but there may be similar efforts in other local communities. And we're not necessarily endorsing one of these outlets over another but we want them all to succeed in finding an audience and delivering news. Our point here is to continue a discussion about hyperlocal news sites and news deserts.

Let us know what you think about news deserts and news startups in your communities. 

20 Ongoing Trends That Will Continue in 2020

Each year we identify a set of ongoing trends that have a longer shelf life and will impact the following year.

Here are the ones we think significant for 2020. In some cases, the trends below will have a paragraph of explanation and in other cases, just a headline is enough.

1.   News fatigue. We typically stay away from making predictions about politics but as the election gets closer, Americans are likely to feel overwhelmed by hourly news notifications on their phones and Fitbit or Apple Watches -- the term we've seen is "ringxiety" -- to the extent that they will shut down and look for content that will distract them. There will also be a contingent who will be more motivated to seek out updates but we haven't identified a clever term for them. We don't think there will podcast fatigue in 2020 but that could come, since the glut of podcasts, no matter how compelling, does not yet seem to be abating.

2.  Short news cycles. In a recap of news from 2019, an article mentioned the longest government shut down that ended Feb. 2019. But so much happened in 2019, that a bunch of us in the office had forgotten about the shutdown. Shorter news cycles mean that a lot of news that would have once been significant and memorable gets forgotten as we get hit by more recent news.  

3.  "News deserts" will continue to grow as more news outlets cut back the amount of news they produce, lay off staffs, reduce the number of days they print, etc. News deserts were once limited to rural communities but now large cities are feeling the loss of some outlets.

4.   Fake news and disinformation will continue, probably increase in 2020.

5.  The credibility of news media is under attack. For marketers, reaching customers while they are overwhelmed by disinformation/fraud and when the media is not seen as credible (whether on the right or left), will become harder and more complicated. This is not a political stance. The point is that marketers are going to need to find more effective ways to reach customers at a time of fragmentation and low trust.

6.   Social media will continue to undergo scrutiny and it won’t look good. 

7.   Cord-cutting will continue to attract the media's attention. With so many streaming services, cord cutting won't be cheap but will be a bit easier due to TVs that make it easier -- but not yet seamless -- to binge on the shows you want, regardless of which streaming services you subscribe to.

8.  Most tech reporters at newspapers will continue to focus on FAANG: Facebook, Apple, Amazon, Netflix and Google.

9.   Elon Musk and Tesla will continue to attract undue amount of media attention. 

10. Driverless cars still won't be ready. 

11.  Virtual Reality and Augmented Reality still won’t be everywhere.

12. Blockchain and bitcoin will continue to get media coverage but most consumers still won't have much contact with bitcoin and won't understand how Blockchain affects them.

13. Corporate boycotts & consumer boycotts will continue. Corporate boycotts are when companies pull their ads from specific shows, hosts or networks to protest something said or done. 

14. 3-D content and 3-D printers will still not be as popular as they are cool.

15. Student debt and healthcare will continue to be big issues.

16. Climate change will be an issue. Especially in the wake of the wild fires in Australia and elsewhere.

17. Drug pricing will continue to get a lot of attention. 

18. STEM will continue to be important. 

19. More small colleges will merge or close. Nearly 20 small private colleges in New England have shut down in the past five years, and we expect more as education goals evolve due to declining enrollment and resulting budget problems. There’s also more competition for better-known colleges. Expect more colleges to emphasize career readiness. (Probably because the cost is so high, it’s hard to justify pursuing fields that don’t lead to a career.

20. The future continues to look cloudy – as in cloud computing.

There certainly are more ongoing trends. Let us know us know if you think we left out anything significant. If you want more detail about some of the trends for which we did not provide detail here, check out our blog, where have mentioned some of these quite a lot.

2019 Was A Tough Year for the Media: Nearly 8,000 lost their jobs. It will continue in 2020

Last year started off badly for US journalism, with more than 1,000 job loses by February. Unfortunately, that trend continued, with more than 7,800 layoffs by December, according to a Business Insider article.

That's a startling number.

For context, BI noted that "it's estimated that some 5,000 media jobs were cut from the market from 2014 to 2017." So nearly 50 percent more losses in one year than were lost in three years combined.

What's surprising is that the layoffs didn't hit only newspapers. (1 in 5 local newspapers have closed down since 2004.)

There were big loses in big-name online sites including BuzzFeed, Vice Media, Verizon Media, Bustle, Quartz, and more. For Verizon's media units, Yahoo, AOL and Huffpost, there had been two sets of layoffs in 2019, resulting in the loss of 830 media jobs. (This does not include 10,400 losses-by-byouts in other Verizon jobs.)

Gannett, which merged with GateHouse Media in December to become the largest newspaper publisher by circulation, cut 400 jobs at its newspapers around the country, including US Today. Entrepreneur laid off four editorial staffer, restructuring on digital offerings. Jet, Ebony and New York Magazine announced lay offs, too. For us, a big sentimental loss was that of Mad magazine, which announced it would stop publishing new content, affecting 10 staffers and hundreds of freelancers.

The Washington Post eliminated its free commuter paper, the Express , after 16 years, because it found that the young readers it was aiming for no longer picked up a free -- that's right, free -- edition as they hopped on the Metro. That's because they accessed news on their phones (something that hadn't been around when the Express was launched). That's not the only free commuter newspaper to fold. Metro Boston, another free commuter paper, suddenly shut down this month after 19 years, after its sister publications, Metro New York and Metro Philadelphia, were sold. Metro Boston had a circulation of 300,000 in 2005 but fell to about 50,000 in 2019, the Boston Business Journal reported. 

Sports Illustrated, which was licensed to The Maven, cut "nearly 40 staffers...(with) plans to replace some full-time positions with contract" writers. And there are serious concerns about quality of the product because contract freelancrs are required to write many more articles for far less money -- especially upsetting because SI has long had the highest standards in sports journalism.

There were also broadcast losses at NBC, ESPN, NPR, CNN, Disney (as the result of its acquisition of 21st Century Fox movie studio).

The Youngtown Vindicator ceased publishing around its 150th anniversary, the Cleveland Plain Dealer laid off 12 additional newsroom employees along with as many as 30 production jobs. The St. Louis Post-Dispatch announced 23 jobs axed, Dallas Morning News eliminated about 20 newsroom jobs and the New Orleans Times-Picayune laid off all its staffers after being acquired by the Advocate, a competing newspaper.

The concern about the loss of local news media is that it has implications for the communities in whcih they operate. For example, local news media tend to be more trusted that national media. Local media help support local organizations in the community, helping to provide a sense of community. And they keep the community informed about issues affecting them.

U.S. news media used to be able to count on advertising and subscription revenue to fund operations but the shift to online or app has reduced both revenue streams, but especially advertising revenue. Unfortunately, with a few exceptions, there seems to be no sustainable business model that will help keep news outlets in business. We expect some uptick in revenue in battleground states, thanks to the presidential election but that won't last.

Which means: we expect more layoffs in 2020 and 2021. So we ask marketers to consider finding ways to support media.

Birnbach Communications Issues Five Media Predictions for 2019

For the 17th year, here are our top media, social media and marketing predictions for 2019. It is a disruptive time for the media, bringing both chaos and opportunities.

Without further ado, here are five of the agency’s top 5 media trends for 2019:

1.      The growing number of streaming content services make consumers harder to reach. The number of people who stream content as well as the number of apps providing on-demand content is rapidly growing. Already 61 percent of Americans, age 18 to 29, regularly watch or listen to what they want, where and when they want it, according to Pew Research. Apps for CBS, TBS, NBC and ABC are ad supported – only by national brands – but more dominant services including Netflix, Amazon Prime, HBO Go, Hulu Plus, YouTube Red, and Spotify Premium are ad-free, putting their subscribers out of reach for marketers.

2.      The age of the mass media is mostly over. It’s a niche world now. Partly that’s because marketers can now reach very specific audiences, along with nanoinfluencers, since online media can tailor content by gender, age, interest, political persuasion, etc. (Unfortunately, print media also is increasingly becoming niche, due to an ongoing reduction of the number of pages and size of their news staff combined with an increase in subscription rate.) In 2019, it’s complicated and expensive to reach a broad audience so marketers need to consider targeting key audiences through niche media.

3.      The broken business model for news will cause continued problems in 2019, including an increase in “news deserts.” It’s not only print media that will struggle in 2019, online media will struggle, too. The reason: online subscription fees are lower than print subscriptions and online ads generate less money that print ads (even though online ads provide much more useable data). We expect, unfortunately, more layoffs, smaller printer runs, smaller and less frequent issues – both online and in print. In 2019, we're going to see a growing number of "news deserts," defined by the UNC School of Media and Journalism's Center for Innovation and Sustainability in Local Media, as "a community, either rural or urban, with limited access to the sort of credible and comprehensive news and information that feeds democracy at the grassroots level." News deserts are a problem because it means communities aren’t getting critical information related to civic life, government services, etc.

4.      Social media will continue to undergo scrutiny and it won’t look good. And despite that, people still won’t quit Facebook, Twitter, etc. amid growing concerns about privacy and disinformation campaigns. We expect Congress and the EU, the UK and other governments to look to regulate social media. But we also expect that most won’t be able to regulate effectively because most politicians don’t have a firm grasp of how social media works. There will be more hearings but not many solutions because it’s a complex issue that algorithms alone can’t solve.

5.      More apps will try to combat fake news. Already there are at least a dozen initiatives – with names like The Trust Project, News Integrity Initiative NewsGuard, The Journalism Trust Initiative, Accountability Journalism Program, Trusting News, Trust & News Initiative and the oddly named Media Manipulation Initiative. Many are funded and staffed by journalists and also use algorithms to detect fake news. We hope they succeed but suspect they’ll be as successful as Tumblr, Facebook and Twitter have been to fight hate speech -- which is to say: not very effective but better than nothing. (A.I. will get a lot of attention but trust in algorithm will decline.) In the meantime, Axios’s Jim VandHei offered some suggestions: Stop using the term – it doesn’t help. And people should “Quit sharing stories without vetting them.” (We don’t think that will happen, either.)

In addition to these media predictions, we will roll out additional trends focusing on technology, fintech, artificial intelligence, retailapoclypse, the labor shortage and gig economy, and other topics here on our blog at blog.birnbachcom.com.

Please let us know what you like or disagree with. We'd love to hear from you. As usual, next November, we will evaluate how we did with this year's predictions.

Bloomberg Validates Our Concerns That Store Closings Have on Real Estate

For the past year, we've been saying that the retail sector is in trouble, and that the potential impact of Amazonification and the retailpocalypse will be felt in other sectors. 

Our primary concern is that as big box retailers often support local newspaper through ads. So that as an expected 2,500 retail locations shut down through early 2019, there will also be a cut in ad buys in local newspapers. 

That downturn in ad revenue will likely hurt smaller local newspapers.

And that may lead to local newspapers either laying off staff, shifting from a daily to a weekly, or from a weekly to twice-a-month, or shutting down completely.

That could lead to an increase in what are being called new deserts -- communities that don't have access to local news. 

All of that has an impact on PR and marketing because there would be fewer outlets with which to reach key audiences.

But we've also been concerned that the number of store closings will also impact real estate, both at malls and in towns. At malls, we've felt the problem is that if an anchor location remains empty, the entire mail will be written off by consumers. And that precipitates more closings, which becomes a self-fulfilling prophecy that leads to a downward spiral.

In a Bloomberg News article yesterday that was syndicated into a number of papers, including the Boston Globe, "Struggling malls at crossroads as Sears makes exit," reporters Patrick Clark and Justina Vasquez made that same point:

"As Sears shutters stores, landlords will have to overcome the perception that the entire property is failing or risk losing other tenants, said Burt Flickinger, managing director of Strategic Resource Group, a retail-advisory firm."

“You’re going to see an epic hollowing out of the retail malls in America, especially the malls that are co-anchored by Sears” and another struggling large retailer, Flickinger said. “It’s creating an accelerating retail ice age and an economic Armageddon of unprecedented proportions in the US.” 

That's got us worried.

Retail is an important sector for the U.S., and not just to buy things. Retail can a communal activity whereas shopping online is not. And Bloomberg has reported on the negative impact on local towns in the U.K., when shops have closed on main street, and residents then have to drive thirty minutes or more to buy things they once could in their home town. Those towns suffer because there's literarily nothing holding people there.

So, a lot of doom and gloom -- and you don't have to be a big shopper to see that this can affect you. We don't necessarily have a solution. But we feel that raising the issue is important, that discussing this can help lead to awareness. If we ignore the retailopaclypse, it's not going to go away.