by Greg Gackle, Principal
© GAH, Inc.
The Dispatch/Argus/Leader Newspapers has now shortened its moniker after the last Leader newspaper rolled off the press earlier this month.
The free distribution weekly, which claimed the title of largest circulation weekly in Iowa, ended a 22-year run because of declining ad revenues and increasing newsprint/distribution costs.
When it began, the Leader prompted speculation it might be the first step in a cross border newspaper war between the Illinois-based Dispatch/Argus newspapers (owned by Small Newspapers, LLC) and the Iowa-based QC Times (Lee Enterprises). While it provided another information outlet for Scott County residents, it never moved to compete on a daily basis with the Times on the Iowa side.
The continued shift of resources (and readers) from print to online likely made the decision even easier for Dispatch/Argus management.
'Paid circulation no longer an adequate indicator,' says Lee executive
In a related matter, Lee Enterprises audience vice president claims new research by the company indicates paid newspaper circulation is no longer "an adequate indicator of our audience strength."
According to its research, "use of the printed newspaper" among the 18- to 29-year-olds in its newspaper market areas (Billings MT, Bloomington IL, Davenport IA, Lincoln NE, Oceanside/Escondido CA, Madison WI, Northwest Indiana, St. Louis MO, Sioux City IA, Waterloo IA, River Valley MN/WI and Tucson AZ) reached 55 percent in 2008. Among 30- to 39-year-olds, the use of the printed paper was 57 percent; 68 percent among the 40- to 59-year-old group; and 73 percent among those 60 years old and older.
Between the printed newspapers and their online sites, Lee says it reaches 64 percent of 18- to 29-year-olds, 67 percent of those 30-39 years old, 74 percent of the 40- to 59-year-old and 60+ segments.
"These findings show the opposite of what is often thought to be true," said Suzanna Frank, Lee's vice president of audience on its web site (lee.net). "More people of all ages are reading our printed newspapers as well as using our newspaper online sites."
"...Because of cross-promotion, users of our online sites have become more inclined to pick up a printed newspaper, where we provide greater context and perspective, as well as portability," Frank said.
"The traditional measurement of newspaper readership, paid circulation, is no longer an adequate indicator of our audience strength. Although paid circulation has declined across the industry over the last 20 years as a result of many factors, it measures only copies sold, not the number of readers per copy," she said. "In a way, that's like trying to measure television audiences by the number of TV sets sold. Our research provides a much truer measure of readership, and it indicates that the increasing popularity of our online sites has led to more readers per copy of the printed newspaper itself."
WiMAX an apparent 'no go'
The long anticipated rollout of WiMAX (broadband wireless) Internet service is apparently a "no go." QCOnline (the online service of the Dispatch/Argus) had announced it would partner with Black Hawk College to offer the WiMAX service in the Illinois QCA back in 2006. Nagging technical problems, however, delayed implementation the following year, and now all information about WiMAX has been removed from the company's web site. Emails to the QCOnline support staff about WiMAX weren't answered.
Worth of median newspaper web site estimated at $3.5 million
A new report by Borrell Associates and BIA Financial Network estimates the worth of the median online newspaper web site at $3.5 million. The median value of a television outlet web site is estimated at $3.1 million, while the median value of a radio outlet web site is estimated at $1.2 million. The same report says local newspaper online site revenues have grown more than 33 percent in the past five years and will total $3.7 billion this year.
