Wednesday 13 February 2019

No we don't need state-funded journalists, we need content people want to buy


Local newspapers are dying. This death is accompanied by a great wailing from the usual sources who argue (without really explaining why) that local papers - even ones that are hardly read at all by the public, even on-line - are "vital to a functioning democracy". The government last year set on Dame Frances Caincross, a left-wing journalist, to look at what could be done to rescue local papers from their impending doom.

Unsurprisingly our journalist concludes that the only solution is state-funded journalism, a new regulator (staffed by worthy lefties like Dame Frances no doubt) and assorted enquiries into the evil that is Facebook (and other monstrous tech giants like Google). It is also unsurprising that, aside from one chap from the Advertising Association, the entire panel of 'experts' advising Dame Frances were journalists or media owners. The outcome of the commission is entirely predictable and won't serve, in any way, to rescue the local press.

The problem is that, despite working in businesses that depend to a greater or lesser extent on advertising, journalists seem not to have the slightest clue as to why advertisers invest their cash in the manner they do. Here's one pretty typical example from Twitter:
I think most journalists know that. They’re at the mercy of hapless publishing giants and similarly incompetent media buying agencies who are so obsessed by Facebook et al that they’ve stopped investing in what’s important.
As you can see journalism ("quality journalism" is the official management term here) is dying because those naive advertisers have been duped by Facebook and Google into shifting their spending there rather than leaving it with publications that nobody reads. Now it's true that marketers, for brand advertising at least, are pulling back from relying on Facebook and Google, but they are not shifting their spend back into print newspapers (magazines are a different matters - take note that the top four TV listings magazines sell nearly 4 million copies every week).

The reason brands are pulling away from social media is that the owners of that media are limiting the advertising's reach by manipulating the algorithms - where once millions of likes meant millions in reach, it now means thousands. Plus, with consumers shifting their attention to other social media, the responsiveness of Facebook advertising degrades - even with supposedly sophisticated targeting Facebook is using a heavy roller to crack walnuts.

There is an old joke about newspapers that the purpose of the journalism is to fill in the gaps between the advertising. We shouldn't forget that most local papers exist because they provided a vehicle for local businesses to advertise. Yes those newspapers did journalism but much of the point for the journalism was to get folk to buy the paper. I recall being told by one former local paper editor about his first assignment as a junior reporter - go to a funeral with the instruction to write down the name of as many people attending as possible. Local papers carried photographs with lots of people in because those people - and their nearest and dearest - would buy the paper.

The stock in trade of local newspapers wasn't "quality journalism", it was births, deaths and marriages, cars for sales, cinema listings, job adverts, sports results, school prize givings and evening classes. The sale adverts from the local department store were just as important (probably more so) than the report of what Alderman Smith had said about the parks department at Wednesday's Council meeting. The paper was a record of the boring mundanities of life in a community - Bradford's Telegraph & Argus has been sharing online some images from the past: football teams, ballet classes, scout troops and girl guides not councillors or MPs.

People still want all these lists, this record of everyday life, it's just that so much of it has moved elsewhere - not to Facebook (although a glimpse through community pages will show that they absolutely capture those everyday events and happenings) but to job sites and car sales sites, to direct messaging and to email. If local papers want to do their "quality journalism" maybe they need to think about how to get back the bread and butter of past times rather than try to blame social media for a demise that was predictable in the 1990s at the outset of the 'world wide web' - long before Facebook or Google came to dominate the world.

It is crazy to see the solution as some sort of state-funded cadre of local journalists producing copy that nobody reads because someone has decided that it is "quality journalism". Instead news media need to turn off the button marked "free" (and it would help here if the BBC didn't crowd out so much on-line, something Cairncross does note) and start expecting the public to pay for news. Most of them won't because they're not really that interested but if the cost is low enough there's no reason why local media cannot work. What we can't have, however, is journalists believing they've some sort of privileged position in society (all the guff about democracy and so forth) and expecting taxes to provide for them.

Oh, and next time we have an enquiry into an area where advertising is central perhaps we should put marketers in charge? What Dame Frances and her advisors have shown us is that they - mostly journalists - really haven't the faintest idea why advertisers make the spending decision they make. And I hope such a panel would conclude that we don't need state-funded journalists, we need content people want to buy.

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5 comments:

Laurence Cox said...

This is not just an issue with local journalism; it is equally an issue with national journalism. Some national newspapers can make a reasonable case for a subscription-based system (the FT is the prime example), but all the national newspapers seem to encourage the reader on their web sites to subscribe in one form or another. For almost a decade, I have been pushing the alternative approach where a newspaper becomes an aggregator of the output of individual journalists; micropayments work well for mobile phones, why should they not work equally well for newspapers? Of course with micropayments it would become very obvious very quickly whose stories the readers considered worth paying for, taking power away from the editors, but is this a bad outcome?

My own experience is that I can find good journalism in individual articles across the spectrum of newspapers, but none of them have sufficiently high ratio of good to bad articles to be worth subscribing to (although I used to buy a hard-copy FT at weekends).

Etu said...

To be honest Simon, I haven't personally heard this "great wailing", just I haven't met the "fury", which some claim is engendered by any hint of moderation on a whole range of issues.

Anonymous said...

One major problem with 'broadcast journalism' (newspapers, TV etc.) is that it always amounted to the views of only a few being presented to the many - editorial pressure, driven by whatever motives, ensured that the range of views available was always limited.

The key difference with new media is that every individual can become a publisher, presenting their own views to however many decide to read/watch/listen, none of it requiring payment. That's a free and democratised news and views environment.

The challenge for the receivers is to learn to discriminate between different suppliers, deciding for themselves what is worthy of attention or not, instead of leaving that vital job to the biased editors/publishers of the past. We're some way from most receivers being able to do that yet, or even recognising the need to do it.

Etu said...

Who wants views?

What's wrong with facts?

Sam said...

This is pretty a pretty wretched misrepresentation of both the report and it's author. Honestly I expected a bit better. Firstly, she's hardly far left as you make out. She's much more centrist, and is a serious economist to boot, probably giving her slightly more insight into what's going on in the sector than you possess.

The basics argument she makes is that investigative journalism is a social good which was basically a positive externality funded via the old model through the advertising and photos of folk at funerals. That model is dying, and the new market structure appears to be under supplying this good. There is hence an argument at least for tax breaks or some other intervention in market structure. This is pretty bog standard stuff when one considers things from a market failure perspective.

And as for the role of the regulator, well, the way things are going it's a choice between the state or Google and Facebook deciding what news is or isn't suitable to be shown to people. Neither choice is overly appetising, but I'd take the state over Zuck every time.