The introduction discusses the recent decline in the 'pairing' of journalism and publishing with the advertising industry. Traditionally, journalism was supported by advertising costs, but with the internet, advertisers can now find more cost effective alternatives. The authors (Anderson, Bell & Shirky) state that the relationship between journalism and advertising was never based on anything more than the premise of how each could assist the other in generating its own profit. For the first time since the 1830's, journalism can no longer depend on advertising support and must find new ways in which to survive financially. Specifically, journalism must produce a new business model (p2&4-6).
The authors state that there is still a place in society for professional journalism and reporting. It is suggested that in contrast to reporting on celebrities etc. it is still important that 'hard' news is reported and this is best provided by professional journalists rather than social media sites or citizen journalism, although the latter also plays a social role. The reading describes hard news specifically as the news that somebody, somewhere doesn't want reported (p3-4).
With the uptake of the internet, it is no longer a publisher's market but rather that of the advertiser. The advertiser has greater bargaining power because of the huge range of cheap advertising choices available online. Yet some companies even find it more profitable to provide extra services to their customers than to pay for advertising, such as Amazon providing its customers with free delivery. Amazon also deals with a good deal of its own advertising through customer and reader recommendations. Hence, journalism has to find new ways to pay its journalists and reporters, and Government funding isn't really an option since the traditional role of the media in a democracy is to remain separated from government performing its role as Fourth Estate (p5&9). However, within a new global network even this role itself is questioned.
The authors state, however, that professional journalism has always been subsidised in some way and that markets have never been able to keep up with the amount of news that democracy demands. It is suggested that people will always be willing to pay for online professionally reported news and there are some instances where people are willing to pay for news which is free of any advertising. Wealthy citizens are willing to publish at a loss in exchange for the prestige and influence which the news industry traditionally carries. Additionally, the government also prohibits some industries from direct online marketing which would limit such industries, for example the car industry, to more traditional forms of brand advertising. Crowdsourcing is another suggestion, also sponsors, donors and patrons (p5-6).
Alternatively, another possible way to think about the journalism/advertising relationsip, however, is in reverse. Many news outlets today are in the advertising business rather than the news business, or rather, advertising companies use the news to legitimate their products or reach a particular audience. News, in effect, could be sold to advertisers to make their 'advertisements' appear less like 'advertising' and more like news (p5-6).
As such, much of this entire shift within the advertising industry it seems is perpetuated via an imperative for greater profit. The advertising industry has evidently found an easier way to generate greater profit in the online world and is concerned less about journalistic integrity or public interest. Integrity and public interest don't comply with the logic of the market, not directly or in the short term anyway. More traditional forms of verticle integration are more expensive and prove less competitive. It works out much more efficient for companies to specialise in one thing and to target a large online market rather than to augment their product range and target a specific segment. Similarly, traditional forms of horizontal integration in the news business such as 'bundling hard news with horoscopes, gossip, recipes, sports...' (p8) counted on the inertia of the reader to consult a single publication, but with online links and feeds it is just as easy to read selected stories across many publications. It is even easier still to position the vast majority of your information needs within your online circle of friends (p7-10).
Much of the shift also seems to focus on connectivity rather than the content itself. We are willing to pay an ISP for online social connectivity where we generate our own content, but are less willing to pay for content generated by journalists on hard news. Similarly, we are also willing to pay for music and movies online rather than using radio and television which are free (p8). When it comes to advertising, the logic of brand advertising cannot compete with direct marketing (p11). The question remains, however, will 'brand advertising' be reinvented online? The authors suggest a means of building brand awareness of a product via animated graphics or time in the video stream itself (p10).
The book states further that any move toward direct marketing is a victory for 'measurement'. Brand advertising remains elusive and is unable to be measured, how it operates exactly remains a mystery as its 'effect' is deferred and indirect. As such, brand advertising is unable to be optimised, however, online businesses and direct marketing continually search for a means by which to measure brand advertising (p10). Yet the entire notion of 'the public' and 'the audience' itself can be contested. What constitutes 'the public' encompasses such a vast array of people that they cannot be essentially or identically grouped. Likewise, the role of journalist and audience is interchangeable, and clear delineations between the two categories never occur in this way anymore anyway (p15).
Reference:
Anderson, C W Bell, E Shirky, C 2012, Post-Industrial Journalism: Adapting to the Present, Columbia Journalism School, New York
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