Demystifying Advertising in Hyperlocal News Communities

Two hyperlocal efforts described their advertising strategies in a recent conversation sponsored by the Journalism That Matters collaborative. Tracy Record of WestSeattleBlog.com and Barry Parr of Coastsider.com discussed the advantages of ad servers, pricing, and some do’s and don’ts of ad sales in the hyperlocal space.

Do
•    Publish awhile before selling ads. WestSeattleBlog.com ran for two years before it took ads. Coastsider.com didn’t start selling ads for four years. Having another revenue stream (like a job) helps during the startup phase.

•    Develop a page design/platform that accommodates ads…even if you don’t have any yet. That means building in multiple positions – leaderboards, banners, buttons, text ads. The challenge is a design that has enough ad positions…a challenge if ads are your only revenue. A sidebar of ads is workable in a hyperlocal market (see westseattleblog.com), but the ads should rotate so that everyone gets positioned with the daily content…not somewhere south of Antartica.

•    Develop a presence in the community and let the community buzz and retail demand drive the decisions about adding advertising to the site.

•    Create a strong and easy-to-communicate ad strategy. Complex pricing and rotation schemes will end up confusing the advertiser and the bookkeeping.

•    Barter ad space. Use restaurant coupons, theatre tickets, free coffee, haircuts and other trades as giveaways on the site for new visitors, registration, participation or food for your own table.

•    Ad servers help manage ad space. Rather than hard-coding ads, ad servers help manage the rotation of ads, control traffic, and provide great reporting on how many times an ad was delivered on the pages and how many clicks the ad received.

•    Develop ad sizes based on standards from the Interactive Advertising Bureau. A square button size for rail ads is 125 x 125 IMU (interactive marketing units). A leaderboard is 728 x 90 IMU. Standard ad sizes mean your advertisers don’t need odd-size creatives for your site. If you plan to partner with other sites in ad networks/exchanges, standard sizes make you more attractive.

Don’ts
•    Don’t sell pay per click advertising. You have to sell based on branding and awareness, not on click rates because advertisers will be disappointed versus what they typically expect from other media.

•    Don’t be afraid of a high CPM (cost per thousand – cost to have an ad delivered to 1,000 people/eyeballs). Price the ads to get a fair cost for the audience you are delivering.

•    Don’t cultivate a lot of advertisers for a few good ones. It takes time to service advertisers and keep track of the accounts.

•    Don’t deliver specific reports to advertisers. Do share how many visits per month.

•    Don’t promise what you can’t deliver. If you can’t change out ads for daily specials – and do it consistently – then don’t sell it as an option.

A key point to remember: When you are the editorial and advertising person (or in the same household) there’s no separation of church and state. If your editorial opinions are not favorable to a particular advertising community, don’t be surprised if they don’t come to your party.

CHAT BACK: Have you played with ad packaging strategies? Do you have categories of advertisers that are working well on your site? Tips for pitching in a tough economy? Post your comments here.

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Demystifying Advertising in Hyperlocal News Communities

4 thoughts on “Demystifying Advertising in Hyperlocal News Communities

  1. michelleferrier says:

    Hi Nan,
    Four years was the choice Barry Parr made as he surveyed his own landscape. I don’t think revenue was his original motive, more of a mission. It depends on how well you do the first thing — getting out in the community — each locale will have to judge its own move toward advertising revenues.

    Also, Tracy commented that she was loathe to come out the box asking for advertising from people. It really is about building that reputation for quality information and reporting…and that can happen quickly…or not at all.

    Thanks for commenting!

  2. And in our case – we did not start our site with any clue it would take the path it did. For the first year, it was a very casual, chatty, opinionated little production. Then we started covering news but didn’t think about ads, till a couple of local businesspeople repeatedly badgered us about it, and in the second half of year two, we started thinking about whether it might be possible to make a business out of it. I don’t think that kind of waiting period is realistic for most BUT I also think you should at least work for a few months to see if you’re going to click. A local corporate effort out here put up a flotilla of faux “neighborhood” sites and had salespeople hounding local businesses within a matter of DAYS. Tacky, and even worse, unfair to any prospective customers – don’t sell ads till you know your material is reaching a reasonable number of people who will SEE/USE those ads! Good luck to all … TR

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