Sunday, July 31, 2011

July 25-31 | Your News & Comments: Part 5

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Friday, July 29, 2011

July 25-31 | Your News & Comments: Part 4

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Brevard | Act II opens in news jobs winnowing

Readers tell me Florida Today editors who made the cut were notified yesterday, as the Brevard paper shrinks newsroom staffing to about 58 positions -- a more than 25% decline. 

Virtually all staffers were asked to apply for the shrunken pool of newly defined jobs. Editors who didn't survive yesterday can now apply for one of the reporting jobs.

"The next round will be applications/interviews for reporting jobs (with potentially much lower pay)," one reader told me in an e-mail.

Final hiring -- and the ensuing layoffs -- are expected Aug. 11. 

Brevard's economy has been whacked by the real estate bust, and NASA's retrenchment along the Atlantic Space Coast.

Earlier: Read more than 100 comments about Brevard's plan when it was first announced 10 days ago.

Short iPhone post; more later.

Thursday, July 28, 2011

July 25-31 | Your News & Comments: Part 3

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DealChicken | This one isn't getting paid OT, either

"I really love being part of a community, passing along my knowledge and savings to my neighbors. I also enjoy working with the reporters and staff at the local Gannett newspapers and TV stations. Of course, it helps when you insist on working for chicken feed."

-- from the About Us page of Gannett's daily deals site, which got its national launch on Tuesday.

Sponsors | Thank you, to a generous donor

I recently received a $50 contribution from a New Jersey reader who has previously donated $180, since March 2010 alone. This brings to 27% of my quarterly goal. The breakdown:
  • Reader donations: $269
  • Advertising: $812
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. Please use the PayPal "Donate" tool in the green rail, upper right. Or mail cash and checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.

USAT Watch | When an oldie isn't a goodie

What has USA Today accomplished after hiring 15 highly paid senior executives to supercharge the paper's leap to a digital world?

Two-day-old stories on its homepage.

Early this morning, USAT was prominently featuring a story -- Only 1 deadly strain of E. coli illegal -- that had already been published in the print edition of Tuesday's paper. (See screengrab, above.)

This runs counter to USAT's much-discussed plan last summer for a "Newsroom of Tomorrow," where "print will pick up more stories we posted first on other platforms or a modified version of a blog post or afternoon/evening news story."

The digital-first strategy, outlined to staff on Aug. 26 in this presentation, was a necessary, although tardy, move in the right direction. But the paper's continuing slow-footed moves online show the paper is still suffering major hiccups nearly a year later.

Earlier: In Your Life, hard news is the good news.

USAT Watch is an occasional progress report on a high-profile reorganization launched in August 2010 to boost advertising and readership at Gannett's struggling marquee daily.

Wednesday, July 27, 2011

July 25-31 | Your News & Comments: Part 2

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CEO Dubow's sneaky math vs. your Blasted Blog's

Craig Dubow is the Atlanta TV ad salesman-turned-chief executive, so it's no surprise he's still selling regular employees a bill of goods.

Dubow
Case in point: Yesterday, Dubow brought his Corporate roadshow to South Carolina's Greenville News, where he once more told a staff meeting that he feels their financial pain. Gannett Bloggers say he reminded his audience that he, too, has taken mandatory unpaid weeks off, so he also knows the sting of a pay cut.

Well, not exactly. Here's why.

Rank and file newspaper employees who were forced to take a furlough during the first quarter effectively got a 1.9% pay cut.

But Dubow's pay fell by just 0.2 of a percentage point after his week off, assuming he's paid the same amount this year -- $9.4 million -- that he got last year.

That is because the effect of his furlough week only applies to his base pay, which he has voluntarily set at $1 million. Last year, he got another $8.4 million composed of a cash bonus, stock awards and options, and a bump in the value of his pension account. Unlike you, his base pay is just a fraction of what he gets overall.

Losing a week's pay costs him $19,231. That's a lot of money to the average worker. But it's just a rounding error for GCI's richly rewarded CEO.

Indeed, even if Dubow took three unpaid weeks off -- one for each quarter so far -- his overall pay would fall only 0.6 of a percentage point.

On the other hand, many higher-paid employees without bonuses, who are being forced to take three unpaid weeks off this year, are seeing their paychecks plunge 5.8%.

A new name for Gannett Blog!
For the next 24 hours, I'm temporarily renaming this website after a remark Dubow reportedly made during yesterday's staff meeting.

Anonymous@8:44 p.m. says: "Dubow gave this blog a shoutout in the Greenville on-site today. Told us not to pay any attention to "that blasted blog" and to ask him directly if we had any questions. He also feels our pain about layoffs and furloughs. He has to take furloughs just like us. Too bad no one asked if his paycheck takes as big a hit as ours from those furlough days."

(Note: the screenshot, top of this post, shows what the page looked like.)

Tuesday, July 26, 2011

July 25-31 | Your News & Comments: Part 1

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Urgent: DealChicken officially launches nationally; GCI sees 50-plus daily deal sites by end of this year

In a statement, Corporate just said:

Gannett announced today the national launch of DealChicken, "a new and unique daily deals business," which will be available in more than 50 markets across the U.S. by the end of 2011. DealChicken is now available in 10 markets: Cincinnati; Detroit; Indianapolis; Knoxville, Tenn.; Nashville, Tenn.; Phoenix; Reno, Nev.; Rochester, N.Y.; St. Louis; and Washington.

DealChicken was initially developed at The Arizona Republic, where it debuted in September. In taking the service national, Corporate is spending millions in hiring dozens of new employees in a risky gambit to take on industry leaders Groupon and DailySocial, even as hundreds of similar start-ups are crowding the market.

Short iPhone post; more later.

Monday, July 25, 2011

USAT Watch | By the numbers: all about verticals!

[Hunke, Frank]

USA Today Publisher Dave Hunke has lavished big bucks on a still-unproven concept for ginning up more ad revenue and readers: so-called vertical websites. The paper describes them as "vertical content experiences that expand our relationship with consumers and provide new integration opportunities for advertisers." He's put Vice President Heather Frank in charge.

How's it going? Some relevant numbers:


2
total verticals USAT has launched so far (here and here)


3
additional verticals USAT promises it will launch this year


173
comments -- a record! -- on this Gannett Blog post about Frank


257
days since the debut of the last vertical, Your Life


$2,491,765
how much Hunke got paid last year


USAT Watch is an occasional progress report on a high-profile reorganization launched in August 2010 to boost advertising and readership at Gannett's struggling marquee daily.

USAT | Here's Singer on 'future of big media'

Singer
Named today to the newly created USA Today position of vice president of business innovation, Scott Singer spoke briefly to business channel CNBC on Nov. 19, 2009, during the depths of the Great Recession.

Mostly, he discussed issues around TV broadcasting and Comcast's then-unfolding purchase of NBCUniversal. Here's the video. There's not a whole lot of insight here. But USAT employees might be interested in hearing and seeing their newest VP.

Sponsors | Better than a new vice presidency!

I'm acknowledging $120 in contributions from readers, who know I won't waste it creating a job of Vice President for Developing Vice Presidencies.

Via snail mail, I received a combined $90 from New York, Florida and Ohio. Via PayPal, I received $30 from Nevada and South Carolina. Thank you, all.

With advertising, these donations bring me to 23% of my quarterly goal. The breakdown:
  • Reader donations: $221
  • Advertising: $709
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. Please use the PayPal "Donate" tool in the green rail, upper right. Or mail cash and checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.

Marketing | CMO Banikarim nabs another NBC alum

Corporate just announced that it has named Debra Goetz to a newly created position: vice president of marketing. She comes from the same NBCUniversal department where Maryam Banikarim worked before she was named Gannett's chief marketing officer in March.

Posted from my iPhone, so gotta keep it short.

USAT | Just when you thought there were too many VPs, Hunke hires one to 'accelerate the execution of transformative business initiatives'

No. 15: Singer
Gannett's increasingly management-larded daily has hired yet another vice president, into yet another newly created position: vice president of business innovation. Scott Singer will report to Vice President of Business Development Rudd Davis, hired last year in the first round of newly created vice presidencies, under a reorganization that's moving forward at the speed of cold molasses.

Singer, USA Today said in a statement this morning, "will be principally focused on developing and implementing new, growth-oriented business models." He will work from the paper's New York office.

Brace yourselves, boys and girls, because here come the buzzwords offered by Publisher Dave Hunke in announcing Singer's hiring:

"We're thrilled to add Scott's multi-faceted skills and extensive media experience to the USA Today business development team. His innovative thinking will help us identify areas for growth, allow us to accelerate the execution of transformative business initiatives, and take advantage of the compelling opportunities that media companies have to leverage their content in this exciting era of new digital distribution technologies."

Oh, my.

Singer was managing director and head of media and entertainment at The Bank Street Group, a firm focused on mergers and acquisitions, and private debt and equity capital raising, the statement says.

For those of you keeping track, Singer joins Davis in being at least the 15th senior executive Hunke has hired or promoted in the last year:
  • Sandra Cordova Micek, senior vice president of marketing
  • Christine Allegro, general manager of the Your Life vertical
  • Susie Ellwood, newly created position of executive vice president and general manager
  • Tom Beusse, to the newly created position of president of USA Today Sports Media Group
  • Jeffrey Wilks, to the newly created position of SVP of brand marketing; he lasted just seven months
  • Denise Brodey, newly created post of general manager of Your Life vertical; she lasted just six months
  • Jeff Dionise, newly created VP of product development and design
  • Heather Frank, newly created VP of vertical development
  • Steve Kurtz, newly created VP of digital development
  • Ross Schaufelberger, newly created VP and general manager of the new USA Today Sports
  • Brad Jones, SVP of circulation
  • Myron Maslowsky, SVP, group finance and administration
  • Susan Motiff, VP for strategic planning, analysis and support
Now, other than Jones' work in arresting the paper's circulation decline, can anyone list the accomplishments of the other 14?

USAT | A let-them-eat-cake life in a $2M house

"The neat thing about coming on something like this is that we get more than we give, to learn from other people who have so little."

-- Jack Kelley, as quoted by The Washington Post about his charity work in Kenya, in a recent story about the whereabouts of the disgraced USA Today reporter. The Post says Kelley lives with his wife, Jacki, and their young daughter in a $2 million home in upscale New Canaan, Conn. Jacki Kelley, once an advertising executive at USAT, is now global chief executive for Universal McCann, a media agency based in New York, according to the Post.

Hattiesburg | After 70 years, reader says goodbye

In an e-mail yesterday, Hattiesburg American reader Milton Waldoff told me the following:

This morning (Sunday, July 24, 2011) I did not get my local Sunday morning newspaper, the Hattiesburg American. This happens so very frequently, I'm on a first name basis with the Circulation Department -- so frequently that, earlier this week, I e-mailed the General Manager and was told delivery of the American is "contracted out!"

Her statement, as copied and pasted:

"Thanks so much for taking the time to email me with your concerns about the Hattiesburg American’s delivery. As General Manager, I am ultimately responsible for all operations here at the newspaper. I agree 100% that our delivery service is not what it should be. About three years ago, the Hattiesburg American made the decision to contract out the delivery of the newspaper. We now have contracts with three delivery Agents responsible for the delivery of the Hattiesburg American, The Clarion Ledger and the USA Today. This decision has been beneficial in many ways but has made it much harder for me to manage the delivery process. Please know that I am working diligently to improve our service."

Like thousands of other locals, I have elected to not renew my subscription when it expires in eight or so weeks. Being a life-long resident of Hattiesburg, Miss., I have read the paper all my life. As a child in the 1930's we -- my older sister and younger brother -- were required to read the American and be able to discuss items published in the American over dinner. My father came to Hattiesburg in 1924, my mother in 1925. They insisted on our being aware of what was happening. They insisted that we all get good educations, sending us out of state to universities, my brother to Europe. I have always looked forward to reading newspapers. When traveling, I always pick up USA Today, The New York Times, The Wall Street Journal, and very often local papers. It is disgusting to me that over the past four or five years too often the American has not been delivered. And let me say, I live in the city limits in a middle-class subdivision on a lake with paved streets and street lights within 5 to 10 minutes from two universities.

For 70 years, our family owned and operated a business that regularly advertised in the American. Some years we were the single largest advertiser. The Newspaper Advertising Bureau (NAB) on a number of occasions selected Waldoff's advertising as some of the best in the United States, awarding us plaques, trophies, certificates at conferences in New York City, Chicago and Los Angeles. Currently I do consulting for retail stores nationally and purchase advertising for clients. Often, we use newspaper where the demographics, circulation and coverage merits.

Having said that, it is not surprising newspaper advertising sales are down on a local and national level for Gannett. I understand the dramatic impact the weak economy, Internet and television have had on the industry. Regardless, when the product cannot be delivered to those of us who want to receive their local paper, pay for their subscription in advance and still don't receive the paper -- the question is not what can be done to increase advertising sales, rather it is how soon before the paper stops publishing?

It will!

If I were a stockholder in Gannett, I'd bail out when the market opens tomorrow morning; there is no potential upside for a company that does not deliver its product to the consumer.

Goodbye Gannett!

Goodbye Hattiesburg American!

Respectfully,

Milton Waldoff
Waldoff Group
Hattiesburg, Miss.

[Image: recent screenshot from the American's homepage]

Sunday, July 24, 2011

July 18-24 | Your News & Comments: Part 7

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A cookie cutter future for the smallest newspapers

Editors of Gannett's top newspapers are scheduled to meet Aug. 16-18 at Corporate's headquarters in McLean, Va., to revamp their newsrooms, following the latest round of layoffs. The meeting for the benefit of the "T-31" papers has exposed a divide within the U.S. newspaper division and its 80 titles, prompting renewed speculation about the future for the smaller ones.

To the best of my knowledge, Corporate has never publicly disclosed a list of the T-31s, defined as the largest revenue producers; I posted one earlier this month, which I assembled with the help of a Gannett Blog reader.

The NT-31s (for "not top") are the other 49 community papers, and are spread across the nation: from Gannett's first newspaper, the Star-Gazette in Elmira, N.Y., to the 10 titles in the Media Network of Central Ohio, to The Californian in Salinas.

Conventional wisdom suggests the NT-31s will continue to be starved of resources through layoffs and other austerity measures, much like what's happening to the larger dailies.

But given their already shrunken capacities, the NTs will be among the first to go Web-only, perhaps after a period where they become zoned editions of larger nearby Gannett papers. Call it a cookie cutter future. (A featured example, discussed below, is today's editions of three NTs in New Jersey; I've embedded images of their front pages, left.)

The best summary of where the NTs may be headed came July 12, from Anonymous@1:08 p.m. Following is the text.

'Why you get forgotten'
I am so very sorry to be the one to tell you this, but . . . the company decided a couple of years ago that you ain't worth the time, money and fuss. That's why you have editor/ad directors/GMs and not publishers. That's why you don't get included in company meetings. That's why you get forgotten about in conference calls. While your margins remain good, the actual dollars you have in play remain low. So, even though Muncie, Ind., has a much higher NIBT return than Indianapolis, the cash flowing through The Indianapolis Star's ledger makes them and the other T-31s worth the most of Corporate's attention.

For example, at Corporate, we track the NT-31s as a single entity, rolling up all the numbers into one spreadsheet, as if the combination was a single site. Of course, the NT-31s still have their own unit numbers (for now) and Evan Ray still digs into them when he sees group performance taking a dip.

Future: strip shopping malls
But, harsh reality here: The NT-31s will soon be like bank branches in strip shopping centers. They will have a sign, a front counter, maybe a person or two -- but all other real functions will be at the main office somewhere else.

Sure, we will always look for ways to spotlight a few of you folks: You get your share of the President's Rings, for example, and one or two of the Freedom of Information award finalist spots. Hey, what about Guam! Let's give them a shout-out 'cause they are interesting and fun! Keep hope alive.

But, truthfully, your value to the company has been relegated to giving street cred to the National Network Footprint of Gannett, so we can say we have XX properities in XX states serving XX audience. So, we really need to get your expense numbers as low as possible. Fewer FTES, just enough lifeblood to keep you alive but not strong enough to do much more than that. Keep your salaries low, your expenses lower, your management lowest.

So, long answer to a short question: The NT-31s will get the Passion Topics rollout in webinars, PowerPoints and conference calls -- with regional training for those clustered near T-31 sites.

Now, if you want to start another thread: How many of the NT-31 sites make more money (not just percentage NIBT, but total cash) than some of the T-31s? I bet there are a few of those small sites that do better at the end of the day than a few of those so-called larger-market sites.

Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

[Images: today's editions of three NT-31 newspapers in New Jersey that have become satellites of one, larger N.J., paper: the Asbury Park Press, Newseum. The three are the Courier News in Somerville, N.J.; the Home News Tribune in East Brunswick, and the Daily Record in Parsippany. The combined staffing in their newsrooms was cut nearly in half, to about 53, in February. Today, for example, all the papers have substantially the same front pages]

Saturday, July 23, 2011

July 18-24 | Your News & Comments: Part 6

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Friday, July 22, 2011

July 18-24 | Your News & Comments: Part 5

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Tucson | Lee lays off 52 at Arizona Daily Star

Gannett's partner in Tucson, Lee Enterprises, disclosed yesterday that it had laid off 52 employees in a "realignment" of its operations, according to a too-brief Arizona Daily Star story posted early today.

"These actions, precipitated by the ongoing weakness in the economy and adjustments to our business model, made for a tough day," said Publisher John Humenik.

More than most newspaper publishers, Lee is struggling to restructure its debt amid growing fears it may seek bankruptcy court protections. Only this week, the New York Stock Exchange threatened to delist Lee's stock because the share price failed to meet the exchange's 30-trading-day average of at least $1 a share.

Lee closed yesterday at 92 cents, up a penny. GCI closed at $13.76, up 42 cents.

The Star is the surviving daily in what had been a joint operating agency owned 50-50 by GCI and Lee. Two years ago, GCI shuttered its paper in the JOA, the Tucson Citizen, and laid off about 60 employees as a result.

Based in Davenport, Iowa, Lee publishes 49 daily newspapers, and owns a joint interest in four others. It's biggest is the St. Louis Post Dispatch, with a daily circulation of about 196,000.

Lee comments below
I've copied all of yesterday's comments in the comment field of this post, so Tucson employees can have a separate forum of their own. Also, I've now added a "Lee" label to all the posts previously labeled only as "Tucson." That is because a blog devoted to Lee Enterprises has not been updated since December, suggesting that it is now defunct.

For several years, I have labeled posts "MediaNews Group," too, because of its business relationship with GCI in Detroit and elsewhere. I cannot cover Lee and MediaNews with the same detail as I do GCI. But I'll try to pay closer attention to both companies as a resource to their blog-less employees. (Why GCI is the only one with a blog like this.)

JOA status?
I've read conflicting reports on the current state of the Tucson JOA.

The Tucson Sentinel, which tracked the layoffs throughout yesterday, says the Star took over operations from Tucson Newspapers Inc., the former joint operating agency that ran publishing and advertising for the Star and the Citizen. Profits are shared between Lee and GCI.

But Corporate, in its annual 10-K filing with the U.S. Securities and Exchange Commission, said the JOA remains in place. Here's the relevant paragraph:

"Through May 2009, the company also published the Tucson Citizen through the Tucson joint operating agency in which the company held a 50% interest. Because of challenges facing the publishing industry and the difficult economy, particularly in the Tucson area, the company ceased publishing the Citizen on May 16, 2009. The company retained its online site and 50% partnership interest in the joint operating agency which provides services to the remaining non-Gannett newspaper in Tucson."

[Image: today's Star, Newseum]

Thursday, July 21, 2011

July 18-24 | Your News & Comments: Part 4

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Wednesday, July 20, 2011

July 18-24 | Your News & Comments: Part 3

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USAT Watch | In Your Life, hard news is good news

Since its high-profile launch in November, USA Today's Your Life vertical has too often been a mediocre source of "soft" news about health, relationships and beauty. That's a shame, given the resources Publisher Dave Hunke is devoting to the overall vertical concept.

But a story Monday about the powerful Susan G. Komen breast cancer foundation is a good example of the sort of journalism Your Life needs to win more readers -- and advertisers. It was hard-edged, newsy, and nearly certain to capture a wider audience, given the emotional topic it took on.

Brinker
Those of you who don't recognize the Komen foundation likely know its ubiquitous pink ribbon campaign, which has come to symbolize the non-profit's effort to eradicate breast cancer in women. (Indeed, Corporate itself turned the towers of its McLean, Va., headquarters "pink" one evening last year.)

Yet, as Liz Szabo reports, some observers are now questioning whether the pink ribbon campaign's marketing has spread too far. Szabo's featured example is a new "Promise Me" perfume line that foundation Founder and CEO Nancy Brinker peddled recently on the Home Shopping Network.

Too much of Your Life's content has been produced by freelancers and second-tier sources like the HealthDay news service. They read generic and overly shelf-stable, giving them a stale quality. In this case, however, the Komen story was produced by a staff writer, Szabo, with plenty of experience covering cancer. That's an important lesson about the value of professional journalism.

In addition to health, the Komen story touched on another topic that's housed in Your Life: philanthropy, which is the subject of a blog called Kindness. The non-profit sector is woefully undercovered, giving USAT a wonderful opportunity for more public service journalism.

Moreover, Your Life's success is key to USAT's recovery, since it's meant to be a model for other verticals still under development.

Based on reader response to Szabo's story, Your Life could mine philanthropy for even more news.

"What percentage of the monies collected are actually used in real research?" asked reader paul2. "I want to know that before I give one red dime to that charity."

A suggested follow-up
I, too, wanted even more about the Komen foundation, and founder Brinker, who launched the non-profit in the name of her sister, who died of breast cancer.

So, I dug up the foundation's most recent public IRS tax return, for 2009, which is available online for free at GuideStar, a searchable database offering a wealth of information about non-profits. That return and earlier ones also are available on Komen's website. (I've used GuideStar for my reporting about the Gannett Foundation and Freedom Forum.)

Like many non-profits, Komen is a big business. It took in $172 million of revenue in 2009, according to its revenue statement. It spent $75 million -- 44% -- on grants to cancer research and other outfits. The other 56% went mostly to consultants, advertising, office expenses, salaries and other items. (I paused at $712,169 alone in "bank fees." Huh?)

Does this comprise excessive spending on overhead? I don't know, but a follow-up story could examine that.

I also noticed its 16 highest-paid executives all received six-figure paychecks, including three who are no longer listed as employees:
  • CEO and President Hala Moddelmog, who got paid $468,255. (She left Komen to run the Arby's restaurant company; Brinker is now CEO.)
  • Gary Dicovitsky, vice president for development, $435,000; that included an $81,250 bonus
  • Kimberly Earle, chief operating officer, $345,357
All that information is detailed on Page 59. Are those amounts too much? Too little? Why the big turnover in management? USAT could answer those questions, too. (Note: I searched the Web today for related stories, but found none. Maybe I missed them.)

Brinker, meanwhile, has been a big financial backer of Republican candidates and causes. The former U.S. ambassador to Hungary has contributed about $196,000 of her own money to the GOP since 1991, according to the non-partisan Center for Responsive Politics. (Her ex-husband is Norman Brinker, the founder of a restaurant empire that includes Chili's and Macaroni Grill.)

And she also was a prodigious fundraiser for President George W. Bush's campaigns. This made me wonder about the GOP's recent record on breast cancer research, another news subject worth mining.

USAT Watch is an occasional progress report on a high-profile reorganization launched in August 2010 to boost advertising and readership at Gannett's struggling marquee daily.

Tuesday, July 19, 2011

July 18-24 | Your News & Comments: Part 2

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Brevard | This comment thread is for your news

I understand that a Florida Today staff meeting may be underway at this very moment.

Martore on more layoffs: 'We have currently no intentions of looking at further reductions'

Following is a key exchange between analyst Craig Huber of the Access Three Forty Two firm and COO Gracia Martore, during yesterday's conference call about the second-quarter earnings report. This is based on Seeking Alpha's transcript:

Huber: I understand you eliminated about roughly 3% of your U.S. newspaper workforce here in the quarter. Are you expecting to do that again here in the September quarter?

Martore
Martore: Craig, it was about 2% announced layoffs in U.S. Community Publishing. And as we've said, we have currently no intentions of looking at further reductions. But obviously, that has to be driven by each individual business’s prospects and revenue opportunities going forward. But at the same time, we have been adding back in key Digital areas, as well as on the Broadcast division. We've been adding folks on the news side, as well as in the sales area. So it's really -- you can't just hone in on one specific division, you have to look at the company in totality and the varying performances in each one of our businesses. And even within U.S. Community Publishing, the varying performances of each of the individual units and the prospects for the economies in those particular markets.

Truth check
When asked these questions, Martore and CEO Craig Dubow always leave wiggle room. For example, during the first-quarter conference call, Huber asked "if you're planning on doing newspaper furloughs again here in the second quarter."

In fact, furloughs were already underway. At first, Dubow prevaricated, then Martore spoke more forthrightly, knowing it's never a good idea to mislead Wall Street. Here's the exchange:

Dubow: As we always do, we take that element very, very seriously. We're going to see how the quarter starts shaping. And again, it will be a position that we look at as we move forward.

Martore: Although I will say, Craig, in our publishing, U.S. Community Publishing, we are taking some minor furloughs, about 1,000 folks or so, and that at this point is the extent, basically, of the furloughs that we are taking across the company."

As it turns out, Corporate extended unpaid furloughs for those approximately 1,000 highly paid employees into the current quarter.

Similarly, Martore was asked in late October if Corporate expected any "significant" severance costs -- in other words, layoffs -- during the fourth quarter. She said: "Not at the present time."

A more candid reply would have been: "Not at this time, but we're about to launch a new round of layoffs."

That is because just 19 days later, the company eliminated what Gannett Bloggers eventually said were 255 jobs at 63 worksites.

Monday, July 18, 2011

July 18-24 | Your News & Comments: Part 1

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Stock | GCI falls 3.5% on dividend boost, Q2 results

[Updated at 4:32 p.m. ET with closing prices.]

Investors gave Gannett's stock the cold shoulder, despite this morning's surprise announcement that the board of directors has doubled the dividend amid a second-quarter earnings release.

With overall markets tanking, GCI closed this afternoon at $13.01 a share, down 47 cents, or 3.5%, according to Google Finance. Other newspaper publishers' stocks sank, too.

Both the widely-watched S&P 500 index, which measures broader market activity, and the better known Dow Jones Industrial Average, fell nearly 1%. Observers are citing EU debt and U.S. deficit-reduction worries.

Earlier, GCI shares were up as much as 2%.

USAT | Bad news, and good, in today's Q2 report

Nearly a year into USA Today's high-profile reorganization, here's some of what today's second-quarter earnings report says about the financial health of Gannett's best-known brand: "At USA Today, substantial growth in the quarter in the telecommunications and financial categories was more than offset by declines in the travel, technology, automotive and retail categories. . . . Digital revenues at USA Today were 22.9% higher."

Cincy | Comments nixed on politician's resignation

The Cincinnati Enquirer continues its lackluster follow-up coverage of the high-profile drunk driving arrest of state Rep. Robert Mecklenborg. In its story last night, about the conservative lawmaker's no-duh resignation earlier in the day, the paper has disabled reader comments.

Sponsors | Thank you, for $40 in donations

I'm now acknowledging recent contributions from generous readers in Florida ($20), Ohio ($10), and Louisiana ($10). Combined with advertising revenue, I'm now reached 14% of my quarterly goal. The breakdown:
  • Reader donations: $102
  • Advertising: $469
I'm trying to earn $4,000 quarterly, through donations of $5 per reader, plus advertising sales. Please use the PayPal "Donate" tool in the green rail, upper right. Or mail cash and checks payable to: Jim Hopkins, 584 Castro St. #823, San Francisco, Calif., 94114-2594.

I'm live-blogging today's Q2 earnings conference

I'm covering the 10 a.m. ET conference call, as CEO Craig Dubow and COO Gracia Martore talk to Wall Street stock analysts about this morning's second-quarter earnings release. The conference is open to the public on a listen-only basis. Details, here.

10:59 a.m.: How's political advertising? On TV, "it's moving along nicely," Dubow says. And we're done!

10:58 a.m. Martore expects (I think) $15 million in quarterly pension contributions.

10:52 a.m.: What about revenue on iPad for USA Today? Dubow: Yes, there is premium on advertising because of the environment. "It's extremely clean, there's no clutter. But as we move forward, let's just see where things settle. We're continuing to run these tests. But we haven't definitively defined when or how."

10:51 a.m.: Stock sell-off continues: Shares are now down 2.4%. And the Dow Jones is off 164 points!

10:49 a.m.: Any interest in buying TV stations? Dubow says none in "standalone," more in "synergy."

10:42 a.m.: How are things looking in the U.K.? The royal wedding news bump has worn off. Davidson & Co. are doing a good job. "I think you'll still see some headwinds there,'' Martore says. Impact on The News of the World closing? "We'll stay out of that," Dubow says, firmly, cutting off any discussion. Hmmmmm . . . Good coaching, Robin Pence!

10:37 a.m.: How are paywalls doing at the three newspaper test sites? Martore says they're "working on a few more items at the moment," and more tests. "It's a little early for us to share any more details." Sheesh! When are they going to give this a final up or down? The New York Times is reporting good results since putting up a paywall in late March.

10:35 a.m.: Shares are now down 2%.

10:33 a.m.: More newspaper layoffs ahead? Martore says "we have currently no intention of looking at further reductions." But that depends on individual businesses. "We've been adding back in key digital areas, and in broadcast. . . . You can't just hone in on one specific division."

10:31 a.m.: What are priorities for cash? (So much for one question per analyst.) Dubow says they are still looking for possible digital investments, while also giving back to shareholders.

10:28 a.m.: How's newspaper advertising look? Martore says June was a better month, "so felt good about the way we've closed up the quarter." In July, things are "perking along in the same way."

10:27 a.m.: The much more interesting Q&A portion has now begun.

10:25 a.m.: New buzzwords alert: CareerBuilder is evolving into a "human capital solutions company," Martore says. Oy, veh.

10:23 a.m.: Newsprint prices still suck, but they're starting to suck less.

10:17 a.m.: Martore has just given us the first reference to "headwinds" -- Corporate's favorite scapegoat for any bad news. What? The Japanese earthquake?!

10:14 a.m.: Dubow just said, "Deal Chicken." Sounds silly coming out of his mouth. He keeps saying it: Deal Chicken, Deal Chicken, Deal Chicken.

10:08 a.m.: Shares have now begun trading south. A likely co-culprit: The Dow Jones Industrial Average is off 130 points. So much for the good news, eh, Wall Street?

10:02 a.m.: And here's Martore! Soon, they'll begin reading prepared statements. Z-z-z-z-z-z-z. You may want to take a bathroom break at this point.

10 a.m.: Operator has just given us the one minute warning!

9:56 a.m.: This Mile High comment just in: Anonymous@9:51 a.m. says the execs are actually in Denver today!!! Tanks of oxygen have been wheeled into the conference room.

9:52 a.m.: Now listening to soothing, calming, relaxing, gentle, classical music. (I recognize that piece, but can't recall the title. Anyone?)

9:48 a.m.: They try to avoid the temptation of checking the current stock price on their Blackberries. (Recent trade: $13.50, barely changed. Ooops.)  Meanwhile, Chief Marketing Officer Maryam Banikarim once more updates her resume.

9:45 a.m.: The call starts in 15 minutes. Somewhere in the Gannett Tower at the Crystal Palace, executives are nervously sitting around a large conference table. Oh, boy.

Bulletin: In surprise, Gannett doubles dividend; announces targeted $100 million stock buyback, as Q2 earnings per share fall to 58 cents vs. 61 cents

The just-announced dividend boost, to 8 cents from 4 cents, came moments ago in this announcement, which also discloses the equally surprising resumption of a share repurchase plan.

Here's the second-quarter earnings statement. Excluding special items, earnings per share were 58 cents vs. 61 cents a year ago. That's a penny higher than forecast by Wall Street analysts, in a survey by Thomson Financial.

Revenue totaled $1.33 billion, down 2.2% from a year ago, meeting Wall Street's forecast, on another steep decline in publishing advertising, which fell 6.5%.

During the quarter, Corporate once more slashed payrolls, by laying off 700 U.S. newspaper workers, while also ordering another round of unpaid furloughs for certain highly paid employees.

Investors rallied around the news: In pre-market trading, GCI's stock was recently up 5.2%, or 70 cents, to $14.80 a share, according to Google Finance.

Dubow
In the statement, Chairman and CEO Craig Dubow says:

"Our results for the quarter reflect the positive impact of our ongoing efforts to focus on our customers and to meet their business and marketing needs across our platforms. This resulted in higher digital revenues for the quarter in each of our business segments. Company-wide digital revenues were up 13% compared to last year. Broadcasting segment revenue was up slightly overcoming the significant political advertising spends of last year.

"Each of our business segments was solidly profitable, due in part to our commitment to align our expenses with revenue opportunities. We accomplished this despite the continued challenging economic environments in many markets and the impact of the crisis in Japan on the supply chain and inventories for autos and consumer electronics.

"We also announced today that the board of directors has approved doubling the dividend and resuming share repurchases. We are able to take those actions because of the confidence we have in our long term growth prospects, our ability to consistently generate cash flow and the strength of our balance sheet."

The dividend increase is the first since the board slashed the payout 90% in February 2009, when the company was veering toward bankruptcy as the Great Recession enveloped the newspaper industry.

Dubow and COO Gracia Martore are scheduled to discuss the quarterly results and other developments with stock analysts during a 10 a.m. ET conference call. The call is open to the public on a listen-only basis; details here.

I plan to live-blog the conference.

Here's the story they're reading on the 11th Floor

The shark who's been circling USA Today -- Rupert Murdoch -- is witnessing a full meltdown of his News Corp. empire.

Murdoch
This morning, Prime Minister David Cameron called an emergency session of Parliament for Wednesday, a day after Murdoch, his son James, and former top lieutenant Rebekah Brooks are to testify to a government inquiry into a phone-hacking scandal engulfing News Corp.

Yesterday, the industry was shocked when Brooks, the former chief executive of Murdoch's News International, was arrested on suspicion of illegally intercepting phone calls and bribing the police. Soon after, Britain's top police official quit, saying "the ongoing speculation and accusations" against his department had made it difficult for him to do his job.

In the U.S., The New York Times has been leading the news charge. The Wall Street Journal is limping behind. And USA Today's Money section has another gripping, page-turner of a Q&A by Maria Bartiromo.

Related: the Poynter Institute recalls America’s phone-hacking scandal at The Cincinnati Enquirer.

WUSA | This illustrated a baby's bathtub drowning

Anonymous@9:27 a.m. summed it up in three words: "Worst. Graphic. Ever."

For nearly two weeks, WUSA-TV used the following image with a story about an 11-month-old Maryland girl's apparent drowning death in a bathtub. (Yes: Those are three tiny bubbles floating above the tub.)


Without explanation, the Washington TV station substituted another illustration not long after widely read mock-the-news website Fark posted a link, inviting readers to comment. And they did: The post has now attracted 134 comments.

Former Des Moines Register designer Charles Apple called it an offensive use of stock art: "This travesty proves — more than my words ever could — why using stock art is such a bad idea for a story like this."

How did this happen? A March 2009 resignation offers a clue: Assignment desk editor Alan Henney wrote an "I quit" memo that became the talk of Gannett Blog. "The consultants and out-of-touch corporate management," he said, "have ruined the newscasts with repetitive Web clutter, endless sidebar packages, and their preoccupation with the Internet."

Henney continued: "We are doing less news gathering these days and more information posting. Somebody needs to be driving the news machine at all times, actively pursuing news leads. We’ve lost our focus."

Earlier: Union deal paves way to hire "mojos."

Sunday, July 17, 2011

July 11-17 | Your News & Comments: Part 7

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Earnings | Investors brace for another bad quarter

Amid recent signs of weak economic recovery in the U.S. and the U.K., Wall Street analysts expect Gannett to report another dismal quarter, when the company discloses second-quarter financial results tomorrow morning.

They're forecasting earnings per share of 57 cents, down 6.6% from 61 cents a year ago, according to a survey by Thomson Financial. The eight analysts following GCI expect revenue of $1.33 billion, down 2.6% from $1.37 billion a year ago.

Indeed, for the rest of the year, analysts expect EPS and revenue to continue dropping. For all of 2011, they forecast EPS of $2.17, down 11% from $2.44 last year. Annual revenue is expected to come in at $5.3 billion vs. $5.44 billion.

Other publishers, including McClatchy and the New York Times Co., also are expected to report very weak second-quarter figures.

During GCI's first quarter, overall revenue fell 3.7%, to $1.25 billion from $1.3 billion a year before. EPS plunged 23%, to 37 cents vs. 48 cents.

Dubow
A second-quarter performance as poor as forecast would once more cast doubt on the strategic plan Corporate has been pushing under CEO Craig Dubow and his No. 2 lieutenant, COO Gracia Martore. They are scheduled to speak to analysts during a conference call tomorrow at 10 a.m. ET, after the financial report is released.

That call will be webcast from Corporate's site, and is open to the general public on a listen-only basis; details here. I plan to live-blog the conference again.

Quarterly earnings reports sometimes also are occasions for other, non-financial news, such as management changes.

GCI's stock fell 6% from the first quarter to the end of the second quarter. The widely watched S&P 500 index, a broad measure of overall market activity, was basically unchanged. Still, GCI is up 6.4% from a year ago, while the S&P rose a more robust 28%.

The company has recently taken steps to shore up profits in the current quarter: It laid off 700 U.S. newspaper workers last month, and imposed unpaid furloughs on certain highly paid employees.

U.S. newspapers chief Bob Dickey said he expected more newspaper layoffs this year through consolidations such as the five News Design Studios, which will produce pages for most of the company's 80 community dailies. His remarks, the day after announcing the 700 layoffs, have led some Gannett Bloggers to worry that another, broad job reduction is in the works.

Related: here is GCI's first-quarter financial results announcement.

Saturday, July 16, 2011

July 11-17 | Your News & Comments: Part 6

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Friday, July 15, 2011

July 11-17 | Your News & Comments: Part 5

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Passion Topics | Here are the select 'T-31' papers

Editors of Gannett's top 31 U.S. dailies are scheduled to meet next month at Corporate's headquarters at McLean, Va., to get their newest marching orders following last month's 700 layoffs. I've just assembled a list of those papers, which are the largest by revenue of GCI's 80 U.S. community dailies.

USAT | In a new analysis, paper finds 'U.S. border cities prove havens from Mexico's drug violence'

[From slideshow: a view of U.S.-Mexico border fence]

The picture painted of America's southwestern border with Mexico is a bloody one, in which the drug violence decimating northern Mexico has spilled onto U.S. soil and turned the region into a war zone.

But a new and well done USA Today data analysis published this morning found violent crime rates along the U.S.-Mexico border have been falling for years -- even before the U.S. security buildup that has included thousands of law enforcement officers and expansion of a massive fence along the border.

"U.S. border cities were statistically safer on average than other cities in their states," write correspondents Alan Gomez, Jack Gillum, and Kevin Johnson. "Those border cities, big and small, have maintained lower crime rates than the national average, which itself has been falling."

The paper's analysis drew on more than a decade of detailed crime data reported by more than 1,600 local law enforcement agencies in four states, federal crime statistics and interviews along the border from California to Texas.

Stories like this one, based on reams of data, risk being overrun by dry numbers, when reporters and editors try to make the most of all the information they've unearthed. But today's account does an excellent job of weaving just enough statistics through the text to give the report credibility, without losing readers' interest.

Today's package includes an interactive map that compares crime rates near the border with state crime rates. There's also a gallery of photos by H. Darr Beiser, showing life along the border. Plus, a video.

Earlier: In another recommended story, USAT reveals housing carnage on Helens Pouroff Ave.

Know about Gannett work -- in or out of editorial -- worth spotlighting? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

[Image: today's front page, Newseum]

Thursday, July 14, 2011

July 11-17 | Your News & Comments: Part 4

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Passion Topics | Back to the future won't work

I don't envy the editors of Gannett's top 31 U.S. newspapers, who are gathering next month for a briefing on how Corporate expects them to run GCI's newsrooms following June's layoff of 700 U.S. employees.

In a memo, News Department Vice President Kate Marymont said they had a critical question to answer: "How can we create unique, high-impact journalism with smaller staffs?"

That question might be better phrased as: "How can we create unique, high-level journalism with even smaller staffs in the future?"

That is because U.S. newspaper division President Bob Dickey has virtually guaranteed there will be more layoffs due to work consolidations. For his division, that means the loss of hundreds of jobs to the five News Design Studios, which will produce newspaper pages for nearly all the 80 U.S. community newspapers. The timetable is now in flux. The five hubs were to have been up and running by about summer 2012.

More broadly, Corporate confronts growing skepticism among the several thousand newsroom employees, whenever a new quality-control initiative is announced. In the Aug. 16-18 meeting, it appears editors will learn more about the as-yet defined "passion topics" that have been the source of speculation on this blog. We've heard about a Content Evolution Team that's been studying the newsrooms' future for the past year. In her memo, Marymont did not mention by name passion topics, nor the team, however.

Back to the future
I can well imagine Corporate publishing a summary of the meeting, one that might read as follows:

GANNETT EDITORS HEAR ABOUT A NEW LOCAL-NEWS APPROACH: PASSION TOPICS

It has been four years since Gannett editors have gathered for a group-wide meeting, and not even a hurricane could prevent them from getting together this week at corporate headquarters in McLean.

Perhaps it was symbolic that the winds were blowing strong, for the meeting's theme was that we needed to breathe fresh life into one of our traditional mainstays: local-news coverage. This is especially true in this world of varied media choices for readers and potential readers.

So, editors heard about a new approach to local news aimed at becoming much more relevant to readers and much better at intersecting with their life experiences.

The winds-of-change approach introduced at the meeting is called: Passion Topics.

Passion Topics is reporting on people, places and events significant in the everyday lives of readers and covering other news so that it directly connects to them.

The program was developed by a group of Gannett editors, publishers, researchers and Corporate News Department executives who, earlier in the year, gathered to explore strengthening local-news coverage.

Based on research on readership and observations and experiences of the group, it was determined that too often our newspapers don't cover topics in ways that intersect with the everyday lives of readers. Thus, Passion Topics is designed to help newspapers rethink coverage approaches to connect more often and more meaningfully with readers and potential readers.

Key elements include covering breaking news and key topics in ways that are more relevant to readers, carrying out exclusive enterprise and First Amendment stories with readers' concerns in mind, extending the democratic conversation in our communities -- particularly through online, and respecting and writing more about the Passion Topics that are especially important in our readers' lives.

All of these elements are to be delivered in print, online, and in other ways that bring this news to readers, users and listeners. Or, more simply put, the news is delivered where they want it, how they want it, when they want it.

Editors not only heard about these themes, but they also spent time in breakout groups doing some of their own brainstorming on Passion Topics aspects.

Why staff is skeptical
In fact, what you've just read is the slightly edited text of a News Watch article that then-News Department chief Phil Currie published Sept. 19, 2003 -- nearly eight years ago. I've added or substituted just two words in bold-face type. Otherwise, the text I've quoted is 100% the same.

What's my point? Corporate has a history of pushing top-down initiatives that are long on buzzwords, and very short on substance. One sounds just like the next. And they all boil down to the same obvious conclusion:

Exclusive local news with broad impact is the key to our industry's survival. That requires a newsroom with more -- not fewer -- resources. Pretending otherwise is folly.

Louisville | Garson in 2nd day of staff meetings

In an e-mail, a reader says Publisher Arnie Garson is updating employees on The Courier-Journal's prospects today at 10:30 a.m., during the second of a two-day meeting.

Garson
My reader says Garson was asked about the possibility of more layoffs; the C-J cut 50 jobs during June's layoff round. Garson's reply, my reader says:

"'It's complicated.' He then referenced the economy, housing market, and major national retailers dropping advertising. He also mentioned something about centralizing finance, and we may lose jobs there. 'So long as it doesn't get worse, we should be ok,' I believe was how he ended it."

Across the U.S. newspapers, layoffs are virtually guaranteed, according to division President Bob Dickey. In a memo to employees after announcing the 700 layoffs, he said: "We will do all that we can to avoid further layoffs outside of those related to ongoing consolidations."

Jackson, Miss. | Post-Agnew, diversity challenged

Following the news that The Clarion-Ledger's top editor is leaving to lead Mississippi Public Broadcasting, a reader told me in an e-mail:

Agnew
"Ronnie Agnew's departure trims again the number of top newspaper editors of color in Gannett. Jackson, Miss., as you may recall, was a standout for having both a black managing editor and executive editor. The ME, Don Hudson, was downsized last year, and Ronnie's departure is a loss for the company. Ronnie was one of the good guys, and he's one of those people you really didn’t hear a lot about negatively. His staff, I think, knew he was trying to do the right thing amid turmoil."

Corporate is sensitive to the issue of minorities leaving Gannett, given the company's reputation for making diversity a top goal. Just last month, amid the layoff of 700 employees, Corporate's chief publicist, Robin Pence, told minority affairs correspondent Richard Prince:

"As you know, Gannett is tremendously committed to diversity. We have maintained our percentage of female and minority employees over the last few years despite reductions and we work very hard to make sure it's a fair process for all employees."

Agnew's departure was presented as a no-pressure exit, based on the generally glowing remarks Publisher Leslie Hurst made in announcing the move: "I know Ronnie will be deeply missed. Please join me in wishing Ronnie well as he embarks on his new adventure as executive director of MPB. Our loss is their gain. He will be with us through the August election."

Still, it's not uncommon for new publishers to choose their own operating committee members, and Hurst was given the top job in December.

Detroit/USAT | Will new furlough round spread?

Most Detroit Media Partnership employees, including those at the Gannett-owned Detroit Free Press, have just been told to take one-week unpaid furloughs.

That raises a question about whether USA Today employees also would be required to take an unpaid week off. Why? The Freep and USAT are in their own division, separate from the other 80 papers in the U.S. community publishing unit.

I suspect that USAT doesn't move in lockstep with the Freep, however, even though USAT's top two executives have come directly from Detroit. They are Publisher Dave Hunke and General Manager Susie Ellwood, who as basically deputy publisher is in charge of daily operations.

Currently, only certain highly-paid community newspaper employees are on furlough, continuing a cost-cutting move that began in the second quarter. Virtually all newspaper division employees were furloughed during the first quarter.

Furlough memo
Paul Anger, the Freep's editor and publisher, e-mailed this to the newsroom Tuesday afternoon:

Free Press folks:

We continue to face uncertain, challenging economic times, and we’re making some expense reductions. Please know that all managers and other non-bargaining unit employees have been notified that they will be furloughed for five business days between now and the end of the year. We are also reducing some items in our non-payroll expense budget, and managers will have more details on that soon.

At the Detroit Media Partnership, Joyce Jenereaux has notified all non-bargaining unit staff and employees that they will also be taking furloughs this year.

Although these furloughs do not affect bargaining unit employees, everyone should be aware that there are strict guidelines that prevent any work whatsoever -- or work-related conversations or any contact with the office -- involving those on furlough.

Each Free Press department will be looking carefully at any impact on vacations and how to plan our furloughs. We’ll have to look carefully and plan well ahead regarding the schedules of all Free Pressers. Avoiding overtime will be especially important, except for emergencies and breaking news.

Thanks for your patience, all of your hard and great work, and what you contribute every day to the Free Press.

-- Paul

USAT staffers: What are you hearing? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.

Wednesday, July 13, 2011

July 11-17 | Your News & Comments: Part 3

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Deal Chicken | Promotions: big, small -- and 'real'

As more sites roll out local versions of Gannett's Deal Chicken, newspapers are taking different approaches to promoting the online coupon service on their homepages.

The Arizona Republic, which developed the original version of the service, is hitting readers over the head with this banner treatment:


The Cincinnati Enquirer has added a link near the top of its homepage, with an illustration for extra punch:


And The Indianapolis Star also features a link in the same position, but without any graphic:

Video: 'Real chickens on Deal Chicken'
Meanwhile, for reasons I don't immediately understand, a YouTube user is featuring this video promoting Deal Chicken's Washington, D.C., launch on behalf of WUSA-TV in an, uh, creative way.

How is your site promoting Deal Chicken? Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.