Are Newspapers Doomed?
I realize this is a somewhat related topic that doesn’t necessarily fit in considering that this is only the second post on this site. However, it’s an important topic for real estate professionals who have marketed to for sale by owners for a long time or those who plan on doing so in the future.
All reports from the Wall Street indicate that newspapers all over the country are seeing huge declines in circulation and therefore revenues. Most think it’s because the internet can provide the same information but faster, cheaper, and more conveniently. Classified ads generally represent a major portion of revenues for newspapers and these are also seeing declines. Themed classified sites unlimited by geography, and therefore providing a more complete and “one-stop-shoppping” location for classified buyers seem to be killing the newspaper classified’s traditional market share.
It seems like I see an Autotrader.com commercial every five minutes when I watch TV. Vehix.com is another one that airs a lot of ads. So should FSBO marketers be worried that their newspaper classified ad source may be drying up? I’m not sure.
Reportedly, Google is planning a new classified ad system though I haven’t heard if it will be free to post ads or not just yet. If the Big G does get into the online classified space you can bet it will almost instantly gobble up a huge portion of that market. Will daily FSBO lead services be able to capture home seller’s contact information from Google? Doubtful. Google is chock full of Stanford PhD’s - they are no dummies. Privacy will be one of the first things they address if they do release a classified system.
Leaving alone the trouble this would stir up among traditional real estate brokers and MLS systems (an efficient online market for independent home sellers that was centralized and wildly popular would certainly stir up trouble for Realtors), what does it mean for the average loan officer and real estate agent who have been relying on FSBO leads for years? My guess is that daily FSBO lead services would see a significant drop in their total number of daily FSBO additions (unless they could tap Google’s data), and the average FSBO marketer would see it in less leads per month in their chosen area.
I realize I’m painting a somewhat bleak picture here, but it’s a possibility that must be considered. Are there ways to survive in a world where real estate services have been “Wal-Martized”? Sure there are - just don’t ask me what they are yet.
December 21st, 2009 at 7:51 pm
No! Newspapers are not doomed. They will be around for at least another century or so. This has been talked about before and many experts agree with you. However, I don’t think the technology we have at this time or in the near future will doom the newspaper. I would be more concerned about the future generations lack of reading or keeping up with what’s happening in the world over printed newspapers. As long as there is an interest in reading and news is in demand, there will be printed newspapers. Think about this for a minute. Almost everyone likes to read while waiting on something or someone. Most people read during breaks, waiting on a Dr., in an airplane terminal, flying on an airplane and etc… There is just not enough WiFi terminals or locations around at this time. The lack of these terminals and the fact that there are millions of Americans who still don’t own a laptop or have phones with Internet access. These Americans still have a need for news and will happily pick up a paper to get it.