This post will be a follow up to my previous post, Would you Pay for Your Online News?, which examined what will happen to newspapers as advertisers leave in drives due to the recession and more people switch to reading online for free.
There was a very interesting post in the NYTimes about "hyperlocal" web sites and blogs that are bringing community news to the community as the major papers are cutting back on this news. These "hyperlocal" online sites are filled with links to news articles and posts from local bloggers, data feeds from city government, crime reports, restaurant openings and specials, locations for road construction and traffic, etc.
The biggest question is how these sites will make money and the answer appears to be advertising, although in a different form, and this is where the innovation of this idea could become a huge business. “When you slice further and further down, you get smaller and smaller audiences,” said Greg Sterling, an analyst who has followed the hyperlocal market for a decade. “Advertisers want that kind of targeting, but they also want to reach more people, so there’s a paradox.”
However, he means large advertisers. But what about small ones? Numerous small businesses have never put ads online before and their estimated worth by 2013, according to Peter Krasilovsky, is $32 billion. Let's have an example.
We at OfficeClip are a small company located in Atlanta (Norcross, specifically). At present, we advertise online but not too much locally besides listings. Now let's say there is some very local news on this "hyperlocal" website about the police department nearby or a local chain restaurant adopting a new software or technological device to make their business run better, etc. That would be a great place for us to put an ad for our web timesheet software or web contact manager software. We might not reach as many people as we do with Google, but it probably would not be as expensive either. Also, there is a dedication that small businesses have to other local small businesses. This would enable them to know about one another more easily.
In all, this is probably bad for the newspapers, since they did not come up with it, but these "hyperlocal" sites still get information from them so they need to get advertisers quick in case their main artery newspaper fails. I still think this is a great idea and could really benefit local companies willing to participate!