Why local newspapers must make themselves indispensable... and fast (Editors Weblog - New Media)

Why local newspapers must make themselves indispensable... and fast
Many newspaper pundits have long argued that the future of smaller papers lies in complete and in-depth local coverage. But this doesn't necessarily mean just news. Rob Curley, currently of the Naples Daily News, insists that newspapers have to become an indispensable source of all types of information for their communities and has helped a small paper in Kansas do so. However, a new study shows that Curley's Kansas project is a rare example.
On a positive note, the study presented by the Kelsey Group this week at the research firm's "Drilling Down on Local" conference found that 45% of consumers still use the local newspaper when looking for shopping deals, ahead of all other media. But search engines, in their short existence, are already hot on newspapers' heels with 39% of consumers using them for local search. On the other hand, local newspaper websites are only visited by 11% of consumers looking for deals.
Google and Yahoo have developed decent local search functions but Senior Vice President at Kelsey Neal Polachek said, "...What's underneath all (of their offerings) isn't as good as it can be or should be yet. When I say what is underneath, I mean data."
According to the study, the Yellow Pages are still the primary source for finding local information overall, but that could be rapidly changing; 47% of teens use search engines to find what they're looking for compared to 28% that use the Yellow Pages.
This is where local newspapers need to pick up the slack, and fast. It is already well known that teenagers are naught to pick up the printed newspaper and if 47% of them are already turning to the Internet for local search, they certainly won't be buying the newspaper anytime soon, if ever. And since the giants Google and Yahoo still aren't working particularly well on the local level, newspapers still have some room to maneuvre, and eventually monopolize their local search market.
Said Polachek, "Sometimes fewer options (search outlets) are easier. I think we're going through that process in trying to understand where (consumers) are going to find the information they need, when they need it, and I don't think it's completely figured out yet."
Curley might differ in opinion. In fact, he would probably argue that it is figured out.
Local newspapers can transform themselves into the only outlet their community needs, posting all relevant information from restaurant listings to little league sports scores on one comprehensive website that allows for community interaction and original contributions. By being indispensable, advertisers will surely follow and revenue would be enough that it could fund the newspaper's principal function: journalism