How I would have spent the freesheet-millions

Following the folding of Denmark’s most widely read newspaper, the freesheet Nyhedsavisen, yesterday it’s only natural to look back and ask two obvious questions.

Could the money that has been lost in the big freesheet war in this small country have been better spent? And if so, how?

I don’t think anyone can doubt that I would answer ‘yes’ to the first question. So the question is: How?

First lets look at the money involved here.

It’s estimated that more than 1,2 billion DKK has been lost on this war. The total daily national newspaper advertising market in Denmark last year was 3,2 billion DKK. So a quick calculation on an envelope shows that an accumulated loss of 37,5 % of the total newspaper advertising revenue in 2007. That’s a lot.

If you now look at the Danish online advertising market, that was 2,5 billion DKK last year. Let’s subtract an estimated 0,5 billion DKK, which has Google written all over it, and you would still have 2,0 billion DKK to play with. 37,5 % of that would be 750 million DKK.

So the question really is - speaking from a pure online perspective - whether you could have built anything online and achieved some sort of success with it for 750 million DKK, the rough equivalent of 150 million USD?

Let me think. My bet is…ehhmm….’Yes’.

Ok, but how? I would have divided it in three:

First, I would have built a deeply local community infrastructure. I would have worked to create a solution that pretty much replaces the notice boards you see in every supermarket by taking the same sort of service news online. I would work to embrace even the smallest advertisers, and I would create a media company that would truly redefine how you position local media in the local ecosystem. I know it sounds fluffy, but believe me when I say that there are ways to do this, if you think about it deeply enough.

Second, I would have put a layer of value added service on top of this platform - or for independent use for that matter - all centered around making life just a little bit easier for the overworked, ‘I’m-so-busy’ Dane. At a monthly service charge of course. No advertising funding there, as services that are truly good enough and provide real value will always be able to command a price in the market place.

Lastly, I would make sure that my media company took ownership on consulting advertisers on trends and developments within the media and marketing spheres of the internet. I would not be recommending my own sites, platforms or services, but I would be so open and honest that advertisers would trust me to know what’s hot and what’s not online. I would provide it for free, because the deep relationships that comes out of providing that sort of ‘community’ service is worth much more medium and long term than being able to send an invoice for a measly amount in the very short term.

Could I have gotten all this for my 750 million DKK? Not sure, but I think I would have come a long way. And at the very least a lot longer than where the media companies have come by out-lossing eachother in this senseless freesheet war.

Because they have gotten absolutely nowhere.

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.