Local is the really big opportunity

Russell Beattie asks when local will truly be on the web? Sometime very soon, my prediction would be.

Local is a very obvious growth area for both media companies and others with an aspiration to form very close ties to the local population of just about every locality you can think of.

However, traditional media is at a disadvantage in dealing with local. For several reasons.

First of all, local media have existing business models that rely heavily on ads that are way too expensive to ever really scale. It still costs too much for the small business to put a regular ad in the local newspaper or on the local newssite, and changing this will only hurt the local media companies revenue streams and ultimately profits. So that’s not really likely to happen.

Second, local is low, low, low status for many media professionals. Its where you look for employment - not opportunity - if you can’t get a job at a ‘real’ media company. I have seen this so many times when I was a journalist proudly working for a local media company that I know this to be true - at least on these shores.

Thirdly, media companies really haven’t got a clue about what local means. It’s not just about reporting news and publishing letters to the editor while taking the advertising dollars. It’s about being a lifeline, an active player in the local community. And about letting local people set their own agenda(s). And so much more.

It’s fun actually. Because on the one hand you have a lot of potential, as people are really interested in understanding, what’s happening in their neighborhood. And on the other hand you have an entire industry pretty poorly suited to take advantage of that opportunity.

This leaves the field right open to non-media affiliated players with the right concept and rigorous execution. My bet is that it will be coming soon. The opportunity is just to damn big not to have a go at.

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.