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Charging for News: Likely to Fail

Chart: Charging for News will Fail

Silicon Alley Insider’s Chart of the Day, based on recent Harris Interactive data.

Digg Dialogg with Timothy Geithner

“Treasury Secretary Timothy Geithner explains to Deputy Managing Editor Alan Murray the need to keep the Federal Reserve free from political influence, plus answers other questions submitted and voted on by Digg users in partnership with The Wall Street Journal.”

At WSJ.

Tim Geithner Takes Questions from Digg Audience and WSJ’s Alan Murray

Tim Geithner

From WSJ’s Real Time Economics blog:

“Geithner has been at the center of the government’s response to the crisis since it first erupted. First, as president of the Federal Reserve Bank of New York, he acted as Fed Chairman Ben Bernanke’s right-hand man and representative to Wall Street during an unprecedented intervention by the central bank. Last year, President Barack Obama appointed him to lead the Treasury Department, and he has been the administration’s point man on the economy.

“The Journal is partnering with Digg as part of the Web site’s Digg Dialogg series. Members of the Digg community will be able to submit and vote up questions that will be presented to the Treasury secretary.”

Ask a question here.

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WSJ Profile of Dooce's Heather Armstrong

From Thursday’s Personal Journal.

Heather Armstrong Judge Dredd divx

“The 32-year-old at-home mother’s irreverent, occasionally profane and often hilarious musings on prosaic topics from potty-training to postpartum depression have propelled her blog, Dooce.com, to No. 59 among the Web’s top 100 blogs, according to Technorati, a blog search engine. The Salt Lake City resident enjoys enviable influence and enough ad revenue that her husband Jon quit his job in 2005 to manage advertising for Dooce (rhymes with moose).”

Why Information Works Better Than Simple Promotions

From a Lee Gomes piece in the Wall Street Journal (I saw it at Boing Boing):

“What is it about a Web site that might make it literally irresistible? Clues are offered by research conducted by Irving Biederman, a neuroscientist at the University of Southern California, who is interested in the evolutionary and biological basis of the human need for information…..

“When he hooked up volunteers to a brain-scanning machine, the preferred pictures [ones that "presented new information that somehow needed to be interpreted"] were shown to generate much more brain activity than the unpreferred shots. While researchers don’t yet know what exactly these brain scans signify, a likely possibility involves increased production of the brain’s pleasure-enhancing neurotransmitters called opioids.”

I’m no scientist, but this suggests to me that ads built around content (like JCPenney’s or Symantec’s) will do a better job engaging consumers than ads that simply offer up a discounted rate.

Playboy’s Digital Ad Sales Up 50%

Adult content and the Wall Street Journal have been the two of the few places in online publishing that turn a profit from subscription sales. To see WSJ talk about going free and Playboy investing in content outside the paid garden suggests significant optimism about the growth of online display advertising. While paid subscriptions and ecommerce are still the #1 and #2 online revenue streams for Playboy, PaidContent reports digital ad sales are up 50% this year.

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Size Still Matters: WSJ and Starcom Provide New Evidence

Waiting for the crew at Farley’s to brew up a cup of tea this afternoon, I flipped through the print edition of AdWeek for the first time in about a decade, and two stories caught my attention, both reminders that size still matters in publishing.

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First, Starcom USA Unveils New Print Accountability Tool: The agency “has been doing bigger deal in print but with fewer magazines” in order to get a better read on the performance of campaigns, creative messages and publications. If other agencies are doing the same, it means the financial pain across the print-publishing landscape will be felt more acutely at niche magazines.

Second, Will a Free WSJ.com Pay Off for Murdoch?:

“‘Because of the their model,’ said Jeff Lanctot, svp, global media at Avenue A/Razorfish, ‘they are a smaller property.’ That by nature, can sell only so many ads. Consider that Yahoo Finance generated 470 million page views in October, versus 11 million for WSJ.com, per comScore. ‘They could instantly become a more attractive property’ if the site goes free, Lanctot added.”

Niche publications are great for advertisers in terms of targeting and audience composition, but without scale to go along with quality small publishers may not get a seat at the table.