Gannett falsely accuses the Journal of smear in report on ad-tech screw-up

They say Indianapolis is lovely in the summer. Photo (cc) 2009 by Willy Feng.

Earlier this week, The Wall Street Journal reported that a glitch in Gannett’s online advertising software had resulted in ads appearing in the wrong places. For instance, to cite an actual example, an ad that was intended for USA Today’s national online audience might instead appear on the website of the Indianapolis Star.

So how did Gannett respond? With a defensive press release that falsely claimed the Journal story “implies Gannett intentionally shared inaccurate information to advertisers over a period of nine months.”

No, it didn’t. You can read the full Journal story, by Patience Haggin, for yourself, but this seems relevant: “Gannett said in a statement that it provided the wrong information and that it regrets the error, which it said was unintentional.” There is not one sentence in Haggin’s article contradicting Gannett’s claim that the error was inadvertent. Of course, the mistake might have been related to the fact that Gannett’s workforce is notoriously overworked and underpaid, but the Journal article didn’t say that, either.

What the story does confirm is that no one knows what is going on in the murky world of programmatic advertising, where digital ad space is sold through automated auctions by Google and, in this case, Gannett. It’s not at all like buying a two-column, six-inch ad on page seven in your local print newspaper. As Braedon Vickers, the ad-industry researcher who discovered the error, told the Journal, “Programmatic advertising relies on a lot of data being self-reported by those selling the ads. That this issue went undetected for so long suggests that the processes in place to verify this information are not sufficient.”

Writing in the trade journal Editor & Publisher, Gretchen A. Peck observed that Gannett’s “value proposition and trust” were undermined by the error. But she also quoted Krzysztof Franaszek, the founder of Adalytics Research, who said it appeared exceedingly unlikely that Gannett’s deceptive practices were intentional:

I think it’s likely a simple ad ops error. We tried to analyze this phenomenon from a number of different angles to determine if there was some kind of material benefit to Gannett of doing this, and after an exhaustive enumeration of possibilities, we found no rational explanation of how this would benefit Gannett.

Among the brands affected by the screw-up, according to Vicker, were Nike, Ford, State Farm, Starbucks and Marriott. Gannett’s statement said the error involved less than $10 million in advertising.

Gannett is the country’s largest newspaper chain, owning 100 or so daily newspapers and many hundreds of other media properties in 46 states. The company controls a good share of the local news outlets in Greater Boston and environs — including a number of weekly papers that have gone digital-only in the past year, and which recently dumped community coverage from most of its non-daily titles.

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Financial prospects keep sliding as Gannett prepares to shift away from local

Photo (cc) 2009 by Kevin Walsh

Gannett’s recent move away from local news is not taking place in a vacuum. Financial prospects for the country’s largest newspaper chain continue to deteriorate — and the company’s insistence on degrading its journalism rather than building it up is going to make it that much harder to attract new readers.

As I reported last week, the chain is reassigning staff reporters at most of its Massachusetts weeklies to cover regional beats rather than local news. Although Gannett officials have not commented, I’m told that the three exceptions will be the Cambridge Chronicle, the Old Colony Memorial in Plymouth and the Provincetown Banner. I’m also told that a few weekly reporters will be reassigned to Gannett’s dailies rather than to regional coverage of issues such as climate change and racial justice.

What we still don’t know is what, if any, coverage the Gannett weeklies will provide of such basics as governmental meetings and elections. Maybe part-timers will be used. Maybe they’ll just skip it. There were already a number of Gannett weeklies without any real local coverage, so that’s nothing new.

Meanwhile, the chain’s business continues to slide at its 100 or so daily newspapers and 1,000 weeklies and other properties, according to Poynter business analyst Rick Edmonds. Revenue for the fourth quarter was $827 million, a decline of 5.5%, as its much-ballyhooed increase in digital subscriptions appears to be driven by steep introductory discounts.

Edmonds writes that “as Gannett targets reaching 2 to 2.2 million digital subscriptions by the end of 2022, it faces the double challenge of holding the introductory subscribers as they move up to higher rates while also continuing to quickly add new subscribers.” And rather than invest in journalism, Gannett is putting money into sports gambling and marketing services.

And NFTs.

It’s an ugly tale. For Massachusetts readers, it’s a tale that extends back to the early 1990s, when Fidelity began rolling up community newspapers in Eastern Massachusetts. From Fidelity to the Boston Herald to GateHouse Media, which morphed into Gannett, it’s been 30 years of cuts, with very little in the way of good news.

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Babz Rawls Ivy, the radio voice of New Haven, shares her life and wisdom

Babz Rawls Ivy and Dan Kennedy outside her home in New Haven. Photo by Babz.

Babz Rawls Ivy is host and co-producer of “LoveBabz LoveTalk” on WNHH-LP radio in New Haven. But that doesn’t begin to describe her. So let’s add a few more words: Force of nature. Wise presence. Storyteller.

WNHH is a low-power FM community station launched seven years ago by the New Haven Independent, a pioneering online nonprofit news site. Paul Bass, founder and editor of the Independent, wanted to bring powerful local voices onto the airwaves. Babz Rawls Ivy brings truth-telling to a whole new level.

Rawls Ivy’s show is on the air every weekday from 9 to 11 a.m. If you’re in New Haven, you can hear it at 103.5 FM. You can also listen live on the Independent’s website and on its Facebook page, where programs are also available after the show. Past programs are also available on a number of other platforms, including Apple Podcasts. Just search for “WNHH Community Radio.”

In our Quick Takes for the week, Dan shares the latest on Gannett’s downgrading of local coverage, and Ellen asks whether retired journalists are the new seed capital for startup digital sites.

You can listen to our conversation here and subscribe through your favorite podcast app.

Tracking independent local news projects in Mass.

After I reported last week that Gannett was dropping most local news from its Massachusetts weekly newspapers in favor of regional coverage, I heard from a few independent hyperlocal publishers, several of them with projects I wasn’t familiar with. So I started compiling a list of independent news organizations, putting out the word for nominations on Twitter and Facebook.

The titles came pouring in. Independent journalism is alive and well in Massachusetts, and though I’m sure many of the projects I found are economically marginal, they’re providing the kind of granular community coverage that you just can’t get from a corporate chain-owned newspaper. There are weekly newspapers on my list as well as digital-only projects, a few dailies and even a couple of radio stations.

I’ve got nearly 200 entries, sortable by the name of the project, the community and the type. Some, like the Berkshire Eagle, serve multiple communities; most cover just one town or neighborhood. I’ve added a link to the menu bar for easy access. Meanwhile, please keep those nominations coming — just send an email to me at dan dot kennedy at northeastern dot edu.

Check out the full list by clicking here.

How The Boston Globe could help offset the local news vacuum

Could The Boston Globe, profitable and growing, help make up for the local news vacuum in Eastern Massachusetts? The shortage of reliable community journalism became much more acute last week when Gannett told reporters at most of its weekly papers that they would be reassigned to regional beats or to one of the chain’s dailies.

The Globe could conceivably step in by reviving an idea that was perhaps before its time. Under New York Times Co. ownership, the Globe published web pages known as YourTown, one for each suburban community as well as a few of Boston’s neighborhoods. They relied heavily on aggregation — too heavily, as the Times Co. found out in court — and they competed with papers owned by GateHouse Media (now Gannett) that weren’t nearly as hollowed-out as they are today. What’s more, YourTown was part of the Globe’s free Boston.com site (this was before BostonGlobe.com), and the hyperlocal advertising that was supposed to support YourTown never materialized. John Henry shut down YourTown not long after he bought the Globe in 2013.

So what would a revived YourTown look like? Advertising isn’t nearly as important as it used to be, but the Globe has been successful in selling paid digital subscriptions. So imagine a YourTown with one full-time reporter in each community. If the Globe signed up 500 new subscribers in a community, that could bring in as much as $120,000 a year. I’m basing that on an average subscription costing $20 a month (the full cost is $30, but many people would be paying discounts).

No doubt this would work better in some places than in others. I live in Medford, a city of about 58,000 residents that, as of now, doesn’t have a single full-time reporter covering the community. Selling an extra 500 subscriptions — or more — ought to be doable.

But right next door, in Arlington (population: 43,000), there’s a good-quality nonprofit news website, Your Arlington, which would make a Globe-branded YourTown less attractive. Or consider a small town like Bedford — not only are there just 13,000 residents, but it’s the home of a well-established nonprofit news site, The Bedford Citizen.

Still, I think a revived YourTown would work well enough in a few communities that it’s worth trying. I doubt it would be a money-maker for the Globe, but it might be a break-even proposition. And the paper would be filling a real need.

Gannett’s Mass. weeklies to replace much of their local news with regional coverage

A slidedeck explaining the new regional beats for Gannett’s local reporters. Click here or on image to view the deck in its entirety.

Gannett is poised to take a major step back from its coverage of Massachusetts communities as it prepares to replace local news in its weekly papers with regional stories about topics such as public safety, education, racial justice and the environment.

This post is based on communications I had with several sources who insisted on anonymity as well as internal documents that were provided to me. There are a number of details I don’t know. For instance: Is this part of a nationwide initiative? Will the dailies be affected? Will there be any coverage of such important matters as city council, select board and school committee meetings? How will local elections be handled?

Also, I hear that several — perhaps three — Massachusetts weeklies will not be affected by the move, including the Cambridge Chronicle. I don’t know which of the other papers will be left more or less alone.

Emails to Gannett corporate headquarters in McLean, Virginia, and to Gannett New England went unanswered. The company is the largest newspaper chain in the U.S., with more than 100 dailies and around 1,000 other media properties.

The Massachusetts papers are known collectively as Wicked Local. The changes will take effect within the next week or two. According to a message to employees from Len LaCara, content strategy analyst at Gannett’s USA Today Network, the change is being made in an attempt to bolster paid digital circulation and offset shrinking print readership. According to a screen shot of his message that was sent to me, he wrote:

There is ample evidence that people will not subscribe to read a lot of the content currently being produced for the newspapers. We see this in the low subscription numbers and the lack of traffic to the stories. But we have seen in community after community that the topics Lisa outlines for you are valued by your potential audience. [This is a reference to Lisa Strattan, vice president of news for Gannett New England.] They can and do generate loyal digital readers who will return to your site and renew their subscriptions.

Well, I want to know what’s going on at City Hall, and if my local Gannett weekly isn’t going to tell me, I’m stuck. In our community we have a Gannett weekly with a capable full-time reporter, who is apparently going to be reassigned to cover regional news. Other than that, we have Patch, Facebook and Nextdoor. Big opportunity for Patch, but I can’t imagine they’re going to staff up.

I’m told that Gannett journalists have been asked to apply for new regional jobs covering their preferred beats. Click on the slidedeck above for more details. Although Gannett has closed a number of weekly papers over the past year and has gone through round after round of job cuts, I hear that no one is losing their jobs as a result of this reorganization.

As for the appeal of regional news — isn’t that why we have The Boston Globe, public radio and television, and TV newscasts? I want local news from my local paper. I understand that circulation at Gannett’s weeklies is shrinking, but I think it’s more likely because there isn’t enough local news rather than too much. This does not strike me as a smart move, to say the least.

Update: I’m hearing that a few of the weekly reporters will be assigned to Gannett’s dailies rather than to one of the new regional beats.

Digital circulation is growing, but it needs to be more and faster

Photo (cc) 2005 by rnv123

Will digital subscriptions save the newspaper business? They had better. With advertising in a death spiral, publishers have to hope that readers will pick up the slack. Progress has been slow, but it may finally be picking up.

Marc Tracy reports in The New York Times that several newspaper chains, including Lee Enterprises and Gannett, have experienced significant increases in paid digital circulation. The problem is that these increases are spread over many papers, and the situation at any one of them remains dicey.

For instance, Gannett is up 46% over the past year, to 1.5 million paid digital subscriptions — yet it owns about 250 daily papers, including USA Today. Those numbers need to be exponentially greater if Gannett is going to re-establish itself as a lucrative business and actually start adding rather than cutting journalistic resources.

“There’s a big misperception out there that there’s a big hole in local journalism, and I think that narrative’s been created by people who aren’t sitting in local markets,” Gannett chief executive Mike Reed told Tracy. As a longtime reader of Gannett’s (previously GateHouse Media’s) community weeklies, all I’ve got to say is: You’ve got to be kidding.

In order for paid digital to work, you also have to charge enough. To go back to USA Today, I see that the cost is $9.99 a month after the first-year discount expires. That’s not bad, but it’s well behind The Boston Globe’s $30 a month. And the Globe has managed to sell a reported 235,000 digital subscriptions. Of course, the Globe, like most newspapers, offers a huge discount to new subscribers, which means it then has to figure out a way to keep them.

In order to succeed with digital subscriptions, you need good content and good technology. Many of the papers now trying to succeed in the digital space have been cut substantially. And too many newspaper websites are still clunky mish-mashes with pop-ups, pop-unders and other annoyances.

It’s better to grow than to shrink, so in that sense I guess Tracy’s story is good news. But there’s still a long way to go.

News organizations need to stop stonewalling on layoffs and diversity data

Photo (cc) 2009 by Richard Kendall

The Poynter Institute has published an important story on the difficulty of tracking layoffs of journalists, especially journalists of color. As Kristen Hare writes, very few news organizations let it be known when they’ve eliminated positions. “For an industry that prizes transparency,” she says, “we’re experts at asking for it and rotten at actually offering it.”

She’s right, and it’s something I’ve found pretty frustrating whenever I hear reports that newspapers owned by Gannett or Alden Global Capital have downsized once again. Since many news organizations follow the practice of last hired, first fired, journalists from underrepresented groups tend to be disproportionately affected — but finding out exactly what happened is difficult if not impossible. Hare offers three explanations for why this information is so hard to come by:

  • “Lack of public notice about who was laid off and where
  • “A reluctance among some journalists to say anything publicly
  • “Growing use of nondisclosure agreements that include non-disparagement agreements”

Hare also quotes my Northeastern journalism colleague Meredith Clark, who’s been working with the News Leaders Association to revive its annual survey of newsroom diversity — a survey that was suspended several years ago because so few news organizations were responding. Dr. Clark puts it this way:

The thing is, journalism as an institution, as a business, has a vested interest in continuing to isolate people in terms of their knowledge of what the field actually looks like. And the corporatization of journalism helps with that because it’s easy to say, “Oh, this is a problem for HR,” or, “Oh, because of legal we can’t do this.”

Clark is absolutely right, and it extends well beyond layoff and diversity numbers. I’ve been covering the news media for more than 25 years, and though I’ve found a great deal of openness to the idea that journalists should be as transparent as they expect their sources to be, I’ve encountered plenty of examples of the opposite, too.

Unfortunately, we can’t file public-records requests or demand the right to attend  meetings at media outlets. Rather, we have to rely on news executives to do the right thing. If they think government officials should be compelled to release data that casts them in an unfavorable light, then why do they think it ought to be different for media organizations?

The latest bad idea for chain newspapers: Robot reporting on real estate

Tom Breen of the New Haven Independent covers real-estate transactions the old-fashioned way. Photos (cc) 2021 by Dan Kennedy.

At least two New England newspaper publishers have begun using artificial intelligence rather than carbon-based life forms to report on real-estate transactions.

The Republican of Springfield, online as MassLive, and Hearst Connecticut Media, comprising the New Haven Register and seven other daily newspapers, are running stories put together by an outfit called United Robots. MassLive’s stories are behind a hard paywall, but here’s a taste from the Register of what such articles look like.

United Robots, a Swedish company, touts itself as offering “news automation at massive scale using AI and data science.”

Last year I wrote about artificial intelligence and journalism for GBH News. I’m skeptical, but it depends on how you use it. In some ways AI has made our lives easier by, for instance, enhancing online search and powering the inexpensive transcription of audio interviews. But using it to write stories? Not good. As I wrote last year:

Such a system has been in use at The Washington Post for several years to produce reports about high school football. Input a box score and out comes a story that looks more or less like an actual person wrote it. Some news organizations are doing the same with financial data. It sounds innocuous enough given that much of this work would probably go undone if it couldn’t be automated. But let’s curb our enthusiasm.

Using AI to produce stories about real-estate transactions may seem fairly harmless. But let me give you an example of why it’s anything but.

In November, I accompanied Tom Breen, the managing editor of the New Haven Independent, as he knocked on the doors of houses that had been foreclosed on recently. The Independent is a digital nonprofit news site.

A note Breen left behind asking the resident to call him. (Phone number removed.)

Breen has spent a considerable amount of time and effort in housing court and poring through online real-estate transactions. From doing that, he could see patterns that had emerged. Like Boston and many other cities, New Haven has experienced an explosion in real-estate prices, and a lot of owners are flipping their properties to cash in. In too many cases there are victims — low-income renters whose new landlords, often absentee, jack up the rents. Breen takes the data he’s gathered and rides his bike into the neighborhoods, knocking on doors and talking with residents. It’s difficult, occasionally dangerous work. Once he was attacked by a pit bull.

We didn’t have much luck on our excursion. No one was home at either of the two houses we visited, so Breen left notes behind asking the residents to call him.

“If investors are swapping properties at $100,000, $200,000 above the appraised value and tens of thousands of dollars above what they bought it for two days prior,” Breen told me, “all that can do is drive up costs that are passed down to the renters — to the people actually living in the building.”

The result of Breen’s enterprise has been a series of stories like this one. The lead:

Tenants of a three-family ​“lemon” of a house on Liberty Street are wondering how two landlords managed to walk away with $180,000 by double-selling a property that they say remains a dump.

You’re not going to get that kind of reporting from artificial intelligence.

Now, of course, you might argue — and some have, as I noted in my GBH News piece — that AI saves journalists from drudge work, freeing them up to do exactly the kind of enterprise reporting that Breen does. But story ideas often arise from immersion in boring data and sitting through lengthy proceedings; outsource the data collection to a robot, and it’s likely that will be the end of it.

Bad sign: Here’s how Breen and I were greeted at one foreclosed-upon property. (Names removed.)

At the corporate chains that own so many of our newspapers, there’s little doubt that AI will be used as just another opportunity to cut. Hearst and Advance, the national chain that owns The Republican, are not the worst or most greedy newspapers chains by any means. But both of them have engaged in more than their share of cost-cutting over the years.

And it’s spreading. United Robots’ U.S. clients include the McClatchy newspaper chain and The Atlanta Journal-Constitution, part of the Cox chain. No doubt the Big Two — Gannett and the groups owned by Alden Global Capital — won’t be far behind.

Houston becomes the latest city to announce a nonprofit news project

Downtown Houston. Photo (cc) 2018 by David Daniel Turner.

Big news out of Houston, where several major philanthropies have announced they intend to raise $20 million to start a nonprofit news project — just the latest major metropolitan area to embrace nonprofit journalism.

What makes it a bit unusual is that the Houston Chronicle, the legacy daily, is owned by Hearst, generally regarded as one of the better newspapers chains. Of course, all corporate chains are problematic, but Houston is not like Baltimore, where hotel magnate Stewart Bainum is launching the nonprofit The Baltimore Banner after losing out to the hedge fund Alden Global Capital in his bid to buy The Baltimore Sun.

The Houston effort is being led by the American Journalism Project, whose chief executive, Sarabeth Berman, told the Columbia Journalism Review:

Local news is a public service — one that’s been in sharp decline. This project demonstrates that local philanthropies can, and need to, play a transformative role in rebuilding and sustaining independent, original reporting in service of communities.

Here’s an excerpt from the press release:

With an anticipated launch in late 2022 or early 2023 on multiple platforms, the new nonprofit news organization will elevate the voices of Houstonians and address the needs of the community as identified in the American Journalism Project’s extensive research. Its wide-ranging coverage will be available for free to readers as well as other news organizations.

I wish them well, of course. Still, it’s hard not to wonder if the money could go to better use elsewhere. Greater Houston residents already get first-rate coverage of state politics and public policy through The Texas Tribune, which is also a nonprofit, and the Chronicle is presumably doing a better job than your typical Alden or Gannett paper.

Click here to read the full press release.