Nearly 1,100 newspapers in smaller suburban and rural communities have partnered in a Web site that offers Sunday print circulars, coupons and business promotions for the towns they serve.
Zip2Save.com is considered both an offensive and defensive move by an industry of community newspapers and niche publications that face declining print and digital ad revenue as they struggle with falling circulation. The site was launched Oct. 1 by a group of 19 community newspaper companies and the Suburban Newspapers of America, a trade organization.
NPG Newspapers Inc., which publishes 16 community newspapers in Missouri and Kansas including the News-Press, is an owner in Zip2Save.
The site aggregates special deals by region. It targets consumers who prefer the Web as their method for finding advertising circulars, sales, promotions, catalogs and coupons. Visitors can sign up for updates when specific big-brand national retailers or local favorites post a new special.
“There’s no content. It is just ads. This is for anyone looking for coupons or discounts, especially now,” said Brigett Owens, Internet advertising manager for NPG Newspapers, which estimates a $20,000 advertisement investment in its print and online media to promote Zip2Save as part of a national campaign. “I really think (Zip2Save) will eventually become a household name.”
The coupon initiative by community newspapers follows on the heels of a similar online venture — shoplocal.com — by large metro dailies. Ms. Owens said that venture was not successful, since larger dailies depend on larger advertising profit margins.
“And we’re dealing with these mom-and-pop places that really need a cheap, effective way to reach their audiences. This is why it’s going to be a much better fit for us,” she said.
The Zip2Save Web site is modeled on a Canadian preprint version, flyerland.ca. According to Zip2save’s marketing material, nearly every major retailer in Canada is now a paid advertiser on that site.
The online foray is not yet a departure from the traditional insert advertising that is measured through circulation figures that have long been a main revenue source for newspapers. Community newspapers are faring better, compared to their large metro dailies counterpart.
The total drop in combined print and digital ad revenue last year for all newspapers was 16.6 percent, according to the Newspaper Association of America — the worst yearly decline since the Great Depression.
For community newspapers, there was a 2.4 percent decline in the second quarter of 2008, according to the Suburban Newspapers of America. The trade organization’s for-profit affiliate, Suburban Network Inc., is a partner in Zip2Save.com.
Ahmad Safi can be reached at ahmadsafi@npgco.com.