Newspapers have traditionally relied on 80% of their revenue to come from Advertisers while only 20% is generated from print subscriptions. The NAA has reported that newspaper advertising (print and online) has seen a nearly 38% decline from $9.6 billion in the second quarter of 2008 to $6 billion in the second quarter of 2011. It is then no surprise that this has left publishers looking for alternative ways to generate revenue – and it inevitably brings them to the paywall debate.

As paywalls were first considered, the largest concern was traffic. If paywalls lowered the page views, the content may be viewed as less in demand, or less valuable. More importantly, lower page views mean less inventory to sell. But lower page views may be worth the risk, if it means generating more revenue from the digital subscription base.

It took only a few of the big players (New York Times, Boston Globe, Dallas Morning News, and Minneapolis Star Tribune) to go the paywall route to re-energize the debate. Over the last few weeks the trades have been boasting research indicating that the paywalls are having a far better impact than initially hoped. The new report from the Audit Bureau of Circulations suggests that the paywall for the NYTimes is looking like it will be a success. Their reporting suggests that the paywall has increased both digital and print subscribers. But is that enough?  The naysayers out there would reply with an emphatic no – and assure you that the paywall is nothing more than a band aid solution to the revenue challenges that newspapers face.

There are media buyers that look to measurement tools such as Comscore and Nielsen as the holy grail of audience insight. These folks may tell you that the loss of subscription revenue will pale in comparison to the risk of decreased online dollars. Particularly for newspaper publishers who are historically the largest local site in their respective markets, a slight decrease in traffic could mean the difference between being #1 in the market versus #2. This could mean a smaller piece of the overall online budget for that market or, worse, not making the buy at all. If newspaper websites are to continue to have a stronghold in their markets as the largest local site, maintaining page views needs to go hand in hand with discussions surrounding paywalls. At a minimum, publishers should carefully examine yield and ensure that any gains to subscription revenue will at least account for any decrease in digital advertising revenue because of decreased page view measurements.

From apps to tablets, and video to mobile, even to selling their data, or lead generation tools like opt-in newsletters  – content publishers have a wealth of opportunities for which to generate revenue. Paywalls are one solution – but likely not the end-all, be all.

Have you toyed with the idea of a paywall? Have you implemented a paywall model and seen positive results?

Cue “Do They Know It’s Christmas?” by BandAid. It’s the holiday season. I will bet you that by New Year’s Day you will hear this song more times than you will see an effective digital ad from the retail sector. Two reasons. First, people don’t get tired of the song. Second, retailing is too focused on direct response to be effective during the holiday season. Instead, if you want to be effective during the holiday clutter and you want to drive sales in a short period of time, I offer one piece of advice - don’t oversell direct response.

Read more of this compelling piece: Who Took the Storytelling Out of Holiday Season Marketing?

Question: What do you get when you mix People Magazine’s Most Beautiful Woman (JLO), a luxurious, yet simple Italian car, catchy party music, a flash mob of crazed and smitten men and four simple, sticky lines?

Answer: A sexy, comical and memorable FIAT 500 television advertisement that continues to influence viewers beyond a brief 47-second TV spot.

Here’s why:

This commercial tells a humorous, upbeat and relevant story that catches the audience’s attention. First, it doesn’t hurt to have an extremely well-known and highly talked about celebrity who is the lead character, vocalist and dancer. Second, the advertisement leaves the audience with a very witty message that translates into a subtle yet direct call to action.

Like JLO? Get in line.

This clever message brings two incredibly powerful media channels—TV and digital—together to push the audience to learn more. The TV commercial acts as a brand awareness vehicle that leads the audience into the consideration stage by encouraging them to go online. This commercial is a great example of how these two media powerhouses are better together than using TV alone. Without the online call to action, the audience is left with a cool TV commercial that generates awareness. With the online call to action, the audience experiences a cool TV commercial that drives them to find more of the excitement online, while also creating a stronger consumer connection. For example, when I searched “Fiat” within YouTube, I was presented with eye-catching Fiat-sponsored results:

Not only do these channels work well together but they are often used together simultaneously. According to another Nielsen study:

Today Americans are using TV and internet together 35% more than a year ago.

Nearly 60% of TV viewers now use the Internet while also watching TV (on a monthly basis).

With PCs, smartphones, iPads, and e-readers, our society is taking in content through various forms and becoming skilled at multitasking; this further validates the need for advertisers to understand how to use each medium to its full potential to help tell a powerful brand story. Different advertising channels represent different consumer touch points. By adding digital campaigns to an advertisers’ media mix, advertisers can build strong connections with consumers in their everyday lives.

The FIAT 500 commercial says it all: “Go online.” Simply put, go online and maximize performance. While FIAT pulled TV and online together, the automobile company did not follow through with a large online presence. It needed to strengthen the campaign, reinforce the brand message and reach a broader online audience.

As a viewer, I felt more like I was hunting for something rather than having the auto advertiser guide me to a desired destination. While hunting, I came across their “build my own” page; this would be a great page to direct viewers. It allows users to create their own FIAT which offers a personal, fun experience that can lead to a deeper consideration state. Additionally, the brand story could have been more prominent online as well; it was completely lost.

While this campaign has been highly scrutinized in the press, particularly for its creative, the advertiser is moving in the right direction albeit with some modifications. Again, one of the main issues of this campaign was that it was largely served as an awareness campaign; it left the audience hanging rather than providing a consistent and fluid online path to action.

What are your thoughts on this campaign? Have you seen other types of traditional advertisements that incorporate digital elements? If so, please share them with us.