In some cases newspapers have even been known to site their online division in separate buildings on the other side of town – as is the case with dailymail.co.uk and thisislondon.co.uk both owned by Associated Newspapers.

Should a newspaper want to drive readers to the paper or to online? The answer is both, a difficult equation by anyone’s standards. How do you do one without compromising the other? Impressions to websites are hugely important to grow online advertising revenues whilst circulation revenue is important for paid for papers. Departments can be put in the position where they need to fight for the much valued in-paper space and if online sits as a separate division it can be the last in line, limiting traffic potential.

Creating an online department has left many newspapers susceptible to channel conflict: with commercial teams competing directly for online and print advertising budgets from the same client as has been the case in the past with UK tabloids owned by Trinity Mirror and News Corps. This direct competition can damage both existing and future commercial success.

Newspapers must be careful that all approaches to clients and agencies are seamless so that clients are not able to leverage this to their advantage and lower the margins. This means thinking carefully about individual targets and bonuses.  

Throughout the organization, regardless of its set up, one department’s success is often
linked to that of another. With online as a separate division, newspapers run the risk of building invisible walls to other departments. What starts out as friendly banter may at worst result in creating an isolated unit.

This has become increasingly evident with the growing importance of online to the business’ bottom line. Newspapers must therefore work out how to set targets and bonuses to avoid or minimize these internal conflicts of interest.

This isn’t an internal competition between what should be two complimentary channels. It’s an essential element to safeguard the future of the newspaper.  

By Jodie Hopperton, former Nationals Manager, Trinity Mirror Interactive