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The free mentality of the Internet, and a hybrid alternative

Software developer Jesse Grosjean wanted to try an experiment with one of his most recent creations – an applications for the iPhone called WriteRoom.

He posted his software in Apple’s App Store at the price of $4.99. He sold nine copies. The next day, he dropped the price to free and over the next three days his application was downloaded 16,347 times, according to stats he posted on his blog. He toyed with the price for several days, but even at his lowest price, $.99, he peaked out at 446 downloads in a day.

Grosjean’s mini-experiment is indicative of a part of Internet culture that is wrecking financial models for businesses of all kinds – an expectation that content should be free. “Content may be king, but, ironically, its perceived value today is being driven towards zero,” writes entertainment lawyer Jonathan Handel. “In the eyes of consumers, content is becoming a commodity – more a commoner than a king.” (see his six reasons why here)

As Chris Anderson, editor of Wired magazine, points out in his book Free: The Future of a Radical Price, most Internet users take advantage of free services on a daily basis, many of which are profitable business ventures. That includes search engines Google and Yahoo, social networking sites such as Facebook or MySpace, Wikipedia, Amazon, Craigslist, and dozens of others. In fact, the 20 busiest sites in the U.S., as identified by measurement firm Alexa, are free sites.

But that model isn’t working for everyone, especially in mass communication. What, then, is supposed to fill the void left by that lost revenue for businesses as they transition to the Internet? Companies are trying all kinds of things online from advertising-supported (Hulu, an online distribution platform for network TV) to subscription-supported (the Wall Street Journal) to micropayments (iTunes).

But the latest trend online, “freemium”, may be the one that holds the most potential if advertising sales continue to fall. In May, the New York Times called the freemium model “the most popular among Web start-ups.”

To understand freemium, start with Anderson’s explanation of how online business models have evolved. First, sites used the super-cheap distribution costs of the Internet to get huge audiences and sold general interest ads against those huge audiences. That’s not all that different than the traditional mass media approach. Then, sites began finding more effective, targeted advertisements by targeting users based on their habits or interests, squeezing the most money possible out of display advertising. Facebook does this based on information users supply in their profiles; Gmail does it with the content of your messages.

Ad rates online are much lower than on TV or in print, though. “Advertising in traditional media, whether newspapers, magazines, or TV, is all about selling a scarce resource – space,” Scott Karp, founder of Publish 2, says in Free. “The problem is that on the web, there’s a nearly infinite amount of space. So when traditional media companies try to sell space online the same way they sell space offline, they find they only have a fraction of the pricing power.”

So what happens when advertising support alone isn’t enough to sustain a business? That’s where freemium comes in. Freemium is based on giving away a product to the masses then “upselling” the most dedicated, intense users to a premium product and using those fees to support the free content being given away to the rest of the user base. Anderson argues that the low (and rapidly decreasing) distribution costs online facilitate that large-scale distribution of free content, at little cost to publishers.

Some examples of Freemium:

So what are the implications for the mass media? Industries will be challenged to determine what is free and what is premium. Some have already tried this. Both newspapers and the music industry have long benefitted from “bundling” – selling the hit singles and the lower-performing songs on the same album, for example or the top news stories with low-cost content from wire services.

For many in mass media, there’s already a freemium model in place. Anderson points to Wired‘s three tiers: free online vs. $.88/copy by subscription vs. $4.95 on the rack. However, now he says those in the mass media must ask: “What’s the $19.95 version?”

This is a cross-post from Explorations in New Media, an ongoing project at the Schieffer School of Journalism at TCU.

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News websites can learn from Wikipedia

Some have argued that the story was a product of necessity — newspapers had a fixed news hole to fill, and newscasts only had so much airtime. Context was often sacrificed as a result, because with a fixed amount of space, only the newest information is fit to print. But in the online era, there is no news hole. So what does that mean for the story, and if it’s dying, what will replace it? Is the story dead as a building block or do we need to be building new ways of presenting information using stories?

“The story was all we had before — it’s what would fit onto a newspaper page or into a broadcast show,” Jeff Jarvis, a journalism professor at The City University of New York wrote in his blog, Buzz Machine. “But a discrete and serial series of articles over days cannot adequately cover the complex stories going on now nor can they properly inform the public.”

Furthermore, newspapers are on fixed publication schedules; the format of the newspaper simply lended itself to telling readers what happened in a given 24-hour period, not everything that has happened in a given storyline. That’s great for an interesting feature story, but doesn’t do justice to a complex issue such as healthcare reform.

So what is emerging online as the new “atomic unit” of news?

Some say it’s the topic and point to Wikipedia of all places as an example. Compare the Wikipedia page on Cash for Clunkers to the latest newspaper story on the program and you quickly see how much more information is on one Wikipedia page compared to one page on a news website. It’s unlikely you’re going to sit down and read all 4,500+ words in the Wikipedia story, though, and there are obvious accuracy issues. But some journalism scholars still point to the possibilities Wikipedia’s format has for news. Most of the information in the Wiki was probably reported at one time by most major newspapers who reported on Cash for Clunkers, but as journalists, we just don’t organize our information on the Web in a way that is as permanent, or as context-packed as a Wiki. If you want to see some attempts at this, check out Times Topics from the New York Times and also see how AP is looking at doing something similar. For a smaller example, look at Columbia Tomorrow, a project from Matt Thompson at the Reynolds Institute at Mizzou. Google thinks there’s value in “contextual news”; they’re experimenting with adding Wikipedia in Google News searches.

The story model also assumes regular readership, which is something that also may not exist in the online era like many thought it did in print. We can no longer assume someone who read about a crime one day heard about the arrest the next. Google’s Marissa Meyer compared the change in the “atomic consumption of news” to what iTunes and the mp3 has done to the music industry. “As with music and video, many people still consume physical newspapers in their original full-length format. But with online news, a reader is much more likely to arrive at a single article,” Meyer said during Congressional testimony in May.

Neither option can replace the story, though. Scan Wikipedia, and much of the source information points back to newspaper articles. That begs the question, could a newspaper such as the Detroit Free Press produce a great page on former mayor Kwame Kilpatrick? His Wikipedia page was viewed more than 500,000 times last year and most of the links are to Free Press stories. Could your newspaper do the same thing with a page on the local high school’s football team or your annual town festival? After all, most daily newspaper stories are written to last just one day. What are the monetization possibilities of topics pages that are built to last forever on the Web while being updated as a given topic evolves, all the while pointing readers to additional reading in the form of stories or documents hosted on a newspaper’s Web site?

This is a cross-post from Explorations in New Media, an ongoing project at the Schieffer School of Journalism at TCU.

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Persuasive argument for going tabloid

Alan Jacobson at Brass Tracks Design has written a pretty persuasive argument for going tab using one of his recent clients, the Bakersfield Californian, as an example. Jacobson’s suggestions could certainly apply to most community newspapers (minus the part about nixing feature photos). He outlines how a tab can save money and provide new revenue opportunities through both advertising upsells and single-copy sales.

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Community journalists, we want to give you a Flip camera

If you’ve been to one of our Web workshops you’ve probably heard us talk about the Flip camera. It’s an easy-to-use, point-and-shoot video camera that we’ve recommended for those who want to get started with digital video.

Now we have one (a Flip Ultra, worth $149), and we want to give it to you, the community journalists who take advantage of our online services.

To be eligible to win this all you have to do is be a registered user of this site, and a subscriber to our e-mail newsletter.

If you’re not registered yet, just point your browser to /user/register and sign up. Make sure you leave the box checked for “Subscribe to Weekly update from the Digital Initiative” so you’re eligible for the Flip camera giveaway.

You’ll be entered into the contest additional times if you’re also our follower on Twitter (our username is @tccj) or a fan of our page on Facebook (just search for Texas Center for Community Journalism) so if you aren’t registered on either of those sites, this could be a great time to do so.

We’ll select the winner on September 21st, so sign up by then to be eligible.

This is only open to individual journalists (so you can’t register under your newspaper’s name), and you have to live in the U.S.

Good luck.

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New hope for ad sales, especially among community newspapers

Fitz & Jen point to a Borrell Associates report that indicates advertising revenue might finally be on the rise. The best part for community newspapers is that the report expects “much of the upcoming growth to come from community and suburban papers.”

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5 quick, easy online tricks you can try for football season

With football season right around the corner, it’s a great time to experiment with your website.

High school football is great for generating interesting photos, compelling narratives, and, best of all, reader interest. That’s all the more reason to give something new a shot online.

With that in mind, I’ve got five things you can try online this season. And did I mention they’re free?

  1. A new twist on the sound slideshow
    You’ve likely seen the slideshows that combine audio interviews and photos to turn a simple slideshow into a great narrative piece of mulitmedia journalism. These are great, and you can create them for free online with a program such as Flowgram, but they can be a lot of work out in the field if you’re a one man (or woman) band. Instead, you can use a service such as Animoto that will take your images and automatically set them to music.
  2. Crowdsource
    Let’s face it, you have readers that have some great insights into high school sports. So use them.
    Using the Web (and your print edition), you can ask your readers to submit questions that you can pose when you’re doing interviews and follow-ups. You can take questions by e-mail, in a comment thread on your site, or using one of the ways below (specifically No. 3 and No. 4).
    You can use those same methods to help your travelers for out-of-town games. One could ask, for instance, where the best post-game meal is, and have readers respond online or by e-mail, then post the results.
  3. Go live
    Of course all of your readers aren’t going to make it out for the friday night lights. In that case, there are several things you can do to bring the game to them, via the Internet.
    One of the easiest ways to do that is using CoveritLive. CoveritLive allows you to host live blogs, or even talk live with your readers. There’s also a scoreboard feature that will let you update your readers throughout the game. Readers can talk back to you, too, but it’s not the typical free-for-all you’ve seen other places. You’re the only one who sees what people are saying, and you can choose to showcase only the most insightful stuff — or none of it. The good stuff can be repurposed for print, and don’t forget to give a shout out in print to your reader if you happen to use a question or quote from them, that’ll just keep them coming back.
  4. Use the Twitterverse
    If you’ve yet to try out Twitter, this is a great time to do it. First, check to see that there are local people on Twitter by using Twitter’s advanced search. Type iin your town in the “Near this place” field, and see if it would be worth it for you to try to use the service.
    Assuming there are enough “tweeps” in your town to justify using Twitter, a great way to build conversation around a game or your team would be to promote a hashtag (more about hashtags here) in your print edition, and ask all the “tweeps” in your community to append it to their posts on Twitter. If that’s all Gibberish to you, don’t worry. You’re not alone. If you want to know more about Twitter, see our resources here and here.
  5. Let their voices be heard
    Sure, the TV folks are the ones known for the often-mocked man-on-the street interview. But check out a new take on that from the Lawrence Journal World called “On the Street“. You could easily apply this man-on-the-street tactic to creating a quick online (or print) piece.
    You can record these pieces with just about any video camera, and if you do it right, you shouldn’t even need to edit them. Just tell the person you’re interviewing to state his or her name, then answer the question succinctly. Press record right after you ask the question, then stop it when they’re done answering and go on to the next person. Do that and you’ll have a finished product — no need for titles or editing — as soon as you get back to a computer. Upload it to YouTube and call it a night.
    Promote it in print by posting a few quotes and teasing to the Web feature. You could also take this in another direction and just go downtown and shoot similar videos before a big game that offer encouragement to the team, and post that.

Think you can’t handle any of these things? Let me know, and I’ll clarify where necessary. If you want more ideas or have a few of your own, let us know in the comments and I’ll post a follow-up with a yours and another five of mine.

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Some useful stats for your ad reps

Here are some stats from NNA that may come in handy for your ad staff. Sorry not to be able to give you a URL on this, but the article I pulled them from is available only to subscribers.

  • 41 percent of U.S. adults say newspapers are the medium they used most to check out ads. That’s more than radio, TV, Internet, magazines and catalogs combined.
  • Even among those adults who did not read a paper last week, 36 percent — USED a newspaper. Of the non-readers, 19 percent checked sales and local stores, 15 percent clipped a coupon, 14 percent checked the weather, and 10 percent checked movie listings.
  • 82 percent of U.S. adults used a preprinted insert in the last month. On average, adults keep inserts 3.8 days.
  • 64 percent of U.S. adults prefer to receive coupons in newspapers. 22 percent prefer direct mail and 10 percent prefer the Internet.
  • 60 percent of adults prefer to receive inserts in newspapers vs. 29 percent who prefer to get inserts in the mail.
  • 80 percent of adults report looking at advertising while reading the paper.
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The new Texas Free Flow of Information Act explained; Let the free flow begin

On May 13, 2009, Texas became the thirty-seventh state to enact a reporter’s privilege. The law was signed by Governor Rick Perry that day and became effectively immediately. Texans have tried for decades to get a law like this on the books. In recent history, legislation was proposed during the last three sessions. In 2005, the major accomplishment was getting the broadcast and the print media to speak with one voice on the issue and to both support the measure. In 2007, the bill would have passed but for a last minute point of order killing the bill on a technicality. The 2009 session, however, proved that the third time was indeed a charm.

The Legislative History

The bill that was proposed the last three sessions is a qualified privilege patterned in large part after the Department of Justice Guidelines. In 2007, there were two chief opponents to the legislation — law enforcement and the business community. During the last session, we were able to negotiate with the business community to alleviate their concerns about disclosure of trade secrets and other information they deemed to be “private” or “proprietary” in nature. Ultimately the business community groups signed a letter to the Legislature indicating they no longer opposed the bill. Unfortunately, despite repeated efforts, there were no fruitful negotiations with the prosecutors last session. Indeed, it was the former District Attorney from Houston (who was since been indicted) who actually supplied the point of order that killed the bill in 2007.

During the interim, the newspapers and broadcasters continued to work hard to better educate people through grass roots efforts and the establishment of a very informative website — www.freeflowact.com. The website gives examples of demonstrated need for the law, shows what laws have been adopted in other states and when their laws were enacted, provides editorials on the issue, and has a section on subpoena abuse and prosecutorial misconduct.

When the 2009 legislative session began, we were fortunate to continue to have our long-time sponsors in the Senate — Senator Rodney Ellis (D-Houston) and Senator Robert Duncan (R-Lubbock) as stead-fast supporters of the legislation. Since we had lost our House sponsor in the primary, we had to find a new lawmaker with a passion for the cause. We were lucky to find San Antonio Representative Trey Martinez-Fischer whose can-do attitude made a world of difference in our efforts. Because of the new Speaker in the House, though, the make up of all of the committees and committee chairmanships changed — including the committee that would hear our bill. HB 670 (the Texas Free Flow of Information Act) was heard by the House Judiciary and Civil Jurisprudence committee this time around, and there were only three returning members of the committee who had heard the issue in previous sessions. We were concerned that the learning curve would be detrimental to our cause. What we did not anticipate was the strength of the new chairman of the committee — Chairman Todd Hunter (R-Corpus Christi).

From the beginning, Chairman Hunter worked to have the bill heard early, and he put tremendous pressure on the prosecutorial community to sit down and have a meaningful discussion and negotiate with the media on the bill. He made it clear that the train was leaving the station, and they could either get on board or not. As a result of Chairman Hunter’s tenacity and dedication, we had four different negotiation sessions with the prosecutors — the final one lasting more than thirteen hours. In the end, we had a bill that everyone could agree upon, and the bill sailed through the House and the Senate with unanimous votes on third reading.

What the Texas Free Flow of Information Act Says

The Texas Free Flow of Information Act (also known as a reporter’s privilege) is a qualified privilege with separate civil and criminal sections. The civil section applies to confidential and nonconfidential sources, journalist’s work product and published and unpublished materials. In order to require a reporter to testify or produce materials, the party who issued the subpoena must meet the following three part test: (1) they have exhausted all reasonable efforts to get the information elsewhere, (2) the information is relevant and material to the proper administration of justice, and (3) the information sought is essential to the maintenance of the claim or defense of the person asking for it.

The criminal section, on the other hand, is separated into three parts with different tests applying to different matters. The first part deals with confidential sources, the next with unpublished work product and nonconfidential sources, and the third with published information. When a confidential source is involved, there is an absolute privilege except to the extent that (1) the journalist was an eye witness to a felony, (2) the journalist received a confession of the commission of a felony, or (3) probable cause exists that the source committed a felony. In those three scenarios, the only hurdle one must overcome before calling the journalist to testify is establishing by clear and specific evidence that they have exhausted all reasonable efforts to get the information elsewhere. Further, a journalist can be compelled to give up his confidential source if disclosure is reasonably necessary to stop or prevent reasonably certain death or substantial bodily harm. With regard to unpublished materials (i.e. work product) in the criminal setting, the same three part test as the civil arena applies. Published materials are not covered by the statute so one would look to common law with regard to those materials.

Unique Twists in the Legislation

We also added a few unique twists to the bill which should help Texas newsrooms. First, with regard to criminal subpoenas, the elected district attorney is required to sign all subpoenas issued to journalists. Second, again with regard to criminal subpoenas, the subpoenaing party is required to pay the journalist a reasonable fee for the journalist’s time and costs incurred in responding to the subpoena (the calculation of cost is based on the cost provision in the Texas Public Information Act). Last, there is now a provision in the law making broadcasts self-authenticating, like newspaper articles, so that a reporter will not have to be put on the stand solely for the purpose of authenticating a broadcast tape. With more and more newspapers putting video footage on their websites, this addition will help newspapers as well as broadcasters throughout Texas.

How the Texas Free Flow of Information Act Works

Here are some examples of how to handle future subpoenas:

Question: I am an Editor and just received a civil subpoena for all of my reporters’ notes in a case where the party is just on a “fishing expedition,” what do I do? Refer the person who issued the subpoena to the reporter’s privilege and explain that you do not have to produce anything unless it is essential to the maintenance of their claim or defense and they have tried to get the information elsewhere been unsuccessful in doing so.

Question: I am a reporter and just received a civil subpoena for confidential source information, do I have to give up my source? Not likely. This is a subpoena you can fight with the new privilege. In order to get confidential source information, the party who has subpoenaed the information must show that the identity of the source is essential to the maintenance of their claim or defense and that they cannot get this information elsewhere. The judge will decide this after a hearing, and the court will have to refer to the clear and specific evidence that it relied on to make its ruling if the reporter is forced to testify.

Question: I am a reporter and just received a criminal subpoena in a misdemeanor case to get confidential source information, what do I do? You have an absolute privilege and do not have to testify under the new statute.

Question: I am an Editor and just received a criminal subpoena in a felony case where the criminal defendant confessed to the journalist that he committed the crime, will I have to produce the videotape of the confession? More than likely. Unless the court determines there is a reasonable alternative source of the information, you will have to produce the videotape. Will the journalist also have to testify? If you produce the videotape of the journalist’s entire conversation with the criminal defendant, the journalist should not have to also testify about the conversation because the videotape should be an adequate alternative source for the information. Some courts may interpret this differently; however, and, as with any new legislation, the interpretation will take place on a case by case basis.

Question: I am a journalist and I just witness a felony being committed — and I am the only person who saw what was happening, will I have to testify if I get subpoenaed? Yes.

Question: I am a reporter and have a confidential source who has told me he is going to kill someone this afternoon, do I have to disclose this information? Yes. A reporter has to disclose their confidential source if it is reasonably necessary to stop or prevent reasonably certain death or substantial bodily harm.

Question: I am a reporter and just received a subpoena to produce video footage we put on our website, what do I have to do? If it is a civil subpoena, tell them to download it from the website and it is self authenticating. If it is a criminal subpoena, make a copy and charge them for the cost of production. In either instance, you do not need to provide a business records affidavit with the video because the video is self authenticating.

Question: My newspaper and two of the broadcast stations in the market all received subpoenas for photographs we took and video footage we each shot at the same crime scene, what will happen if I try to fight it on the grounds of there being an alternative source of information? It depends on how the court interprets “alternative sources.” If the court believes that one news outlet’s photographs or video footage is sufficient, then the others should not have to produce their materials from the same incident. If, however, the court views each news outlet’s information as unique, it might require all of the station’s to produce their footage.

Question: I am an Editor and just received a criminal subpoena that was not signed by the elected District Attorney? You do not have to comply with it. It does not meet the requirements of the Act.

Question: I am a reporter and just received a Rule 202 Petition asking for my pre-suit deposition, can I invoke the reporter’s privilege? Yes, the reporter’s privilege specifically applies to Rule 202 proceedings.

Question: Does the reporter’s privilege apply in administrative or executive proceedings as well? Yes.

Question: I am a blogger who does not work for a television station and really just blogs in my spare time, but I received a subpoena for my notes about a blog I recently posted on misuse of funds by government officials, does the reporter’s privilege cover me? Not likely. The reporter’s privilege applies to journalists as defined in the Act and basically covers those who earn a substantial portion of their living working for a bona fide news organization.

How Court Challenges Work

Under the new law, if you are fighting a subpoena, you can file a Motion to Quash, and the Court must hold a hearing on the matter before the reporter is required to testify or work product is required to be produced. In filing the Motion, the journalist will likely need to sign an affidavit supporting the motion to ensure that the Court knows the reporter falls within the definition of journalist contained in the Act. Also, the burden is on the party who is subpoenaing the information to prove by a heightened standard of clear and specific evidence that they really need the information for the heart of their case and that they cannot get the information elsewhere. Other factors the court can consider in balancing the interests of the reporter and the party who has subpoenaed the information are: (1) whether the subpoena is overbroad, unreasonable or oppressive, (2) whether it is being used to obtain peripheral, nonessential or speculative information, (3) the reasonableness and timeliness of the notice being given in the subpoena, and (4) whether the interest of the party subpoenaing the information outweighs the public interest in gathering and disseminating the news.

Last Words

We believe that the right balance has been struck in Texas’ reporter’s privilege – one in which the goal of increasing the free flow of information and preserving a free and active press has been balanced with protecting the right of the public to effective law enforcement and the fair administration of justice. It has been a monumental undertaking to get this law passed in Texas, and there are many people who have helped make this quest a reality. We thank all of those who have assisted in the effort and each of the lawmakers who voted in favor of passing a law that will benefit all Texas citizens – the Texas Free Flow of Information Act.

You can download this information as a handout in .pdf format here if you’d like to print this for your newsroom.

View a signed copy of the act here.

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Consultant offering grant to community newspapers for discounted newspaper design, redesign services

A South Carolina newspaper design consultant is offering a grant to offset the cost of his services for small, community newspapers, such as those served by the Center.

The Francis A. Henninger Grant is available now and can be used to pay for design and redesign services with Henninger Consulting.

The amount of the grant is determined by serveral criteria including ownership, staff size, publication frequency and circulatioin, said Ed Henninger, who runs Henninger Consulting.

Henninger told me earlier this week that like those of us at the Center, he has found commmunity journalists eager to learn, and always appreciative, which makes makes the grant program worth it for him. And some of you may know Henninger from conferences; he just spoke at a West Texas Press Association event in San Angelo.

For those who quality, Henninger said, he will charge an hourly rate for his services, which will be offset by the grant.

“The beauty of the program is that after I do a little bit of work with them, and once they’ve got somebody who can start replicating what I’m doing, they can just say ‘Stop’,” he said.

That means that some small newspapers have been able to use his redesign services for less than $1,000, he said. Henninger said the grant may also be used to offset smaller projects, such as a nameplate redesign.

His hourly rate varies, he said, depending on the amount of work that will be involved.

Anyone interested can contact Ed at [email protected] or (803-325-5252). For more information, visit Hennigner’s website at www.henningerconsulting.com.

Of course, you can always refer design questions to us at the center, either through our Ask an Expert feature or by using the Contact form.

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Great suggestion for community newspapers: Google alerts

Peter Bakke in his blog makes a suggestion we’ve made in our seminars at TCU–that all community papers set up Google alerts for news tips and story ideas. Basically, all you need to do is to go to Google at http://www.google.com/intl/en/options/ and click on Alerts. You tell Google that any time certain words or combinations of words show up on the Web that you want them to send you an email. Simple as that. You can set up alerts for the name of your community, for indivituals or organizations in town, etc. Here at the Center, we have an elert for “community journalism” (it needs to be in quotes, otherwise Google would alert us for all mentions of community and journalism). So every time any publication, or any obscure we-never-heard-of-it-before blog uses the phrase “community journalism,” we get an email. Google groups all mentions in a single email and sends it once a day. What Bakke suggests, and we haven’t considered before, is that ad reps use Google too — to find news of the primary industries you sell to, or news about your biggest clients. Bakke’s blog has an online tutorial about effective use of Google alerts.