OwnLocal (YC W10) nabs funding from Automattic to resurrect newspaper revenues

I used to do a lot with small regional papers (I worked for Freedom Communications). They are a tough sell. Super slim margins, very reliant on and subject to the whims of the local economy and were completely disrupted by national (or multinational) online players.

The race to the bottom in local advertising markets in terms of low value, high return and high volume plays through broadsheet classifieds, craigslist, daily deals, etc has put the ethos of what a "small town" paper was out to pasture.

It used to be communities were defined by their media, and these newspapers existed to help define them through editorial voice and amplify the community through advertising.

That's a tough game now. Consolidation killed the independence (Freedom for instance bought up all the local Orange County papers), nationalization and the ability to localize the global killed classifieds.

It is however a field ripe for some disruption, as the need for local media and localized sales-forces is there, but the ability to address the need with a sustainable business is tough.

Looks pretty cool, but small town newspapers seem like they would make for really tough clients. Even for something that theoretically will generate revenue for them.

White-label software products--comprised of daily deals and social gaming--might boost a newspaper's online ad sales temporarily, but at what cost to the identity of the local publisher?

I feel fortunate enough to live in a small, quirky, University town in which the residents still value (and support) its 65-year-old weekly print newspaper. In fact, the paper does a terrific job engaging the community in local government and has a strong presence at local events.

I'm not sure if the technical solution to saving local media is turning readers into online gamers and shoppers, but rather developing a unique online forum for engaging residents in the beat of local issues and interests.

I suppose every community is different, and that's exactly the point I'm trying to make, but I hope local businesses will continue to support local media (so long as the editorial voice is there).