Associated Press Develops Ad-Supported Mobile News Service

[engine]

The Associated Press announced Monday it will further cut fees paid by struggling newspaper members and will develop an advertising-supported service that will deliver stories and photos to advanced cell phones, including the iPhone.

The service, which will carry local news from participating newspapers as well as national and international news from the AP, is being tested with several newspaper companies and is expected to launch in the summer under the name Mobile News Network, the AP said.

Associated Press Develops Ad-Supported Mobile Service [washingtonpost.com]

[weeks]

AP has got to do something on the web and they think this might be it.

Alas, there are problems. Engine's headline goes straight to the heart of the matter--ad supported. AP is going to attempt to build an ad network for mobile news.

Here's some of their primary problems:

1) Few firms want their ads to run with the news. They would rather have their ads with entertainment or in context with search.

2) The demand for news is not what you might think looking at a newspaper. Most local websites are happy to average more than two page views per unique daily visitor.

3) And, of course, Google and Yahoo and such. Now, AP will counter saying they building a unique network of local news. Most local news is boring. See #2.

4) Local news needs local ads. Where is the role for AP, outside of providing the infrastructure?