Media Myth vs. Reality: Negativity
Myth: The news media are only interested in negativity and sensationalism. That’s what sells newspapers.
Fact: Every outlet researches its audience carefully and creates an editorial product to fit.
News is several things. First, it’s something new that has just occurred. Second, it is important or interesting to a large segment of a news medium’s audience. Third, news is what an editor or news director says it is.
A news outlet’s greatest influence may not be the stories it covers but the stories it chooses not to cover. Deciding what makes news and what doesn’t begins with what the news staff knows and understands about its audience.
To understand the editorial decisions a newspaper or television station makes, understand its audience. Media are defined by two kinds of audiences. Local media, like local newspapers or broadcast news outlets, are largely defined by geography. They target everyone in a certain community or broadcast market. These are called “horizontal” media. National media, ranging from special interest magazines to cable channels, target the audiences by demographic factors, ethnicity or special interests. These are called “vertical” media. Some media—such as a local Spanish-language newspaper or a local real estate guide—combine elements of vertical and horizontal media.
The medium’s audience shapes what spokespersons say when being interviewed. If you’re talking to a real estate trade publication read largely by real estate professionals, for example, you are probably going to shape your message differently that if you were talking to a local newspaper read largely by consumers.
Comments
A look at the headlines of articles published about real estate today is informative. Look at the many, many headlines that warn of housing problems and imply or outright state that consumers should be fearful. (ex. Buyers Beware Parts 1-4) It seems clear that there is a major bias with your publication toward predicting a major failure in the housing market.
The Voice of San Diego appears,for example, -- at least in covering housing -- to have a "bad news bias". Good news is boring (and probably does not photograph well, either). This bias makes the world look like a more dangerous place than it really is.
There is also something called "bias by headline". Many people read only the headlines of a news item. Most people scan nearly all the headlines in a newspaper. Headlines are the most-read part of a paper. They can summarize as well as present carefully hidden bias and prejudices. They can convey excitement where little exists. They can express approval or condemnation.
Additionally, there exists word choice and tone bias. Showing the same kind of bias that appears in headlines, the use of positive or negative words or words with a particular connotation can strongly influence the reader or viewer.
Different media outlets have written differently about real estate, just the way they write about Brad and Angelina....Some of it is sane and accurate, and most of it is tabloid and sensationalist.
The media did selectively choose stories hyping the exaggerated aspects of the booming market (bidding wars, camping in front of sales offices of dreadful new condos, etc.) Now they are choosing selectively those stories that confirm their theory of a plunging market. These extreme stories make for great sound bites and headlines (that sell newspapers and magazines)but do not reflect reality.
Real estate comprises bricks, steel, concrete, glass, etc... Just like Warren Buffett selectively picks stocks based on value and good old fashioned principles, those who have bought real estate applying solid principles now own quality real estate, not some of the generic, ordinary or over-hyped real estate. Yes, prices will fluctuate through cycles, but quality will always survive and thrive.
It’s been more than five years since the media began reporting bearish housing predictions in earnest. Yet real estate values have forged ahead. As a result, the net worth of the average citizen is now at an all-time high, well exceeding what Americans enjoyed during the stock bubble years of the late ’90s and early 2000s. In addition, and maybe most importantly, close to 70 percent of residential dwellings are now owned by one or more of the inhabitants, also an all-time high.
Given the seriousness of this issue, and just how much impact the housing market has on the rest of the economy, the media should learn from this and present even-keeled reports that deal with how people should invest their money.
Posted by: Frank | May 19, 2006 08:34 PM