story #58 "Winning back advertisers is key to saving the newspaper industry"
According to the article, for national newspapers the last couple of years have seemed to be a "near-death experience". Paid-for circulation is in decline, but cover prices have frequently risen to mitigate the revenue loss. Where the money has been haemorrhaging is in advertising. Advertising revenues have a range of identifiable problems. It became clear in the 90s that the internet was going to be massively disruptive to the traditional classified sector. The problem for advertisers is that all of their competitors are doing the same and they are only marketing to their existing database. On the face of it, national newspapers’ advertising revenue problems should not be as severe as recent figures suggest. National titles, combining print sales with online numbers, are actually reaching a higher proportion of the UK market than ever before.
- Total readership across print and digital news brands is 35% of the total UK population daily, 63% weekly and 90% monthly, with the highest monthly reach among the youngest groups (18-34) who tend to access via mobile devices.
- According to Ebiquity (the largest UK media auditor) 75% of the money in the marketing pot does not actually reach the publisher from an advertiser using “programmatic” or automated bid-based advertising on the internet.
- In the first quarter of 2016, Facebook’s net income increased 300% and its margins jumped from 26% to 37%.
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