Tag Archives: advertising sales

InPublishing survey: ‘Behind the turnover figures, the industry is essentially still in profit’

The publishing industry is in ‘remarkably robust’ health, according to a new survey of 187 companies – encompassing 911 consumer magazines, 855 B2B magazines and newsletters, 413 newspapers (both regional and national) and a total of 1,056 individual websites.

The survey, which was a joint project between Wide Area, Wessenden Marketing and InPublishing magazine, suggests a slide rather than plunge in industry turnover – partly a result of ‘headcount reduction and ruthless cost control, where marketing budgets in particular have suffered’.

“Online growth is clearly outstripping print revenue trends; circulation revenues are performing better than advertising sales; and subscription sales better than retail copy sales. ‘Other revenues’ (which include reader offers, events & services, as well as contract publishing) are showing medium growth, behind online, but ahead of print revenue streams,” the survey suggests.

This is an extensive piece of work, well worth a read (you’ll need to register), and includes sub-sections dealing with:
Online opportunities and threats
Website profitability and costs
How publishers are planning to ‘manage the future’

Some key findings from the report are below:

  • 59 per cent of those surveyed have under 10 per cent of their turnover coming from online/digital activities;
  • Online revenue streams are showing the most growth with paid-for online content, classified online and display advertising ranking above print revenue streams;
  • 20 per cent of publishers surveyed are looking to grow staff numbers, while 54 per cent will hold steady;
  • Online, the highest threat publishers are facing is a lack of resources/focus/knowledge e.g. not having the skills in-house to adapt to new technologies or resources to develop online offerings;
  • Cutting costs and overheads and developing more innovative, multimedia advertising strategies are seen as the most critical tasks for publishers going forward.

Major MEN changes ‘are designed to protect the business and its journalism for the future,’ says GMG Regional Media statement

Following the news that 150 jobs – 78 of those journalists’ – will be cut in GMG Regional Media, this statement has been released from the group:

“MEN Media, publisher of the Manchester Evening News and weekly titles across Greater Manchester, has today briefed staff on a range of proposed changes to the business.

“The local and regional press is facing the worst conditions in living memory as the economic downturn exacerbates and accelerates longer-term structural changes in the behaviour of advertisers and readers.

“The viability of local and regional titles is under threat due to steeply falling revenues that we do not expect to return to previous levels even when economic conditions improve. Publishers therefore need to find a sustainable new model if they are to survive.

“The major changes announced at MEN Media today are designed to protect the business and its journalism for the future through a new model with significantly lower fixed costs.

“By far the largest cost within the business is salaries, and while we have examined every option short of job losses, it has become clear that it is impossible to bring stability to MEN Media without substantially reducing the number of people we employ. We expect approximately 150 positions to be made redundant across MEN Media.

“While we will seek volunteers for redundancy wherever possible, we anticipate that compulsory redundancies will be unavoidable. Those people affected will be offered significantly enhanced severance terms.

“MEN Media has reviewed all aspects of its business. In addition to salaries, we have targeted various other costs and looked at how we can
improve in areas such as advertising sales, working practices and editorial systems.

“The proposed changes announced today are summarised below:

  • Approximately 150 positions across all functions and disciplines to be made redundant within MEN Media. This includes 78 journalists across 23 titles.
  • One consolidated editorial team for the MEN and weeklies at Scott Place in Manchester, working across MEN Media’s various titles and websites.
  • All branch offices apart from Stockport will be closed in the coming months. Offices in Accrington, Ashton, Macclesfield, Oldham, Rochdale, Rossendale, Salford and Wilmslow will be closed.
  • Reporters will continue to work their patches, but no longer from a local office. There will be increased remote working to support this.
  • Investment in a new editorial system common to all titles, and training for all users. The new system has improved web and multimedia capabilities, and will enable journalists to work across MEN Media’s different outlets.
  • New layout and design for weekly titles.
  • Central section of common pages for the weeklies, drawn from the MEN’s leisure/entertainment content.
  • Greater sharing of content between the MEN and weekly titles.
  • A new house agreement to cover the new editorial department.
  • A revised pay schedule for journalists based on the current weeklies pay schedule. Journalists who are paid in excess of the schedule will have their pay ring-fenced and protected.
  • Fewer free copies of the MEN and weekly titles distributed.
  • Reduced pagination of the MEN.
  • Revamped advertising sales operation with greater focus on growing new business and selling multimedia solutions.
  • Better targeted advertising sales strategies, with improved use of customer data.”

Mark Dodson, chief executive of GMG Regional Media (parent company of MEN Media), said:

“MEN Media’s role is to produce great journalism for our readers, users and viewers in Greater Manchester. If we want to continue to be able to do this, we need to find a new, sustainable, lower-cost business model to support it. The economic viability of local and regional newspapers is under very real and imminent threat.

“The decision about job losses has been a very difficult one to make, and I deeply regret that it has been necessary. Nonetheless, I do believe this is the right decision for MEN Media’s future and for the majority of staff who will remain with the company.

“There is a successful future for local and regional journalism in the commercial sector, but we need to protect our businesses now to give ourselves the best chance of reaching it.

“This is a worrying time for everyone working in the local and regional press. Some argue that our industry has no future. I think this is completely wrong – people still want local and regional journalism, and advertisers want to reach those people.”

Editorial redundancies at Archant Norfolk: UPDATED: 34 to go

Archant Norfolk, which publishes the Eastern Daily Press and Evening News amongst others, has announced 54 [since updated to] 34editorial redundancies as part of ongoing plans to integrate news operations at the division.

The new system, the implementation of which began more than a year ago, involves a £2 million investment by the publisher.

The publisher will enter into a consultation with staff, it confirmed in a press release.

“We have reduced staff numbers in our other departments such as marketing and advertising sales recently and editorial has not been subject to any major review in the last two years,” said Stephan Phillips, managing director, in the release.

AOP: RBI takes four prizes at Digital Publishing Awards 2008

Reed Business Information (RBI) won four of the 16 awards handed out at last night’s Association of Online Publishers (AOP) Digital Publishing Awards.

The publisher was named best online publisher in the business field for the second year running, as well as picking up prizes for best business website, best B2B online community for Farmers Weekly Interactive, and best online advertising sales team in the business category.

Sky News’ website was awarded the gong for best consumer website, while parent company BSkyB was named best consumer publisher online.

The Guardian picked up an accolade for its Katine project and FT.com for use of video online.

The full list of winners (courtesy of a release from the AOP):

Launch 2008 award – Guardian News and Media for www.guardian.co.uk/katine

Editorial team (business) – Accountancy Age, Incisive Media

Editorial team (consumer) – NME.com, IPC Media

Research & insights project – The Origin Panel – Women’s Space, IPC Media

Online advertising sales team (consumer) – Future Publishing – digital agency team

Online advertising sales team (business) – RBI e-newsletters

Innovation 2008 award – Financial Times, Mockingbird Model

Cross-media project – WKD Nuts Football Awards, IPC Media

Commercial partnership – Ford Bite, Channel 4

Use of video – FT.com

Mobile site – Sun Mobile, News Group Newspapers

Online community – Farmers Weekly Interactive, RBI

Best website (business) – XpertHR.co.uk, RBI

Best website (consumer) – Sky News, BSkyB

Best online publisher 2008 (business) – RBI

Best online publisher 2008 (consumer) – BSkyB

Online Journalism Scandinavia: Metro Sweden’s deal with Schibsted part of its ‘Freesheets 2.0′ strategy

Norwegian media giant Schibsted this morning announced that it’s paying £30m to take a 35 per cent stake in the Swedish edition of Metro International’s free newspaper.

In what is a key freesheet market the former rivals have forged a partnership to collaborate on advertising sales with the new company offering advertisers the chance to reach 4.2 million readers across the Metro and Schibsted paid-for dailies Aftonbladet and Dagbladet.

In February, Metro International CEO, Per Mikael Jensen, discussed his company’s strategic goals with Journalism.co.uk saying that consolidation and online innovation would be key for the development of his newspapers, in what he called the ‘freesheet 2.0 phase.’

“We are entering a freesheet 2.0 phase where we are consolidating our core business and looking at more ways to attract readers,” said Jensen, who succeeded Pelle Törnberg as head of Metro in 2007.

In Sweden, this consolidation will mean Schibsted will stop publication of its free paper Punkt SE with immediate effect so that the new joint venture can focus print advertising around a single free title.

The deal has similarities with the one Metro struck at the end of 2007, when it sold 60 per cent of its Czech operation to its competitor Mafra.

The freesheet giant is currently undergoing a strategic review, and when Journalism.co.uk spoke to him, Jensen said we could expect more deals of this nature.

Today, Jensen refused to rule out further consolidations when questioned by Danish media and said he expected dramatic changes in the Danish newspaper market in the coming months (but refused to go into details).

“We do not just sit there and wait for the strategic review to be completed, but implement strategy from day to day. Strategy is something we evaluate each month. Those who believe the strategic review we now are in the middle of will become some sort of bible, will be disappointed,” said Jensen in the interview with Journalism.co.uk.

In addition, Metro is looking to attract more readers online. It’s launching new versions of its websites in all its markets – it recently launched online for the first time in France – and will consolidate some of its editorial activities by creating an internal news agency in London which will serve all its editions.

Jensen is behind Metro’s new developments and alliances but he remains as pessimistic as ever about the future of paid-for printed newspapers.

“I would be very surprised if more than 25 per cent of today’s paid-for newspapers exist in ten years. Of the newspapers that will survive, many of them will be published online only, or make its paper edition free,” Jensen said.

The two newspaper giants may have forged a partnership in Sweden but they remain embroiled in a head-to-head competition over their market leading freesheets in France and Spain.

However, Metro International still has a lot of work to do to convince investors that its business model – the company is still loss-making even though it narrowed its first quarter net loss to £5.1 m – has a profitable future.