Tag Archives: print advertising

FIPP 09: Lévy’s forecast gloomy but print magazines still important for luxury brands, says Gucci Group media director

There aren’t enough ad dollars on the planet for everyone, Stevie Spring, chief executive of Future, said, in her opening remarks for yesterday’s session at the 37th FIPP World Magazine Congress that looked at ‘what advertisers want’.

Magazines are ‘all having to fight much much harder to grow our share of media spend,’ she added. So, she asked, just ‘what the hell’ did advertisers want from magazines?

Nikolas Talonpoika, worldwide media director for the Gucci Group said that he thinks online will see a decrease in advertising spend from the luxury sector.

Magazines are still the most important part of the Gucci Group’s print advertising spend, Talonpoika told delegates.

While acknowledging that this year is tough and ‘lots of titles will disappear this year, Talonpoika was optimistic for the role that print magazines will continue to play.

Unilever’s CMO, Simon Clift said that for his company the ‘lion’s share’ of advertising is in television, and only 13 per cent of its overall advertising budget is spent in print – but said the magazines accounted for 90 per cent of that print spend.

Clift said that his company – which, with its £41 billion turnover, is seeing three quarters of its growth in developing and emerging markets – is thinking about different ways to promote its products via print.

For example, one Greek newspaper was once printed entirely on aromatised paper for one particular washing product campaign.

Clift said that consumers were not beginning to ‘define the agenda’ and that Unilever was looking for new ways to promote brands via editorial or advertorial content.

Clift argued that these methods ‘can build integrity rather than compromise it,’ he argued. Joking that advertising was something editors have to put up with, he said advertisers don’t want to see a publication damaged by the advertising. ‘A successful parasite doesn’t kill its host,’ he quipped.

It was about creating interesting content, he said ‘whether it comes from an editor or an advertiser’ “When those things [editorial and advertising] are parallel it magnifies and develops our message,” he said.

Dove is the Unilever brand which is most advertised in magazines, and a product which is an example of a cross-media promotion: online, in magazines and on television.

In the previous session, Maurice Lévy, chairman and CEO of the Publicis Groupe, spoke of the world ‘the ad agencies have to live in now, where a couple of words on a search engine page is sometimes considered by our client as more effective than a wonderful TV spot.’

Newspapers and magazines could not expect to retain their share in the advertising market, despite analysts’ more optimistic predictions for 2011, he said.

“We have to change and we do change each day. You have to adapt yourself to this new world,” he said.

“It’s not yet time for obituaries,” he claimed. “I’m a little bit shocked when I see print media forever discussing their own death,”

“Please always remember the small guy in the digital world – Bill Gates. He repeated loud and clear ‘content is king’ (…) and you [the magazine industry] own it.'”

“Would you go as often on the internet, if you could not find newspapers and your favourite magazines online?” he asked. “I don’t think print media is dead, quite the contrary,” Lévy added.

“Think what semantic can do when combined with marketing. Now is time to innovate.”

“You have to look at this as an opportunity to leverage new opportunities with the strength of your brand and your audiences,” he said.

Google closes Print Ads scheme

Despite partnering with more than 800 US newspapers, Google has decided to end its Print Ads scheme, which saw the search engine help partners run traditional print-based advertising campaigns.

According to a post on the search engine’s Let’s Take It Offline blog, the service wasn’t having the desired impact and resources behind the project will be reinvested in finding other revenue sources for publishers through Google’s products.

“We believe fair and accurate journalism and timely news are critical ingredients to a healthy democracy. We remain dedicated to working with publishers to develop new ways for them to earn money, distribute and aggregate content and attract new readers online. We have teams of people working with hundreds of publishers to find new and creative ways to earn money from engaging online content. AdSense, DoubleClick, Google Maps, YouTube, Google Earth, Google News and many other products are a part of our significant investments to innovate in this space,” said Spencer Spinnell in the post.

“These important efforts won’t stop. We will continue to devote a team of people to look at how we can help newspaper companies.”

Google began trialling print advertising in 2005. The ads will no longer be available from February 28, though campaigns already planned will be run until March 31.

Reuters: Print advertising downturn ending, says WSJ’s Thomson

Advertisers are looking to spend in more conservative ways, Robert Thomson told a Reuters conference.

“People are looking for a safe harbour in times of turbulence.”

Print advertising is a shrinking but valuable market, he added.

While digital ads are still growing at Dow Jones, ‘the link between the reader and the ad is more transient online’, he said.

WAN Amsterdam: Digital will account for 43 per cent of newspaper advertising growth by 2012 according to PricewaterhouseCoopers

The global leader for the entertainment and media practice, at PricewaterhouseCoopers LLP in Hong Kong, Marcel Fenez, argued that ‘traditional media isn’t dead’ on the last day of the WAN/World Editors Forum 11th Readership Conference (information courtesy of WAN conference updates).

The latest media and entertainment industry forecast from PricewaterhouseCoopers predicts that global newspaper advertising will grow 2.9 per cent to 136.8 billion dollars in 2012, with digital advertising accounting for 43 per cent of the growth.

  • Print advertising will grow 1.8 per cent to 123.3 billion dollars worldwide in 2012
  • Digital advertising will grow 19.3 per cent to 13.4 billion dollars:
  • While the growth rate for digital advertising will continue its impressive rise over the next five years, the total in 2012 will represent only 10 per cent of total print and digital newspaper advertising.

“Some people say that traditional media is dead. Well, it isn’t. For the next five years, it ain’t gonna be,” he said. “The death of traditional media is exaggerated, at least in a 5-year context.”

Fenez said the forecasts, based on consumer and industry sources, does not take into account the recent economic meltdown, which could have a negative impact on the figures.

Fenez reported:

  • The generation that comes of age in 2012 will be the first that doesn’t know the pre-internet world. “We hear a lot about user generated content from the ‘net generation’. It’s very, very, very important. But premium content is still really valuable. Even the net generation values premium content. They’re tired of watching videos of a dog running up a tree.”
  • Advertisers will take a ‘wait and see’ attitude and be cautious about spending in the first half of 2009. “They won’t do anything until mid-year. If they have the revenue, they’ll release their budgets.”
  • Video games advertising is set to grow 17 per cent to 2012, though the revenue is still negligible. Most of the money being spent on game advertising is coming from television.
  • “We’re on a journey of transition from traditional to digital: the first to probably go totally digital is the music industry. In 2011, the majority of revenues will be digital.”

Was the Scotsman right to sack Nick Clayton for blogging?

Earlier this week Journalism.co.uk picked up an update to Twitter from Nick Clayton, technology journalist, weekly tech columnist for the Scotsman, and recently signed-up blogger for Scottish media news website Allmediascotland (AMS):

The blog post in question – published on Friday 19 – mentioned, amongst other things, Clayton’s attempts to sell his house and the following statement, which seems to have riled The Scotsman:

“All but one of the too many estate agents I spoke to told me not to bother advertising in The Scotsman. Whether you’re looking for work or a home, the web’s the place to go.”

Clayton was told he was fired by Alison Gray, editor of the paper’s Saturday magazine, just hours after the post was put live, with it cited as the key reason behind his sacking.

“I’d written a slightly controversial blog entry for allmediascotland.com suggesting that, as websites replace printed newspapers, there would be little need for physical offices and that the role of the sub-editor would disappear. I hoped it would be a little provocative, but the most I expected was to have a few virtual brickbats lobbed in my direction,” said Clayton, in a follow-up piece.

Journalism.co.uk tried contacting the Scotsman, leaving messages with Alison Gray and the office of Tim Bowdler, chief executive of Scotsman Publications, but received no response to the following:

– does the Scotsman have a set policy on staff writing for external websites? and are journalists aware of this?

– could the blog post have been amended to prevent Clayton from losing his job?

– why was Clayton sacked for his comments on the state of print advertising after the Scotsman itself ran the story ‘Johnston Press hit by house market woes as property advertising slides’ on August 28?

Admittedly there’s no disclaimer on Clayton’s AMS blog – e.g. ‘the views expressed here are my own and do not reflect those of my employer’ etc etc – but nevertheless was this the right course of action for the Scotsman to take?

There’s nothing to stop a journalist from setting up their own personal blog or contributing in their professional capacity to another blog site – either as poster or commenter – and as the trend for doing so continues to grow more popular, will publishers start setting out stricter guidelines for what staff can and can’t say elsewhere?

Reactions like this and the idea of more stringent restrictions on where journalists can write online are counterproductive: letting journalists write, comment, engage and react with colleagues and readers online can help build an online community around them and their content, driving users back to the publisher’s site.

Spilling company secrets is one thing, but Clayton’s post was hardly exposing something that’s hidden from the rest of the newspaper industry.

Clayton has told me he’s contacted the National Union for Journalists (NUJ) (who haven’t got back to me either for that matter) – and I’ll be really interested to hear its stance on this: firstly, in reaction to the immediacy of his sacking; and more importantly, as to what this means for journalists working online, in multimedia and for multiple taskmasters.

Online revenues up for Independent and Johnston Press, but print ads fall

At the same time as reports of significant decline in UK and US print advertising, online advertising revenue is up for the Independent News Media Group (INM) and Johnston Press.

Johnston Press, the publisher of the Scotsman and over 300 regional newspapers and websites, announced that digital revenues had grown by 52.1 per cent to an unstated figure, in its interim results for the 26 weeks ending June 30.

The publisher reports that it will ‘continue to experience significant growth in overall audience reach – combining our newspaper readership with the rapidly increasing number of people visiting our websites.’

Meanwhile, INM, which – among other titles – publishes the Independent, the Belfast Telegraph and the Independent on Sunday, saw online revenue from advertising grow by 23.3 per cent to €15.9 million in the six months prior to June 30, it reported in its half-year results.

INM’s online revenue (including its stakes in other online ventures) rose buy 57.1 per cent to €30 million over the same period ‘reflecting good organic growth and a continuation of its multimedia investment strategy across all regions,’ the report said.

Online classified and display advertising now represents around 4 per cent of publishing advertising for the group. This increase was helped by ‘strategic’ investments in services such as price comparison, online gaming, image search, and mobile.

Nonetheless, online was included in INM’s overall group costs, which increased by 1.4 per cent. The publisher also recorded ‘certain online and education start-up development costs’ of €6 million and €19 million.

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.