Tag Archives: print advertising revenue

Generating Ad Revenue in Print

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A recent article in The Guardian points to the challenges newspapers face attracting advertisers and maintaining ad revenue.  And yet millions of people are still picking up print editions.  Though the article comments specifically on the UK market, the same could be said of the industry here in the US.  But contrary to the sentiment the author suggests that “publishers must find new ways to convince advertisers that they have audiences worth targeting,” we would argue that publishers are tasked with finding alternative ways to monetize their product.  Convincing advertisers of the value of their readership is not enough.

While many have looked to selling digital advertising as their saving grace, there is another option.  A new revenue stream within the print property.  Per-inquiry advertising.  Yes, this involves publications taking on risk and shifting from their traditional model.  But if they are boasting engaged readership, shouldn’t they have confidence in their ability to drive response?

Advertisers are paying per response in other mediums, so is it really that unrealistic that they expect to be able to do the same in print?  They demand performance, measurability, and tracking.  Advertisers need to justify spending, after all.

Here are MediaBids, we believe in the power and value of newspapers.  Our President, Jedd Gould, has said “we at MediaBids feel very strongly that newspapers and magazines are a critical component to democracy in the United States…we really feel that without newspapers and magazines and the original content that they’re producing, we all would be worse off”.  When is this truer than in an election year?  Yet, we know the model is being threatened by economic pressures and changes in the advertising landscape.

Hundreds of publications have already adapted and teamed with MediaBids to run per inquiry ads.  While response varies widely depending on many factors such as advertising campaign and publication size, its undeniable these campaigns are driving calls and sales, thus delivering revenue to publications.  If you’d like to increase your advertising revenue and feature national advertisers in your publication, give us a call today at 860-379-9602 or learn more at https://www.mediabids.com/publication/print-advertising.jsp.

Does Your Paper Reflect the Spending Habits of the American Consumer?

ConsumersIn the U.S., nearly 70% of our Gross Domestic Product (GDP) is based on consumption. In fact, Americans spend a little over $11.2 trillion on goods and services.

The breakdown is about 65% on ”services,” such as housing, health care, travel, education, entertainment and personal care. The remaining 35% is spent on ”goods.” Economists tend to split the goods category into two types: 22% of spending on goods is non-durables (every day items such as clothing, groceries, fuel and household items); the other 13% of spending on goods is toward larger and less frequent purchases like cars, trucks, tractors, furniture and appliances.

Of course -depending on age, life-stage, income and a host of other factors- each of us may have somewhat different ratios of services to goods. Nevertheless, the ”average American consumer” spends about 65% on services and 35% on non-durable and durable goods each year.

The question you might want to be asking is -how well do the ads in your pages reflect what Americans are buying?

Over the past month, the Print Observer has profiled four local dailies (one in Vermont, Indiana, Washington State and Texas.) For each paper, we tabulated and analyzed the ad space in a recent Sunday edition. The analytics included: the number of ads overall and in each ad category; the total ad inches, total inches for each ad category and the average size of the ads in each category relative to the average size of all the ads in the section.

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Looking back at the data, it’s interesting to note how well the advertising categories represented in the papers compare to consumer spending habits. Across the four dailies we reviewed, the average number of ads in the services category was 48%, the average in the non-durables category was 30% and the average in the durables category was 28%.

  • The services category (housing, health care, restaurants etc.) had a range of 68% to a low of 28%.
  • In non-durables (groceries, clothes, household items etc.) the high was 49% and the low was 4%.
  • In the durables category (autos, furniture, appliances etc.) the high was 28% and two papers had no advertising at all for durables.
  • Two papers also had a large number of house ads and/or political.

We only looked at four Sunday papers so this small sample is not necessarily indicative of the trends in newspapers across the country. However, the four papers were all mid-size dailies in small cities that are not unlike most other small cities in America so the averages across the basic categories are likely to be proximate.

Ultimately, considering where your readers spend the bulk of their dollars (65% services/35% goods) is as good a guide as any for targeting the kinds of advertisers that are likely to do well in your pages. If you’re at 60% or better for services and 30%-40% for goods, you at least know your publication is aligned well with general consumer spending habits and you’re at about the level of advertising, in each category, readers can tolerate.

Post by Jim Jinks

 

Newest Advertiser Additions to MediaBids

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We’re  always working to help provide newspapers & magazines with an additional revenue stream. Part of the way we do this is through our Per-Inquiry Print Advertising Program, which provides newspapers and magazines with a commission every time you drive a call, lead or sale to our participating advertisers.

Always on the lookout for offers and advertisers that work well in a wide range of publications, we’re happy to welcome our newest group to the mix.

Our newest advertiser additions are a diverse group that run the gamut from home security to tax preparation. To learn more about each advertisers or request a custom-sized ad for your publication, click on the image below. As always, if you have questions, call MediaBids at 860-379-9602 or email publicationhelp@mediabids.com.

View All Ad Campaign Details Here & Request Custom-Sized Ads