Analysis from Cyril D. Pereira
Cyril D Pereira of Telesis Consulting Limited (Hong Kong). He can be reached by e-mail at: email@example.com
It is abundantly clear, in an era of targeted advertising and accountability of budgets, that newspapers are still unable to reconcile with the sea changes taking place in media fragmentation, advertiser shifts and demographic declines. The pricing model for ad rates has not moved.
Like rabbits sitting motionless while the eagle circles overhead, newspapers are hoping the danger will pass. Partly, this is the consequence of a hugely successful business model, built on circulation rate bases that grew every year from population growth and young adults entering the job market. that has served the industry well for 200 years. There is plenty of collective inertia in that.
The problem is that such automatic growth has been interrupted by a combination of the baby boomer generation falling off the edge and NOT being replaced in numbers by new readers. Anybody under 30 years old today is screen oriented with a habit of accessing news and information on-
The gap in circulation rate bases has been filled by spurious circulation practices by way of dumps in doctors' offices, public lounges, hotels and schools, in lieu of single-
These creative practices which border on fraud, are widely practiced with great flexibility allowed by the audit circulation bodies. Recently in the United States and Australia, there have been whistle-
There is a growing trend in Asia for giving away newspapers for free on commuter trains. The 'travel-
However, we are not seeing high profitability in this model so far. the best achieve modest, wafer-
The demographic discontinuity will challenge paid-
They have to get more scientific about subscription promotions and reader-
We are seeing a clear bi-
This sharp shift reflects the elite interest in solid analysis and commentary on national and international issues of economics, politics and globalisation impacts. There is a growing focus on health and quality-
The elite press, instead of chasing circ numbers blindly, should accept that the elite in any society are limited in numbers, but powerful in commercial and political influence. They should disconnect the ad rate pricing from circ numbers and charge influence-
How they can leverage their content basket, archives, SMS alerts and e-
The revenues are marginal at this time but the high-
Every country has to have its paper of record and public sphere agenda setters. New media in any form, rarely touches the dignity, gravitas and power of a newspaper of record.
That is the leadership quality press has to build on, to redefine advertiser and reader-
Page first published: 12.06.2006