Ads in tagi splits strike
Advertising Rates: The Tages-Anzeiger is significantly raising the rates for its split editions, bringing them—in terms of TLP—nearly in line with those of the Zürcher Landzeitung in some cases. The sales targets have been more than met so far.
Advertising rates The Tages-Anzeiger is significantly increasing the rates for its split editions and in some cases almost bringing them into line with those of the Zürcher Landzeitung in terms of TLP.
Just over a year ago, the Tages-Anzeiger realized its strategy with five regional editions in the canton of Zurich. And at the end of February 2007, it doubled its circulation in these areas (except in the city of Zurich) with a large weekly edition. In terms of rates, he chose a low-price strategy, which was promptly described as dumping by the other side, the partners of the Zürcher Landzeitung (ZLZ). In fact, last year a full-page four-color Tagi split page (normal circulation) cost between 7 and 71 francs less per thousand readers (TLP) than the corresponding ZLZ partners. With one exception: in the district of Meilen, the Tagi had set its rate 34 francs higher than the local edition of the Zürichsee-Zeitung, but the new year changed everything. Although the Tagi did not change the rate for its main paper, it did change all split prices. These were increased by 10 percent across the board, both in the normal circulation (NA) and in the large circulation (GA), while the ZLZ partners kept their rates at the previous level. As a result, the TLPs of the Tagi splits are now a maximum of 40 francs cheaper than those of the ZLZ partners. In the Zurich Oberland and in the district of Horgen, the Tagi TLP (NA) is now only CHF 1.40 and CHF 5 less than the corresponding ZLZ partner paper respectively. The situation is different in the district of Meilen: There, the Tagi-TLP is now CHF 54 more expensive than the local edition of the Zürichsee-Zeitung.
The situation is similar for large circulations, with the Tagi still in pole position in the districts of Horgen and Meilen with its GA. This is because the Zürichsee-Zeitung does not have a weekly GA there. And according to Managing Director Erland Herkenrath, it does not intend to change this for the time being.
The question remains as to why the Tagi has now increased its split rates by 10 percent. Instead of a short-term introductory offer, the Tagi splits were deliberately priced "relatively low", says Stephan Gartenmann, the advertising manager responsible for the regional splits. "But now we have seen that local businesses are booking our splits and that we are also successful in terms of readership." That's why the rates were raised.
The competition, on the other hand, doubts the new Tagi self-confidence and sees it as optimism for a purpose. "The volume of advertisements in the Tagi splits is very modest," says Herkenrath. Presumably behind the rate surcharge is the view that it will increase revenue in any case. "Because the volume is so low that it will hardly be reduced by the price increase," says Herkenrath.
Gartenmann is not prepared to accept this. "We have more than achieved our goals, in some splits we have even far exceeded them," he counters. He also notes that the other side is obviously keeping a close eye on Tages-Anzeiger's performance - a conclusion he draws from the swift and sometimes harsh reactions with which some ZLZ partners have responded to Tagi marketing campaigns.
Markus Knöpfli
Caution when comparingComparing the ranges and TLPs
ZLZ partners with those of the Tagi splits, caution is advised, as the distribution areas are not always identical. Here is just one example: the Tagi split on the left bank of the lake serves all the municipalities in the district of Horgen, whereas the left-bank edition of the Zürichsee-Zeitung is different: it is not distributed in the municipalities of Rüschlikon, Kilchberg and Thalwil and only partially in Oberrieden. The Zürcher Landzeitung association therefore has a blind spot there. In order to cover these four municipalities, the Thalwiler Anzeiger must be added to the Zürichsee-Zeitung or the ZLZ. (mk)
