Zero round? - Oh where!
Advertising Rates: Many print publications are using the new rate system to implement hidden increases in their ad rates. This overview provides clarity.
Advertising rates Many print titles are using the new rate system for hidden increases in their advertising rates The new rate system for newspapers, which was introduced three years ago, is continuing to gain popularity as of 2008. At least eleven other titles have decided to switch to fixed formats (mostly with a discount) and in some cases also to the integrated color millimeter rate. Wherever the integrated color millimeter is still being dispensed with, this is due to technical printing reasons, as there is no continuous four-color process. With one exception: the weekly newspaper (WOZ) could change over, but does not want to. "We are not yet experiencing any pressure or sufficient demand from customers and believe that with our large number of small-format advertisements, an integrated color millimeter rate would tend to complicate the rate structure," the WOZ collective explains. The Basler Zeitung (BaZ) has also been hesitant so far. However, it is unclear whether it will implement the system change this time because it has not yet set its rates for 2008.
The Südostschweiz (including the Sunday edition), which switched to the new system two years ago and was even the first newspaper to install a uniform rate for black-and-white and four-color ads this year, is backtracking twice: it is reintroducing the black-and-white rate. It is also doing away with fixed formats with a discount for black-and-white ads.
The reason given in Chur is the allegedly strong customer demand for separate SW rates. In concrete terms: Anyone placing SW advertisements with Südostschweiz will soon be 7.4 percent cheaper than this year, but around 800 francs more expensive than in 2006. The new SW rate for the Sunday edition is 240 francs higher than in 2006.
Le Temps is taking a more cautious approach in this respect: There, too, the declared aim is to align the black-and-white and color rates. However, they are not doing this all at once, but by gradually increasing the black-and-white millimeter rate - this time by 2 percent - and simultaneously reducing the integrated color millimeter by a similar amount. Exception: le Temps has already made the adjustment for job advertisements - the millimeter (b/w and vf) now costs CHF 2.60.
In the case of magazines, however, the trend towards a standard rate is unbroken: The majority already know it and Stocks, NZZ Folio, PME Magazine and Radiomagazin are now following suit. However, as they are each raising the SW rate to VF level, this is tantamount to a rate increase: in the specific cases, customers will pay between 14 and 44 percent more for a SW advertisement in future. Radiomagazin is behaving the fairest: it is simultaneously reducing its VF rate by 4 percent.
This brings us to the obvious and hidden price increases, which are also present this time. The biggest absolute increases in French-speaking Switzerland can be seen at 20 minutes and Le Matin Bleu - they are charging 18.2 and 33.3 percent more respectively after the introductory phase. 20 minutes is thus demonstrating great self-confidence, as the Tamedia paper's thousand-reader price (TLP) is still significantly higher than that of its competitor Matin Bleu.
20 Minuten Deutschschweiz also recorded a significant price increase of 9.5 percent, although this can be explained by the 8.8 percent increase in reach.
SonntagsBlick gained 5.5 percent, although its reach only just remained stable.
According to Mach Basic 2007-2, the Edipresse title Terre et nature lost a significant 14 percent of its readership, but has left its rates unchanged.
The same applies to Lausanne Cités and Automobil Revue, which also lost reach in the double-digit percentage range. Schweizer Illustrierte, SonntagsZeitung, 24 Heures, Gesundheit Sprechstunde, Gesundheits-Tipp, Glückspost and TVtäglich also recorded significant losses, but none of the titles saw their rates fall. Femina is even increasing its price by 0.9 percent - despite significant losses in readership. There can therefore be no question of a zero increase, as all these titles are raising their TLP. TV Star is doing the same. However, the paper is only lowering its rate by one percent despite a significant drop in readership of 8.8 percent.
Sélection is more exemplary: after last year's price reduction of 20 percent, it is again reducing its rate by 10 percent, although this time the decline in reach remained within the confidence range. Another positive example is GHI, which reported a 9.4 percent increase in readers and yet was content with a zero rate cut.
In contrast, the steep rate cuts at TV2 and TV Digital Schweiz appear to be more necessary than exemplary. Axel Springer Switzerland does not provide a reason, but the titles are clearly far from their target. By contrast, the behavior of Handelszeitung from the same publishing house is clear: despite a (slight) decline in readership, it will be charging a full 8 percent more per advertising page in future because Axel Springer Schweiz assumes that the approximately 43,000 former Cash subscribers will continue to be interested in Handelszeitung products.
Following the demise of Cash, HZ bought Ringier's subscription base and thus gained 34,000 new readers. The publisher provides concrete figures: HZ's paid circulation is expected to grow by 33 percent to 40,000 copies, while readership is expected to increase by 42,000 to 168,000.
The fact that Ringier's Cash Daily, on the other hand, is retaining its current rate indicates that the Dufourstrasse is not yet sure whether the free paper will be accepted by advertisers as a fully-fledged replacement for the discontinued weekly title Cash - despite its allegedly good readership figures. The situation is different for Abendblatt Heute, which will also remain stable in terms of rates: Logical, because with the 230,000 readers reported for the first time, the title has made a good, but not sensational start. The title must therefore remain competitive in terms of price in the increasingly competitive free newspaper market.
Hidden rate increases can be observed at NZZ, NZZaS, Neue Luzerner Zeitung, SonntagsZeitung, La Liberté and some smaller titles: Although they are leaving the price for fixed formats at the previous level, they are increasing the integrated color millimeter rate. As a result, publishers can offer large customers a higher discount on fixed formats, while customers who place small advertisements or intermediate formats will pay more in future.
Markus Knöpfli
Some big players are still missingNot all publishers have
published its rates. BaZ is the only major daily newspaper that is still calculating - and with it the Metropool. The Solothurner Zeitung does not seem to be ready yet either. The free papers Baslerstab and Biel/Bienne are also experiencing delays, as is Tamedia's Finanz & Wirtschaft. (mk)
