Come to the kiosk, capitalist!
The free newspaper *Cash Daily* is launching with a problem: How will Ringier get business-minded readers to the newsstand every day?
Free press Cash daily launches with a problem: How does Ringier bring business-savvy readers to the kiosk every day?Cash daily, which has been under discussion for some time, launches on September 8 with a bang: "From the start, we will be present in 1150 Valora kiosks and thus cover all of German-speaking Switzerland, virtually overnight. This will give us a reach that no free newspaper has ever achieved from the outset," says Christoph Bauer, who recently became managing director of the Cash Group. His optimism is great: "In the first year, we guarantee 75,000 copies sold daily," he says.Indeed, the k-Group's extensive network of sales outlets appears to be an ideal distribution channel. After all, the k kiosks record over one million customer visits per day. So there's a good chance that the cash-daily free copies presented in boxes or in the checkout area of the display will sell like hot cakes. No wonder, five years ago, 20 Minuten and Metropol were also trying to get a place at the kiosk (see below).
On closer inspection, however, the chosen distribution channel offers more than just advantages. Will potential cash-daily readers, who usually help themselves to free newspapers at the bus station or train station entrance, make a detour to the nearest newsstand for the new Ringier free paper - and at worst join a queue? The content is decisive, no question. But will Cash daily - measured against the already existing free newspapers - be so indispensable that people will want to stand in line during the morning rush hour?
In addition, most people interested in the economy buy their newspapers by subscription and hardly ever from newsstands. This is shown by Wemf's 2005 circulation statistics. On an average day, only 2200 copies of Cash, Finanz und Wirtschaft, Handelszeitung, Bilanz and Stocks are sold at newsstands. If the daily single copy sales of the NZZ are added (9500 copies, partly from newspaper boxes), a maximum of 10,000 people with an interest in the economy buy their preferred reading material at the kiosk every day.
Of course, people with an affinity for business not only buy newspapers, but also visit a kiosk for cigarettes or mints - and also take the opportunity to buy cash daily. However, such purchases are made spontaneously, irregularly and at any time of day. But the information value of Cash daily is greatest in the morning, when the stock market starts - and it decreases with every hour. Why should one still take a look at a Cash daily at noon?
If even the paid newspaper Blick sells an estimated 75,000 copies at newsstands, the free Cash daily will succeed all the more. Anyone who argues in this way forgets the huge advertising effort Ringier regularly makes to bring the sold circulation of Blick daily to these heights. Moreover, it is to be expected that the half-life of Blick will last longer than that of Cash daily. It is hardly likely that too many Blick buyers will pick up a free paper at the same time. The reader profiles are too different.
Advantage - and Achilles' heelThe kiosk distribution channel raises another issue: Anyone who wants to get their hands on the free paper inevitably comes under pressure to buy. You may be exposed to this at certain intervals, but not every day and possibly always at the same point of sale.
This shows: The k-Group network is not only a strategic advantage for Cash daily, but also its Achilles heel. What will prevail remains to be seen - and depends not least on the communication efforts of the makers. Ringier is aware of this. "We have set up a launch campaign with the agency Publicis, with which we are promoting both the newspaper and distribution via the k kiosks in a first step," says Bauer. The initial circulation is over 100,000 copies, which will not only be available at k kiosks, but will also be distributed by colporteurs in an initial phase. The new newspaper will also be distributed via 30 other distribution partners such as airports and large companies.
"The focus now is on Cash daily," says Bauer. All the other Cash products - the weekly newspaper, Cash TV, Cash Online, Cash Mobile - will not be widely communicated until the second launch phase. Bauer: "In the reader market, we will only ever push one specific offer and highlight the individual product with its direct benefits for the customer. In the advertising market, on the other hand, we will position ourselves from the outset as a provider of multimedia advertising opportunities."
Only daily business newspaperFor a long time, the daily newspapers treated
the topic of business either elitist or restrictive. Until 1989, when Ringier launched Cash. The larger daily newspapers (including Blick) followed suit: On the business pages, the language became more understandable, graphics, info boxes and pictures were added. In short, Cash revolutionized business reporting to such an extent that the publishing houses were soon considering plans for a business daily - especially during the stock market boom years. But the plans never came to fruition. Except at Ringier. With Cash daily and a media network, Ringier is now venturing into the second revolution. Whether or not it succeeds will be determined by the added value that the new paper offers compared to the already well-made business pages of the daily newspapers.
Distribution model: nothing new2001 and 2002 free newspapers were already available
at k-Group kiosks: At the time, Valora conducted an extended trial with 20 Minuten (and initially also with Metropol) - against the protest of numerous publishers, including Ringier. After 13 months, Valora abandoned the test without saying why. What was clear was that although the free distribution did not increase sales at the 200 or so selected sales outlets, "no negative impact" could be detected. On the contrary: "The distribution of commuter newspapers at the point of sale increases customer frequency and generates co-purchases," Valora noted. Thus, 31 percent of people who bought 20 Minuten at the kiosk also bought a second newspaper, 8 percent a magazine and 22 percent something else. Thirty-nine percent spent no money. Valora did not disclose how many free newspapers were purchased at the kiosk each day.
Markus Knöpfli
More about Cash daily in this advertising week:
Hardselling for a free sheet
On closer inspection, however, the chosen distribution channel offers more than just advantages. Will potential cash-daily readers, who usually help themselves to free newspapers at the bus station or train station entrance, make a detour to the nearest newsstand for the new Ringier free paper - and at worst join a queue? The content is decisive, no question. But will Cash daily - measured against the already existing free newspapers - be so indispensable that people will want to stand in line during the morning rush hour?
In addition, most people interested in the economy buy their newspapers by subscription and hardly ever from newsstands. This is shown by Wemf's 2005 circulation statistics. On an average day, only 2200 copies of Cash, Finanz und Wirtschaft, Handelszeitung, Bilanz and Stocks are sold at newsstands. If the daily single copy sales of the NZZ are added (9500 copies, partly from newspaper boxes), a maximum of 10,000 people with an interest in the economy buy their preferred reading material at the kiosk every day.
Of course, people with an affinity for business not only buy newspapers, but also visit a kiosk for cigarettes or mints - and also take the opportunity to buy cash daily. However, such purchases are made spontaneously, irregularly and at any time of day. But the information value of Cash daily is greatest in the morning, when the stock market starts - and it decreases with every hour. Why should one still take a look at a Cash daily at noon?
If even the paid newspaper Blick sells an estimated 75,000 copies at newsstands, the free Cash daily will succeed all the more. Anyone who argues in this way forgets the huge advertising effort Ringier regularly makes to bring the sold circulation of Blick daily to these heights. Moreover, it is to be expected that the half-life of Blick will last longer than that of Cash daily. It is hardly likely that too many Blick buyers will pick up a free paper at the same time. The reader profiles are too different.
Advantage - and Achilles' heelThe kiosk distribution channel raises another issue: Anyone who wants to get their hands on the free paper inevitably comes under pressure to buy. You may be exposed to this at certain intervals, but not every day and possibly always at the same point of sale.
This shows: The k-Group network is not only a strategic advantage for Cash daily, but also its Achilles heel. What will prevail remains to be seen - and depends not least on the communication efforts of the makers. Ringier is aware of this. "We have set up a launch campaign with the agency Publicis, with which we are promoting both the newspaper and distribution via the k kiosks in a first step," says Bauer. The initial circulation is over 100,000 copies, which will not only be available at k kiosks, but will also be distributed by colporteurs in an initial phase. The new newspaper will also be distributed via 30 other distribution partners such as airports and large companies.
"The focus now is on Cash daily," says Bauer. All the other Cash products - the weekly newspaper, Cash TV, Cash Online, Cash Mobile - will not be widely communicated until the second launch phase. Bauer: "In the reader market, we will only ever push one specific offer and highlight the individual product with its direct benefits for the customer. In the advertising market, on the other hand, we will position ourselves from the outset as a provider of multimedia advertising opportunities."
Only daily business newspaperFor a long time, the daily newspapers treated
the topic of business either elitist or restrictive. Until 1989, when Ringier launched Cash. The larger daily newspapers (including Blick) followed suit: On the business pages, the language became more understandable, graphics, info boxes and pictures were added. In short, Cash revolutionized business reporting to such an extent that the publishing houses were soon considering plans for a business daily - especially during the stock market boom years. But the plans never came to fruition. Except at Ringier. With Cash daily and a media network, Ringier is now venturing into the second revolution. Whether or not it succeeds will be determined by the added value that the new paper offers compared to the already well-made business pages of the daily newspapers.
Distribution model: nothing new2001 and 2002 free newspapers were already available
at k-Group kiosks: At the time, Valora conducted an extended trial with 20 Minuten (and initially also with Metropol) - against the protest of numerous publishers, including Ringier. After 13 months, Valora abandoned the test without saying why. What was clear was that although the free distribution did not increase sales at the 200 or so selected sales outlets, "no negative impact" could be detected. On the contrary: "The distribution of commuter newspapers at the point of sale increases customer frequency and generates co-purchases," Valora noted. Thus, 31 percent of people who bought 20 Minuten at the kiosk also bought a second newspaper, 8 percent a magazine and 22 percent something else. Thirty-nine percent spent no money. Valora did not disclose how many free newspapers were purchased at the kiosk each day.
Markus Knöpfli
More about Cash daily in this advertising week:
Hardselling for a free sheet
