Lease Nine months ago, the Walliser Bote got rid of the Publicitas lease. Since then, it has not had more advertisements, but more money in its coffers. "The Walliser Bote has obviously bottomed out, our sales are showing a slight upward trend. When I think of other titles, we can be very happy," says Jörg Salzmann, Publishing Manager of Mengis Druck und Verlag, the publisher of the Walliser Bote (WB). Salzmann's figures are indeed respectable: Swiss franc sales in 2004 were only 2.2 percent lower than in 2003, and from January to May of this year, the WB even recorded an increase of 2.7 percent. By comparison, at the end of May 2004, the WB was still reporting a 6.4 percent drop in sales. Firstly, the paper raised its advertising rates at the beginning of 2005 - by just under one percent. Nevertheless, pecuniary sales had to increase even with a slight drop in volume. And that's how it turned out: although the income increased, the Valais daily newspaper, which according to Salzmann had already lost 6.3 percent of its advertising volume last year, reported a further decline of 5.6 percent in the first five months of 2005. The bottom has not yet been reached in terms of volume, so the upward trend in sales is still on shaky ground. Salzmann is also aware of this.
Nevertheless, the development at the WB is remarkable, as the traditional Valais newspaper only freed itself from the Publicitas lease on September 1, 2004 and stood entirely on its own two feet. This almost anti-cyclical step was well considered: The WB's share of sales from the national market served by Publicitas (P) had been steadily declining in recent years, while in the local market, where Mengis Annoncen is active, the title was growing. "We have analyzed our minus: It arose primarily in the leasing sector," Salzmann said at the time. And because the success in the local area was primarily due to increased customer visits, Salzmann also wanted to use this strategy to generate additional sales in the national market. He also hired a sales representative specifically to work the German-speaking Swiss market.
As of September 1, 2004, the paper was to receive income from five instead of four channels: From the new activities of Mengis Annoncenieren in the national market, from the orders that will continue to come to the Valais newspaper via the various Publicitas branches, via the Bern newspaper pool, via Publicitas Sion, which handles the French-speaking Lower Valais for the paper, and finally via the commitment of Mengis Annoncenieren in the Upper Valais home market.
No effect on major customersToday, a good nine months later, it is clear that the WB's calculations worked out, but not as Salzmann had expected. Although national orders have indeed increased again since September 1, they have all come via Publicitas branches. Obviously, the concept from Upper Valais could not be transferred to the national market. "Our sales representative simply couldn't do anything with the major customers, because they automatically book the Valais Messenger via the P," says Salzmann. There was no reason for customers to change this.
to change. And Salzmann did not want to introduce a direct booking discount, as Tamedia has been offering since the beginning of the year.
In terms of advertising, the customer visits would also have
proved to be superfluous. "It turned out that the Walliser Bote is a household name in the important places. People are also aware of its qualities, such as the readership reach of 87 percent in Upper Valais," Salzmann states soberly. That's why he parted company with the sales representative again. In future, he wants to serve German-speaking Switzerland with mailings.
The conclusion from this experience: when the economy picks up, the orders for the WB will come anyway.
P lease as well as a sales representative. Salzmann puts it this way: "The bottom line is that our publishing house now has more money in its coffers because we have to pay less commission while P's turnover remains the same or is slightly higher."
Increased sales in the local marketHowever, the paper still has to cope with a loss: Since the beginning of the year, it has received significantly less revenue from the Bern newspaper pool. The reason: the major distributors Migros and Coop, which advertise with the WB via this pool, have generally cut their advertising budgets. "Fortunately, we were able to compensate for these losses to a large extent with additional sales in the local market," says Salzmann with relief. As a result, the share of sales from the local market has continued to grow. Salzmann confirms: in 1999, at the beginning of the lease agreement with the P, the national market contributed 53 percent to the revenue of the Valais Messen, last year it was still 50 percent. "And now it's only around 48 percent," says Salzmann.
Expansion at all levelsDespite the unsuccessful acquisition efforts in the national market, Mengis Annoncencen is not sitting back. It is concentrating on the promising local market and strengthening its position there with readers and customers. In March 2004, for example, early distribution was introduced, initially in the valley floor. The Saas and Visp valleys will be added in the fall. The aim is to one day cover the whole of the Upper Valais. "Early distribution until 7 a.m. is not possible everywhere, but people should receive the newspaper earlier than by post," says Jörg Salzmann. However, he also doubts whether the Walliser Bote can gain more subscriptions given its high coverage. "Early delivery is probably more of an argument for readers not to unsubscribe from the Walliser Bote," says the publishing manager.
The website www.walliserbote.ch was also developed last year, with an online booking tool for local customers. And finally, since last October, the traditional newspaper has had a Thursday large-format edition.
circulation. This is 8,000 copies (30 percent) larger than the certified normal circulation of 27,354 copies. Salzmann expects around 12 percent more readers, but the price per 1/1 four-color page is only 6 percent (gross 7265 francs) higher than the rate for the normal circulation. There is no question that this large print run and its higher rate have also contributed to the increased sales at Mengis Annoncen. (mk)
The Walliser Bote has more money without the Publicitas lease.
Markus Knöpfli
