This has clearly not been successful. Corrections are now needed. But such corrections are not considered necessary in Eastern Switzerland at present. A subscription circulation of around 100,000 copies, around 200,000 readers and a thousand-reader price (TLP) of CHF 66 - these were the targets set by the St. Galler Tagblatt when it launched its seventh edition, "Ostschweiz am Sonntag" (OaS), on March 3, 2013. It was modeled on Zentralschweiz am Sonntag (ZaS), from which it even adopted the identical advertising price (at the time CHF 13,200 for 1/₁ vf). But 18 months after the launch, it is clear that expectations were far too high. The OaS only sold around 60,000 copies and, according to Mach Basic 2014-2, only achieved half the targeted reach with 109,000 readers, which is why the TLP climbed to 115 francs. This made the OaS by far the most expensive Sunday paper. This also had consequences for the Sonntagspool, the combination of OaS, NZZ am Sonntag (NZZaS) and ZaS. Together, the three newspapers should have formed the highest-reach Sunday combination, ahead of SonntagsZeitung (SoZ) and SonntagsBlick. This calculation did not work out either - not only because of the weaker performance of OaS, but also because NZZaS lost many readers.
Three points misjudged
"It's true, we had other objectives and our business plan was too positive," confirms Daniel Ehrat, General Manager of Tagblatt Medien. And: "We underestimated the situation." He names three specific problems: Of the subscribers to the St. Galler Tagblatt (SGT), more than expected would not have wanted a newspaper on Sundays. And very few of those who already had the NZZaS, SoZ or SonntagsBlick wanted to switch. Thirdly, Ehrat cites the early delivery on Sundays, which does not fully cover rural areas. "People who live in remote areas therefore only receive the OaS by post on Monday. But many were not interested in this," he says.
Nevertheless, the overall manager also sees positive elements. The main thing: "The OaS is already break-even in its first year and even generates a small contribution margin." A second aspect: most OaS readers have not been poached from other newspapers, but have been acquired as new Sunday readers. The WEMF readership studies confirm this: Since the launch of the new Sunday edition, NZZaS, SoZ and SonntagsBlick have lost a combined total of just 3,000 readers in the entire OaS circulation area. There has therefore been a market expansion for print. "The fact that we succeeded in doing this in such a competitive and even declining market shows that the launch was the right move," says Ehrat.
Display rate remains the same, subscription price increases
Corrections should actually be made now. For example, the display tariff, which had already been reduced once - just nine months after the launch - by 5%. But this time Ehrat, who had initially considered a reduction of 12% as of October 1, has decided against it. This is because the tariff for the Sunday pool would then also have to be changed during the year. Instead, customers will be presented with "individual solutions tailored to their needs", he says, but leaves open the question of whether the OaS tariff will be reduced in 2015.
It also remains to be seen whether advertisers will appreciate this. After all, the high-priced OaS already suffered a slump in advertising in the first eight months of this year and now only has seven advertising pages per issue (2013: eleven pages). However, Ehrat attributes this decline to the end of the introductory campaign. Surprisingly, another measure will take place immediately: the subscription price for the OaS will be raised as early as October 1, 2014: The single subscription will rise from 128 to 131 francs, the seven-day subscription from 425 to 435 francs. The reason given by the General Manager: "Like all print titles, we also have to compensate for certain advertising losses with subscription fees. " With the higher subscription prices, he now wants to invest further in acquiring new subscribers. "The potential has not yet been exhausted," Ehrat believes. Previously, the main focus was on SGT subscribers, but now the company is primarily targeting people outside the SGT subscription base.
OaS is obviously well received
The OaS itself and its concept will not be changed. "We have a good response," says Editor-in-Chief Philipp Landmark. The OaS will therefore continue to have a strong regional focus, and its size is deliberately limited to 40 pages. "Our readers don't want too much paper," he says. According to Landmark, the OaS editorial team, which started with twelve positions, will also remain "roughly the same size" - despite the many departures in the last twelve months.
More money stays in the house in future
At the end of October, the NZZ Group buys back PubliGroupe's 25% stake in Freie Presse Holding (FPH) for CHF 53 million. The NZZ Group has combined the activities of Tagblatt Medien and LZ Medien in FPH. The buyback has one main advantage: from now on, no major shareholder will draw profit shares and dividends from the NZZ regions, which means that around CHF 6 million more will remain in the Group's coffers each year.
Personnel changes At the end of the year, the NZZ Group intends to return to its own management - after ten years of leasing Publicitas. To this end, NZZ Media Solutions AG was founded in July with around 100 employees. This has resulted in a personnel change at Tagblatt Medien: Urs Bucher, previously Head of Publishing and Marketing, has taken over the management of the print advertising market. The new Head of Publishing and Marketing is Christine Bolt, previously Director of Toggenburg Tourism. In future, however, there will be even closer cooperation with the SGT editorial team. The fact that OaS and SGT are well received by readers is confirmed by the online figures from Net-Metrix-Audit. According to these figures, visits to Tagblatt.ch have been increasing slowly but steadily in recent years. With the OaS launch, traffic increased visibly once again. "We therefore want to further expand the online area," says Ehrat.
Markus Knöpfli