Media Year 2021: What Year?!
The year 2021 is drawing to a close—and for the media industry, it has all the makings of an «annus horribilis»: Print advertising revenue is lower than it was before the pandemic, fewer and fewer people are reading newspapers, and linear television viewership is either declining or stagnating. Is there at least some good news?
«Publishers fear that paper prices for their print products will continue to skyrocket in 2022.»
A major reason for the declining readership is the shift of readers from print publications to digital offerings from the same media brand. Stadler also reads the commuter newspaper 20 minutes from TX Group is now available only in digital format. «The coronavirus is accelerating a trend that affects all daily newspapers,» said the journalist, who works part-time for the Infosperber operates. According to Harald Amschler, Deputy CEO of WEMF AG for Advertising Media Research, the print media in Switzerland continues to enjoy high reach. «Declines in the readership market are generally more moderate than the losses the press experiences in the advertising market.»
According to the MACH Basic 2021-2 report, 45 percent of the Swiss resident population aged 14 and older is now 50 or older. That amounts to over 3 million people. Among this large target group, the reach of newspapers is 82 percent, and the reach of magazines is as high as 94 percent. «This means that for people aged 50 and older, the use of print media remains a part of everyday life.» Amschler is convinced that as long as media companies continue to offer print publications to this demographic, printed newspapers and magazines will be around for a long time to come.
Ladina Heimgartner, Head of Global Media at Ringier, agrees. She describes the trend toward consuming media increasingly online and less and less on paper as a fact. «Nevertheless, we must not forget that print still contributes a significant portion of our revenue.» She says there will always be a group of people who value the tactile experience and are willing to pay for it.
What else stood out in the media landscape of 2021? For Rainer Stadler, the shifting perceptions of the pandemic—and the vaccination campaign in particular—were noteworthy. At the beginning of the year, there was hope and almost euphoria surrounding the vaccines. There was even a debate fueled by envy; celebrities and the wealthy who cut in line were condemned. «Now there’s a desperate attempt to get the unvaccinated to get the shot.» The minority of anti-vaxxers is becoming a new target group, for example in the Nebelspalter receives support. For the media critic, however, this is a precarious market segment that could quickly collapse once the pandemic is brought under control.
A Mixed Year for Coop
Coop-Presse, Switzerland’s highest-circulation print publication, increased its readership by three percent this year. It now reaches 3.31 million people. Coop media spokesperson Kevin Blättler emphasizes that engagement was very high in 2021. «Thanks to the increased selection of puzzles and recipes in Coop-Presse, we received numerous letters of thanks from our readers.» With Betty Bossi and Fooby, Coop operates the two culinary platforms with by far the widest reach in Switzerland. And the online platform Mondovino was able to increase its membership by over 20 percent again in 2021. However, advertisements from the tourism sector were lacking this year. In addition, the Coop newspaper Weekend in the commuter newspaper 20 minutes had been heavily affected by the mandatory work-from-home policy. The global paper shortage posed another challenge for Coop Press, as the spokesperson went on to explain.
Wood and pulp remain in short supply for other Swiss publishers as well, which could further reinforce the clear trend toward digital from another angle. But Stefan Wabel, managing director of the Swiss Media Publishers Association (VSM), also told m&k It is clear that printed newspapers and magazines remain the most widely used medium in Switzerland. «Regional daily newspapers, in particular, are performing steadily and—apart from normal statistical fluctuations—are losing relatively few, if any, readers,» said the new VSM head. On the other hand, regional publications—compared to national daily newspapers—have seen very little growth in digital subscribers so far. This suggests that, particularly for small and medium-sized publishers, the digital transformation has only just begun and further significant investments in digitization are necessary.
A Silver Lining on the Horizon for the TV Advertising Market
The TV industry, too, is grappling with digital challenges. The shift toward digital platforms seems unstoppable. Traditional television has had a tough time this year. Web and streaming services, on the other hand, generally report steadily rising user numbers. At least activity in the advertising market picked up somewhat in 2021, which gives Alexander Duphorn, CEO of Goldbach Media, cause for optimism. «So for us, it was definitely not an annus horribilis, but rather the welcome recovery we had expected following the very difficult year of 2020.»
«The long-standing trend of the public turning away from print media continues.»
Duphorn is hardly concerned about digital competition: Traditional television boasts an average viewing time of 120 minutes per day, YouTube 15, and Netflix just 8 minutes. «When it comes to building reach in advertising, TV is in a league of its own.» TV is important and relevant, and that must be taken into account. Broadcasters are developing their own distribution channels toward digitalization and streaming, thereby keeping pace with viewers« media usage. »In the long term, we can expect stable growth in the video sector from linear TV, replay ads, and digital streaming,” Duphorn is convinced. In fact, the industry is now focusing on further developing its products. According to Duphorn, preparations are in full swing for Replay Ads, the new time-shifted TV products set to be introduced next year. In addition, TV measurement is being supplemented with hybrid measurement data.
What else can we expect from the media landscape in 2022? Rainer Stadler first makes a tongue-in-cheek reference to Nostradamus before offering a serious assessment: «The well-known trends—such as digitalization, segmentation, and polarization—will continue in the coming year.» The media expert hopes that the advertising industry will finally embrace digitalization in earnest and tailor its advertising messages accordingly. What consumers still have to put up with on online platforms is often dreadful: overly long and poorly placed ads and lousy «performance marketing.».
«Once my generation is gone, things will definitely get tough for print.»
There will certainly be discussions leading up to the vote on the Media Promotion Act in February. The issue of ancillary copyright is also important to Swiss publishers. They would like to see a Swiss legal framework for compensation for media content distributed via Google or other platforms. Due to shortages on the global market, publishers fear that paper prices for their print products will continue to skyrocket in 2022. So Nostradamus sends his regards once again.
«The media must become more resilient in terms of revenue sources»
m&k: Ladina, Heimgartner, how was 2021 from the perspective of the Blick Group?
What developments have shaped the current year?
In addition to painful declines in the reach of our print products, we were fortunately able to see another significant increase in demand for our digital offerings.
Especially when it comes to SonntagsBlick Things didn't go so well. According to WEMF, readership plummeted by 15 percent.
Due to reduced mobility and the closure of restaurants and kiosks for several weeks, the SoBli As a Sunday publication with a single-copy sales share of 26.3%, we have been heavily impacted by the lockdown measures. We are working on measures to halt the decline in readership—specifically, how to retain existing readers for as long as possible and attract new ones.
How satisfied are you with Blick TV's progress following Jonas Projer's departure to NZZ on Sunday?
The integration of Blick TV into the newsroom has been a success—after just over a year and a half, Blick TV’s numbers are impressive. On average, 550,000 people watch the livestream every day. In addition, our video-on-demand service generates up to 850,000 video views per day.
Concentration in the Swiss media market continued in 2021, leading to an expansion of the partnership between TX Group and Ringier in the classifieds business. Will these publishers continue to merge?
The example given relates to the marketplaces business and has no impact on the companies’ media brands. Media companies must become more resilient in terms of their revenue streams. If they succeed in doing so, the foundation will be laid for the continued existence of a diverse media landscape in Switzerland.
