New tricks for old prize games
Marketing The new tariff system, which is being adopted by more and more newspapers, offers new opportunities for hidden price increases.
The case of the Basellandschaftliche Zeitung is interesting, as its rate reduction of up to 8 percent is not due to an erosion of performance. On the contrary, its reach is stable or increasing slightly. However, the increased competition from the new large circulation of the Basler Zeitung is likely to play a role here. In addition, the paper can be better integrated into the MZ thanks to a more favorable rate. However, it is surprising that another MZ member, the Solothurner Zeitung, has been allowed to increase its rate by around 2 percent despite a slight fall in reach. This is justified by rising paper prices.
What Publimedia is careful not to mention, however, are hidden price increases. As is the case every year, there are a large number of newspapers and magazines which, although in absolute terms they are making a zero price increase, are in fact making a more or less hidden price increase.
This game is played in three main ways. The most common is to leave the rate as it is, even though the service has dropped significantly. This form of rate increase can be found in the Beobachter, Stocks, Live, Touring, Das Beste, TVtäglich, K-Tipp and the Wochenzeitung. Although they have all lost significant coverage with Mach Basic 2006-2.
Bilanz and TV-Star are borderline cases. Although they have also recorded steep losses in reach, these are not really comparable with those of the previous year. Nevertheless, it is clear that both titles are being read by fewer people, which is why they are reducing their rates. Compared to the decline in reach, however, the reduction in rates is comparatively meagre. In addition, Bilanz is increasing the rates of its four special editions Luxus, Weiss-Bilanz, Uhren and Die 300 Reichsten by CHF 500 or 3 percent each. The reasons given for this are the larger print runs, the longer reading time (according to the copy test), the storage character and the additional advertising measures.
Introduction of a uniform tariffThe second way to implement a hidden tariff increase is to introduce a uniform tariff. The Sunday edition of Südostschweiz and Cash have chosen this route. In line with the new rate system, both are aligning the previously lower black-and-white rate with that for four-color ads, thus simplifying their rate structure, but making a black-and-white ad 42 and 31.6 percent more expensive. The pricing structure of the weekday Südostschweiz is more balanced: it is also introducing the standard rate, but at the same time lowering the price for four-color ads by 4 percent.
The third form of hidden price increase only works for titles that have already introduced the new rate system and offer fixed formats with a discount on the integrated color millimeter. They leave the price per fixed format 1/1 page black and white unchanged, but raise the (color) millimeter price by a few centimes. This has two effects: Firstly, the individual formats, which are based on the millimeter price, become more expensive, while at the same time the discount granted on fixed formats increases. This marketing trick is used by SonntagsZeitung, among others: It increases its black-and-white millimeter by five centimes, which raises the discount compared to the corresponding 1/1 page (fixed format) by around one percentage point to 5.5 percent.
The Werbewoche survey also revealed that at least nine other newspapers are switching to the new rate system. These include the Tages-Anzeiger and the Berner Zeitung, the Bieler Tagblatt, the Journal du Jura, the Finanz und Wirtschaft and the Handelszeitung. For some of these titles, this means that the prices for a 1/1 page in four colors will be lower. It is unclear whether BaZ will also switch to the new system; its rates have not yet been published. However, it is not alone in its delay: 20 Minuten, 20 minutes, Blick, SonntagsBlick and Metropool also seem to be still reckoning.
Good experiences instead of catcallsAt the end of 2005, various
Most of the larger Swiss-German daily newspapers switched to the new rate system recommended by the Swiss Press Association and Publicitas - with an integrated color millimeter rate that replaces the previous b/w millimeter basic price including the various color surcharges. In most cases, the changeover was linked to an offer of fixed formats, which include a discount of up to 25 percent compared to the millimeter price. As a result, some publishers feared additional sales losses in addition to the general decline in advertising. All ten publishers contacted had positive experiences. "The model was well received in the market. We would do it again," wrote Urs Bucher, Publishing Director at Thurgauer Zeitung. And Konrad Müller, publishing director of the Zürcher Oberländer, recommends the new model: "Our color ads have increased by 251 percent," he writes. The Landbote notes that the integrated color millimeter rate has been well received, especially in the local market. "Good experiences, a priori with the color ads" were also made at the SonntagsZeitung, at the time incidentally the only Tamedia title that dared to take the step. In the meantime, however, the Tages-Anzeiger and Finanz und Wirtschaft have followed suit.
And what about the feared decline in sales? Not everyone wanted to answer this question, but five publishing or advertising managers were positive: in the first nine to ten months of this year, they recorded an increase in sales of between 1 and 12.2 percent compared to the same period last year, with the volume of advertisements increasing roughly twice as much.
FreeTV before expansion?a steep price reduction
of 66 percent was granted to the free program FreeTV, which belongs to the private TV station U1. The reason for the rate reduction: the magazine, which was originally published five times a week with a circulation of 100,000 copies in the Zurich region, met with relatively little interest. The publication frequency was therefore limited to once a week and the circulation reduced. Around 35,000 copies are currently being taken out of the boxes, says U1 project manager Peter Kölbel. This could soon change again: Kölbel has also recently submitted applications for FreeTV boxes in Bern, Basel and Lucerne, he says. However, approval was sometimes linked to five weekly appearances. For this reason, at least three concept variants for FreeTV are now being considered in Schlieren, the headquarters of U1. Edipresse combination Under the label Puissance4
Edipresse is launching a new and flexible advertising combination with the titles Bilan, Fémina, Télétop and TV Guide. Flexible in the sense that all the magazines involved can be placed individually in terms of format, subject matter and frequency. A total of eleven possible combinations can be selected. One advertising page costs between CHF 18,103 and CHF 48,056. Markus Knöpfli
