Revenue in Print Media
REVENUE IN PRINT MEDIA
Print production is measured on its quality, timeliness and effectiveness, whether it's a brochure or packaging or a magazine advertisement. But when something in the production process goes wrong, it can not only cause delays but also increase cost and impact quality. The challenge for print buyers is to manage print jobs efficiently through procurement and production while guaranteeing consistent quality and on-time in-budget completion. This requires specialized expertise.
Digital technology is increasingly competing with print media by opening access to endless sources of news. It may now seem that the need of the reader to buy a newspaper for news and the need of the advertiser to advertise in it, is slowly receding. Thus it is for the newspapers to look at emerging options and to rework their traditional sources of revenue.
Advertising and Circulation Revenue
There are two basic sources of revenue for the newspapers:
1. Advertising
2. Circulation.
The circulation revenue recovers only a part of the cost of producing a newspaper. The onus of making a profit after all costs, is on the advertising revenue. If circulation falls, advertisers shy away from using the medium. On the other hand an increase in circulation to take reflect on ad revenue takes time. Newsprint account for about 70% of the cost of production, but any increase in circulation does not decrease per unit cost. Also any marginal increase in advertisement revenue due to increase in circulation is not apparent in the short run.
Unique Success of Local Newspapers
The present economic downturn has hit newspapers very hard. Globally, many are facing closure. But there is a clear divide between big-city newspapers and their relatively healthier brethren in small cities and towns. When big newspapers fight for survival, often small community newspapers thrive. While classified advertisement revenue has taken a hit for big-city papers from competition from free or cheap on-line
Print production is measured on its quality, timeliness and effectiveness, whether it's a brochure or packaging or a magazine advertisement. But when something in the production process goes wrong, it can not only cause delays but also increase cost and impact quality. The challenge for print buyers is to manage print jobs efficiently through procurement and production while guaranteeing consistent quality and on-time in-budget completion. This requires specialized expertise.
Digital technology is increasingly competing with print media by opening access to endless sources of news. It may now seem that the need of the reader to buy a newspaper for news and the need of the advertiser to advertise in it, is slowly receding. Thus it is for the newspapers to look at emerging options and to rework their traditional sources of revenue.
Advertising and Circulation Revenue
There are two basic sources of revenue for the newspapers:
1. Advertising
2. Circulation.
The circulation revenue recovers only a part of the cost of producing a newspaper. The onus of making a profit after all costs, is on the advertising revenue. If circulation falls, advertisers shy away from using the medium. On the other hand an increase in circulation to take reflect on ad revenue takes time. Newsprint account for about 70% of the cost of production, but any increase in circulation does not decrease per unit cost. Also any marginal increase in advertisement revenue due to increase in circulation is not apparent in the short run.
Unique Success of Local Newspapers
The present economic downturn has hit newspapers very hard. Globally, many are facing closure. But there is a clear divide between big-city newspapers and their relatively healthier brethren in small cities and towns. When big newspapers fight for survival, often small community newspapers thrive. While classified advertisement revenue has taken a hit for big-city papers from competition from free or cheap on-line