Alastair is our Media Director at MPA
Covid Kills Print
Covid 19 has taken newspaper and magazine publishers to the precipice and dropped them off a cliff.
Will newspapers and magazines survive? Just…….
With revenues struggling for years due to the meteoric rise of real estate listing portal REA (of which Newslimited is a major shareholder) and a weakened advertising market, Newslimited has announced it will rationalise its community and regional papers with over 100 titles to shift to digital and 14 more to disappear.
The most successful titles metro titles including The Wentworth Courier, the North Shore Times and The Mosman Daily will remain in print.
Adding to the woes of print, German magazine publisher Bauer has been on a low, slow turning wicket since it acquired ACP Magazines from Nine Entertainment in 2012. In 8 years, the Germans have killed off numerous highly successful titles. This week they announced the closure of their NZ operations. This comes on the back of Bauer, closing many of it’s own titles, sacking 140 staff. It then acquired Pacific Magazines, sacked 200+ staff and closed 7 fashion and lifestyle magazines.
But there is a glimmer of light for advertisers. Newspaper subscriptions markedly increased during Covid lock down with consumers demanding contactless delivery.
The Australian and the AFRs print and digital pay walls are in strong demand and Sunday staples The Sunday Telegraph, The Sunday Herald Sun and The Sunday Mail deliver mass reach at extremely competitive prices – you just have to buy through the right media buyer!
A reprieve for Out of Home Media
Out of Home has been on a respirator since the Covid shut down in March. It wasn’t all roses before Covid with investors taking a sledgehammer to share prices after weakened income forecasts. OOH Media’s share price dropped more the 50%.
With public transport restrictions in place, governments urging parents to drive their kids to school and office now re-open, Aussies are on the road and experiencing grid lock. Higher traffic numbers and longer dwell times means higher engagement for out of home advertisers.
The OOH media organisations are desperately chasing revenue and cutting amazing deals.