Revenue from newspaper advertisements lower than from online advertising
A historic change has taken place in the German advertising industry. Online advertising has overtaken newspaper advertising revenue for the first time. The reveal figures of the Federal Association of German Newspaper Publishers (BDZV), which were presented in the course of the annual press conference of the association. According to the latest figures from the German Digital Economy Association, sales of 4.1 billion euros were achieved last year, while newspapers with advertisements generated only 3.9 billion euros.
According to the BDZV, the decrease in newspaper advertisements was 15.7 percent or 700 million euros. In addition to the advertising business, supplements brought in around 82 million euros in 2009, while sales revenues fell 4.47 billion euros. There were also further losses in terms of print runs. The numbers have shrunk by an average of 2.5 percent compared to 2008. The development continued in the first quarter of this year (minus 2.7 percent). The paid newspapers lost the most (minus 4.1 percent). Subscription newspapers lost 2.2 percent, weekly newspapers by 2.6 percent.
In view of the meager refinancing of online activities through advertising, publishers are clinging more and more to paid content. iPad and Co. are – similar to the USA – also becoming the central point of the digital strategy in this country. This was also emphasized by BDZV General Manager Dietmar Wolff. Paid content is of “existential importance” for publishers. With the introduction of the iPad, publishing on electronic displays has reached a new dimension. The publishers are working intensively on content, design and marketing models.
But newspaper publishers want to be more than just content providers. “They want to maintain their relationship with their customers on the new digital platforms and determine the sales prices for their products themselves, as well as the development of the advertising business,” adds Hans-Joachim Fuhrmann, Head of Communication and Multimedia at the BDZV. This should be negotiated with external platform operators. It is important that the publisher’s offers can be presented on all attractive platforms and devices as far as possible without technical obstacles. There are different surveys on the willingness of consumers to pay. According to the BDZV, users are quite ready to dig into their pockets for good and exclusive content. Surveys such as the recent one by Fittkau and Maaß showed, however, that hardly a quarter wants to pay for online content. pte