How does the newspaper industry make a profit?

Mainly rely on advertising to achieve profit, and there is the profit of newspaper issue price MINUS cost. Here is a case, which is the advertising profit model of Guangzhou Daily.

Since the mid-1980s, classified advertisements of Guangzhou Daily have appeared in newspapers as one of the fixed types of column advertisements. At that time, the classified advertisement column twice a week was only a supplement to industrial and commercial advertisements. When customers can't publish large-scale industrial and commercial advertisements at higher cost, they can choose classified advertisements with lower cost. The contents of classified advertisements cover all walks of life, including medical care, catering, housing and transportation. Although classified advertisements are cheap, their forms of expression are always limited, which can not fully meet the requirements of customers.

With the increasing circulation and influence of Guangzhou Daily, column advertisements for specific industries came into being. For example, the early "travel column" gathered a group of travel agency customers and regularly published their travel routes and prices; "Real Estate Direct Selling Plaza" gathers a group of real estate intermediary customers and regularly publishes their rental and saleable housing information; The "automobile column" founded in the later period is specially designed for the advertising needs of automobile dealers; What is particularly worth mentioning is the recruitment advertisement column "Job Square" in Guangzhou Daily. In the Pearl River Delta, where labor demand is strong, job advertisements have a broad market space. When this column was founded in the early 1990s, in order to support the development of this column, the original classified advertisements of "recruitment" were stopped. However, in the advertisement price list of "Job Search Plaza", the advertisement specifications were subdivided from large to small, and the maximum specifications could be full-page (48&; Time 35CM), the minimum specification is 2&; The time is 4CM, and the current charge is 400 yuan. So even customers with limited funds can be satisfied. Through this policy adjustment, the advertising volume of Guangzhou Daily's "Job Square" column has been maintained at a high level. In 2004, the advertising turnover has exceeded 1 100 million yuan, ranking first in national newspaper advertisements for many years, and its local market share has always occupied more than 70%.

At present, Guangzhou Daily regularly publishes more than ten kinds of column advertisements every week, each of which forms a large-scale operation and forms an effective supplement with industrial and commercial advertisements; At the same time, with the development of social economy, a large number of small and medium-sized enterprises have become the most important customer groups of classified advertisements, and the turnover of classified advertisements has also been rising, reaching 56 million yuan in 2005.

Expression form

In the form of classified advertisements, pure text has been used for many years to keep the layout clear and concise, forming the distinctive characteristics of classified advertisements, which is also an important part of establishing the visual brand image of classified advertisements; On the other hand, the use of plain text can effectively prevent the impact of low-priced classified advertisements and various column advertisements of Guangzhou Daily itself. In other words, if the advertising fee paid by customers is low, the form of expression will naturally be single, and there is no room for choice, but they can pay more, choose the corresponding column advertisements in the purchased page area, and freely express their advertising information. Of course, if customers pay more to publish commercial advertisements,

Sales model

In the sales mode of classified advertisements, Guangzhou Daily was initially handled directly by customers. Since the mid-1990s, the newspaper has invested in opening nearly 100 Guangzhou Daily chain stores, mainly distributed in communities and some downtown areas, and quickly became an important sales channel for classified advertisements. Customers can go to the nearest chain store to handle classified advertisements without going to the newspaper office for centralized handling, which greatly facilitates customers. Starting from 1999, in addition to the Guangzhou Daily chain store, a special door-to-door service hotline has been set up as another important way to publish classified advertisements, and customers can call for door-to-door advertising procedures without leaving home. By 200 1, in addition to chain stores and door-to-door service hotlines, in order to expand the broader market space, advertising companies specially contracted were also introduced as agents. In order to stimulate the enthusiasm of agents to explore the market and protect the decreasing profit space of agents, since 2006, classified advertisements have been set up as exclusive agents in the form of bidding according to the categories of 1 1. At present, the sales channels of classified advertisements are widely distributed in key cities in the Pearl River Delta, such as Dongguan, Shunde and Foshan, from door-to-door service telephones, daily newspaper chain stores and even various specialized advertising agencies, forming a wide range of high-density coverage and trying to provide customers with the most convenient and efficient services.

In the sales mode of classified advertisements, the most important point is that we have always adhered to the route of agency system, which is obviously different from the direct sales system of salesmen in other newspapers. First of all, we have never tried the coexistence of agency system and salesman model, which protects the pioneering enthusiasm of agents to the greatest extent. Even if the door-to-door service hotline is run by an advertising company, we regard it as one of the agents and pay the same agency fee. All agents adopt uniform agency rates to avoid price wars among agents and effectively control the unification of market prices; In addition, when collecting agency fees, agents need to input and proofread manuscripts according to the publishing requirements of newspapers, which is equivalent to reducing the labor costs that newspapers need to pay for handling a large number of manuscripts;

value added service

At present, the market competition is increasingly fierce, and the right to speak of customers is increasing day by day. Even customers as small as classified advertisements want and demand meticulous service and excessive returns while paying hundreds of dollars in advertising fees. In view of the actual market situation, the classified advertisements of Guangzhou Daily have been compiled and published every six months since 2003, and distributed in key areas together with Guangzhou Daily. In addition, some classified advertisements are placed at fixed points in crowded areas such as professional markets to expand the influence of classified advertisements. Advertising spaces in classified collections are presented to customers who have published a large number of advertisements as value-added returns for customers; Besides, Dayang. Use the com of Guangzhou Daily Newspaper Group to establish a classified advertising channel, and get the classified advertising information published in newspapers online for free every day, so as to transmit the customer's information to a wider area and maximize the advertising effect of customers.