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A Difficult Choice For Newspapers: Advertisers Or Readers

4181 words - 17 pages

A DIFFICULT CHOICE FOR NEWSPAPERS:
ADVERTISERS OR READERS?

Gopal Thapa
Lecturer
Nepal Commerce Campus
Tribhuvan University

ABSTRACT
Almost entire advertisement revenues are acquired by newspapers in print media. Along with rapid technological developments and the intensive competitive climate in newspaper sector; the gulf between high cost and low revenue has widened, and newspapers are obliged to subsidize this deficit with advertisement revenues. Newspapers in Nepal have two separate groups of customers. The first one of those groups is the advertisers and the other is the readers of that newspaper. Due to economic reasons, this compulsory dependency on advertisement revenue causes ...view middle of the document...

Newspapers primarily have to raise their circulation figures, that is, the sales chart of the newspaper and keep it within a certain range to be able to be perceived as more powerful and to be preferred by advertisers. Unstable and periodically varying sales figures are not perceived as reliable by the advertisers, therefore newspapers primarily have to achieve circulation stability and clarify their reader profile.
In another customer group of the newspapers other than the advertisers, there are readers who enable the newspaper to be a ‘real newspaper’. The readers enable a newspaper to revive and to survive, and allow their continuity and ultimately are the most vital point of a newspaper. For that reason, newspapers have to keep hold of their own readers and meet their expectations, and at the same time, gain new readers and, increase their circulation figures. Although it is possible to increase circulation rates with periodic promotions, what really matters is to what extent the readers gained within the promotion period will enter to be among the loyal readers after the promotion period.
It is one of the leading most difficult and sensitive task for the newspapers to maintain the balance between the advertisers who provide advertisement revenues required for newspapers to economically survive and the reader, who enables the circulation by buying the newspaper. Newspapers which are able to walk a thin line between both parties are successful, while the ones that disturb this balance in favor of one of the both parties usually face problems.
This article aims to explicate the relation between advertisers and readers that place newspapers in difficult circumstances.
Advertisement and Marketing
Marketing has been defined in many ways. Marketing is the systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for mutually advantageous exchange or transfer of products (Thapa, 2008, p. 193). Similarly, Kotler and Armstrong defines marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Kotler & Armstrong, 2005, p. 33).
We can go through the marketing operations under marketing mix, popularly known as the 4 P’s of marketing, which includes product, place, price and promotion. Advertisement is a part of promotion, which is one of the four components. Advertisement is any announcement or persuasive message placed in the mass media in paid or donated time or space by an identified individual, company or organization (Thapa, 2008, p. 6). Similarly, Kotler and Armstrong defines advertisement as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor (Kotler & Armstrong, 2005, p. 522)
Advertisement is the most visible form of communication and the most important part of the communication mix for...

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