Newspaper Advertising?

Discussion in 'General Business Forum' started by DStyle, Sep 11, 2019 at 2:00 PM.

  1. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    After the failure to launch my app idea (I have a thread on here about it) I have got the idea to launch my own monthly newspaper.

    In my local area there is currently 2 competitors producing monthly newspapers which are filled with ads. I got a copy of the rate cards and they are turning over in excess of £20,000 a month each. Having researched the costs of printing and circulating (approx £6500 a month) there is potential so earn a few quid every month.

    The business consists of 2 parts:

    Firstly by keeping our overheads and staff costs to a minimum we can still offer businesses advertisements at a fraction the are currently paying and still make a healthy profit. An example of one advert which cost £800+Vat in one paper, we could do for £350+vat and still make profit.

    Secondly is the content, out of the 2 competitors, 1 is filled with adverts and out of date news - generally a month old and there is nothing worth reading in it. The other is filled with adverts and business editorials - promoting the businesses that placed adverts so nothing really exciting to read.

    I genuinely can't understand who actually reads the papers other than pensioners.

    This makes me wonder why businesses advertise in them and pay a large amount of money per month.

    We have come up with some great content ideas which would appeal to people in their early 20's and 30's which would seem to suit 80% of the advertisers who pay the competitors.

    The Pitch?

    As a brand new company with a brand new product my idea for selling this to businesses was to print up sample copies and go out and demonstrate the content and quality of the print along with promoting the lower prices and our target market.

    Is this a stupid idea?

    Or should I just launch it and offer people free ads for the first couple months then they can see the benefits?
     
    Posted: Sep 11, 2019 at 2:00 PM By: DStyle Member since: Aug 16, 2018
    #1
  2. NickGrogan

    NickGrogan UKBF Ace Free Member

    2,006 439
    No one pays ratecard for advertising. I'd expect to pay 25-33% of ratecard at most.
     
    Posted: Sep 11, 2019 at 2:11 PM By: NickGrogan Member since: Nov 15, 2012
    #2
  3. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    I did phone one to do a bit of digging. They offered 25% for my first advert only and my friend who advertises with them every month has never had a discount from them so the rate card does seem not to be flexible with one of them.
     
    Posted: Sep 11, 2019 at 2:14 PM By: DStyle Member since: Aug 16, 2018
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    16,094 1,796
    Don't bet on making money every month even after you have circulation sorted. Which itself is a job.
     
    Posted: Sep 11, 2019 at 2:15 PM By: Mr D Member since: Feb 12, 2017
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    16,094 1,796
    I had an advert done through an agency, cost for the advert was about 20% of the best offer the paper ever offered me.
    I wasn't however spending tens of thousands of pounds a week on advertising with the group.
     
    Posted: Sep 11, 2019 at 2:17 PM By: Mr D Member since: Feb 12, 2017
    #5
  6. NickGrogan

    NickGrogan UKBF Ace Free Member

    2,006 439
    I'd suggest your friend has a word with whoever is arranging his advertising, they're ripping him off.
     
    Posted: Sep 11, 2019 at 2:18 PM By: NickGrogan Member since: Nov 15, 2012
    #6
  7. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    I understand that an ad agency would get a discount but I assume they would be buying a lot, maybe I am wrong on that one.

    He isn't a massive business just a local trades man and wouldn't use an ad agency or anything. They phone him every month to confirm he wants an ad but no discount is given.
     
    Posted: Sep 11, 2019 at 2:22 PM By: DStyle Member since: Aug 16, 2018
    #7
  8. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    But the purpose of the thread is that if a business you never heard of came to you with a sample paper and content along with prices and target market, would that be enough to convince you to buy an advert or what would you need to be sold on the idea?
     
    Posted: Sep 11, 2019 at 2:25 PM By: DStyle Member since: Aug 16, 2018
    #8
  9. NickGrogan

    NickGrogan UKBF Ace Free Member

    2,006 439
    They must love him, why doesn't he ask for a discount?
     
    Posted: Sep 11, 2019 at 2:26 PM By: NickGrogan Member since: Nov 15, 2012
    #9
  10. NickGrogan

    NickGrogan UKBF Ace Free Member

    2,006 439
    No chance, not without verified circulation figures and copies of past issues to see the quality of the content.
     
    Posted: Sep 11, 2019 at 2:27 PM By: NickGrogan Member since: Nov 15, 2012
    #10
  11. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    He did, they said everyone pays the same price to keep if fair. So he cancelled and all of a sudden got loads of telephone calls to come out to price jobs and when he went out the address didn't exist. Not saying they did that but it didn't stop until he took out more adverts.

    Thanks for the input
     
    Posted: Sep 11, 2019 at 2:30 PM By: DStyle Member since: Aug 16, 2018
    #11
  12. NickGrogan

    NickGrogan UKBF Ace Free Member

    2,006 439
    Sounds like a great place to advertise...
     
    Posted: Sep 11, 2019 at 2:32 PM By: NickGrogan Member since: Nov 15, 2012
    #12
  13. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    I agree.
     
    Posted: Sep 11, 2019 at 2:35 PM By: DStyle Member since: Aug 16, 2018
    #13
  14. Mr D

    Mr D UKBF Legend Free Member

    16,094 1,796
    I'd need to know how many people and what area was seeing the ad.
    Without a distribution system I'd not advertise.
     
    Posted: Sep 11, 2019 at 2:56 PM By: Mr D Member since: Feb 12, 2017
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

    16,094 1,796
    Yes the agency would get a considerable discount.
    Now suppose 80% of the advertising you sold was to big companies spending a lot - and wanting massive discounts.
    Oh and not forgetting of course you producing and distributing the paper before they have to pay... 30 days credit, maybe 60 or 90 days credit. That's you lending much bigger businesses some money for so many days.
     
    Posted: Sep 11, 2019 at 2:58 PM By: Mr D Member since: Feb 12, 2017
    #15
  16. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    Great, forgot to include that. Though the circulation figures will be a little bit more that the competitors the delivery method will be with the same company.
     
    Posted: Sep 11, 2019 at 2:59 PM By: DStyle Member since: Aug 16, 2018
    #16
  17. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    As its a local paper I highly doubt the local small businesses will be using ad agencies. Maybe some might but I doubt it will be a lot.

    Credit terms that I was thinking was first ad 50% on booking advert and 50% 14days after it is circulated. Once we have built a relationship I would be offering 30 days credit.

    I think the days of 60+ days credit are long gone.

    Both competitors are payment in advance only with no option of any credit.
     
    Posted: Sep 11, 2019 at 3:03 PM By: DStyle Member since: Aug 16, 2018
    #17
  18. Mr D

    Mr D UKBF Legend Free Member

    16,094 1,796
    Why not?
    What is there about paying for an ad campaign that limits it to doing all the work yourself.

    Wouldn't know about 60 plus days credit being gone, was offered it by over a dozen businesses last week at the trade fair. We saw less than 50 businesses.
    You want to get people signing up to your business, give them a reason to sign up. Some may well take a 30 day credit facility and turn it into 60 days. What will you do, drop the customer?

    Both competitors are payment in advance to you.
    You cannot know what deals they work with others.
     
    Posted: Sep 11, 2019 at 3:09 PM By: Mr D Member since: Feb 12, 2017
    #18
  19. DStyle

    DStyle UKBF Newcomer Free Member

    29 2
    Not sure what you are asking why not?

    If you're asking why a lot don't use ad agencies, its because I am targeting small businesses and the area I am based isn't exactly hiving with ad agencies. A quick google search just the nearest ad agency is 64 miles from me.

    So why am I different?

    I will offer 50% upfront and 50% 14 days after with the possibly of 30 days credit which is more than my competitors. The prices will be around 50% cheaper than my competitors, the circulation will be around 4500 homes more than my competitions. Is that not reason enough? compared to what they are currently offered?

    With regards to my competition, I can know because I have seen the terms and conditions of both, I have experience with one and the other is well known in the area for only working in cash sales as well.
     
    Posted: Sep 11, 2019 at 3:18 PM By: DStyle Member since: Aug 16, 2018
    #19
  20. intheTRADE

    intheTRADE UKBF Contributor Free Member

    81 13
    You are going to need to do a first edition price in order to firstly make sure you fill the paper first time round and secondly demonstrate the results to those advertising in it.

    If your aim is to take the current companies advertising in the other newspapers they aren't going to pay anywhere near what they are currently paying to speculate in a new publication.

    I know you said circulation numbers will be similar but are you also delivering to the same area?
     
    Posted: Sep 11, 2019 at 3:18 PM By: intheTRADE Member since: Apr 14, 2019
    #20