One Way For An Advertiser To Be Remembered Is To Give Us Something For Free, Like A Free Paid-for Newspaper

Philip M. Stone October 16, 2006

It was an unusual London site. Vendors for the paid-for Evening Standard were thrusting their newspapers into the hands of surprised commuters as startled vendors of two competing free newspapers tried the same with theirs. And if you had a choice of a free newspaper for free, or a paid-for newspaper for free which you choose?
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Had the Standard given up the fight to remain a paid-for, after all it had raised its price from 40 pence to 50 pence as the PM newspaper war started up last month? Not at all. It was all part of a Nokia promotion to give away some 50,000 newspapers to anyone who would take one for about 90 minutes.

Nokia, the mobile phone company, had bought all the advertising space in that day’s paper to promote its new E61 mobile phone, and it was Nokia that paid for the 50,000 papers that were given out after 6 p.m, probably paying less than the 50 pence cover price that would have come to a petty cash payment of £25,000.

What they did was very effective marketing for really very little additional cost. Nokia had already bought all the ads in the newspaper. It didn’t take much more of an investment to make sure the message got out there to the prime commuter on the way home by giving the paper away. No doubt the Standard’s sister newspaper, the free London Lite would have given almost anything to get that Nokia deal as would have News International’s thelondonpaper, but Nokia went for the quality buy and no doubt those readers will remember Nokia fondly, for that day at least.

As for the Evening Standard on a normal day, it’s struggling to compete with the onslaught of the two free newspapers. The first ABC audit since the war began  proved that Associated Newspapers’ spin that the Standard was down only around 7,000 was just that – spin. The official ABC numbers showed it down 24,000 copies on the month and perhaps the only real surprise there was that the figure wasn’t higher. Indeed that was the theme picked up by the Standard’s editor and other executives.

After all, not only were there some 700,000 free newspapers being given away in competition, but there was also the Standard’s price rise to take into account. On hearing the ABC figures the Standard’s editor remarked her readers were “remarkably loyal” which gives new meaning to such an expression when a newspaper’s readership slips 7.6% from the month before and 11.4% for the year.

Putting the numbers into more perspective the newspaper had a circulation of 466,273 five years ago and with last month’s circulation of 289,254, falling through the psychologically important 300,000 figure, it means a 38% drop over that period. Not an impressive figure to woo financial analaysts.

And then there are the trials and tribulations of the two free newspapers. Although both newspapers said they intended to distribute 400,000 copes each daily, the first ABC audit figures show that London Lite is distributing an average of 359,389 copies compared to thelondonpaper’s 327,120.

When Associated Newspapers announced the launch of London Lite it killed Standard Lite, a 40 page version of the Evening Standard that was given away at the lunch hour in order to entice readers to buy the full 80-page newspaper on the way home. What Associated has now done is to issue two editions of London Lite – one really replacing Standard Lite at the lunch hour and then a later edition for the commuter crowd going home from 1630 – 1930.  Some of the content in the lunchtime London Lite is from the Evening Standard.

Thelondonpaper has suffered distribution difficulties but things have settled down now and the figures that will mean more to everyone really will come from October, although the London Lite does seem to have an edge by having two editions. There is, however, a distinct possibility that the numbers for both free newspapers may go down.

The central town councils in London, angry at all the increased litter on the streets from discarded copies of both free newspapers plus the general annoyance of so many people thrusting newspapers at passers-by, have cut back the number of hawker licenses given to each newspaper. Those cutbacks now make more important to both groups who will win the distribution contracts at railway stations and at the Underground (subway). Metro, also published by Associated Newspapers, has the license for distribution bins on the Underground in the morning, and its circulation is now up to 549,713. Those same bins are on offer for PM use.

Free newspapers in London are actually having a pretty good ride. Besides Metro’s numbers up by about 20,000, the free business paper CityAM celebrated its first year anniversary with September ABCs showing a circulation of 90,682.

Jens Torpe, chief executive of CityAM, said: "Officially reaching 90,000 is an excellent result for us just a year after launch. This figure again proves the success of our free newspaper model. Hand-delivery and corporate distribution are highly effective ways to target both regular and new readers and we look forward to continuing growth.”

At the same time as the free newspapers are bragging of their success News International’s Sunday Times became the UK’s first £2 newspaper and its circulation dove an average 3.74% although the price cut didn’t take effect until mid-month. If the loss holds at that 3.74%, and you assume all copies sold before the increase and after were at full price then even with the lower numbers the circulation revenue is up by some £275,000, so financially it’s a success, but here again October’s full-month figures for the higher price will tell the real story.

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Thelondonpaper Wins Major Distribution Contract At London Rail Stations - October 18, 2006

Thelondonpaper, the free PM published by News International, has won a seven-year contract to provide exclusively its free newspaper in bins at London’s 10 main train stations where more than one million people pass each weeknight....MORE