Industry Analysis & Industry Trends
In the past 10 years, the traditional revenue model of UK newspaper publishers has been torn up by falling demand for print media and declines in advertising revenue. The transition from print to digital has been far from seamless and publishers are still adapting to online markets. As a result, digital advertising revenue is only growing at a single-digit rate. Over the five years through 2016-17, industry revenue is expected to decline at a compound annual rate of 4.2% to reach £4.7 billion. In 2016-17, revenue is expected to fall by 1.6%.
The two traditional revenue channels for UK newspaper publishers are print advertising and newspaper sales, both of which have contracted in the past five years... purchase to read more
Industry Report - Industry Products Chapter
Selling print advertising
Although the revenue generated by the sale of print advertising in newspapers has lessened in the past five years, it still contributes a large portion of operators' revenue. Traditionally, newspapers have allowed advertisers to reach a broad audience but plummeting circulation figures and the ability to target niche groups online mean that print advertising is no longer as desirable. Although national newspapers can still use their wide reach to attract print advertising, they are vulnerable to reductions in demand from large clients. For example, in 2015, the biggest print advertiser, Sky, cut its newspaper advertising budget by 20%, while Asda and Tesco slashed theirs by 47% and 39% respectively. Alt.. purchase to read more