A Difficult Choice for Newspapers: Advertisers or Readers

4173 Words Apr 2nd, 2013 17 Pages

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 newspapers to fall into a paradox
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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

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