Sources of Revenue for Print Media
Revenue generation strategies of the media generally have been discussed in previous chapters. The print media, like other media, derive the bulk of their revenue from paid advertising. There are income generation strategies specific to print media, particularly online publications, which will also be mentioned in this section of the book. Let’s look at some revenue sources for print media establishments.
Print media establishments get revenue from three basic sources -advertising, circulation, and ancillary services.
(i) Advertising:
This is a major source of income for virtually all mass media establishments. It accounts for about 70 – 80 percent of total revenue in newspaper establishments and over 60 percent of total revenue in magazines. These figures of course, vary with the general economic situation in a country, particularly the financial strength of organizations advertising their products. For instance, the first wave of Covid-19 pandemic in 2020 affected advert revenue of newspapers and magazines, as some major companies crashed or experienced dwindling income. Despite this development, advertising remains a major legitimate source of income for newspapers and magazines.
In Nigeria, advertorials (adverts written as stories or articles) yield much money for the print media. Politicians use advertorials a lot to counter or oppose their opponents at state, federal and local government levels. Other organizations also use advertorials to promote their interests. Supplements, spot lights and special reports also yield revenue for the print media, especially magazines in Nigeria. Governments or their agencies, and in some instances, private organizations pay for a number of pages and publicize their company operations, products or public relations activities. Such pages or presentations are captioned special reports or spotlights.
(ii) Circulation:
This refers to distribution of copies of a publication to newsstands, vendors, vending machines (especially in the developed world), subscribers, and to organizations that get free copies. Circulation could also refer to total number of distributed copies. Circulation does not exactly mean sold copies, though both terms are sometimes used interchangeably in the print industry. Some publications are distributed free of charge (controlled circulation). These are either trade, professional, or consumer publications that intend to depend on wide circulation due to free distribution to attract advert. Other types of circulation are subscription, and single copy sales (newsstand or vendor sales). Circulation accounts for about 30 percent of newspaper and magazine revenue. It is a crucial aspect of print media business because it determines readership and advert revenue. Advertisers prefer media that have wide circulation and readership. Internet technology has contributed immensely in expanding the circulation of newspapers. With the dwindling patronage of hard copies, many newspapers are resorting to their online versions for audience expansion.
(iii) Ancillary services:
This consists of activities or services (other than sale of publications and advertising) through which the print media make money. Some print media establishments in Nigeria undertake other businesses such as book publishing, printing of journals, newspapers and magazines for small establishments that do not have printing press. This includes printing of posters and fliers. Such big establishments also sponsor, organize and execute book lunch for individuals and organizations. Some engage in consultancy services in all kinds of print media operations. Some organize workshops and make money from participants. Some others even get contracts from government establishments to undertake print related jobs and in some cases to execute development projects (though this is viewed as unethical practice because it could jeopardize the integrity and freedom of the establishment accepting the contract from government). Ancillary services yield extra revenue for print media establishments. However, organizations offering such services must be careful not to lose sight of their basic objective which is the newspaper/ magazine business (Nwabueze, 2016).
