WAN IFRA WORLD NEWS PUBLISHING FOCUS Magazine, Jan/Feb 2015
In Australia, the regional industry association The Newspaper Works opened its “Bid on Print” platform, which the group describes as “a private exchange focused on the purchase of advertising in print newspapers. Bid on Print provides direct access to publication inventory, circulation and readership comparisons and a simplified purchase process.”
The objective is to “provide an additional way for clients to purchase newspaper advertising in a fast and efficient manner. It’s no more complex than that,” Mark Hollands, CEO of The Newspaper Works, told us by e-mail. “We’re all about making the buying process easier, not harder,” he added.
The Newspaper Works says the Bid on Print platform was designed to be easy to use and works in the same way that online auction sites do.
Only publisher-accredited agencies can purchase ad inventory through the invitation-only platform. On the publisher side, Bid to Print is open to all publishers who are members of The Newspaper Works, though members are not required to participate.
There are no fees for the agencies to use the platform, but participating publishers pay a per-transaction commission to Bid on Print.
While the initiative is still in its early days, Hollands told us he is “very positive about the response” Bid on Print has received so far.
”The site has transacted more than $ 500,000 between publishers and agencies,” he said. “Three of the top four publishers in Australia and New Zealand are participating.
All of them are ramping up the inventory that they will make available. I understand they are also dedicating manpower to manage this new line of revenue. Potentially, the three participating publishers can put literally several hundred titles on the system, if they wish. But everyone needs to ease their way into this new process and ensure it can be managed appropriately to ensure a great experience for the client.”
‘A great example of the industry working together’
Hollands also said, “Agencies have been very supportive and generous. Their industry body, the Media Federation of Australia, has encouraged The Newspaper Works throughout the whole process and we – together with our technology partner, Publisher’s Internationalé – have had great access to their technical committee for advice and direction. There are some details that both publishers and agencies have asked to be baked into the system, such as being able to manage existing contracts and rates. We’ll have that cracked in a few weeks.
“One of the elements that seems to have been welcomed is that Bid on Print is a great example of the industry working together,” he said. “The fact we bring our newspapers together within this facility makes this an industry solution, and one that agencies can see as being a commitment to making their transaction process more efficient.” In addition, Hollands said he is seeing interest in Bid on Print beyond its original target group, from magazines, for example. “I have also been approached by newspaper executives in two other countries who really like the sound of what we are trying to achieve,” he said.
One thing that Bid on Print is not interested in is digital sales. Hollands told us why: “Not only are we not interested, but Bid on Print is not a programmatic trading system. Publishers stay in control at every stage to ensure there’s no race to the bottom. They set the floor price and the system will not accept bids under that. When the bidding rises above it, a publisher may choose to accept a bid at any given time, or they can wait for the end of the auction period.
Once a base price is set and bidding begins, a publisher must accept the outcome. That’s only fair to the buyer.”
Publishers interested in learning more about how this platform works should see the following video that The Newspaper Works has made available on YouTube: http://tinyurl.com/bid-on-print.
Expert view: ‘It’s a really cool idea’
Shortly after Bid on Print’s launch, we asked Eamonn Byrne, Commercial Director and Managing Director of The Byrne Partnership, for his take on the new platform.
“The trick will be to integrate the system into an advertising department that uses it in a smart way... in a way that ensures yield needs are met. That will be the acid test,” said Byrne, a regular contributor and moderator of
WAN-IFRA advertising-related events. “If used well, this will provide a means to market unused advertising quota in print titles. If allowed to get out of control it will be a mechanised version of the black hole that is ‘late space sales’ and another nail in the coffin of ad sales, [which] perforce must make a net contribution to the business.
“News organisations already have a mechanism for print to ensure the net contribution of advertising, by increasing or decreasing issue size. It’s not perfect, but it sort of works,” Byrne added. “This system should help to increase the efficiency of that tool. However, those new to print, and who do not understand that print inventory is fundamentally different to online, could find themselves in deep trouble very quickly.
“I have faith in The Newspaper Works,” Byrne concluded. “They do great work on behalf of the industry and they know their stuff, so I am sure my fears are groundless. In any case, it’s a really cool idea. Anyone running an ad department should be up for it in big style, but keeping it under tight control from the get-go is a must-have.”