Next Media shores up free newspaper launch
Hong Kong - A battle royal is underway over who will dominate Hong Kong’s free newspaper market, with Next Media and Oriental Press Group both set to launch free offerings.
Following the debut of Hong Kong Economic Times' free Chinese daily Sky Post, the giants of Hong Kong's newspaper industry are set to join the fray.
Next Media is said to be launching its free title Sharp Daily within weeks and rumours about Oriental Press Group joining the market are rife, but a title remains unknown.
Shih Wing-ching chairman of am730 Media Limited, told Marketing that if rumours about the soon-to-launch newspapers are true, Hong Kong is looking at four million copies of free newspapers a day - more than its working population.
He said it is likely the market will be forced to consolidate.
"A live or die competitive is inevitable - our market is not big enough."
Since the simultaneous launch of am730 and Headline Daily in July 2005, the newspaper battlefield has continued to heat up over the years.
Data from research group admanGo shows that while taking up only 10% of the ad market in 2006, market share for free newspapers increased to 35% during the first half of 2011.
Its estimates show that ad revenue for free newspapers has continued to show significant growth.
"As free newspapers continue to build up a steady readership, advertisers become more confident in investing their ad dollars in the media," Jennifer Ma, director of sales and marketing at admanGo, said.
"Even though paid papers are still leading the way, free papers have become the preferred media for advertisers in certain categories such as cosmetics & skincare. "While advertisers in this category have only invested 8% of their ad budget in 2005, the proportion has significantly increased to 60% this year."
Ma added that with more new comers in free newspaper territory, she expects to see further challenges for paid newspapers.
Marketing is currently seeking comment from Next Media and Oriental Press Group.
Festival of Media Asia
The Festival of Media Asia is coming to Singapore in November in partnership with Marketing Magazine.
For speaker information and event details see the site festivalofmedia.com/asia
- Next Media
- Oriental Press Group
Next Media Related Stories:
- Next Media sells TV unit to ERA Communciations
- Case Study: Next Media's digital journey
- Sharp Daily puts brands into question
- Gravitas triumphs at Mob-Ex Awards 2012
- Next Media quits Taiwan after 11 years
- Next Media eyes growth for Sharpon
- Apple Daily halts adult section
- Sharpon stuns shoppers in guerrilla push
- The real purpose behind Sharp Daily
- Next Media continues to make losses
- Anti-locust ad to fuel Mainland tensions
- Marketing TV: Sharp Daily launch
- Free, but at what cost?
- Next Media sets aside $10m for Sharp launch
- Next Media to animate the US market
- VDONext joins the iPad bandwagon
- VDONext pushes horse racing fun
- Pixel Media picks up VDONext
- Next reworks Apple Daily sales team
- VDONext ramps up mobile presence