Saturday paper underscores profitability of free newspapers

Hong Kong - Headline Daily, Sing Tao News Corporation's Chinese-language free newspaper, has launched a free Saturday version that underscores its market share and high circulation despite the relentless growth of online news and digital media.

The first issue of Headline Daily Saturday version, which will be launched this Saturday, will provide news and infotainment with a focus on leisure and lifestyle activities targeting the working class. It will serve as an additional marketing platform for advertisers.

Distributors gave away 700,000 copies of Headline Daily on a daily basis last year.

It reported Headline Group's readership climbed to 1.7 million, an increase of 35% compared to 2006, and 76% more than the readership of its closest competitor such as am730, Metro, Take Me Home and others.

The paper's website also recorded growth in advertising revenue from the banking, pharmaceuticals and education sectors. It has been upgraded to include hundreds of real-time daily news and features content, as well interactive sections and other features.

Publisher Sing Tao News believes Headline Daily has been a successful strategic move into the free newspaper market, accompanying the readership growth of their Chinese-language paid newspaper Sing Tao Daily, which is aimed at middle-class families.

The Nielsen Company unveiled early this year a 6% increase at HK$18.6 billion in print ad spending (in both free and paid-newspapers) in Hong Kong.

It reported free newspapers are becoming increasingly attractive to advertisers and has gained momentum in ad dollars with their niche target audience. "Education" remained the top ad category in free papers in general, followed by "loans and mortgages."