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Tuesday, July 04, 2006

Recruitment Ad Model re born or in death throes

Trade weekly for journalists, Press Gazette has recently announced a tie in with the Press Association where regional newspaper publishers can run job ads for free in the pages of the magazine. Press Gazette will earn its money (although I guess not much) from sponsorhip of the section by PA.

Press Gazette probably considers it has nothing to lose as most if its job advertsing has long since disappeared to the regional newspaper backed Hold the Front Page. It is risky though. What happens when PA decide they no longer want to sponsor the section? Won't other fully paying advertsers object to "free" advertisers dipping into the reponse pool? How will this strategy lead to revenue growth for Press Gazette. I am drawn to the conclusion that this is either desperate or very clever and I am not sure which. The biggest flaw in the thinking is that it doesn't tackle the basic probelm of competing with cheap on line alternatives - they work!

Is this further evidence of the terminal demise of magazine revenue streams or is it an example of a clever defensive strategy for an off line solution in an online world? Hands up! Yes, I thought that was the answer.


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