Local media companies are finding new business opportunities working closer to their advertisers.
“With the majority of local media in Norway based on household delivery and a geographical coverage of up to 85% in a newspaper’s distribution area, the opportunity to share information about their subscribers and digital users is quite unique,” says Norway’s Re:Media CEO Rune Danielsen.
Danielsen is right. And local media companies need to jump on this opportunity.
Representing its advertising clients, Re:Media is building a bridge between advertisers that normally choose national media, thus creating new business opportunities for local titles. Sharing target group knowledge is along the same principle as Big Data and content marketing. The least sophisticated media are often the ultra-locals – yet these are now deemed the most attractive.
Re:Media believes in performance-based marketing, where improving and optimising media buying and monitoring delivery and efficacy are part of the company mantra: “close to the result,” provided through simple and efficient operation.
Re:Media has developed a response-based research tool for smartphones that provides results for each campaign — results such as lasting impressions of the brand and in-store effects. It combines this information with sales data down to surrounding household coverage of each store’s geographical area.
This, combined with local knowledge, is a powerful tool for advertisers when they are paired with the local media companies. It represents an important development in understanding local consumers, subscribers, and potential subscribers.
An intelligent newspaper household distribution system, which most media houses utilise today, also provides the opportunity to approach non-subscribers on a newspaper route. This makes the cost efficiency of loose inserts, where target selections such as vicinity to a store or high-income, family housing, of great interest.
With knowledge of sales data and consumer frequency among individual target groups, local media companies can better understand their audience, giving them the opportunity to adjust their interactions accordingly.
Building response-based models in cooperation with local media brings the retail advertiser closer to their target group. Such models ultimately become a more powerful marketing solution than the traditional national media offerings such as television, outdoor, or newsstand-sold newspapers.
Working together to build response-based models for retail advertisers is an exciting new business opportunity for local media.
Advertiser-oriented, performance-based marketing serves to bring the media and the retail advertiser closer together, thus increasing advertiser investment and providing valuable knowledge about target groups, reader and consumer affinities, and commercial growth for both.