World Association of Newspapers and News Publishers


Auction-financed advertising

World News Publishing Focus

World News Publishing Focus
Your Guide to the Changing Media Landscape

Auction-financed advertising

“We’ve run 26 online event auctions since 2005 generating over 21 million in revenue,” says Cheryl Newsom, Managing Director of Australia's inXcess. Ms. Newsom is presenting an example of how newspaper publishers can combine the best of print and online in a package with an online auction concept.

The concept offers several advantages to newspaper publishers, Ms. Newsom says, including: It helps them assist local retailers in online arena, keeps readers interested in the newspaper, and also keeps revenue coming into the paper.

Established in 2005, “inXcess have been focused on the implementation of new technologies and programs designed to drive revenue for our media clients,” states Ms. Newsom. “Through training, development and management of our client’s staff we are in a position to give them a point of difference in the marketplace over their competitors.”

“We call it auction-financed advertising,” she says.

The way it works is like this:

  • The newspaper targets retailers to provide products or services for auction
  • Businesses commit goods or services for auction
  • The newspaper then promotes the items and businesses
  • Bidders register and buy online in 10-day auction at the auction website
  • The winning bidder makes payment to the newspaper, and collects the goods
  • Retailers receive ad credits equal to the full retail value of the auctioned item

“We provide you with a complete turnkey solution including project management and implementation,” Ms. Newsom says.

One newspaper that has used the auctions is Australia-based Geelong Advertiser, which has a circulation of 42,000, a readership of 63,000 in an area with a population of 217,935.

Via a previously recorded video, the Advertiser’s Sales Director, Mark Hallo offers these comments: “We very quickly got a positive response from the market. … overall summary: In both years we’ve done the auctions we’ve had a tremendous increase in our bottomline. It’s been terrific for us.”


Photographer: Vojtech Marek, www.aktualne.cz

Author

Brian Veseling's picture

Brian Veseling

Date

2012-03-01 15:23

Author information

About 200 newspaper advertising experts will attend the 22nd World Newspaper Advertising Conference in Prague on 1st and 2nd March. WAN-IFRA will provide summaries of each speaker's presentation during the event. Check back on our blog for the latest updates.


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