The overall environment for newspapers is now rapidly changing. Thus, it is necessary to take a look at changes in the environment for news media in order to better grasp power relations between newspapers and advertisers. The domestic news media envi...
The overall environment for newspapers is now rapidly changing. Thus, it is necessary to take a look at changes in the environment for news media in order to better grasp power relations between newspapers and advertisers. The domestic news media environment is now to encounter quite new changes as up-to-date portal sites, the Internet newspapers, complimentary newspapers have newly emerged in line with the developments of the Internet. This paper is aimed at investigating how these new changes have influenced on existing newspaper industry since the IMF crisis back in 1990s in Korea. In particular, it is focusing on how advertisers, in the midst of these new changes, have altered their position and attitude in relation to newspapers.
The relations between news media and advertisers have usually been described as being inseparable from each other. They had maintained the long-existing relations without any major change until the IMF crisis in 1997. However, the relations have gone through a drastic change since then. Put it another way, media companies in a financial crisis were forced to lay off quite a number of their staff members out of the blue, and those who lost their jobs started to find ways to survive on their own. The majority of people established quite a few of new media companies based on their previous experience and expertise. Accordingly, those old and new companies became more competitive for securing decent advertisers. In addition, there emerged new portal sites in line with advances in the Internet. These changes in the market have opened a battle filed where almost all the companies are to fight to the death for their survival.
Media companies started to align themselves with the new market changes as competition among them became more fierce than ever. That is, they actively began to look for ways to securing funds enough to survive. As usual, funding is directly related to making profits. For domestic newspapers, revenues from advertisements should account for about 80% of their total sales figures. Accordingly, the importance of advertisements in Korean newspapers is not to be underestimated. It may safely be said that advertisers should be the number one source of funds to the newspaper companies.
Since the late 2008 from which the world-wide economic crisis began, they have been faced with heavier competition for securing reliable advertisers. They are now taking the position that they would do anything possible to grow their sales. In particular, they are now aligning special features with the requests of their advertisers. They are even altering the layout of their regular edition for them. As a matter of fact, almost all staff members, including editors and reporters, in newspaper companies are trying their best to get more advertisements. Considering this situation, we may say that they are at a loss what to do in order to keep their long-standing commitment such as truth, fairness, and responsibility as news media.
Currently, it is much easier than ever for advertisers to have newspapers under their control. In a nutshell, advertisers are now able to pick a newspaper to place an ad in at their will. Especially, large-scale advertisers know fairly how to handle newspapers; they are now taking a carrot and stick approach. Thus, it is quite natural that we can see a radical change in advertisers' attitude toward newspapers.
In order to seek a solution to this matter, I carried out in-depth interviews and literature reviews. As for the interviews, I contacted a variety of relevant personnel such as large-scale advertisers, newspaper ad staff members, advertising firm specialists, and so forth. In case of large-scale advertisers, I interviewed with several of the ad specialists, most of whom were with more than 10-year experience, representing the top companies leading the newspaper ad market. As to the newspaper ad staff members, they also had more than 10-year experience in leading newspapers. I chose these special personnel both in the companies and the newspapers just because they should be the best ones to tell me about what's going on in the field.
So far, there has not been much systematic, academic research on the relations between news media and advertisers. I hope this paper will be a useful source to the subsequent research projects on power shift between those two parties.