The reality is that there are many ways to sell without necessarily going through the media. Businesses are also looking for more effective ways to advertise. Brands are very concerned about the actual cost of converting a customer and generating the lowest possible order. The media cannot adapt quickly enough…
MANY NEWSPAPERS HAVE DECLINING REVENUE
Research data from the Institute of Policy and Media Development shows that in the years after the Covid-19 pandemic, 78% of media agencies had revenue that remained unchanged or increased slightly by 10-30%; nearly 17% of media agencies recorded a decrease in revenue; 71% of media agencies had advertising revenue from print media that remained stable or decreased; 74.6% of media agencies had advertising revenue from online media that remained stable or increased.
Highlighting many revenue issues that modern media are facing, at the discussion session “Diversifying media revenue sources” during the Vietnam Press Forum 2024, Mr. Nguyen Quang Dong, Director of the Institute of Policy and Media Development, said that along with the global media, revenue from newspaper distribution and print media advertising in Vietnam are still the two main revenue sources but are trending downward.
The State budget, the management agency for the media, is not exempt from this trend since media agencies are state units. Meanwhile, revenue from policy communication occupies more than 15% of total revenue and is gradually replacing revenue from the State budget and management agencies.
Mr. Nguyen Thanh Lam, Deputy Minister of Information and Communications, said that the revenue of media agencies ranges from VND200-300 million to billions of VND. Currently, only about 2 media agencies have revenue of billions.
“Nowadays, the online space has gradually eliminated the act of paying to buy newspapers, to read the content. Therefore, the reader pays to avoid watching ads model can be a niche market for high-demand customers who want to experience viewing content,” Mr. Nguyen Thanh Lam suggested.
Mr. Lam believes that the media participates in social management, social orientation, and the media agency is also the main force in delivering accurate information to society tocreate consensus. Accordingly, the state is also a big customer of the media.
“Exactly a year ago, the Prime Minister issued Directive No. 07 on strengthening policy communication work, which showed clear changes in the responsibilities of state agencies in policy communication,” emphasized Mr. Lam.
However, the media also has to compete with policy communication methods such as information portals, community loudspeakers, social networks… It is not known which method will be superior to which”. Therefore, the media must elevate itself to attract orders from the State.
Regarding revenue growth solutions, Mr. Dong believes that currently the implementation of reader fees still poses difficulties for media agencies, as the application of data to understand and serve readers’ needs is not yet common.
Accordingly, in the long run, it is necessary to promote socialization to increase investment in technology and business capacity for media agencies, support media agencies to enhance their presence and business cooperation with social media platforms through the “bridge” role of the Ministry of Information and Communications and associations, and focus the budget on a number of key media agencies to build a group of leading media communication units…
CONNECTING PRODUCTION AND MULTI-PLATFORM COMMUNICATION
Currently, Vinh Long Radio and Television Station has an annual revenue of VND1,500 billion, of which advertising activities account for about 85%-90% of the total revenue of the station. Along with that is revenue from advertising on radio through the implementation of many live programs and livestreams…
Mr. Le Thanh Tuan, Director of Vinh Long Radio and Television Station, said that since 2014, Vinh Long Radio and Television Station has been implementing program production. On average, each year, the station partners with and produces 40-50 reality TV shows, game shows, short films, children’s films, and educational programs… that have mobilized social resources to invest in program production, contributing to attracting sponsorship and advertising.
At the same time, Vinh Long Radio and Television Station has gradually expanded its distribution of multi-platform, multimedia content such as free internet radio application THVLaudio, 48 YouTube channels, 23 Facebook Fanpages, 4 Tiktok channels… attracting more readers and contributing new revenue sources for the station.
Promotional activities, mainly supporting documentary films for departments and agencies in the province and video clips introducing businesses, also contribute to the revenue of this agency.
However, there are a series of difficulties that Vinh Long Radio and Television Station faces when innovating, such as program production still being carried out in a traditional manner, slow digital transformation, insufficient human resources for digital transformation, digital platforms generating revenue mostly coming from foreign countries so long-term investment is not guaranteed, and the media still being subject to relatively high corporate income tax (20%)…
According to Mr. Tuan, to enhance revenue from digital content production, first of all, journalists must create quality products, “then think about where to sell them, for whom”, alongside investing in equipment, updating new advertising methods, user fees, copyright issues, and human resource training…
Sharing about the operation of modern media, Mr. Tran Xuan Toan, Deputy Editor-in-Chief of Tuoi Tre newspaper, said that the newspaper always tries to diversify revenue sources. Every month, we need VND 14 billion to pay salaries to employees, not to mention investment in technology. Where is the money coming from? Revenue is divided into three groups: group 01 is customers buying and reading newspapers daily, group 02 is businesses buying advertising on platforms, and group 03 is state agencies. The revenue needs to be divided for each step of care and attention.
“If before the Covid-19 pandemic, revenue from newspapers accounted for 75% of this agency’s revenue, now the proportion has reversed with 75% coming from digital platforms, social media. Therefore, we are forced to invest more heavily in technology,” emphasizes Mr. Toan.
Ms. Nguyen Thi Hong Nga, Editor-in-Chief of Giao Thong newspaper, believes that the principle during this period is to do the best in terms of content, expand all the strong points and services of the newspaper.
“One form of diversifying revenue is workshops and forums. We have also conducted international tenders to organize international forums. Making use of data to create spoken newspapers, television bridges…,” Ms. Nga said.
At Nguoi Lao Dong newspaper, Editor-in-Chief To Dinh Tuan believes that fast, accurate, and reliable reporting, many newspapers can do it, but responsibility and humanity have helped us build credibility and receive affection from society. We always do it in a humane and ethical manner, with value in the face of information noise on social media…
“Instead of being competitors, media agencies need to become supporting partners in the current difficult context, ‘if you want to go fast, go alone; if you want to go far, go together’,” journalist To Dinh Tuan expressed.
In concluding remarks, Mr. Nguyen Thanh Lam believes that when we talk about diversifying revenue sources in the current context, we cannot just do newspapers the old way, we have to change. Opportunities for revenue growth do not come to everyone, but only to those who are prepared, who are ready and looking for their own ways out.
