The War of the Gadgets: Italy's Newspapers Combat Declining Readership with Free Promotional Items

Strategic Insights -

As the Italian newspaper market continues to struggle with declining readership, publishers have resorted to a desperate tactic to lure in customers: offering free promotional items with each paper. From complimentary videos and medical encyclopedias to perfumes and compact disks, the "gadgets" have become a ubiquitous feature of Italian journalism. But while these gimmicks may bring in readers in the short term, they are also eroding the very foundations of the industry.

Key Takeaways:

  • L'Unita, a left-wing newspaper, has seen a significant surge in sales since introducing complimentary videos with its Saturday edition, with circulation increasing from 120,000 to 450,000.
  • The successful marketing of Corriere della Sera's world atlas has helped the paper surpass La Repubblica as Italy's top-selling daily, with an average daily circulation of 790,000.
  • The widespread use of promotional items has done little to stem the decline in newspaper readership, which has fallen from 6.7 million to 6.2 million.
  • Critics argue that the emphasis on promotional items is distracting from the core function of newspapers and undermining the industry.
  • Industry experts point to the powerful draw of Italian television as a major cause of the decline in readership, which captures more than half of Italian advertising revenues.

Statistics:

  • Average circulation of L'Unita: 120,000 (pre-promotional item era), 450,000 (post-promotional item era)
  • Average circulation of Corriere della Sera: 790,000 (mid-1995)
  • Average circulation of La Repubblica: 610,000 (mid-1995)
  • Total newspaper readership in Italy: 6.7 million (pre-promotional item era), 6.2 million (post-promotional item era)
  • Percentage of advertising revenues captured by Italian television: more than 50%

Sources:

  • The New York Times, "Italian Newspapers Resort to Gifts to Lure in Readers" (no date)
  • L'Unita (newspaper)
  • Corriere della Sera (newspaper)
  • La Repubblica (newspaper)
  • Il Manifesto (newspaper)
  • TBWA advertising agency