Live Issue... Standard faces 'relevance' issue in move to freesheet

With the new-look The Standard barely a few issues old as Media went to press, media observers are watching the title’s shift from a paid daily to a freesheet closely. A decision sparked in part by plunging ad revenues as a result of changes to the Hong Kong stock exchange’s information reporting requirements, the paper’s spin doctors claimed it was in line with a global trend for free titles.<br /><br />Through the move, which involved a revamp of its design and layout, a near tripling of its circulation to 120,000, a hefty ratecard increase and an overhaul of its distribution strategy, The Standard has drawn a line in the sand against key competitor South China Morning Post (SCMP). “The effort is worth a try, because without the financial ads, the paper is dead in terms of revenue,” notes Mark Simon, COO, Next Media Interactive. “The Standard had always been a profitable paper until then, so it seems a logical step to take.”  <br /><br />Sing Tao has reported a surge of more than 44 per cent in first-half profits to HK$106 million (US$13.6 million) on the back of strong growth of its Chinese-language freesheet Headline Daily. Compared with the SCMP, consumer and advertiser demand has been lukewarm, with the former enjoying the trappings which come with its status as the incumbent. But industry observers note The Standard’s boosted circulation numbers partially even things up, justifying the paper’s first major rate hike since 2005, from $35,000 to $85,000 for a four-colour full-page buy. <br /><br />Rumours are now also circulating that the SCMP may in fact respond with a freesheet of its own, while another whisper pointed to a possible entrance from a title backed by Singaporean investors. But agencies question whether the demand is there. <br /><br />“English-language titles are such a niche market. It’s not going to be an easy task to establish relevance,” said Jackson Kwok, managing director, OMD Hong Kong, who adds that the SAR might be a precursor to a mainland push. “This might only be the first move for Sing Tao, which may evaluate this model in other markets. It has very good connections in China and it could extend there quite simply.”<br /><br />The official line from The Standard  is that it will continue to focus its efforts on targeting local and expatriate English-speakers, along with a renewed focus on key advertising segments, including business and finance, property, luxury products, airlines and F&B.<br /><br />But GroupM chief executive officer KK Tsang believes the battle will not be fought on quality of readership, but rather on distribution. <br /><br />“For a free daily, distribution is a much higher priority than content, because it’s distribution that controls the mix of the readers at the end of the day,” he explains.<br /><br />Carat Hong Kong general manager Pauline Chu agrees, but adds that Hong Kong’s notoriously conservative advertising industry will take at least six months before showing consistent interest in the title, a forecast that could point to a challenging time ahead for Hong Kong’s newest freesheet.<br />