Economic of Newspaper, Advertising increase circulation

Explain the economics of a newspaper. Can advertising increase circulation?

ECONOMIC OF NEWSPAPER

There's an old saying that you'll never understand newspaper economics until you understand why newspaper vending machines are designed so that you can take as many papers as you like for your quarter. Newspapers are, first and last, devices for delivering ads to readers. It's the ads which account for all the profits, not the cash coming from subscribers or people who buy their paper at the newsstand. Yes, news itself is free, nowadays. But it always has been. What we've been paying for all these years was never news, it was papers.

The main source of income for newspaper is advertisements which they publish regularly. Most of the advertisements published in newspapers emanate from federal, provincial and local government departments. Advertisements constitute backbone of the newspaper industry. They play an important role in bringing the prices of newspaper to a moderate level. The distribution of these advertisements on behalf of the government is mostly don through information/publicity departments while the other institutions of private sector send their advertisements direct to the newspaper offices.

The key to the economic problems confronting newspapers lies with the government. The economic problems become a great obstacle in the way of journalistic freedom. Besides advertisements, newspapers in Pakistan have to face the problems of newsprint, import duty, printing material, circulation, distribution, mean of communication, means of getting news etc.

ADVERTISING INCREASE CIRCULATION
Advertising is the printed, audio, video or pictured representation of a person, product service or movement openly sponsored by the advertiser at his expenses for the purpose of influencing sales, use and votes etc.
Advertising is a business that feeds advertising agencies, newspapers, radio and television and contributes a lot in providing finances to news media. Advertisers convey their message to the masses through purchasing time in electronic media and space in print media and thus provide them a bulk of revenue.

Newspaper advertising, a popular avenue for consumer approach, is influential in economical living, business growth and community progress. There is convincing evidence that advertising can lead to lower prices, great profits., reduced selling cost and increased turnover. In newspapers generally there are display and classified types of advertisements.

Circulation is the lifeblood of a newspaper. Without it a newspaper would get no advertisements which is the backbone of a newspaper organization and without advertisements a newspaper cannot survive. To perform its important duties like selling, delivering and collecting effectively, the circulation division of a newspaper organization is split into several units. To increase the circulation and to deliver the paper to far flung areas, necessary work is conducted and then advanced methods of increasing the circulation are introduced.
HOW ADVERTISING INCREASE CIRCULATION
Tenders:- Almost all the companies who requires tenders for any type of work published their requirement in newspapers. So the firms who filled the tenders or interesting to work they catch the newspapers and approach the companies who requires tenders.
Jobs:- As unemployment is the major issue of world, it is impossible to inform one by one for job opportunity, so the easiest way to inform majority of people for vacancies. And on the other side the job seekers are also a regular reader of newspaper for job opportunities.
Academic:- Most of the colleges, universities and academic departments now announces their semesters, admissions and results through advertisements in newspapers which cause in circulation increase. The students read newspapers to get in touch with the updates of their academic departments.
Class ads :- This type of advertisement is very popular now days, individuals, small businessmen promotes their business and buying and selling of goods, vehicles, plots etc.
Entertainment:- Entertainment advertisements are also published in newspaper which attracts the peoples who desires to be entertained e.g Films announcement, Music announcement, concerts etc.

CONCLUSION
All the above and other advertisement either from government or private sectors published in the newspaper are directly or indirectly increase the readership and once the readership is increased then automatically circulation will increase. However, advertisement and circulation of a newspaper is interrelated and have two-way effect, as big circulation of a newspaper attracts more advertisement and more advertisement increases further readership that results in increase of circulation. It means that this process has chain reaction.