This article aims to explicate the relation between advertisers and readers that place newspapers in difficult …show more content…
The advertising revenues are of vital importance for all the channels involved in the media sector. The costs of paper and printing incurred by the newspapers are higher than the sales price of a daily newspaper with an average number of pages. In other words, generally the newspapers are sold to the readers with a price below the costs of paper and printing. This shows that the increasing sales chart means the rise of economic deficit for the newspapers, when other income resources (advertisement and publication revenues) are not taken into consideration. Other than the costs of paper and printing, there are other administrative costs, the expenses such as human resources, power supply, water supply and telephone services, etc., and the costs incurred by the newspapers for their own advertising and marketing operations as well as unexpected costs, which we can classify as the other cost items of the newspapers. The total of these costs generally achieve a figure around one and a half times of the costs of paper and