Stampen Media | Innovate Local

Background on Stampen Local Media

Stampen is one of the leading local news media groups in Sweden, focusing on 17 news brands, out of which most are paid for, in the western part of the country. The group has 1500 employees and has its headquarters is in Gothenburg, the second biggest metropolitan area in the country. The main news provider there is "Göteborgs-Posten" which is the main title of the group. The Stampen Group is owned by Polaris in Norway together with two Swedish local news media groups. The main owner of Polaris is Schibsted.

August 21, 2024

Securing revenue from readers and advertisers:
Stampen Media’s deliberate strategy and tactics for local e-papers

The e-paper is sailing up as a super product with a strong growth curve. The reading process is the same as in print – but the product is completely digital. How can the e-paper be used tactically to develop relationships with readers and advertisers? And what about strategic challenges like exiting print? The Stampen Group in west Sweden has done careful research, tactical moves and deeply strategic tests.

Presented by Anna Bengtsson, Head of sales at Stampen Local Media (top) and Hanna Månsson, Head of B2C, Stampen Media

Anna Bengtsson, Head of sales at Stampen Local Media (top) and Hanna Månsson, Head of B2C, Stampen Media

By Niklas Jonason

Article summary:

The article details Stampen Media's strategic shift from print to digital e-papers in Sweden. Recognizing the growing importance of e-papers, the company conducted extensive research to understand reader behavior and advertiser effectiveness, finding minimal differences between print and e-paper in both readers user experience and ad impact.

Stampen’s audience, predominantly older, has shown adaptability to the e-paper format, valuing its convenience, environmental benefits, and cost-effectiveness compared to print. Nearly half of the readers of "Göteborgs-Posten", Stampens main title´, have transitioned to e-paper. Stampens experience is that a significant portion of readers will transition to e-paper due to distribution limitations, indicating that bold moves toward digital can pay off.

Stampen has implemented several strategic approaches to encourage the shift to e-papers:

Print Frequency Reduction: Several local titles have reduced their print frequency, offering e-papers on non-print days.
Complete Digital Transformation: Titles like Strömstad Tidning have ceased print entirely, switching to e-papers, which has been well received.
Reach Expansion: Titles like Lerums Tidning offer free e-papers alongside paid news sites, broadening access.
Bundling: Offering additional e-papers from major titles to subscribers of smaller ones.
Digital-Native Brands: Launching new brands like Mark-Posten, which exist solely in digital formats.

The company aims to have its business stand on itself on digital revenue by 2027.

Useful links and contact information

We are happy to be able to provide you with very useful information on this case, thanks to the presenters:

The webinar presentation, as made by Hanna Månsson och Anna Bengtsson, can be downloaded here.
The whole study, in English language, can downloaded here.
The presenters can be reach on the follwing e-mail addresses
- Anna Bengtsson, Head of sales at Stampen Local Media: anna.bengtsson@stampen.com and her
  mobile number is +46 766 327 440
- Hanna Månsson, Head of B2C and products, Stampen Local Media: hanna.mansson@stampen.com Stampen exchange number + 46 31 80 47 00
The Stampen study builds on data from the e-paper supplier Vitec Visionlink. During the study Stampen changed e-paper platform to TextTalk
The paywall platyform is, since spring 2024, provided by Walley (site in Swedish). Before that Stampen has used Adyen and before that Adeprimo Tulo.
Partner for producing the study was RAM. RAM stands for Research and Analysis of Media.

Links to titles, pricing and packaging.

The stampen news brands can be found here
The largest title in the group is GP (the Gothenburg morning newspaper). Its pricing and packaging offer is here.
A medium sized title in traffic and cirkulation is Hallands-Posten based in Halmstad. Its pricing and packaging offer is here.
Se further examples above in the caption of the illustration showing pricing and packaging.

You are welcome to contact me, Niklas Jonason, in the WAN-IFRA Innovate Local team, if you have questions or examples of similar services (in which case we will list them here): n.jonason@wan-ifra.org

The careful study of the shift

At Stampen there was a realisation of the strategic importance of e-papers. Anna concludes: "We realised we did not knew enough about how people are reading e-papers and what they actually think about them". The shift in reader behaviour brings new opportunities, for readers, advertisers and media houses. To dig into that, the Stampen Group decided to do a deep study on its e-paper editions. Through 1 500 advertising measurement based on 290 000 responses together with their own data on reader behaviour, Stampen got interesting and inspiring results that was presented in the spring of 2024 for the first time. The results show that for the reader, an uninterrupted, reliable context such as a newspaper continues to deliver high attention values, regardless of printed paper or a digital format. For the advertisers the study reveals that the difference in effect between advertising in print versus digital newspapers is minimal.

To cover both the audience and the advertiser perspectives of the study, this case was presented by the Director of Sales, Anna Bengtsson, and the Head of B2C and Product, Hanna Månsson. Both Anna and Hanna are part of the management at Stampen. Anna has worked in sales and media "all her life" which includes employments in radio and at a Schibsted newspaper in Norway for many years and has now lately been 3 years at Stampen. Hanna has been with Stampen for 5 years and prior to that she worked and lived in London working with mainly with tech and e-commerce products. She sees herself as an Internet junkie and can spend hours researching, currently mainly on TikTok.

The reader behaviours

As for many established newspapers the average age in the audiences of the titles in the Stampen group, are not young. So when asking about positives and negatives concerning reading on screen, age must be considered. Hanna summarises: "It turns out that many of our readers are actually very adaptable when it comes to formats and the interest in e-papers is growing".

Important positives that was mentioned was that the e-paper can be read anywhere and anytime. It is easy to read, thanks to the ability to enlarge text. Readers see e-papers as better for the environment. Not to forget the e-paper edition is significantly cheaper than print due to increased costs of paper and distribution (see prices compared in the screen shot below and caption). Last, but not least, there will be no more late or non-deliveries of the newspaper. "The e-paper will always be there at the moment when you wake up and you can even read it when you stay up late."

Above the offering as of August 22nd 2024 of "Göteborgs-Posten", a metropolitan daily, part of the Stampen Group.

To the extreme right: "Digital and paper" from (!) € 42 with up to 4 family members, with crosswords and soduko, newspaper in the mailbox. If you choose this option there is an additional choice between the physical paper 7 days a week for €61 or just Friday to Sunday for €39. When testing some physical addresses in Stampens area of coverage in less populated areas, it is not possible to get the paper delivered in the mailbox.

The offer in the middle "Digital € 4 the first month and thereafter €29 per month. This includes the e-paper, a news app for ios and android, share with 4 family members, crosswords and soduko and "save function" of articles.

The offer to the left: "News site € 0,1 for 3 months thereafter € 13 per month. This includes "all articles" on web site a news app for ios and android, and a save function. That is no e-paper.

See the offering here (with or without translation):

There are of course negatives such as technical challenges with devices and Internet connection and even getting an Apple ID to download the app. The lack of touch, feel and sound of a physical newspaper is also often mentioned "and that is something that is difficult to transfer to a digital format" as Hanna phrases it. Also the strain on the eyes, is mentioned.
Particularly one result in the study do surprise. Readers spend an average of 25 minutes reading time with the e-paper edition. Hanna concludes "I do not know of many other text-based digital consumer products out there, with that time spend".

A fascinating observation is the difference between those who cancel print to switch to e-paper by choice, that is 48% of the paying subscribers (called "organic" by Stampen) and those 70% who can no longer receive their printed paper due to distribution limitations but still chose to stay as customers on the e-paper (called "mechanic" by Stampen). This is an indication that being brave and bold, from a publishers side, when ceasing print may pay off (see illustrations just below)! Hanna tells us that "we work actively on both these numbers" and continue with telling us about their different activities Stampen do to transform readers to e-paper.

The share of readers "that prefer reading on tablet" is 46%. The actual share of readers using the e-paper of Göteborgs-Posten, or GP as it is known, is 48%, which therefore corresponds. Out of a total reach of 216 000 GP readers where the rest, that is 52%, read the physical newspaper in print. See illustration below.

Five strategic e-paper approaches

Except for offering the e-paper as a substitute for a printed newspaper in the mailbox Stampen is using e-papers, tactically as a part of the overall strategy to move revenue from print to digital. Hanna took up five different cases of the groups tactics:

The print frequency change thanks to the e-paper
Local titles outside Gothenburg has gone from 6 days print to 3 days print and 6 days e-paper. This is the example of "Bohusläningen" and of many other legacy news brands not only in Scandinavia. The keen reader can choose between 399 kr for a printed paper 3 days a week and 3 days digital and 249 kr per month for an e-paper 6 times a week. Their current offering of is here. Read more about Bohusläningen below.
The total digital transformation ceasing print
In one title, "Strömstad Tidning", close to the Norwegian border in the north of the coverage area of Stampen, print has been ceased and no paper newspapers are distributed. Instead of having 3 days print - editions with e-paper per week - there is now 3 days only with e-paper editions (for 149 kr/month after 2 months of a low introduction offer). This considered as a big success. Now the all digital readership is even growing. For readers under 30 there is a special offer of 59 kr per month after no cost for first two starting months. The current offering of Strömstad Tidning is here.
Reach
Another innovative approach has been "Lerums Tidning" with a paid for news site (for about 129 kr/month), however with a free and open to all e-paper that is published once a week. Check the "Lerums Tidning" offering here and this is it's freely avaiable e-paper: (based on the same platform as all other e-paper editions in the group).
Bundling
A six day newspaper offers its readers the Sunday e-paper of their main brand. This is the case of "Hallands-Posten" which focuses on the town of Halmstad. On Sundays their paying subscribers also get access to the e-paper Sunday edition of "Göteborgs-Posten" of Gothenburg just 140 km north of Halmstad.
Digital native
"Mark-Posten" is a new news brand that has never existed in print.. Its offer consists of a paid for news site, a news app and also includes an e-paper published on Saturdays. The recommended package is 129 kr.

Helping readers to transform

As often is the case, work is needed to come to a success. Stampen has made efforts to achieve its goal of increasing the usage of the e-paper. Some examples of this are self-promotional and "always on" campaign ads about the unique selling points and web pages and how-to-videos to highlight the USPs of the e-paper with clear Call to Actions, CTAs, to create an account an download the e-paper app. Over 20 meetups with over 600 customers has been organised under the headline "Digi-What" since the first meetup launch in the autumn of 2023. This campaign has been awarded both nationally and internationally (by INMA). On the question if people bring their tablets to these meet ups, Hanna answers "O yes that is common. One person even came in with an Internet router!".
Here is the extensive guide for readers on common questions and answers.

What is to expect?

The most recent financial data from the Stampen Media Group (of 2nd quarter 2024), tells us that 64 % of reader revenue was digital (compared to 54% one year earlier). The CEO Johan Hansson was quoted on August 20th saying that: "It shifts about 1 % per month to digital subscriptions and it has been stable on the level the last few years". This would mean, at least theoretically, that Stampen will reach 100% digital in 36 months, which is 3 years. The CEO comments this scenario with saying that the goal is "to stand on completely digital legs in 2027, which means that the digital business will support on its own the news side of the business". He still believes there will be print after 2027, at least in more densely populated areas, however probably not on the countryside because of distribution costs. The printed paper has to cover its own costs and will therefore only be available within very specific geographical areas".

When asking readers about how their reading of the local newspaper will change in the next two years, Stampen got the result shown below in the slide. This is aligned with the CEO view quoted above. Print readers believe they will read less compared with readers of e-papers and newspaper web sites that believe they will read more.

The ad effect

Stampens sales director Anna Bengtsson concluded that "when comparing the ad effect between e-newspapers and print newspapers, the results are ridiculously similar". So the newspaper is nor dead. We are just in a time of behavioral change.

The similarity in how print and e-papers are used and viewed are shown in the graph above. The viewers understanding of things like sender identification, easy to understand, interesting and emotional reaction are very alike. Anna confessed "that maybe the advertisers and even ourselves in Stampen were a little bit surprised by the good results of the e-paper. It was really really good to get that confidence to be able to say that advertising gets the same effect however readers view the newspaper pages". Anna points out that "this research was based on 1597 measurements; quite a lot of data".

Anna gave a glimpse on what can be done though showing the results of a moving e-newspaper ad with video, run by a hotel chain in an e-paper. The surprise effect in readers is strong. The ratings among a panel that has been exposed to such an ad with video in an e-paper are much higher than the median values for similar tests of non-video ads. Extremely high results are shown for things like awareness (86%), easy to understand (80%), positive (74%) and original (67%). Anna claims "that she has in her 15 years in the business, never seen a good score like this high, especially on the action values". Viewers of the ad recommended it to their friends and family, viewers visit the web site, and even bought things right after having seen the ad. So this is really exciting results".

What is next?

Anna and Hanna look forward and sees four areas where they will focus.

Keep building and helping readers in the transformation
Evaluate and test new formats for ads and articles with video and interactivity
Continue the search for and adapt to how readers prefer to consume Stampens products
Keep and build the self-confidence in the power and relevance of the e-newspapers, both for readers and advertisers.

Another hint of the future of Stampen is a very recent article on an industry news web site (from August 22nd in "Dagens Media") that describes the strong readership developments at the title Bohusläningen the last few months (see also above). In the last four months the number of mainly digital subscribers has increased 8%. The chief editor Sandra Bygdén Shameh mentions several reasons:

one important factor has been several investigative journalistic projects that has been published during the spring
also festivals and public gatherings has been covered intensively this summer.
more journalism on local crime and on the local sports teams
content within the area of "closeness" such as family, relationships, real estate, health and private economy

The target audience is 30-50 year old. Bohusläningen has an editorial department of 23 employees. This case shows that a new clear and crisp platform for growth has been set. It is about paid journalism and its about packaging news sites, news apps and e-papers apps in clever ways.

As an ending note before taking questions Anna pointed out that "we need to stop talking about print newspaper or e-newspaper and just talk about newspaper. You only read it in different ways". It is a kind of revival and transformation happening at the same time.

Questions and answers:

At the webinar the following questions came up that got answers from Anna (B2B) and Hanna (B2C):

Question: "How is ad sales organised in a portfolio of Internet adverting when even the newspaper is read predominantly on screen?"
Anna: Ads in a newspaper, however they are viewed on print or in an e-paper, is a very different format to a banner ad. Both formats have strengths and weaknesses. We focus on differentiating these two product. If you have a quick and easy message you can do fine online. However if you have something more difficult to explain and you need more time with the customer the e-paper is outstanding

Question: Does the e-paper need to be close to the newspaper design or are you testing a different type of product with additional features?
Hanna: Today the e-paper is very similar to the printed product. The readers like the format they are used to. I think This is one thing that we, as an industry has not really nailed. What areas of innovation are most intersting for the e-paper? You do not want to take a product that people are happy with and add too much functionality that people aren't asking for. So I think as an industry, we have a big job to actually talk to our consumers and do the research and talk about the user experience within the product and potentially differentiate. However I do not think it is a pre-requisite. I do not think you have to change the product.

Question: "What are your target groups? What is your plan to get younger readers?"
Hanna: "I think our our biggest target group is previous print readers. These are the easiest ones to transform, But then we are also marketing the e-paper as a premium product. I'd say that starts around 40 years old which is still young in the media industry. And for the 40 onwards the e-paper is really a premium product with a layer of luxury to it. For those younger than 40, I am very much a believer in giving the customer a product that they want. So let's not try to push an e-paper product on those users actually prefer scrolling".

Question: "How does the distribution between reading devises such as phone, tablet or PC to read the e-paper?"
Hanna: In the Stampen data 17 % use the computer to read, 37% actually use mobile but that's also has to do with the fact that mobile phone display screens are getting bigger and then 46% use tablets which I personally would say is the preferred way to read a e-paper."

Questions: "How big a share use the article mode in the e-paper?"
Hanna: "We don't have the exact numbers on it, but the "pinching" mode is absolutely the preferred mode by a majority of our users. Article mode is really good for those who have trouble reading and prefer to listen to articles."

Question: "Concerning the fascinating data on the different conversion rates for organic and mechanic transformation to e-paper that you talked about, you can draw the conclusion that you have to be brave and bold and be ready to loose, if you want to win. So how can you build on that data and experience in future development. How are you planning to be brave?"
Hanna: "Good question. I think we are brave in pushing digitization. We have the goal that by 2027 we should be able to survive on our digital revenue and then be able to make the choice whether we should keep print or not. I honestly think we will keep the print. That's not the point. We are not shying away from the future and we are ready to take some risks in achieving it."
Question: "What are the pricing levels of the different digital subscription products?"
Hanna: "The e-paper is roughly half price of the printed paper. That's a huge difference especially as a lot of these customers pay a year up front. That means that the price of the e-paper is very attractive. Then, our news site product is more focused on the younger audience It is also a way of building our brand and gaining reach. The price point of webb access is more than half of the e-paper price. It is definitely like the stepping stone and the first product you will get. It is the perfect market fit for certain audiences and some of those who want to move up the product ladder."
Question: "Do combine the paper and the news site in one app or do you recommend to have two different apps?"
Hanna: "We have two different apps. I am Not sure we recommend it. It would be great to have one app. However I think the technicalities are more complex."

Question: "Do you agree to the statement that there are great effects in cross media advertising? Do you see print ads as an addition to a campaign or are they independent .That is will the value increase when you combine?"
Anna: "If you start to choose the different kinds of product then you will just say no to half of the potential and that is something that we don't recommend. When it is about ads in print compared to the e-paper, what we can do is to make slight changes to the graphics for the e-paper. For instance, In the case of the e-paper you view one page at a time, while in print you can have spreads."

Question: "How are decisions being made concerning pricing and packaging and are they done on a local or central level or in a combination of both?" (this questions is asked and answered after the webinar via email)
Hanna: "We set the prices centrally but according to the title's own conditions and the market in the local area. There are many parameters that come into play such as competitive situation, growth phase, demographics in the region, historical price development, costs for and distribution etc."

Due to a technical mishap Anna Bengtsson, the head of Sales at Stampen can only be heard and not seen in this video recording. This is particularly irritating in the Q&A at the end. We regret this..