Newspapers around the world are facing daunting challenges in the digital age, as their readership and revenues shrink.
But for Ireland - a country that until recently enjoyed sustained economic boom - the sudden change of climate has caught many of its titles off guard, forcing many to modernise their offering to attract advertisers.
Signs of distress were evident in ABC's latest Island of Ireland report, which painted a sombre picture of traditional newspapers. All Irish- published daily titles posted visible falls in circulation, with several Sunday titles also suffering.
In Northern Ireland, sales of the Belfast Telegraph fell a dramatic 8.1% to 69,457. In the Republic, The Irish Times fell 3% to 115,462, the Irish Independent was down 3.9% to 154,610 and The Irish Examiner fell 6.1% to 52,544.
But the advertising landscape has turned most dramatically. Even as late as 2007, the Celtic Tiger economy created average GDP growth of 6.5% every year. House prices and credit booms were big - even by Britain's standards - and foreign companies were quick to set up on Ireland's shores, enticed by low corporation tax, state grants and an eager and educated workforce.
The environment was ripe for newspaper readership and caught the interest of the rest of the world. Between 2000 and 2005, more than £533m of newspaper acquisition deals were completed, readership levels were among the highest in Europe, and cost-saving opportunities from centralised printing were readily available.
This - coupled with a credit-rich society with large amounts of disposable income and a predilection for property - made papers an attractive prospect for advertisers.
National psyche
"Four years ago, the tenets of many newspapers in Ireland were interlinked with the national psyche of making money and owning property," reflects Joe Dalton, managing director of Precision Media. "Property supplements would average more than 30 pages and ad space on recruitment supplements was sold using rate-cards that made it fully aware this was money advertisers had to pay."
But that has quickly changed. With the housing bubble burst, the Irish economy contracting at a predicted rate of 6.5% this year and unemployment rising faster than in America, advertisers are, in the words of one buyer, "frantically shutting up shop". The economy is putting unprecedented strain on media owners, which are forced to cut their rates, and agencies, which must negotiate harder for their clients.
In an unmistakeable sign of how much the market has turned, regional publisher Johnston Press attempted to sell its portfolio of 14 local newspapers, which it bought in 2005 for £123m. However, the publisher was unable to secure a sufficiently high price for the titles, and terminated the sale process last month.
The company, which announced ad revenue was down 34% period on period from the start of the year to 9 May, is now looking to ease its debt burden of £448m by negotiating with debt providers to obtain a relaxation of existing terms.
Yet it is not all negative: Ireland still has one of the highest rates of newspaper readership, particularly among regional press. "Provincial newspapers have historically played in important role in community life," says Paul Moran, managing director of Mediaworks. "Their online offering has maintained an affinity with readers who have since left their local areas."
Ireland's high readership levels are also fuelled by the business community. According to research from the Institute of Advertising Practitioners in Ireland, business people read an average of 2.1 newspapers, with 98% regularly going online to supplement their reading.
In the magazine sector, Business & Finance, one of Ireland's leading consumer publications, was one of the few magazines to post double-digit growth. Certain weekend titles are also thriving, with the Sunday Business Post, Irish Mail on Sunday and The Sunday Times among the few lifts.
Many believe the new conditions are a long-overdue wake-up call for agencies and media owners, prompting many to find innovative ways of attracting advertisers and address the challenges created by migration to the web.
The fall in demand has given way to competitive price structures. David Hayes, managing director of Mediaedge:cia Ireland, says: "Over the past few years, trading was about doing annual deals on retainers that guaranteed the best positions. Now we are seeing deals negotiated on a campaign-by-campaign basis with a focus on value for money."
Competitive price structures
The Irish Times has used the downturn as a period of post-boom introspection. Paul Farrell, group commercial director, says: "We have reshaped the whole sales structure to focus on showing advertisers new, creative ways of reaching their audiences and measuring response.
"We are also offering more integrated offerings between our print title and our website. This has created phenomenal growth and is maintaining the relevance of our brand among a younger market."
Craig Farrell, managing director of Starcom, supports his view. "Historically, the print medium has often been a difficult place to achieve standout," he says. "Now, media owners are really addressing the issue, with some even working closely with editorial teams to increase options." Titles taking this approach include the Sunday Independent, which has bled advertising into the editorial for clients including O2, Honda and 7UP, and Herald AM, which dyed its newspaper pink for Valentine's Day.
Many newspapers have also moved away from spurious giveaways to what Farrell describes as "strategic and sustainable solutions". For example, the Irish Independent's Lifetime Reads collections offered a flavour of classic literary works and the opportunity to buy them.
Many believe the recent introduction of free titles, which have been quick to offer creative ad solutions, has shaken up the advertising sector. Ireland's two leading free papers - Metro Ireland, jointly owned by Associated Newspapers, Metro Sweden and the Irish Times, and Independent News & Media-owned Herald AM - launched in late 2005 and distribute about 145,000 newspapers in the greater Dublin area each day. Both are understood to be in the final stages of a merger to create a new title - Metro Herald - to be jointly owned by IN&M, the Irish Times and Associated Newspapers.
With broadband penetrating more rural areas, newspaper publishers must make their digital presence compelling for advertisers. "Paid-for newspapers, supported solely by cover price and advertising revenue, will survive only if the papers develop their existing online offering to fit the needs of modern consumers," says Richard Kelly, sales manager of Metro Ireland.
For media agencies, the challenge is to articulate this offering to clients and persuade them to continue spending money. Mediaworks' Moran sums up: "Some agencies have dropped their heads, while others realise an economic downturn can also be a time of great opportunity."
Getting creative to beat the crunch
Jo Collins, group sales manager, Independent Newspapers
Clients have become more cautious and they are demanding cut-through, in a new process that demands agreement from all parties involved. We have responded with a series of initiatives for O2, Honda and 7UP where advertising is bled inside the editorial, ensuring brands have more compelling standout.
Paul Farrell, group commercial director, The Irish Times
Property and recruitment supplements have fallen, but automotive has held steady and we launched a travel-specific supplement. We are also introducing "onserts", which have been tested very positively, and a number of creative wraps for which we are talking to O2, Heineken and financial services firms.
Richard Kelly, sales manager, Metro Ireland
The combination of the recession and the rise of consumers sourcing content for free via the internet is hurting paid-for circulations. We have introduced a range of new ad solutions to the Irish press market, which include a glossy six-page gatefold in Metro and an ad label adhesive sticker on the front page of Metro.
Paul Henderson, managing director, Associated Newspapers Ireland
This market is incredibly crowded, so it's important for brands to stand out. New initiatives for clients include branded CDs that ran alongside a four-page supplement. We also launched You Magazine Ireland and we are exploring tie-ins with TV shows to provide multi-platform promotions for readers.