Another nail will be hammered into the coffin of print media in June, when Auto Trader ceases publication and moves all of its ventures online.
The news is particularly stark for the print industry. Auto Trader was not only the leader of its own pack, the second-hand car bible has also been propping up the Guardian newspaper for a number of years. Auto Trader and its sister Trader titles are owned by Guardian Media Group, whose daily paper is hemorrhaging cash. With the Guardian shelling almost £50 million a year, it relied on its profitable Trader titles to plug the gaping holes in its deficit.
Running scared?
Auto Trader claims moving everything online isn’t a sign that they’re running scared. But the magazine’s print circulation had been in steady decline for years, just like the vast majority of other print publications. The trouble with online content is that it’s notoriously hard to monetise, as the Guardian knows all too well.
Few print titles have yet discovered a way to make money while giving content away for free. The ones who charge for their content, such as the Times and the FT, have seen a huge reduction in traffic. It’s a no-win situation because adding to one revenue pool necessarily means taking away from another.
New competitors
On the bright side, there will always be a need for the listings service which Auto Trader provides. But the open web means the established brands no longer have a monopoly over those services. While Auto Trader was always the go-to title for car sales on the magazine rack, it won’t necessarily find itself top of the pile on the web. Sites like Gumtree and Craigslist are viable alternatives which it will be fighting against. Meanwhile abandoning print means it loses the cover price, subscription fees and the loyal readers which come with the paid content model.
Let’s hope the move to online is a sign that Auto Trader has moved in the fast lane, rather than grinding to a halt.
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