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SCMP Reporter

Publishers of the Apple Daily are to use weekly district editions to capture smaller local advertisers - targeting the stronghold of Sing Tao's Community Star.

   In a drive to boost advertising revenue, the Chinese-language Apple Daily, started by the flamboyant businessman Jimmy Lai Chee-ying, launched a local edition for readers in the northeastern New Territories in late April.

  It will be running another edition for the eastern district of Hong Kong island this month.

  The new strategy began in the New Territories because circulation figures pointed to that area having the most readers, about 64,000.

  For no extra charge on the Apple Daily 's cover price, the zoned editions are carried as inserts containing local news.

 The high circulation of Apple Daily, which peaked at 420,000 copies before the price cut by the Oriental Daily News in mid-May, has priced a lot of advertisers out of the market.

  'It is particularly true in regard to those local advertisers who find it too expensive to place ads with us now,' said Tang Chun-leung, editor of Apple District Post.

  The district editions were an effective way to capture the smaller and local advertisers, he said.

 At present, only one publication produces district editions on a territory-wide basis: the bi- weekly Community Star owned by Sally Aw Sian who also holds Sing Tao Daily.

  Advertising rates for the Community Star, with a circulation of 500,000, are only one- fifth of the mass market dailies.

  The Star' s 14 local editions correspond to the district board electoral constituencies and are available free from local government offices.

 However, it does not cover the outlying islands, Mongkok, Yau Ma Tei, Tsim Sha Tsui or the southern area of the Hong Kong island because of weaker advertising revenue.

  Against the high hope of the new entrant, Community Star executives say the advertising market may not be as lucrative as their rivals expect.

  The Star' s chief editor, Michael Hui Chun-wah, said: 'In theory, the market on the district level sounds huge. In reality, it is not the case.'   While the large chain stores in various districts prefer the mass-market dailies for maximum impact, the smaller shops, which source their customers from only a few blocks of tenants, have little need for advertising.

  'The medium-sized shops in a district make up a small percentage of the total number of shops in a district,' Mr Hui said.

   The 18-year-old Community Star has yet to feel the pinch of Apple's onslaught. The Star is slanted more like a community newsletter informing residents of cultural and sports events in the district.

  Apple District Post divides Hong Kong into eight districts and covers more hard-hitting local news and consumer-related issues.

  Because of the basic difference in the nature of district newspapers, Star executives maintain that their paper's advertising revenue will not be affected.

  'We saw a few advertisers splitting the budget between Apple and us, that's all,' Mr Hui said.

  While Sing Tao and Community Star run independently, Apple District Post can tap the synergy with Apple Daily.



Big Chinese daily goes 'local' in drive to gain small advertisers