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Competing publishers joining forces for one-stop e-shop

Changing media markets have made two Swedish publishers, traditionally competitors, join forces to face new challenges. Since a few months they have a joint video advertising operation and now they have announced that they are creating an one-stop-shop for e-shopping by forming a joint company for distribution of stuff bought online.

Bonnier News is the largest Swedish news publisher and Norwegian Schibsted is another big operator on the Swedish media market. The basic idea is that they already have the advertising with links for direct shopping. With a joint distribution company, they have created an one-stop-shop!

The founders say the new company will to start with focus on the Swedish market which must be understood as the founders could have ambitions to grow outside the country.

Sweden has a long tradition with home delivered subscribed print morning newspapers so the media companies have solid experience in distribution. The two companies have now decided to join the booming interest in e-shopping during the pandemic and will distribute also e-merchandise. The joint company is called Sweship.

INTERNATIONAL CUSTOMERS

There is a definite need for more efficient, stable and sustainable distribution in the market and that is what we hope to satisfy, said Bonnier News CEO, Anders Eriksson, in a statement.

Schibsted´s head of Swedish operations, Raoul Grünthal, noted there is growing demand for distribution services both from Swedish and international customers.

Schibsted has a distribution service in Norway via company Helthjem that offers home delivery of e-shopping to Norwegian households. Bonnier News has together with other media groups and a distribution company founded company Early Bird that operates on the Swedish e-shopping market. Sweship and Early Bird will continue as separate companies but will use the same distribution network.

When Bonnier News and Schibsted last year announced that the companies were cooperating and launching a joint TV advertising service, the surprise effect was impressive. And giant like Google were also taken by surprise.

VIDEO ADVERTISING

Both publishers were early adopters of internet TV with Bonnier-owned evening paper Expressen launching a channel and Schibsted-owned Aftonbladet doing the same.

Bonnier News and Schibsted first launched Video Impact where advertisers were guaranteed 750 000 unique individuals at Aftonbladet TV and Expressen TV. Schibsted said the packaging was an immediate success and was sold out within a few weeks.

To surf on the success from the pre-roll service, the two publishers took another step introducing bump service Video Impact Bumper.

Cecilia Sundström, CEO of Wavemaker Sweden, in a statement welcomed that two publishers are joining forces to create reach alternatives with guarantee around unique individuals.

VIDEO BUMPER

The set-up for Video Impact Bumper is similar to Video Impact where advertisers have a priority both at Aftonbladet TV and Expressen TV  which makes it possible to guarantee reach of 750 000 unique individuals, a guarantee that is verified by measuring firm MMS.

With Video Impact Bumper, advertisers use bumper ads instead of pre roll with Bonnier and Schibsted saying that the shorter video format is an excellent alternative for advertisers who want to remind the audience about their message.

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