Just like the previous year, the media year 2021 was marked by the Covid-19 pandemic. But the second year of the pandemic affected media companies in a different way than the first. During the first pandemic year, advertising investments were pushed back at the same time as the public increased their media consumption. During the second year of the pandemic, advertising investments returned to the media – and to an unprecedented extent – while media consumption remained stable.
Stabile media consumption
The Covid-19 pandemic continued to create a need for news and information. Nordicom’s Swedish media habit survey, the Media Barometer, showed that the public maintained a high degree of media consumption during 2021. This media consumption was one of several contributing reasons for increased or stabile audience revenues for many, but not all, of Sweden's newspaper and television companies.
Record in ad investments
Thanks to an increase of approximately 19 per cent, advertising investments in 2021 amounted to roughly SEK 46 billion. Never before has so much money been invested in advertising in Sweden. The increase primarily benefited digital media channels and their advertising services, such as search and online video.
The development where a growing share of the ad investments is leaving Nordic- and Swedish-owned media companies in favour of global platforms – such as Facebook and Google – was further strengthened. During 2021, more than 70 per cent of the digital advertising investments went to non-Nordic companies, such as the global platforms.
Increased revenues for dailies
The turnover of the Swedish newspaper companies increased in 2021 to approximately SEK 13.8 billion, including direct media subsidies. It was the first time that the newspapers’ total turnover increased since 2014.
The newspaper companies’ combined operating profit amounted to SEK 845 million, a clear increase compared with 2020's negative result of SEK -50 million. Some of the underlying reasons for the improvement were reduced costs, increased advertising investments in journalistic media, and growing digital revenues. However, revenues from the printed news media channels continued to decline during 2021. The Bonnier Group strengthened its position as the largest player in the daily newspaper market through acquisitions and expanded collaborations.
The report Mediekonomi 2022 [Media Economy 2022] is written by Nordicom’s Tobias Lindberg, researcher, and Ulrika Facht, media analyst. The report was written on behalf of the Swedish Press and Broadcasting Authority.
Go to the report on the Swedish Press and Broadcasting Authority's website (in Swedish)