The Victorian Government is depriving newspapers of millions in future revenue by pulling its ads from the medium. 

The Andrews Government says it will no longer be placing print newspaper advertisements in metropolitan areas, delivering a significant blow to Nine Publishing and News Corp Australia. 

Premier Daniel Andrews, aiming to maximise taxpayers' value for money, says that the government will return to pre-pandemic spending levels and reduce reliance on newspapers. 

Starting from 1 July, newspaper ads will only be placed if required by law, while television and digital advertising will continue to be a crucial part of the government's advertising strategy.

The decision has raised concerns for Nine's The Age and News Corp's The Herald Sun, as these publications will bear the brunt of the loss in revenue. 

Government documents reveal that in 2019-20, newspaper ads accounted for 14.7 per cent of the $84.6 million spent on government advertising, equivalent to approximately $12.4 million. 

Similarly, the previous year saw newspapers claim 13.2 per cent ($13.5 million) of the $102.8 million total expenditure. 

In the midst of the COVID-19 pandemic, with government spending skyrocketing to $150 million in 2021-22, newspapers received 9.6 per cent ($14.4 million) of the funds.

Some speculate that the decision was influenced by global trends reflecting a decline in newspaper circulation, prompting a shift of public money away from print advertising. 

While Nine may recoup some lost revenue through increased spending on radio and television, News Corp may face greater challenges, as it is not as well-positioned in the digital realm.

Despite the cessation of metropolitan print newspaper ads, the Victorian Government will maintain a special focus on rural and regional messaging, which comprises 20 per cent of all campaign spending. 

Additionally, dedicated multicultural messaging will receive 10 per cent of the government's advertising budget, surpassing set targets.

A government spokesperson has higlighted the importance of advertising in promoting government initiatives and services. 

“Advertising is an important part of promoting the work of the government in our hospitals, our schools and kinders, our transport infrastructure projects, and our $31.5 billion tourism sector – boosting our economy and creating jobs,” the spokesperson stated. 

The government says it aims to strike a balance between returning to pre-pandemic advertising levels and ensuring value for money, with television and digital channels remaining crucial components of their advertising strategy.

The government's advertising is facilitated through Master Agency Media Services (MAMS), a function managed by Treasury. The MAMS contract is currently held by OMD - a communications agency billed as a “media specialist brand”.

News Corp Australia responded strongly to the Victorian Government's decision, describing it as an act of “spite”. 

Michael Miller, managing director of News Corp Australia, criticised the government's move to deny vital information to 2.6 million Victorian newspaper readers through public notice advertising. 

The Herald Sun, dedicating its front page to the issue, criticised Premier Daniel Andrews with the headline, “Dan Bans Vital Ad Campaigns”, alleging potential negative impacts on road safety, bushfire awareness, and public health alerts.