Circulation: Marketing to Readers

NAA HONORS NEWSPAPER CARRIERS OF THE YEAR

2010-03-08T19:40:00Z

THREE INDIVIDUALS WORTHY OF RECOGNITION

The Newspaper Association of America has recognized three newspaper carriers for their outstanding dedication and professionalism, honoring them as the industry's "Newspaper Carriers of the Year."

"Newspaper carriers come from all walks of life, but their hard work and dedication to our industry is what makes them stand apart," said NAA President and CEO John F. Sturm. "This year's award winners have shown a strong commitment to their papers and the many loyal customers along their route."

This award was created many years ago to honor newspaper carriers for outstanding achievement within three age categories - youth (up to age 18), adult (age 19-to-54) and senior (age 55 and over). Entrants competed at the local newspaper level, state and/or regional competitions before moving on to the national level to be judged by a group of experienced and respected circulation professionals. As a result, the winners were chosen from a pool of hundreds of nominations from around the country.

The 2010 Carriers of the Year:

Youth Category
Ryan Sprague, Courier Express, Dubois, Penn.

Ryan's route of 100 subscribers includes a nursing home that was added last year because of his exceptional performance with his initial route. Ryan is the only visitor during the week for many of these residents, and they appreciate his prompt, courteous service and upbeat attitude. One subscriber wrote the newspaper to explain that when she was hospitalized, Ryan came to the hospital to check on her and bring her paper to her room. Another reader noted that "whatever the weather, Ryan can always be found out in the community delivering the paper with a warm smile even on the frostiest day... he has warmed our hearts and instilled our confidence in young people." On his application Ryan noted that his favorite part of being an independent contractor was his customers and "never having to punch a time clock".

Adult Category
Connie Davis, The Reporter Times, Martinsville, Ind.
Connie took over The Reporter Times route ten years ago when her son became too busy with school sports, and her readers hope she never gives it up. Subscribers appreciate her service and concern about them as well as the quality of her service. One customer wrote that "she places the paper on my kitchen" and "that if I miss picking up the paper a day she would call me to make sure I was okay".

Connie, quiet and humble, is a big part of her community. Most recently, she has taken a leadership role in a local program called Point of Distribution that gathers and distributes food and clothing. Despite her busy schedule, she maintains a full time job and continues to pursue new customers on her route.

Senior Category
Douglas Jordan, The Advocate, Baton Rouge, La.
In 1949, when Harry Truman was president, Douglas Jordan approached The Advocate about delivering the paper in his town of Ponchatoula, La. Douglas is still delivering the newspaper, taking only six vacations in 60 years and passing his own work ethic on to his his children and grandchildren. Mr. Jordan served for years in the National Guard, as a Red Cross Volunteer and a list of leadership positions in the community.

His customers submitted letters of commendation that supported his nomination as NAA's Senior Carrier of the Year including the subscriber who explained "our timer for our morning coffer is set to correspond with his delivery" No matter what the weather (including more than a few hurricanes), his customers have never missed a day of delivery. One subscriber explained that, while without power for 15 days in the aftermath of Hurricane Katrina, his "only source of communication with the outside world was the newspaper and their radio, and Douglas made sure we saw the devastation through the many photos in the Advocate."

Each carrier's newspaper (and/or regional organization that nominated them) plans to recognize this year's award winners for having earned this national distinction.

Arizona Republic and Cincinnati Enquirer Share Formulas for Increasing Circulation and Print Readership

2010-03-01T16:18:00Z

Selling Smart and Using Data to Capture and Retain Profitable Subcribers

Newspaper marketing executives from the Cincinnati Enquirer, Arizona Republic and New York Times Regional Media Group will be sharing strategies and programs that have worked at their newspapers to increase sales and build readership both in print and online. In the session Consumer Segmentation Strategies for Building Audience, Denette Pfaffenberger will explain how the Cincinnati Enquirer has build and maintained an e-mail database that they rely on to promote single-copy sales as well as sell subscriptions.

Using data to sell and retain subscribers is a theme throughout the program. Michael Gorman will present the success the Arizona Republic has had in improving sales and retention with improved direct response campaigns. The New York Times Media Group has applied these same strategies and behavior modeling techniques in smaller markets and Audience Development Manager Daniel Williams will detail their approach.

The session, which will focus on successful segmentation techniques that include the sharing of data across platforms to cross promote and target content, will also address the use of e-mail to sell single copy and build subscriber retention. The session will include examples of applying data solutions to successful home delivery strategies of behavior modeling and placing subscriber retention first followed by high value targeted sales. For more information check out the Audience track program for this year's NAA's 2010 mediaXchange.

You'll also find sessions to prepare for the sweeping ABC and audience metrics changes including the "nuts and bolts" of the new ABC qualification rules and reporting formats and how newspapers are driving circulation revenue with successful pricing strategies and how their formulas have worked in maximizing revenue and retaining readers.

Registration is open for mediaXchange 2010, April 11-14, in Orlando. Discounts are available for members who register before March 5th.

Newspaper Sites Most Trusted Local News Source

2010-02-26T14:05:00Z

Site Matters:The Value of Local Newspaper Web sites

The top headline is lifted from MediaPost news, but it is a local story . The story is based upon a just released comScore 2009 survey on behalf of the Newspaper Association of America 3,050 adult Internet users.

The study identifies a huge audience opportunity for newspaper companies to leverage the simple fact that newspaper Web sites remain the single most-visited and most-trusted source of online local news.

As reported in that story, local newspapers were chosen as the most trustworthy source of local news by 34% of respondents, compared to 23% for local TV news sites.The local revenue opportunity is also evident in the findings. First and foremost, "57% of the respondents said local newspaper Web sites were their No. 1 destination for various kinds of local information -- more than all other online local news media combined". Secondly, in that same MediaPost story, "the survey also revealed high rankings for the trustworthiness of advertising on local newspaper Web sites". "For advertising in general, 36% said they considered local newspaper Web sites to be trustworthy advertising media, compared to 23% for local TV news sites and just 12% for online portals in general".

Local advertisers have always valued this combination of primary source of information and highest level of trustworthiness. It has been the formula for success for local newspapers and the study documents that these important attributes have been conveyed to the local newspaper's online offerings.

NAA's Beth Lawton focuses on the local significance in a posting to the Digital Edge site titled Site Matters: The Value of Local Newspaper Web Sites . This is the second part of the story. Local sites are successful and credible in part because they focus on local content. " Consumers say they trust ads on newspaper Web sites more than those on portals, specialty sites, social networks, local TV or radio sites because newspaper online ads are perceived to be more credible, more local, more current, from more familiar sources and because newspaper sites offer a combination of advertising and local content."

The study also explains that credibility was an especially important factor for those in upper-income households and the college-educated (57 percent for each). Advertising considered as "more local" ranked high for those age 55 and older (68 percent) and for the college-educated (55 percent). The research reinforces the notion that the premium quality content of newspaper Web sites produces premium level results for advertisers.

The comScore survey for NAA follows an earlier study by the Online Publishers Association that measured the value of quality content Web sites over portals in overall ad effectiveness.

For more information, see NAA's press release and members can download the complete report.

Sources: NAA's Digital Edge & MediaPost news

Single Copy: Newspapers Now Almost Evenly Split Between 50 cents and 75 Cents

2010-02-19T14:54:00Z

The latest industry data demonstrates just how aggressively and quickly newspapers increased the price of their daily single copy editions last year. At the end of September 2009 47.5% of ABC US dailies were priced at 50 cents and 45% of ABC US dailies were priced at 75 cents. The data is from an NAA analysis of the recently published ABC Rate Book, which is based upon September 2009 Publisher Statements. At that time 29 of the 724 newspapers in the database were priced at a dollar a copy.

The number of dailies with a 75 cent cover price more than doubled from less than 20% of all newspapers a year earlier. In 2007 only 2% charged 75 cents for their daily single copy editions.

Publishers have been more reluctant to raise Sunday prices. In this latest analysis 38.4% of the Sunday newspapers charged $1.50, a long time favorite price point. Coincidently that same per cent of newspapers charged $1.50 a year ago. This is possible because the number of $1.00 Sunday papers declined from 123 in September of 2008 to 88 this past year and 80 newspapers now charge $2.00 compared to 33 charging two bucks a year earlier.

The reluctance to make changes on Sunday is often tied to the loss of insert revenue that results from the loss in sales and can offset some of the gains in circulation revenue. This is less of a factor for the daily newspapers when a quarter increase in the retail price can equate to close to a 50% increase in revenue before the loss in sales volume is computed.

The more aggressive single copy pricing this past year accounts for a substantial share of the circulation losses reported by U.S. dailies and makes it reasonable to expect that the next reporting period is not going to reflect much of a turnaround. The fact that newspapers that have increased from 50 cents to 75 cents have not reported larger losses in sales also speaks to the value readers continue to find in their daily newspaper. The change also guarantees that the much talked about shift to a greater share of a newspaper's revenue coming from readers rather than print advertising has arrived at most daily newspapers.

NAA has recently posted an article titled: Maintaining Sales through Periods of Aggressive Pricing . This article addresses the sales issues linked to price increases and is the second of a three part series titled "Single Copy 2010: Overcoming Obstacles to Optimize Sales."

2009 Single Copy Prices
	Weekday	Sunday
$0.25	7
$0.35	3
$0.50	344	3
$0.52	1
$0.55	4
$0.59	1
$0.60	5
$0.70	2
$0.75	325	7
$0.93
$1.00	29	88
$1.25		86
$1.50		218
$1.60		1
$1.75	1	71
$1.84		1
$1.85		1
$1.88		1
$1.95		1
$1.99		1
$2.00	2	80
$2.25		1
$2.50		3
$3.00		3
$3.50		1
$5.00		1

Total	724	568
Source: ABC Circulation Rate Book Sept 2009

Attention Focused on Upcoming ABC Rule Changes

2010-02-09T15:26:00Z

More Attention Directed to Upcoming ABC 2010 Rule Changes

The second phase of ABC qualification and reporting changes for U.S. newspapers becomes effective later this year and ABC, as well as NAA, wants to get members focused on how the changes will impact individual newspapers. ABC is updating its web site with a new destination that will focus on the 2010 changes, including revisions to geographical reporting and new categories of circulation.

ABC's U.S. newspaper qualification and reporting support center has been revamped and renamed Q&R Support Center to focus solely on the 2010 changes. Now dubbed Q&R Support Center: Preparing for October 2010, the updated resource hub includes a host of tools to help U.S. newspaper prepare for the last wave of rule changes and report format revisions.

NAA has devoted two sessions to the topic and broader media metric issues at NAA's mediaXchange on April 12th in anticipation of the passage of the final reporting changes at the ABC Board of Directors March meeting One session will address the strategic implications on how various newspapers will go to market in the context of the new reporting rules and the second session will be devoted to the more tactical aspects involved with qualification of copies as paid and verified circulation.

You can check out the ABC support center at http://www.accessabc.com/resources/qandr.htm .

Some of the new resources include:

Definitions of the new circulation categories
Summary list of 2010 rule changes
Conversion table that explains how current circulation categories translate into the new Oct. 1, 2010 circulation categories
Business/traveler and verified circulation guides

The ABC Publisher Relations department has also been distributing their In the Know e-mail series these past couple of weeks. The content of the e-mails have been added to the support center for easy reference.

Although the report formats and the qualifications rules for electronic editions are expected to change following the March ABC Board meetings based upon the recommendations of the NAA/ABC Strategic Visioning Committee, the ABC site is current and includes the important definition of total circulation and the distinctions that separate paid and verified circulation that will be in effective October 1^st of this year.

Because the changes are so fundamental and have strategic implications of U.S. dailies beyond reporting rules, it is important that newspaper marketers understand the implications for their newspapers now as it likely will impact the bottom line circulation for most newspapers and how they present their value proposition to their advertising customers.

NAA Newsletters & Networking Tools and Why You Should Attend NAA’s 2010 mediaXchange

2010-02-08T23:24:00Z

The mediaXchange 2010 program has come together into a terrific package for Audience and Circulation professionals. Your colleagues on the program committee have identified the most essential topics and the most qualified newspaper executives to share what is working for them and their marketing initiatives for the coming year. Below I've summarized the sessions and the reasons to attend. Go to the mediaXchange site and see the listing of more than two dozen newspaper marketing professionals focusing on what it takes to grow audiences, sell newspapers, and improve audiences.

If you are looking for a single compelling reason consider the changes in ABC metrics that will be approved by the ABC Board in March, just a month before this event and effective October 2010. Most of these reporting changes have yet to be released throughout the industry and now is the time to understand the changes and how it will impact your newspaper. If that is not it then look at the sessions focused on increasing circulation revenue and pricing strategies or how newspapers have reduced their costs of increasing home delivery circulation by improving subscriber retention.

And there's the networking -- you'll find others whose have found successful solutions after facing similar challenges to you. Not only will you be able to benefit from their experiences and expertise now, but you can build lasting relationships for sharing in the future.

Registration is open for mediaXchange 2010, April 11-14, in Orlando.

Go to the NAA's mediaXchange site and select the most compelling programs for you and you can quickly make your own list of reasons, excluding the weather, why your newspaper needs to be represented in Orlando. Register early and make this an even better investment. Early bird registration will save you $100.00 and air fares are still cheap -- I just found a Jet Blue Flight for $139 roundtrip.

Speaking of networking, another important value newspaper professionals derive from NAA membership, is networking and communications on the issues we face on a daily basis.

This past Wednesday, Feb. 3, you should have received NAA's new PRESSTIME Update, a weekly electronic newsletter designed to provide members with the information they need to achieve success in today's media environment -- from legislative news that affects your bottom line to advertising and audience trends. The new publication will be delivered each Wednesday and will combine elements from all of our newsletters -- including the Digital Edge, Growing Audience E-Alert and Public Policy News.

Subscribers to this newsletter automatically will be subscribed to the PRESSTIME Update. While we no longer will publish this Growing Audience E-Alert as a weekly newsletter, we will continue to post discipline-specific items of interest to the blogs Circulation: Marketing to Readers and Growing Audience.

To help keep all members involved with NAA and keep you in touch with your fellow Circulation and Audience executives, we will have moved our e-forums from the NAA Community to NAA-hosted groups on LinkedIn. We have created an NAA Group (yes, please click on the link and sign-up today) as well as the following Subgroups:

Digital
Revenue
Circulation/Audience
Production/Operations
Research

By moving to an established network where many newspaper professionals already have a presence, we can stimulate more discussions - and more value - for NAA members. We "officially" launched this week. The groups are now live, however, and we would welcome your participation in seeding the discussions and making this a valuable tool for all of our members.

Please contact me if you have any questions. I hope to see you in Orlando and on the new NAA Audience LinkedIn NAA Group .

Thank you for your support,

John P. Murray

Here are Seven Reasons Audience and Circulation Professionals Should Attend NAA's mediaXchange 2010:

1. Prepare for the Sweeping ABC and Audience Metrics Changes -- learn the "nuts and bolts" of the new ABC qualification rules and reporting formats presented in forums so you can return to your newspaper with a plan for shaping a strategy for long-term growth and abilities to "tell your story" to advertisers and readers.

2. Build Audience and Retain Readers -- find the latest opportunities and success stories of target marketing by applying behavioral targeting and e-marketing for selling subscriptions and retaining readers, while lowering your costs.

3. Drive Circulation Revenue with Successful Pricing Strategies -- learn about the formulas that have worked in maximizing revenue and retaining readers.

4. Maximize Your Revenue -- learn about revenue-driving digital-media innovations from industry leaders.

5. E-readers, E-replicas and the Future of Mobile Applications -- take a closer look at successful applications of e-replica editions and what you need to know about the developing e-reader technology and economics.

6. Niche Products that Build Audiences and Revenue -- this is where the revenue growth is occurring and the session is about developing and marketing "opt-in and opt-out products" across platforms that work for advertisers.

7. Distribution Alliances & Partnerships -- share best practices in outsourcing, in sourcing and sales/distribution partnerships. Develop the right partnerships and choose the best vendor to improve your cost effectiveness and providing services that will retain readers.

Here are a dozen sessions I picked from the larger program that are on target for audience and circulation professionals starting with the compulsory updates on the changes in ABC metrics that will impact all newspapers and how they go to market...

1. Developments in Audience Metrics: Now that newspapers have transformed into multi-channel, multi-product enterprises, how do we effectively measure the audiences we reach and sell that audience to advertisers? This session will include changes in ABC reporting strategies, new developments in measuring Web audiences and how newspapers are using new audience metrics in sales.

2. The Nuts & Bolts of the new ABC Qualification and Reporting Standards: ABC publisher representatives will provide insights and guidance on new reporting requirements and qualification rules approved in March by the ABC Board. Workshop attendees will better understand the new definitions of total, paid, and verified circulation and the new report formats and how they will accommodate reporting branded editions, print copies, eReader and eReplica circulation and mobile usage.

3. Driving Circulation Revenue: Newspapers are using customer insights and segmentation strategies to maximize circulation revenue and better serve advertising customers. This session will explore different strategies from two newspapers, including how they addressed the value equation for readers, how they identified opportunities and how newspapers can better promote the value of their products.

4. Successful Consumer Segmentation Strategies for Building Audience: From using e-mail to sell single-copy and build subscriber retention to applying data solutions to successful home delivery strategies newspapers have learned that successful growth strategies require delivering the right message to the right audience through the right media channel. This session will focus on successful segmentation and database techniques.

5. Audience Development 2015: What audience development and circulation strategies, structures, and processes will be successful in the next five years? The session will focus on a new revenue mix, new products, distribution services, the delivery of content, organizational structures and identifying the core competencies and areas of focus for newspapers in 2015.

6. Managing Content in a Multiplatform World: Printed newspapers, Web sites, social media platforms, e-readers, smart phones. The ability to deliver relevant content across media channels will be key to newspapers' future success. Several newspapers will describe their strategy and technology investments to effectively deliver multi-media content in a digital age.

7. Premium Content: Is the Strategy Paying Off? A number of newspapers have taken the plunge in charging consumers to access their Web sites or certain premium content. Has the approach achieved desired results? This session will share how paid content strategies at a variety of newspapers are playing out and perspectives on the future.

8. Digital- E-Readers and E-Revenue: Skiff, Kindle, Que ProReader -- Technologically, e-readers have come a long way in the past year. But the business model for newspapers that put content on the devices has a long way to go. Learn about the current state of e-reader revenue, advertisements and more from experts working in this new area.

9. Niche Products for Desired Audiences: Reaching new audiences increasingly means developing new, targeted products with relevant content and capabilities. In this session, newspaper executives will share successful product development strategies to attract and retain elusive audience segments.

10. Lessons Learned from 2009: The sharp downturn in the newspaper has forced most newspapers to rethink their organizations, cost structures, product strategy and customer base to operate a successful business going forward. Newspaper executives will share how they are transforming their newspapers to better align the business with market realities.

11. Driving Innovation: How does understanding people, asking good questions, seeking the truth, and telling compelling stories - familiar newspaper strengths -- drive innovation? Executives from IDEO, a global innovation and design consultancy, and Gannett will share their real-world experiences based on this approach to innovation.

12. Expand your thinking with two Strategic General Sessions: Transforming a Brand: A Case Study of Success: No one has been more successful at taking a traditional brand and transforming it for the digital age than Kodak CMO Jeff Hayzlett. Jeff has taken Kodak from a brand known for instamatics and 35 mm film and repositioned it as one of the most innovative digital technology companies on the globe. Jeff will share insights on where Kodak has been and where it is going along with the lessons for newspapers about transforming brands. How Digital Platforms Are Transforming Marketing: Media visionary Rishad Tobbacowala has been a pioneer in developing digital strategies for major advertising brands. He will share insights on the future of marketing and advertising and how traditional media companies must leverage new platforms to more effectively serve advertising customers.

Registration is now open with early registration discounts.

John P. Murray
Director of Audience Development
Newspaper Association of America
4401 Wilson Boulevard Suite 900
Arlington, VA 22203
571.366.1030
John.Murray@naa.org

Saints Sell Newspapers for Times-Picayune

2010-01-29T15:20:00Z

New Orleans Saints Sell Newspapers for Times-Picayune

The Times-Picayune's Monday edition, with its historic "Super Saints" headline sold out despite the newspaper's plan for an extra press run after doubling the single-copy draw.

The newspaper went pack to press on Tuesday after enthusiastic Saints fans struggled to find copies of The Times-Picayune Monday edition to the point of bringing "traffic to a standstill on one highway" and "parked along the North I-10 Service Road" in nearby Metairie.

"I thought we understood how passionate Saints fans are, but you amazed us," Publisher Ashton Phelps Jr. said.

"We're flattered by the loyalty of the community and we're sorry about the inconvenience, " he said. He also expressed thanks to the law enforcement agencies who helped direct traffic.

According to the Times-Picayune, "in all the newspaper expects to sell six times as many single copies as normal, or roughly 150,000 extra newspapers".

The paper is also experiencing overwhelming sales of poster-quality reprints of Monday's paper and advance orders for its book "Super Saints."

Source: Times-Picayune, E&P

Kroger, Walgreen's, and Panera Bread, Chosen for NAA's 2009 Merchandiser of the Year Awards

2010-01-28T18:11:00Z

Kroger, Walgreen's, and Panera Bread, Chosen for NAA's 2009 Merchandiser of the Year Awards

This year's winners in each of the five categories are:

Convenience Stores: Gates Petroleum nominated for their partnership with the Florida Times Union, Jacksonville FL.

Drugs Stores: Walgreen's in partnership with the Tennessean, Nashville TN.

Grocery Stores: Kroger's in partnership with The Enquirer, Cincinnati OH

Restaurants: Panera Bread nominated by the Detroit Media Partnership

Market Wide Promotion: White Plains Railroad Station in partnership with The Journal News in White Plains, NY

NAA's Tony Mineart Newspaper Merchandiser of the Year awards honor retailers who have demonstrated a long-term cooperative effort to sell and market newspapers in their stores and who model the industry's cutting-edge approach to single-copy promotions. Judges look for retailers who are open to ideas such as co-promotions, newspaper-specific promotions or, in general, the retailer who does the best overall and ongoing job of promoting newspapers in their stores. These awards are given annually to retailers from the following categories: convenience stores, grocery stores, drug stores, mass merchandisers and restaurants and other non-traditional retail outlets. This year the NAA Circulation Federation Single Copy Awards Committee reviewed these nominations and selected the final winners.

NAA renamed the award "The Tony Mineart Merchandiser of the Year Award" to recognize Mineart's dedication to the newspaper industry, as well as his leadership in fostering expertise in newspaper merchandising and growing readership. Mineart helped conceive and launch the award in 2001.

In the coming weeks NAA will feature the winners, along with many of the finalists, and the details of their local newspaper partnerships.

Developments in Single Copy Distribution

2010-01-21T12:57:00Z

Single Copy 2010: Developments in Single Copy Distribution

Newspapers have long partnered in home delivery operations to save money on distribution costs, but some companies are now moving into single copy arrangements that are creating new sources of income for publications as well.

Local newspapers are contracting with neighboring competitors to service local accounts in different arrangements, ranging from simple distribution to collection to full representation of multiple titles.

As the industry moves toward a model of having one delivery vehicle going down any given street, newspapers have carved out a new niche as the local distributor as traditional concerns about control and preferential treatment of one title over another have taken a back seat to the savings generated on both sides.

The Seacoast Media Group, for example, has been delivering alternate products to single copy outlets since 2005, and trucks now deliver 15 to 20 single copy titles in its market on any given day.

"It's not us versus them," says Kelvin Parker, director of operations and circulation for the Portsmouth Herald in Portsmouth, N.H. "It's all of us together. We have multiple distribution partnerships, and whether they're locals or metros, they become one of our newspapers. When they make money, we make money, so it's about treating everyone equally."

"It took everybody a while to get over the old school way of thinking that we have to deliver our own products and keep our information confidential," Parker says. "But in this economy, with the industry the way it is, there should be only one distributor in each market. The cost savings just outweigh the risks."

The Washington Post delivers single copy and home delivery for USA TODAY, The Washington Times and Financial Times in the D.C. market, as well as its own publications, using independent contractors for distribution, billing and collection.

"It's not easy to give up your service to another provider," explains Gregg J. Fernandes, vice president of circulation for The Washington Post. "But there's revenue associated with it, and if we're not providing the best service, that revenue is at risk. We are the most effective and efficient delivery force in the greater Washington area. No one matches our quality of delivery. So we can leverage this position of strength and provide a benefit to other publications. It's a nice symbiotic relationship."

In another version of this distribution model, the Times Union in Albany, N.Y. elected to contract all of its core market single copy delivery to a wholesaler, which now handles all distribution and operations with the retailers.

"We have a standard distribution agreement with the wholesaler, but added an addendum that got into performance-related metrics," explains Bill Sara, circulation sales manager for the Times Union. "We've been in this since May 2009, and overall, it's progressed very well. We're still communicating with our retailers on promotions. We want to maintain our relationship with key partners because they're integral to our sales."

"I think the move toward a single source of distribution is a trend, whether it's implemented the way it's done here, or whether the local paper takes on the single copy distribution of others in the market. The arrangements will broaden and continue because of the savings and the fact that delivery can be managed more efficiently by consolidating."

Read the entire article...

Source: NAA This article is the third of a three part series and upcoming NAA publication titled "Single Copy 2010: Overcoming Obstacles to Optimize Sales." Also see: Maintaining Sales through Periods of Aggressive Pricing and Overcoming Obstacles to Building Successful Single Copy Promotions

National Championship Drives Newspaper Sales & Revenue

2010-01-14T05:32:00Z

Alabama Newspapers Combine Efforts to Leverage Championship and Drive Newspaper Sales & Revenue

All three Advance properties; Huntsville, Birmingham and Mobile collaborated in providing coverage leading up to Alabama's National Championship victory last Friday while promoting locally and the results included increased sales leading up to the game, increased traffic to al.com and increases in revenue.

In Birmingham on the Sunday leading up to the Thursday game single copy sales were up 5% with advanced ROP and POP promotion of the "Roll Tide" poster page.

Wednesday sales were up 9% week over week with promotion of a 32 page bowl preview section with 18 pages of incremental advertising.

On game day sales increased 31% or 3,568 copies compared to the previous week. The edition included a "false front" 4-page promotional poster wrap sold to local Ford Dealers.

On Friday after the game the Commemorative Championship Edition sales was up 24,733 copies which was a 196% increase over the previous week over week.

The newspaper used 3 unique hawing locations and sent "care packages" of 25 free papers to all radio and TV stations which generated on air mentions that supported the promotion.

The Huntsville Times had similar success where single copy sales increased 92% on Friday following the game despite the worst possible weather. They also sold more than 500 posters in their lobby and at a Dillard's location along with dozens of copies of "Perfection" the commemorative Alabama championship book which was also a collaborative effort among Huntsville, Birmingham, and Mobile.

Troy Niday, Vice President Circulation in Birmingham, summed up the success, "We sold a lot of papers, booked some solid incremental advertising revenue, and spiked online hits through the roof". He credits the strong incremental advertising sales to "our sales staff that worked real hard on the bowl preview sections, the game day wrap, andcongratulation ads on the days after the game, along with lot's of planning and collaboration between all the departments and newspaper properties."

Managing Single Copy Sales While Pricing Aggressively

2010-01-14T03:40:00Z

Higher Single Copy Prices Require More Creativity in Working with Retailers

With higher single copy prices causing declines in sales volume, newspapers are becoming more creative in the way they work with retailers to maintain their relationships, develop co-promotions, and earn good positioning in stores.

Carlos Decancio, circulation director of the Houston Chronicle, says the Chronicle has been aggressive with daily single copy price hikes, raising the price from 50 cents to 75 cents in June 2008, and from 75 cents to $1 in January 2009.

"We're getting more revenue, but our volumes are down 25 percent on the daily," Decancio says. "Retailers would like a higher margin on the newspaper, but they realize it continues to be a draw for customers who'll come in for the Chronicle, then buy other items. If we're late on delivery, the stores complain that the customers go to other convenience stores."

Decancio says the newspaper works hard to maintain good retail relationships by providing excellent service, fun perks, like tickets to sporting events, and promotions that benefit both parties.

For example, with one chain that has 116 stores in Houston, each store was given a starting base for Sunday single copy sales. The top 30 stores with the highest percentage gain were invited to a night with the Chronicle at Minute Maid Park for a Houston Astros baseball game, with food and beverage in the newspaper's large suite.

"The stores didn't give us any money, but gave us better positioning and more displays to bump up sales," Decancio says. "We got a three percent gain out of that promotion for four weeks."

The Chronicle recently upped the Sunday single copy price from $1.75 to $2, and has seen virtually no loss in sales, a feat Decancio attributes to marketing efforts made with inter-departmental teamwork.

As newspapers seek more revenue from readers, single copy pricing has become an important part of the strategy. At the beginning of 2007, less than two percent of U.S. dailies charged 75 cents, but by mid-2009, close to 40 percent charged 75 cents or more according to an NAA analysis of Audit Bureau of Circulations data.

In Detroit, single copy prices rose from 50 cents daily and $1 on Sundays to $1 daily and $1.50 on Sundays in October.

"That increase hurt our ability to do co-promotions," says Jeff Gibson, single copy sales manager for the Detroit Media Partnership. "Stores aren't as willing to do those kinds of promotions now. We've started looking at more market-wide promotions, with enter-to-win for gas cards or shopping sprees.

"The stores like that because it drives traffic in for buying papers, and we're acquiring e-mail addresses from single copy buyers on the entry forms. We can target these people with e-mail blasts, and drive them to home delivery. One of the mistakes we've made is not promoting the value of the newspaper to the public," Gibson says, "not just the value of the coupons, but what they're getting in the newspaper itself, whether it costs 50 cents or a dollar."

One of the few newspapers to be virtually unaffected by a single copy price increase was The Cincinnati Enquirer, which raised its Sunday single copy price from $1.50 to $1.75 in March.

Valecia Quinn, director of consumer sales and retail marketing for the Enquirer, says the paper had projected a 10 percent loss in volume because of the increase. Eight weeks before the change, single copy volumes were up by 0.7 percent over 2008 sales on Sunday. Twenty weeks after the price hike, single copy was only down 0.6 percent under 2008 levels, a negligible difference.

Quinn says one of the paper's most successful marketing efforts revolves around the value of coupons. The newspaper promotes coupons on its front page, through social media like Twitter, and through weekly instant POP messaging at the stores and racks.

"Several retailers say there are a lot of multiple purchases because of coupon enthusiasts and coupon clubs in today's economy," Quinn says. "Each week, we develop and print instant rack and stack cards, promoting high coupon value, along with the value of advertising special sections or special news coverage to increase buying frequency."

Read the entire article...

Building Successful Single Copy Promotions in 2010

2010-01-07T05:06:00Z

Overcoming Obstacles to Building Successful Single Copy Promotions

Rapidly shifting technology and a down economy has changed the operating environment for single copy newspapers, making it harder to build and maintain the relationships necessary to put on successful co-promotions with retailers.

Promotion budgets have shrunk, and with a focus on revenue by both newspapers and retailers, there's less room to negotiate price promotions, with neither party wanting to give up the margins. As single copy prices have risen, sales volumes have fallen, heightening the need to maintain good retailer relationships.

In addition, with retail consolidation, there is less local ownership, which may require multi-market efforts involving two or more newspapers to coordinate a promotion.

For example, The Akron Beacon Journal, The Columbus Dispatch, and The Cleveland Plain Dealer joined forces in June 2009 to offer a multi-market promotion in Speedway stores, the largest convention store in their area, with advertising support from Frito Lay. (read more about this promotion)

In Detroit, when home delivery of The Detroit News and the Detroit Free Press went to three days a week, the newspapers saw an opportunity to push single copy sales with coffee and newspaper promotions at local coffee houses.

"You could buy a cup of coffee and get a paper for penny," says Jeff Gibson, single copy sales manager of the Detroit Media Partnership. "The stores absorbed the cost of the paper. We also had a large grocery chain that could track how many newspapers were sold, so each time the 300th customer came up, that person won a $10 gift card."

Gibson says one of the biggest obstacles to maintaining relationships with retailers is the rise of third party vendors doing scan-based billing and collection.

"As these vendors try to build relationships with the chains, it affects our relationships with the chains," Gibson says. "The biggest thing we can do is build relationships with the store owner, or district and marketing managers, to make sure we get excellence presence in their stores."

At the Chicago Tribune, the advent of scan-based traders has meant adapting newspaper practices to the vendors' demands.

"One chain works under one system, another does pay-by-store," says Don MacGregor, director of consumer sales and marketing for the newspaper. "There are a variety of ways people expect to be billed and paid, and we continue to have to adapt our operations to match their demands.

Another obstacle facing newspapers is leaner staffing, which means there are fewer people to maintain customer relationships and execute the promotions.

The Seattle Times has reduced its single copy distribution staff by 48 percent in the last five years, and its sales and marketing staff by 25 percent. Priority is given to maintaining relationships with supermarkets, convenience stores, Starbucks, McDonald's, airport concessionaires, and a handful of other key accounts.

"We want relationships everywhere, but we have limited resources," says Curtis Huber, single copy manager at The Seattle Times. "We do almost no retailer promotions now. We're more interested in getting our name out there and strengthening our brand than selling a few extra papers through discounting."

One of his biggest concerns is holding on to prime spots in retail locations. In supermarkets, he says, the newspaper aims for displays by the power aisle before checkout, or at the door to catch impulse buyers. "Supermarkets account for 48 percent of all our Sunday sales, so it's a huge deal for us to have prize locations," Huber says. "We've partnered with major chains and designed displays that anchor us in these locations."

Many grocery stores have a Starbucks with a defined retail space, and The Seattle Times uses Starbucks-approved newspaper racks in those areas.

Huber notes that scan-based trading has created an unexpected positive -- the ability to easily facilitate any coupon promotion.

"We're looking at all the possibilities now, ," Huber says.

Read the Entire Article.

This article is the first of a three part series titled: "Single Copy 2010: Overcoming Obstacles to Optimize Sales "

Overcoming Obstacles to Building Successful Single Copy Promotions

2009-12-23T16:24:00Z

In the Face Of Retailer Centralization and Limited Resources Three Newspapers Coordinate Promotions

The Columbus Dispatch, The Akron Beacon Journal and The Cleveland Plain Dealer executed a multi-market promotion in Speedway with advertising support from Frito Lay.

In addition, with retail consolidation, there is less local ownership, which may require multi-market efforts involving two or more newspapers to coordinate a promotion.

Each market offered the chance to win a "staycation" with area partners like the Columbus Zoo, which provided a weekend trip to their attractions for a family of four. The partners, in turn, were featured on the entry form in all three markets. The newspapers, Speedway and Frito Lay all received revenue gains from the month-long promotion.

Each market negotiated a "staycation" with in market partners in trade for being on the materials in the other markets. For example the Columbus Zoo provided a weekend trip to their attractions for a family of four and was featured on the entry form in all three markets. Speedway newspapers during the month of June in all three markets had a mail-in entry form. The customer could choose their "staycation" as well as $100 gas card from Speedway and Frito lay product for 1 year. Frito lay provided $10,000 to support in each market, additional in-store placement and product.

The newspapers coordinated shared POP, in paper ads and e-mail blasts.

The results were significant for all of the players. On June 1, The Columbus Dispatch raised the price of the daily paper for the second time in 2009 from $.75 to $1.00 and the promotion helped to minimize losses while providing 36.32% increase in revenue for June comapred to the same period a year earlier.

The Cleveland Plain Dealer comparing June '08 with June '09 during the promotion was able to show almost flat sales daily and Sunday despite a price promotion with Speedway last year and is now selling at 75 cents daily. The Akron Beacon Journal saved 10% of daily and copies as compared to our average decline due to the daily price increase in 2009 from $.50 to $.75.

Speedway is very pleased with the newspaper category after showing a 6.8% revenue increase the category in the last 12 weeks. Speedway is also very pleased with the execution of a multi-paper promotion in this category and another major category. Frito Lay the other major category, also showing strong revenue growth, is showing a 7% YTD increase in the identified markets and a 3% increase in "trips" (people purchasing Frito products). Similarly, Frito Lay is down .5% in units but is showing double growth in this class.

Sources: Dinah Eng, Akron Beacon Journal

Sacramento Bee Builds Relationship and Increases Sales

2009-12-17T04:55:00Z

Single Copy Promotion Strengthened a Long Term Relationship

The Sacramento Bee earned improved point of sale locations and increased sales 5.8% when they partnered with Raley's grocery store to promote newspaper sales and reusable bags.

California passed legislation in 2008 that required retail stores to promote reusable bags. This became a big initiative for the chain, so it was an opportunity to help the retailer. A $.99 Raley's re-usable bag and the Sunday Bee could be purchased for $1.99. Normal pricing to purchase both items is $2.49 + tax producing a savings of $.50 to the customer.

During this time, the Bee continued to contribute to Food for Families, the charity for this chain. This also helped The Bee gain additional positioning within the store. While the promotion was for a Sunday Bee, they were able to place additional displays within the stores all week. The Bee also contributed custom designed promotional materials including in paper ads, rack cards, wobblers, and store stackers.

The retailer was very supportive with the rollout of this promotion. They shared the cost of the bag and sent communicated with each store about the promotion, which helped gain the additional sales positions and solidified the relationship with this important retail chain.

Sales of The Bee increased 5.8% during the promotion run over prior year and Raleys sold a total of 675 bags averaging 96.4 bags per week over the length of the promotion. More importantly, The Bee earned better display placement and many of these displays are still in the same visible spots, some still are display the bags on the sides of the displays. Equally important is the Bee strengthened the relationship at both the corporate and store level.

The recyclable bag program also helped to further alert their mutual customers about the green direction of both companies. The history of this partnership goes back more than a decade.

In 1997, The Raley's family started the Food for Families charitable organization. Since the inception of the program, the Bee has partnered with them on the charity and proceeds from sale of the Bee include a contribution to the charity. In the last 12 years The Bee has donated over $668K to the charity. In that time, together they been able to help out many families throughout the region.

COUPON USE UP FOR FIRST TIME SINCE ‘92

2009-12-17T04:19:00Z

Newspapers Dominate but Online and Mobile are the Growth Segments

Newspapers inserts still dominate as a source of manufacturer and retail coupons but online and mobile are clearly the growth segment. Clearly it is an opportune time for newspapers to more aggressively pursue cross platform growth.

After several years of decline, coupons usage is rapidly rebounding and much of the growth is outside the typical package goods products such as soap and cereal. Retailers are contributing to the growth and the recession is driving consumers to boost redemption rates.

According to Borrell Associates coupon use is up "an amazing 36% over last year, but retailers are beginning to increase their use of the Internet as a distribution channel, particularly for higher-priced items." Newspapers still dominate the distribution channel accounting for 90% and Sunday inserts in particular still account for 70% of all coupons clipped, according to the study. During that time, the Internet was the source of only six percent of all coupons.

According to the Borrell study, while the Internet still accounts for less than 5% of all coupon redemptions, Internet coupons represent 20% of the value of those redemptions. This and the growth rate explains "why so many media companies are redoubling their efforts on launching coupon and shopping Web sites and mobile applications. te

Increases in usage are likely related to the Internet and mobile devices making coupons more widely available. "Coupons are just more accessible to more consumers than ever before," said Todd Hale, senior VP of consumer and shopper insights at Nielsen Co. "Without question, the economy has caused consumers to make pretty significant shifts in where they shop and how they buy and use promotions."

Another existing advantage is coupon users look like newspaper readers. Another recent Nielsen study confirms that affluent shoppers more likely to be heavy users. Newspapers have an opportunity to promote across platforms for their own online sources of coupons. The value of the Sunday insert package remains an effective promotional message for generating single copy sales. See Attracting Readers with Coupons and Contests

Sources: Chicago Tribune, Borrell & Associates, Nielsen, NAA