Selecciones - Webs

Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
12. Evaluation of Print
Media
the prices consumers pay for subscriptions. In 1990 the average magazine subscription
rate was $26.90. In 2001 it was $25.30. Thus, publishers have to pay more to maintain
their rate bases (the circulation level guaranteed to advertisers), but they make less
money on each subscription sold.
Publishers are also facing a drop in sweepstakes-generated circulation as a result of
the controversy that developed over consumer confidence in the sweepstakes-related
subscription offers. Agents such as Publishers Clearing House and American Family
Enterprises have been going through changes, both self-imposed and externally dictated,
that have greatly reduced the number of subscriptions they generate for publishers.
23 To compensate for losses from sweepstakes agents, publishers are looking to
other methods of generating subscribers, such as making subscriptions available
through websites, offering free trial copies online, conducting special promotions, or
using other agents such as school-related subscription services. 24
Many magazines are also focusing more attention on managing their circulation
bases. For many years, magazines focused on increasing their circulation under the
assumption that higher circulation meant higher advertising rates. However, publishers
are now realizing that the cost of attracting and maintaining the last 10 to 15 percent
of their circulation base is often greater than the additional revenue generated,
since these subscribers require numerous direct-mail solicitations, premium offers, or
discount subscriptions.
A number of magazines have reduced their circulation base in recent years. Many
publishers believe they can pass on price increases more easily to their core readers or
subscribers and offer advertisers a more loyal and focused audience. Many advertisers
welcome the improvement in circulation management. They would rather reach a few
hundred thousand fewer subscribers than pay for inefficient circulation and be hit with
advertising rate increases each year. Many magazines are also using the monies saved
on the circulation side to improve the editorial content of their publications, which
should attract more readers—and advertisers.
Cross-Magazine and Media Deals Another important development
involves the way ad space is sold; there will be more cross- or multimagazine and
cross-media ad packages. Multimagazine deals involve two or more publishers offering
their magazines to an advertiser as one package. For example, Newsweek offers
cross-magazine deals with several other publishers, including Meredith and Times
Mirror. Many magazines are also making cross-media advertising deals that include
several different media opportunities from a single company or a partnership of media
providers. For example, with the merger of America Online (AOL) and Time Warner,
the new company offers advertisers the opportunity for cross-media deals whereby
they can advertise in magazines owned by the media conglomerate, such as Time,
Sports Illustrated, People, and Fortune; on its TV stations, such as CNN, TNT, TBS,
and the WB Network; and through AOL and other websites. 25
Database Marketing Many advertisers are increasingly turning to magazines
as a cost-efficient way of reaching specialized audiences. As marketers continue to
move toward greater market segmentation, market niche strategies, and regional marketing,
they are making greater use of magazines because of their high selectivity and
ability to avoid wasted coverage or circulation. Magazines are using advances in technology
and database marketing to divide their audiences on the basis of demographics,
psychographics, or regions and to deliver more personalized advertising
messages. Database marketing lets advertisers personalize their advertising by merging
their own databases with those of a magazine. By selectively accessing information
from a magazine’s database, advertisers can choose from an array of information
on consumers, such as product usage or purchase intention data. Marketers will
increasingly advertise in magazines that are targeted specifically to narrow groups of
subscribers. 26
Advances in Technology Two important technological developments are
making it possible for advertisers to deliver personalized messages to tightly targeted
audiences: selective binding technology and ink-jet imaging. Selective binding is a
© The McGraw−Hill
Companies, 2003
411
Chapter Twelve Evaluation of Print Media