Is there a silver lining in magazine circulation's dark cloud?


By Roy Schwedelson


Here are the facts of 2001, newsstand sales have experienced an estimated 7.6 percent drop in overall unit sales, a 2.6 percent drop in overall dollars and the worst sell-through performance to date of 35 percent. With postal rates ready to do more damage to an already shaky magazine circulation economy, is there a silver lining anywhere in sight? Only if smart circ directors know how to get back to the black and white of the basics and add in a bit of sparkling marketing flair.

Circulation issues are receiving growing attention for many reasons. One of which is the impending postal rate noose around the necks of mailers as the USPS looks to save its own future without taking into consideration the bigger picture of the health and success of magazines and publishing enterprises as a whole.

The DMA has tried to "fight city hall." Now, it's time to accept the inevitable and come up with creative ways to take action. My goal here is to outline, from a marketing standpoint, what types of circulation support and options are viable today for direct marketing and strategic initiatives.

I'm aware of the time and resource pressures that circ directors are under-not to mention the budgets that seem to go through a daily interaction with a red pen and the financial version of a meat slicer. The idea here is to identify desirable goals and to work them within the restraints of both dwindling budgets and mounting costs.
Traditionally circ directors would direct -mail out an offer for a discounted subscription rate with the promise of free clock radio, pen, or golf cap. But, today the BtoB and BtoC magazine audience is wise to these offers-and while no one can probably have too many canvas tote bags, golf umbrellas, or imprinted T-shirts it might benefit circ directors to rethink both their marketing medium as well as their marketing message. With the upcoming relaxation of ABC (audit bureau of circulation) rules on these methods there will soon be a flood of all sorts of premium 'stuff'Of course, the renewals from these subs will suffer just as they have in the past. (Said with all respect to good editorial)

Email and web-based marketing campaigns offer circ directors a real opportunity to dodge the postal bullet while prospecting to new markets, and developing stronger relationships with their existing subs.
Circ directors probably could argue that using an electronic medium to get a subscription to a brick & mortar magazine may be counter productive. There may be some truth in this argument, however, the numbers may tell a different story.

Here are a few tips to keep in mind when re-evaluating your email and web marketing efforts:

Be proactive about gathering useful data.
One of your biggest marketing assets could be sitting in your own computer centers. Often times circ directors as well as marketers don't always tap the huge wealth of valuable information that resides in their own databases. Work your existing databases for everything they're worth! Not just for promotional efforts, but for CRM as well. Gather as much data from your readership as possible and use it smartly. For example: Let's say that you are an IT Magazine. You know that you have an article in your upcoming issue on mail server solutions. Why not work your database and send out an email blast to mail server administrators?
But they didn't opt-in. Well, put that on your subscription form and tell them the great benefits they'll receive from your pub in between issues!

This strategy shows your existing subs that you've actually taken an interest in why they've subscribed to your magazine in the first place, while showing them how to use the pub to their best advantage. Give them a few tips from the article with a link to special info and renewal pages on your site.
The difference here is that before you ask them for the "renewal" you've made the pub more valuable. So when you do ask them for the online renewal you've given them more of a reason to click.
By the way, special 'bonus' features sent via email from your editorial staffs coupled with a renewal extension or 'cross sell' offer can go along way.


Leave no stone unturned. Email marketing offers circ directors the chance to prospect to potential subs in places they may not have previously considered.
In a minute you'll probably read concepts that you have used countless times for postal promotions - they all work with email. One of the beauties of email is the ability to test and test and test copy, price and offer for relatively little money and in very short periods of time and get the results ASAP.
If that weren't the case, the Postal Service wouldn't be in all the trouble it is in.


Here are those tried and true statements that still work for email.

When considering a list to test, look beyond the list's name to the demographics. Who are these people? What are their interests in particular categories or product types?

Take a deep look at how your own circulation file reflects trends within the overall industry. Then translate that demographic information into your list selection process. Strategic planning efforts benefit from an understanding of areas of similarity.

Look around.
Those who are succeeding and those who are folding both have lessons to share. Look and Learn! We've all been programmed to look at the goings on of our nearest competitors but take the time to look at the industry as a whole. A pub that goes after an entirely different market may be doing quite well. Look at what they're doing and translate their efforts into a plan that makes sense for your audience.

Take the "what" and "how" and just change the "who."
While you're out there looking…. While you are looking for way to uncover new leads, and looking for success strategies be sure to develop friendly working relationships with your competitors because your best leads might just be sitting in your competitors own email database.

Let's face it…you are both going after pretty much the same audience anyway. Email exchanges among friendly "rivals" offer one of the most budget-friendly alternatives available anywhere. We've been doing these exchanges in the postal world for years.

In most cases when an exchange is negotiated the actual list rental costs are waived and both parties pay only transmission costs and other nominal fees. An email exchange helps circ directors and marketers reduce costs through the Internet, and develop online audiences and communities that have far-reaching implications such as driving traffic, registration, and maximizing the power of databases.

Coordination is king. Introduce your left hand to your right hand. Making your email marketing a true sales tool means that everyone from editorial, to ad sales, to subscription telemarketers all stay on theme and reflect changes in the marketing focus. One of the reasons -not just email campaigns-but many direct mail campaigns fail is that there is no follow-up.
Update the sales force about everything to do with an upcoming email blast. If possible let them see your jump page, and inform them of the list you are using. Even points that you consider routine or minor may be useful as follow-up sales tools when we're talking about prospects; an example would be any new services offered to subscribers, and (here's the key) the actual message that will be sent out.

It used to be that direct mail was the simpler form of marketing. But now the complexity of postal regulations is mind-boggling not to mention frustrating. The operational marketing reality is that in order to survive in a challenging marketplace we need to consider options that we may never have considered before or rethink those we have tried and use them in new ways.

Looming over this uncertain marketing and publishing economy is a shared concern for financial health. As we all watch publishing structures change there needs to be a universal acknowledgment that with rising postage costs it could be costly to rebuild prospect channels. While we are all looking for the clouds to part, we might as well bide our time by adopting a universal acknowledgment that new ideas must be uncovered.
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