NAA study shows subscriber retention UP.

Preliminary findings from a new study by the Newspaper Association of America shows that recent changes in traditional circulation marketing strategies are meeting the changing media habits of today’s consumers and the targeting needs of advertisers. The findings reveal that these strategic changes are directly contributing to a greater retention of subscribers, significant decline in subscriber churn and improved efficiency in product distribution for advertisers.

“Newspapers have reinvented their circulation marketing strategies by applying innovative and sophisticated practices to two traditional responsibilities: audience development and distribution,” said NAA President and CEO John F. Sturm. “While we all know that traditionally circulation has focused on delivering net-paid circulation of the core product, the role of circulation departments today is to deliver responsive audiences through marketing and delivery of products across multimedia platforms.”

According to preliminary findings from the NAA 2007 “Circulation Facts, Figures & Logic,” a biennial study of newspaper and circulation marketing practices, newspapers are retaining subscribers in greater numbers, with subscriber churn down 36.5 percent in 2006, compared with 42.1 percent in 2004 and 54.5 percent in 2000. In addition, newspapers continue to reduce their reliance on telemarketing as a source for new subscribers, with telemarketing sales dropping to 35 percent in 2006, compared with 58 percent in 2000.

The report also shows how newspapers are continuing to meet the needs of advertisers by leveraging the distribution infrastructure developed for zoning advertising and using the expertise to deliver national products, their own specialty offerings and advertiser products such as catalogs and product samples.

According to the report, 51 percent of the newspapers surveyed said they are increasing their ability to improve distribution. Among the larger papers (more than 25,000 circulation), 60 percent of dailies are delivering products for other publications and advertisers.

“While newspaper marketing practices continue to focus strongly on sustaining the core readership, newspapers are working hard to leverage the brand power of the core product to attract readers to their print and online publications that serve advertisers,” Sturm said. “To quote the industry trade campaign, newspapers are the ‘multi-medium,’ and the total audience for newspaper media speaks volumes more about our future than a simple focus on core circulation.”

NAA Releases Fas-Fax Analysis

The 2007 NAA circulation report is released in conjunction with NAA’s Fas-Fax analysis of circulation data for the six month period ending March 31, 2007. According to the analysis, the average daily circulation for the 745 newspapers reporting for comparable periods was 44,961,066, a decrease of 2.1 percent (from 45,902,536) over the same period a year ago. On Sunday, the average circulation for the 601 newspapers reporting for comparable periods was 48,102,437, a decrease of 3.1 percent (from 49,639,380) over the same period a year ago.

“The latest ABC circulation figures are in range with what we expected,” Sturm said. “As confirmed by the findings in the latest Circulation Facts, Figures & Logic study, publishers have been moving away from investing in short-term circulation sales programs toward longer-term marketing initiatives that deliver the most value and make economic sense.”

Looking forward, Sturm said, a key focus within the industry is continued investment in new products that increase audience, including newspaper Web sites.

NAA recently released data from Nielsen//NetRatings that showed more than 59 million people (37.6 percent of all active Internet users) visited newspaper Web sites on average during the first quarter of 2007, a record number that represents a 5.3 percent increase over the same period a year ago. On average newspaper Web sites contribute to a 13.7 percent increase in newspaper audience for the coveted 25- to 34-year-old demographic, and a 9.2 percent increase for 18- to 24-year-olds.” (Scarborough)

“Audience” Measurement Added to ABC Reports

Last month, the ABC board provided preliminary approval to work with NAA and Scarborough Research to begin incorporating audited audience data in ABC U.S. media reports. In a statement issued by ABC last month, the intent “is for ABC to allow newspaper publishers the option to report in-market readership—print and online—in a combined net-audience figure, as well as overall Web site activity.” If given final approval by the ABC board at its next meeting in July, newspaper publishers could begin reporting this optional information as early as the September 2007 six-month reporting period.

“We are pleased with the ABC board’s preliminary approval to include audience information for advertisers,” Sturm said. “Data that measure the expanded audience is precisely what advertisers want to enhance their understanding of consumer use of newspapers across all media platforms.”

NAA is a nonprofit organization representing the $59 billion newspaper industry and more than 2,000 newspapers in the U.S. and Canada. NAA members include daily newspapers, as well as non-dailies and other publications published throughout the world. Headquartered just outside Washington, D.C., in Arlington, Va., the Association focuses on six key strategic priorities that affect the newspaper industry collectively: marketing, public policy, diversity, industry development, newspaper operations and readership. Information about NAA and the industry also may be found at www.naa.org.