Circulation Developing your circulation model

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CirculationDeveloping your circulation model

• Presented by Scott Wheatley
• Director of Circulation
• Business in Vancouver Media Group

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What is Circulation?
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Is It?

• Distribution?
• Single Copy Sales?

• Subscriptions?
• All Of The Above?

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Circulation is

• READERS

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Circulation is

• Reaching readers
• Finding out what readers want
• Reaching them as efficiently as possible
• Keeping readers reading

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Measuring Success

• The success of all publications is tied directly
  to the quantity and quality of its readers,
• because they read the stories
• and they buy products and services offered by
  your advertisers

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Circulation Planning

• The first step is to determine the potential
  audience for your publication and to determine
  the most cost effective way to reach them
• Who are they
• Where are they
• What is the best way to reach them

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Pick your publications model
Or any combination of the above
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Make your choice based on

• Timing is your product time sensitive
• Format does the desired format impact your
  delivery options
• Competitors how are they distributed and in
  what quantities
• Target Audience are there any specific
  considerations to reach your audience

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Circulation Planning

• Research Readers
• What information can you offer them that is not
  available to them now. What is that information
  and will they pay for it
• How do they want the information packaged
• How do they want the information delivered

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Invest in information

• Focus groups
• Surveys
• One-on-one interviews
• Ask potential advertisers who are your
  customers?

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Research you competitors

• Are they successful financially
• Where and how do they distribute their
  publications
• Are they doing an effective job of reaching their
  market
• Are they respected in the marketplace
• Is there room in the marketplace for another
  similar product

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Research Advertisers

• What are their marketing choices
• Is there room in the marketplace for another
  advertising vehicle for them
• Are they happy with their current choices

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Pick the right distribution model for your
publication

• Free distribution or paid circulation
• Do you plan for your circulation to break even,
  generate profit or be a cost centre
• Is your revenue being derived only from
  advertising?
• Do competitive pressures predetermine your
  choice?
• How do you decide which is best for your
  publication?

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Distribution Options

• Make your eventual choice based on
• Your competitors methods and successes
• Type of information being published
• Quality and exclusivity of information
• People will pay for quality, if it is exclusive,
  important to their life or career and delivered
  to them while it is still useful to them

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Advantages and disadvantages

• The advantage of paid circulation, in that it can
  not only offset all your circulation costs, but
  become a profit centre too. However, it is
  expensive to set up. You need qualified
  personnel, subscription fulfillment software,
  marketing budgets and plans, as well as
  subscription sales people
• Most traditional consumer magazines are paid
  circulation

• Free distribution products make their money
  strictly off advertising. Distribution of a free
  product is much less sophisticated than a paid
  publication and requires less internal
  infrastructure than a paid publication

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Launching your publication

• In reality everyone starts as a free publication

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Free Circulation - Magazines
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Free Circulation

• Types of distribution
• Controlled addressed to targeted lists
• Bulk via boxes, racks or bundle drops
• Inserted into similarly targeted pubs
• Over the internet
• Delivered door-to-door by carrier or mail
• Membership/Association Lists
• Hawkers

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Controlled circulation

• Targeted to a small defined group
• To be of value to advertisers a critical mass of
  the group must receive the publication
• Almost as expensive to maintain as a paid
  publication
• They can never be paid, or they would lose their
  penetration in the target market
• Award Magazine, Western Grocer

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Controlled - subscriptions

• Must be requalified to count on audit statement
• Must have complete subscriber information
  (business card)

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Controlled distribution budget
 
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Controlled delivery options

• Publications mail must be at least 30
  editorial

• Admail size and weight restrictions and minimum
  volumes (if not qualified for pub mail)

• Publications mail and Admail have similar costs
  but offer different standards and physical
  requirements

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Canada Post publications mail

• Specifications
• To qualify as Publications Mail, a publication
  must be
• Published at a regular frequency of at least
  twice a year with the intent to publish issues
  indefinitely with continuity from issue to issue
• Mailed in Canada and addressed for delivery
  within Canada
• Individually addressed copies or Bundles of
  Unaddressed Copies
• Less than 70 space devoted to advertising in
  more than half the issues mailed in a 12-month
  period
• Within specified size and weight limits
• Prepared as machineable or presorted as NDG or
  LCP
• Mailed under a valid Publications Mail Agreement
  Number and, if applicable, Registration Number
• Addressed to a subscriber, non-subscriber or news
  dealer anywhere in Canada

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Bulk Free Circulation

• Dropped in quantities to multiple locations
• Always track your returns
• People build habits maintain consistent
  locations
• You need permission to drop copies on public and
  private property
• Example West Coast Families, Georgia Straight,
  Employment Paper, Metro

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Bulk/free distribution budget
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Inserted Into Other Publications

• Inserted into publications servicing demographics
  matching your own
• Nuvo inserted into the Globe and Mail
• Advantages
• Cheaper to deliver
• Enjoys the credibility of other the publication
• Disadvantages
• Can be lost inside the other publication
• Can be confused as being part of the other
  publication
• If they dont read theirs, they wont read yours

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Over the Internet

• Publishing relies on a combination of printing on
  paper, to the web and long term technologies like
  reader tablets that will download newspapers,
  magazines and books.

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Delivered Door-to-Door

• Via Community Newspaper
• Cheap from 3 to 15 cents each
• Youth carriers not always perfect
• More difficult to target
• May not deliver your product if they consider it
  to be competitive

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Paid Circulation


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Paid circulation

• Types of distribution
• Subscribers (print/web based)
• Single copy sales
• Bulk sales

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How to determine your press run

• How many do your competitors print
• How are you planning on distributing it
• What is the maximum universe for your publication
• What are your geographical considerations
• What is the minimum quantity required to build
  your paid circulation and still satisfy the needs
  of your advertisers

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Paid Circulation

• How to price your publication
• What do your competitors charge?
• What is your cost of production and distribution?
• Printing per unit 0.75
• Postage and Handling 0.50
• Overhead 0.75
• Total cost per copy 2.00
• Cost per year (monthly) 24.00

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Paid circulation getting started

• What you will need
• Circulation software for in house use or a
• Fulfillment bureau
• Customer service staff and sales and marketing
  staff

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Paid Circulation

• Subscription Delivery choices
• Canada Post or others for international delivery
• Mailing House
• Alternative delivery company
• Your own carrier force
• Internet

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Building paid subscriptions

• Make sure every copy has an offer
• ROP ads
• Inserts in all free copies
• Offer free trials but dont forget to ask for
  money
• Convert trial subscribers
• Thank you letter with offer
• Subscription offer Discount (step ups)
• Final Offer Cover wrap
• Telemarketing

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Subscription sales direct mail
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Subscription sales direct email
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Single copy sales

• Retail Publication Sales aka Single Copy
• Globe Distribution Systems
• Magazine Wholesalers
• Coast-to-Coast
• Distacor
• In-house.
• Magazine Association Programs (BCAMP)
• Staff Recommended
• Retail representative/Merchandiser

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Paid Circulation Single Copy

• The Four Ps of Single Copy
• Price
• Product
• Position
• Promotion

• Price stay competitive, consumers are price
  sensitive
• Product the cover sells your magazine
• Position mainline versus checkout
• Promotion Point of Purchase material. Other
  advertising

• Remember most magazines sell less than half of
  the copies they distribute to newsstands
• Newsstands are important despite returns. They
  increase your visibility to readers and
  advertisers

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Dos and donts for magazine coversstolen from
Coast-to-coast newsstand sales website

• Do
• Do use benefit-oriented cover lines. Sell your
  editorial to readers
• Do use a "sky bar" at the top of the cover to
  promote features. Use this prime real estate for
  short, punchy teasers guaranteed to stop
  consumers
• Do use cover slashes to highlight noteworthy
  items
• Do use the left-hand margin aggressively for
  cover lines
• Do use white backgrounds for maximum contrast
• Do use big bold typography. Readers need to see
  it clearly
• Do use numbers to quantify value i.e. "500 Best
  Restaurants" and "Top 10 Public Gardens Coast to
  Coast"
• Do go perfect bound
• Do use quality cover stock and UV coating.
  Statistics show that this makes a difference to
  the consumer
• Do make the cover fun and informative

• Dont
• Don't put main cover line at the bottom of the
  cover. It needs to be in a prime location
• Don't use illustrations on the cover
• Don't be depressing on the cover
• Don't be too clever or too cute with cover lines
• Don't be subtle
• Don't have a cluttered cover. On the cover less
  is more
• Don't be afraid to sell. Use the cover as a
  marketing tool, because that's what it is. It is
  not an artist's portfolio
• Don't use white drop out cover lines, unless the
  type is huge
• Don't be afraid to do all type covers. Sometimes
  these can be more effective than using a photo
• Don't be preachy, pompous, or pretentious on the
  cover

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Dos and donts for cover pricesstolen from
Coast-to-coast newsstand sales website

• Do
• Review your price and your competitor's prices
  semi-annually
• Be bold. If you are going to take your price up,
  raise it by at least 25 cents
• Raise your price with a thick issue
• Take it up with an issue that always sells well,
  like a special issue
• Raise it during Autumn--that way you get an
  "unbudgetted revenue" windfall
• Be sure you change the price on the masthead
• Be sure you get new UPC codes
• Be sure you change all circulation promotion
  material that refers to "savings off newsstand
  price"
• Be sure to alert your newsstand distributor well
  in advance
• Monitor sales post price increase, analyze, and
  plan your next move

• Dont
• Don't duck the issue. Magazines are undervalued.
  Evidence How much did you last pay for a
  birthday card? People are willing to pay for a
  thick, information-packed book
• Don't be forced to take up your subscription
  price when you raise the cover price
• Don't appear defensive when a cover price
  increase is suggested by your publisher
• January issues are usually thin, so avoid raising
  your cover price at the beginning of a new year
• Don't be shy, if you are priced at 1.95 go to
  2.25 then to 2.50 then take it to 2.95 then to
  3.25 then 3.50 then to 3.95. If you have a
  great product, it will sell
• Don't be surprised if sales slip. The "theory of
  elasticity" states that if you raise your price
  by 10 percent, you'll lose 10 percent of sales
• Don't retreat and don't panic. Dropping your
  price is a sign of weakness. Wait it out--it may
  take six months for sales to normalize
• Don't brag. If newsstand sales remain strong post
  price increase, credit the editor and the
  editorial team for giving you a great product to
  sell

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Paid Circulation - Bulk

• Multiple copies delivered to the same address
• Restaurants
• Events or Venues
• Cheap but cover the cost of production
• Can count as qualified paid depending on auditor

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Single Copy Promotion

• Point-of-purchase material
• Tent cards 10
• Floor stickers 35 each
• Racks 25 to 150 each
• Retail Dealer Allowance (RDA)

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Paid Circulation - Renewals

• Send four to five notices
• Five months prior
• Four months prior
• Three months prior
• One month prior
• Last issue
• -1 issue telemarketing

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Budgeting

• Expense
• Delivery expense
• Fulfillment
• Marketing
• Revenue
• New subscriptions
• Renewals
• Single copy (revenue split)
• List Rental Revenue
• Bulk as low as 1 each

• Earned Revenue
• The amount of revenue earned from the
  subscription amount paid, divided by the number
  of issues purchased
• Deferred Revenue
• The amount of revenue set aside for to service
  future issues of the publication
• Subscription price 12 for 12 issues. After first
  issue 1 is earned 11 is deferred.

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Sample paid circ expense budget
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Circulation Revenue
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Promoting your publication

• Samples with reply mechanism
• Ad swaps with other publishers
• Contra radio, billboards
• Partner with associations and advertisers
• Telemarketing
• Direct mail
• Door-to-Door sales
• Events, tradeshows and kiosks
• Sponsorships
• Direct email
• Hawkers
• Premiums

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Contests

• Get readers interacting with you
• Partner with advertisers for prizes and promotion
• The better the prize the better the response
• You cannot make people buy to enter your contests

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Resources

• Circulation Management Magazine
• Folio Magazine
• Target Marketing
• Direct Marketing News
• C.A.R.D
• RC Anderson and Associates

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Circulation Consultants

• From CMC Industry Links Suppliers
• Circulation Consultants
• Abacus Circulation Inc.Jon SpencerPhone
  416-504-5282Fax [phone]email
  js.abacus_at_sympatico.cahttp//www.abacuscirculatio
  n.ca
• Circ3...Smart Circulation SolutionsScott
  BullockPhone 416-699-3838Fax
  416-699-1815email scott_at_circ3.comemail
  scottbullock_at_rogers.comhttp//www.circ3.com
• CM Group Greg/Colleen Phone [phone]email
  gkeilty_at_neptune.on.caemail cmgroup_at_interlog.com
  http//www.skynewsmagazine.com
• ETATECH PJ Brown Phone [phone]email
  pjetatech_at_rogers.com

• Granite Bay Media Greg Phone
  916-782-6575email greg_at_gbmedia.comhttp//www.gb
  media.com
• Robert Cohen Associates Bob Phone
  212-557-1954email robtcohen_at_earthlink.nethttp/
  /www.robertcohen.net
• Target Audience Management Inc.Brian
  GillettPhone 905-729-2727Fax
  905-729-0227email bg_at_tamicirc.cahttp//www.tami
  circ.ca
•  

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Software and fulfillment

• Circulation Software
• Bard Business Solutions Inc.5845 Yonge St., Box
  69592, Toronto ON M2M 4K3Phone
  416-410-2273Fax [phone]
• The Media Services Group, Ltd.,One Atlantic
  Street, 3rd FloorStamford CT 06901-2402
  U.S.A.Phone [phone]Fax [phone]
• Mendon Associates Inc.4195 Dundas St. W. Suite
  340 Toronto ON M8X 1Y4Phone [phone]Fax
  416-239-1076
• Sequel SoftwareSuite 301, 609 - 14th St. NW
  Calgary AB T2N 2A1 Phone [phone]Fax
  403-270-8951
•  

• Fulfillment Services
• CornerstoneKamy Zarbafi 416-932-9555email
  kamy_at_cstonecanada.comhttp//www.cstonecanada.com
• Indas Limited Contact Billemail
  indas_at_indas.on.cahttp//www.indas.on.ca
•  
• Newsstand Distributors
• Coast To Coast 5230 Finch Avenue East Toronto
  ON M1S 4Z9Phone [phone]Fax [phone]
• Disticor Magazine Distribution Services695
  Westney Road SouthUnit 14Ajax ON L1S 6M9Phone
  905-619-6565Fax [phone]
•  
•  
•  

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Web Resources

• NEWSSTAND.COM
• NEWSPAPERSDIRECT.COM
• MAGAMALL.COM
• NAA.ORG
• INMA.ORG
• API.COM
• CIRCJOBS.COM
• NEWSPAPERS.ORG
• MASTHEADONLINE.COM
• CCMANET.CA
• CIRC.ORG

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Circulation Verification

• ABC
• BPAI
• Verified
• Publishers Sworn Statement

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List Brokers

• Prospects Influential
• Cornerstone
• Watts
• CBI
• Infocanada.com
• Contacts Database Marketing

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Samples
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Samples
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Samples
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Samples