Direct Marketing for Newspapers
This follow up video focuses on the unlevel playing field this NSA would create, as well as some of the financial and rate considerations facing Valassis and any potential advertisers that might participate.
About Jim HartI've been working with or for newspapers for the past 31 years, the first 15 in advertising, the past 16 years in all areas related to direct marketing. I work with newspapers to improve the ROI for their advertisers. The better return the advertiser gets, the more they will come back and tell their friends.
Jim,
Thank you for the non-biased feedback on this very important topic that will effect all of us.
Thanks again Jim for the “unbiased” opinion, I appreciate it!
Jim found your video very interesting. I while I am no longer in the industry I still follow it with interest and would like to point out that you are arguing against volume discounts. Let’s take a look at the AZ Republic rate card… If you are a small advertiser spending the minimum volume on ROP ads you are charged $329.45/column inch. If you fall into the max category you are charged $167.95/column inch. That’s a 50% discount – on rate card and no one with volume pays rate card rates. So what is the real discount 70-80%? Are the newspaper industry pricing practices really any different than what you are arguing against?
Thanks for the reply Michael. I’m a big fan of volume discounts, as long as they are made available to direct competitors on a basis that makes them equally accessible. If the small advertiser you mention wants to spend more to grow their business in that market, they can eventually get lower rates than the big guy. If the paper doesn’t treat him/her with respect and give them good value, there are 100 other options on how to spend their marketing dollars. The USPS is a government granted monopoly. The rapidly growing rate disparity between two essentially identical classes of mail has already lead to a substantial exodus of newspapers from the mail.
The Republic zones aggressively to make local advertising affordable for the small advertiser you mention, who typically doesn’t need the $329 full run ad. If they don’t come up with cost effective, realistic alternatives for the smaller local merchant, the merchant will leave.
This whole NSA proposal was written to be available to an audience of one. I don’t believe this would fly if it was an arrangement between two companies operating in the open market. One of them being a government granted monopoly should make this less OK, not more.
Hi Jim,
Thanks, that was an informative session. How can I get a copy of the entire 57 page document?