May 2001

Ad Slowdown = Marketing Opportunity

Are commitments to marketing and promotion considered a "discretionary expense?" Do they fall into the "first things to be postponed category" during any economic slowdown? Be careful, you could be playing into the hands of some of your most dangerous competitors. Not just television stations, radio stations, cable operators and alternative print products in your market that have the foresight to maintain their marketing presence, but multi-media behemoths are also eager to steal your audience.

Speaking to analysts recently, AOL Time Warner co-chief operating officer Bob Pittman commented the current slow advertising market is a tremendous opportunity. Unsold network and magazine inventory will be harnessed to aggressively promote AOL Time Warner brands -- positioning the company perfectly for the inevitable recovery. Newspapers don't have "unsold" inventory, but we do have an enormously underutilized promotional platform that will probably continue to be overlooked while the economy struggles.

A newspaper's "product" isn't just content -- it's audience. Promotion is just as critical to successfully aggregating that audience as the sections and features a paper sells. From an ROI perspective, dollars effectively spent on marketing frequently yield more audience share, more quickly, than many "untouchable" newspaper operating and capital expenditures. Simultaneously, they bolster brand. And in our increasingly fragmented media universe, it's the strongly branded who will thrive. This conviction is further reinforced by the now being released Newspaper Impact Study along with 30 years of Belden research findings.

Understanding AUDIENCE needs to become second nature...audience regularly measured, analyzed and segmented in ways to serve both readers and advertisers. To recognize that our audiences do more than just READ a paper! That some users only clip coupons, check TV grids, evaluate investments or scour the entertainment section before making weekend plans. Every bit of this audience is important - much of it can be expanded.

Let's put the typical promotional commitment in perspective: newspapers rarely "invest" even 1% of their space to promoting either same day or upcoming content...only occasionally does outdoor, television or radio play any role. Most promotion is generic - little specifically touting columnists, features, events, special products or weekly sections. Wouldn't that be a good idea?

Meanwhile, in even a middle-sized market, just the four network affiliates promote themselves at least 384 times per day. (4 stations x 24 hours x 4 quarter-hour promotional spots.) And, that's assuming a sold out rotation; something that smart sales managers don't let happen.

A newspaper web site expands promotional opportunity significantly - in many cases, with "at risk" demos. Capitalizing on such cross-promotional opportunity and reaching demographic groups like teens and young adults should be a high priority.

Especially in light of early Sales & Site Survey results...we'll know more with the second round* - but initial data suggest: A NEWSPAPER WEB SITE DRIVES SUBSCRIPTION, SINGLE COPY SALES AND READERSHIP!!

"I don't think there is a new economy. I think there are new tools for THE economy."
-Michael Bloomberg, CEO

Despite the changing media environment, newspapers achieve reach and audience that remains the envy of every media platform. Now, more than ever, it's critical that publishers fully leverage this powerful asset to market, promote, build, and SELL your newspaper. That requires more than the occasional rack card, rather, strategic branding initiatives, carefully crafted campaigns and top-notch execution...continually!! Maintaining -- even increasing -- your marketing commitment and your delivered audience will be the wisest investment you've ever made.

Now is the time to make that investment!