DOES NEWSPAPER ADVERTISING WORK HARDER FOR YOU? WHO READS THE PAPER TODAY?
Dear Mast Report Reader,
Is your newspaper advertising working harder to reach your target audience? Are people reading the newspaper? I’ve looked into these questions and I think my findings will surprise you.
Look at the incredible headlines I found during my research…
NEWSPAPERS SEE ONE OF WORST DECLINES, GROUP SAYS
Newsday.com by the Associated Press (May 02, 2005)
PAPER SINKING FURTHER CIRCULATION FIGURES FOR NEWSPAPERS INDICATE THE WORST FALL OFF IN A DECADE, A TREND EPERS SAY COULD WORSEN
By Richard J. Dalton Jr, Staff Writer
New York Newsday (May 03, 2005)
NEWSPAPER SALES CONTINUE TO SLIDE
By David Lieberman
USA Today (May 2005)
NEWSPAPERS DESPERATE TO REMAIN RELEVANT
By Frank Ahrens (February 27, 2005)
The Washington Post (Published in the Centre Daily Times)
NEWSPAPER CIRCULATION CONTINUES DECLINE, FORCING TOUGH DECISIONS
By Julia Angwin and Joseph T. Hallinan (May 02, 2005)
The Wall Street Journal
BALTIMORE SUN RECORDS 11.3 DROP IN CIRCULATION
By Andrea K. Walker
The Baltimore Sun, Maryland (May 2005)
SHAREHOLDERS FILE SUIT ALLEGE TRIBUNE CO. AWARE IT OVERSTATED CIRCULATION NUMBERS AT NEWSPAPERS INCLUDING NEWSDAY AND HOY
By James Bernstein, Staff Writer
New York Newsday (May 2005)
What is happening in the newspaper industry? It is changing and changing at the speed of light. Newspapers around the country are struggling to stay relevant. Baby boomers love reading it while the younger consumers are turning to other sources for news and information including 24-hour Cable News, Satellite Radio, News Radio, Ipods, and the Internet. By the time the newspaper gets to your house—the news is old and dated. Our society wants and craves instant news and information.
“The Newspaper industry has some breathing room left, but not much! The baby boomers are going to continue to drive print (sales) for some time. The problems we have are the 18-to35-year olds. They’re not replacing the baby boomers!” Quote from Frank A. Blethen, Publisher of the Seattle Times
*The losses come at a time when Americans have many news outlets that didn’t exist 20 years ago, including cable television news channels and internet sites, as well as email and cell phone alerts. Many newspapers have substantial and free online sites offering much of what is in the printed paper. These sites might not hurt readership overall, but they can erode a newspaper’s paying audience. *The Wall Street Journal, May 2, 2005
This is why the consumer trend is moving away from local newspaper and more towards electric media: television, cell phones, and the internet. Even billboard companies are utilizing electronic media with the new electronic flat screen TV billboards. Consumers want instant information. No waiting.
*“With changing work and lifestyle patterns from the 1970’s on has led to the demise of the evening newspaper in almost every city.” * By Frank Ahrens, The Washington Post
Newspapers are saying that the decline is due to the start and growth of the do-not-call legislation that was established in 2003—this sets guidelines that limit telemarketing calls to renew and recruit new subscribers. Telemarketing accounted for nearly 43.4% of new subscribers but fell to 30.0 last year according to the Newspaper Association of America (NAA) Click on the NAA website to learn more: http://www.naa.org/ . I don’t buy it! It seems to be a growing trend as electronic media continues to find new ways to reach consumers. (Again—instant information—not dated info/news!)
The lack of telemarketing doesn’t seem to be realistic. They are using guerilla marketing tactics to sell and distribute the newspaper. I see the local newspaper promoting subscriptions in booths at our local mall and giving customer FREE papers during community events.
*Daily circulation averaged 62 million newspapers in 1980, compared with 55 million in 2003, the latest figures from the newspaper association. The decline came as the country’s population grew from 226 million to 282 million during that period. *By Richard Dalton, Jr., Newsday
The average newspaper circulation fell 1.9% in the September through March period compared to that same period of time the year before according to analysis of circulation figures by the NAA.
Newspaper and media experts are saying that this trend seems to be getting worse…see the circulation numbers here-- http://www.naa.org/info/facts04/circulation-daily.html
Sunday sales of the newspaper have dropped more than 2.5% to 51.1 million—According to the NAA.
40% of 18-34-year-olds read a weekday newspaper in 2003 compared to 60% in 1982.
* "Newspapers are not clearly as attractive as they were eight or 10 years ago!” Quote from Bob Shamberg, Chief Executive of the media company whose clients include Sears Home Depot, and BMW (The Baltimore Sun, May 2005)
Today, people are watching more cable news for around-the-clock news coverage of major events. Since the coverage provided by CNN of the Gulf War, people are viewing cable news as one of the main sources for news and information. Now with Fox News, CNBC, MSNBC, Bloomberg, ESPN, and others—Cable news is growing!
If you go into any restaurant or shopping location you see more and more that the merchant has one or more cable news networks or a local broadcast station on TVs for customer viewing.
*Newspaper Services of America, an Illinois media buyer and planner, said that although newspapers are still a good buy, its clients are increasingly looking to other outlets, such as the Internet, TV, Radio and direct mail. *The Baltimore Sun, May 2005
I recently participated in a Jim Doyle & Associates seminar on auto dealership usage of newspaper and here is what they found in there research:
Almost HALF of American Households do not subscribe to any newspaper: 48% do not subscribe, while 37% subscribe to daily or Sunday papers, 10% subscribe to Sunday only, and 3% subscribe daily and not Sunday!
Here is Jim Doyle & Associates newspaper research comparison by age: (Harris Poll 2004)
Age 18-24
8% Sunday Subscription only
25% Daily & Sunday Subscription
1% Daily Subscription only
65% No Subscription at all
Age 25-34
10% Sunday Subscription only
27% Daily & Sunday Subscription
2% Daily Subscription only
60% No Subscription at all
Age 35-44
12% Sunday Subscription only
28% Daily & Sunday Subscription
0% Daily Subscription only
58% No Subscription at all
Age 45-54
12% Sunday Subscription only
38% Daily & Sunday Subscription
6% Daily Subscription only
42% No Subscription at all
Age 55-64
8% Sunday Subscription only
49% Daily & Sunday Subscription
5% Daily Subscription only
37% No Subscription at all
Age 65+
5% Sunday Subscription only
61% Daily & Sunday Subscription
2% Daily Subscription only
31% No Subscription at all
Here is Jim Doyle & Associates newspaper research comparison by income: (Harris Poll 2004)
$1,000-$15,000
7% Sunday Subscription only
23% Daily & Sunday Subscription
2% Daily Subscription only
66% No Subscription at all
$15,000-$25,000
5% Sunday Subscription only
31% Daily & Sunday Subscription
3% Daily Subscription only
58% No Subscription at all
$25,000 -$35,000
10% Sunday Subscription only
40% Daily & Sunday Subscription
5% Daily Subscription only
44% No Subscription at all
$35,000 -$50,000
13% Sunday Subscription only
40% Daily & Sunday Subscription
3% Daily Subscription only
42% No Subscription at all
$50,000+
10% Sunday Subscription only
58% Daily & Sunday Subscription
0% Daily Subscription only
32% No Subscription at all
Here is Jim Doyle & Associates newspaper research comparison by education: (Harris Poll 2004)
Non-High School to High School
1% Sunday Subscription only
23% Daily & Sunday Subscription
4% Daily Subscription only
68% No Subscription at all
High School Grad
8% Sunday Subscription only
36% Daily & Sunday Subscription
3% Daily Subscription only
50% No Subscription at all
Some College
9% Sunday Subscription only
38% Daily & Sunday Subscription
4% Daily Subscription only
48% No Subscription at all
College Grad
10% Sunday Subscription only
40% Daily & Sunday Subscription
2% Daily Subscription only
46% No Subscription at all
With the Internet explosion, people are getting the latest headlines from news web sites and internet blogs such as http://www.drudgereport.com/ , http://www.cnn.com/ , http://www.foxnews.com/ , and thousands of other sites.
Businesses are also moving print money by using the Internet for employment classifieds. Revenue in local newspapers is beginning to drop thanks due to Monster.com and other internet employment sites.
*Increasingly, employers are using other resources to recruit workers. Morgan Stanley estimated that, from 1988 through the end of last year, revenue generated by Internet help-wanted ads would grow 400%. During the same time, revenue from newspaper help-wanted ads is projected to drop 40%! * Frank Ahrens, The Washington Post, Feb 27th 2005
“T-Mobile USA is still happy with the results it gets from newspaper help-wanted listings, but such listings amount to only about 30% of T-Mobiles total recruitment-ad budget. The Company has moved most of its help-wanted advertising from newspapers to our own Web Site.” Quote from Randall Birkwood, Director of Recruitment, T-Mobile
So to conclude, the answer to my questions is “No!” You can’t use newspaper to target your customer! It seems to be too expensive for the very little return on investment. Newspaper advertising rates continue to increase each year while the subscribers who read the paper are shrinking.
It is time to change your strategy and focus on television and other forms of media to make your advertising budget work harder for you!
When looking at managing your total advertising and marketing budgets you should consider my research from this report carefully and explore the electronic media. You must understand who you are trying to reach and study your target demographic. Buying habits and lifestyles have changed. If you are targeting a 25-54 demo, use the electronic media without paper. If you are targeting a baby boomer or a more seasoned citizen, reach out to the newspaper on SUNDAY only as a last resort. Instead, use targeted electronic media or billboards to enforce your message to seniors. Keep in mind—this all depends on what type of product, company, or service you are promoting. Know your product and know who needs it. Get your sales message to that person by researching them and knowing how they shop and how they live.
With families busier than ever and our time moving by us at lightning speed—You need to reach people when they are out, when they are home, and when they are on the move.
Keep in mind, cable advertising targets specific key demos for each cable network—the opportunity is great to truly target your buying directly towards the consumer. By targeting you get a great return on your advertising buy. Save money and reach more customers! Only cable advertising can target your audience: Geographically and Demographically!
If you need to make your advertising budget work harder for your business everyday—Contact me to research the trends, research your competition, and research your target consumer. If you need personalized advertising advice, research help, or want to offer your opinion, please contact me at don.mast@adelphia.com or dmast@atlanticbb.net .
Click on donmast.blogspot.com monthly for Mast Report updates.
Thank you for reading!
I am working harder for you!
Don MastUPDATED ARTICLE from NOV 2nd 2005:
Shareholder urges Knight Ridder to sell Private Capital Management, based in Naples, is urging the newspaper publisher to aggressively pursue a sale.
BY TONY GNOFFO AND JOSEPH N. DISTEFANOPhiladelphia InquirerPHILADELPHIA - A private investor group with a 19 percent stake in Knight Ridder, the nation's second-largest newspaper chain, called Tuesday for the sale of all or parts of the company to boost its sagging market value.
Private Capital Management, of Naples, owned by Legg Mason, of Baltimore, said in documents filed with the Securities and Exchange Commission that it has asked Knight Ridder's board to ``promptly pursue a competitive sale of the company.''
It threatened less friendly approaches if it is unhappy with Knight Ridder's response.
''In the absence of such action,'' PCM said, it would ``strongly consider supporting more aggressive efforts that might be initiated by other parties seeking to change the composition of the board, install new management, acquire a majority of the company's voting shares, or take other action to maximize shareholder value.''
Pounded by difficult times in the newspaper business, shares of Knight Ridder, which owns The Herald, have lost 18 percent of their value since Nov. 9, 2004, when they hit their 52-week high of $71.07.
On the news of PCM's filing Tuesday, Knight Ridder shares gained $4.62, or more than 8 percent, closing at $58 in heavy trading on the New York Stock Exchange.
The PCM filing included a letter from its chief executive, Bruce S. Sherman, to Knight Ridder's board of directors in San Jose, Calif., saying shareholders would be best served ``by the board soliciting competitive bids for the company, either from financial buyers willing to pay fair value or industry participants that would realize synergies and increased market presence through the acquisition of Knight Ridder's highly desirable local newspaper and online advertising assets.''
Sherman's letter did not name any potential buyers.
Knight Ridder spokesman Polk Laffoon IV said Tuesday that the company had no immediate comment.
PCM began boosting its ownership stake in Knight Ridder in September, after meeting with the newspaper company's board in July. It is now Knight Ridder's biggest shareholder.
Since the July meeting, Knight Ridder's board has repurchased five million shares and authorized the repurchase of five million more. It also sold and swapped a number of its newspapers, including a deal that sent The Detroit Free Press to Gannett Co., the nation's largest newspaper company.
In September, two major Knight Ridder papers, The Philadelphia Inquirer and San Jose Mercury News, announced buyout programs.
Despite the gloom about the business on Wall Street, Knight Ridder and other newspaper companies remain profitable. In the third quarter of 2005, Knight Ridder reported operating income of $96.3 million, down from $126.5 million for the same period last year. Revenue for the quarter grew to $723.8 million from $708 million a year earlier.
Still, the company's stock continued to sag.
The investment group has also been buying shares of other newspaper companies, and is now the biggest shareholder of Gannett, owner of USA Today; Tribune Co., the third-largest newspaper publisher; and The New York Times Co.
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