• by Jack Loechner , Staff Writer @mp_research, May 10, 2007

Newspaper Churn and Telemarketing Down

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.

NAA President and CEO, John F. Sturm, said "Newspapers have reinvented their circulation marketing strategies by applying innovative and sophisticated practices to... audience development and distribution.... the role of circulation departments today is to deliver responsive audiences through marketing and delivery of products across multimedia platforms."

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.

According to the NAA's Fas-Fax analysis of circulation data for the six month period ending March 31, 2007analysis, 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.

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..."

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.  And Scarborough reported that, 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.

More information about the industry and the study may be found here.