• by Larry Dobrow , July 31, 2003

Given declining revenues and readership levels at newspapers in the U.S., there are few papers that aren't searching for new ways to cement advertiser relationships and bolster reader allegiance. And while The Virginian-Pilot doesn't claim to have stumbled onto a panacea with its relatively new marketing program, "Reader Rewards," the paper may well have discovered a marketing and promotional model than can be extremely effective in certain markets.

Reader Rewards, which launched in early March, was designed to address areas where many newspapers have been falling short in recent years: strengthening the paper's brand, increasing reader loyalty, forging stronger relationships with advertisers and reducing what the company calls "circulation churn." While Virginian-Pilot director of market development Dale Bowen says that his company was not experiencing substantial concerns in any of these areas, he thought it was wise to think ahead.

Of course, that required a shift in mindset among the Virginian-Pilot sales staff. "A lot of people don't feel comfortable with promotional selling - it's a different kind of sell," Bowen notes. "In the past, it seems like radio and television stations were more comfortable with a program like this."

While the thinking behind "Reader Rewards" may not be revolutionary, it has proven quite effective. Following a teaser ad campaign, the program began in earnest on March 6 when the newspaper distributed "KeyCards" to its entire subscriber base via an outside pouch (non-subscribers can specifically request the cards). Every day since then, KeyCard holders have been able to access program-exclusive offers on a Reader Rewards page in the paper; a daily access code allows them to participate in contests for cash, tickets and other prizes. "We give them value that they can't get through other programs," Bowen crows.

What makes this program different from comparable newspaper marketing efforts in the past, according to Bowen, is that it did not require a substantial investment by the Virginian-Pilot ("in fact, it actually made us money," he says). All costs, including a "Welcome Bag" for area newcomers that included coupons, promo goodies and a copy of the newspaper, were covered by the program's five biggest ad sponsors. In exchange for their investment, these advertisers were included in ads touting the program and on the paper's daily Reader Rewards page, as well as given prominent exposure on the paper's website.

As much as Bowen waxes euphoric about the reader-loyalty and branding components of the program, it's clear that the biggest payoff of Reader Rewards has been in capturing the attention of advertisers who had previously been hesitant to deepen their relationship with the Virginian-Pilot. "It's taken [advertisers] who hadn't bought big programs and got them in the door," he says. "In terms of the relationships, that's where we've seen a real difference." Advertisers were consulted before the program kicked into gear, Bowen adds: "We ran it up the flagpole. The response was great."

As for the future, Bowen hopes to expand Reader Rewards indefinitely, though he acknowledges that sustaining the program's momentum could prove difficult. "We have one person who does nothing but graphics for the program," he says. "It's a massive undertaking."

That said, one gets the impression that the Virginian-Pilot isn't about to abandon Reader Rewards anytime soon. "It's done what we wanted to do," Bowen shrugs. "That's all you can ask."