The client is a publisher of a daily metropolitan newspaper with Sunday circulation of over 450,000 and 15 weekly suburban community newspapers that are distributed throughout one of the largest Consolidated Metropolitan Statistical Areas (CMSA) in the country.
The client faced erosion in circulation and penetration of both daily and weekly newspapers in one of their largest markets, a highly affluent, family-oriented county within commuting distance of two large metro areas. The challenge was to develop a sound financial market strategy to increase readership, circulation and advertising, given these products to leverage, and in the face of increasing print competition.
Kannon began by analyzing the county newspaper market, gaining perspective from advertisers and consumers. Building a common understanding of the market was essential to the eventual development of alternatives, which were then exposed to advertisers and consumers for feedback. Finally, the financial impact of the proposed solutions was quantified.
The overriding recommendations to the client centered on a portfolio approach to managing the properties. Advertisers and consumers both sought unduplicated coverage in geography and content. Importantly, Kannon proposed leveraging the perception that the client’s weeklies were the preferred local news providers.
Through Kannon’s recommendation, the client increased marketing expenditures and promotional efforts to halt decline in penetration. A promotion campaign targeted the “casual” reader to raise awareness of an enhanced county edition and preemptively to set the standard for local news – that “local” means local news every day. A campaign was launched that included print ads, cable TV spots, targeted telemarketing scripts and direct response mailings, cinema and POP ads, and a sampling program reaching 12,000 non-subscriber households. In addition, the client stepped up grass roots marketing in the county by sponsoring just about every major community event.
“We’ve sold almost 64,000 more newspapers in the county above the same period last year,” said the client’s Director of Market Development. “Our research also shows that we continue to win the battle for the hearts and minds of the county residents. We have seen an increase from 38% to 63% of residents who classify us as their primary daily newspaper. On the revenue side, advertising revenue for our largest county edition jumped 22% over last year. Kannon helped us produce tangible results.”
The client was able to increase paid circulation by 1,500 households in only three months. After five months of the effort, it was within 300 households of its goal of reaching 80% penetration in the county – originally a 12-month goal. Additionally, it has surpassed its advertiser revenue growth goals by 20% to 40% each week since implementing the effort.
The General Manager of the client’s daily newspaper commented: “Kannon was very professional, analytical and unemotional. They told us what they thought, and their recommendations were not bridled by past relationships or politics. They were objective and let the facts dictate the strategy.”