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Media Business Report - Nov 2005
Circulation of U.S. weekday newspapers takes 2.6% hit
The average weekday circulation of U.S. daily newspapers fell 2.6% in the six months that ended in September, led by a 16.6% drop for The San Francisco Chronicle. The figures released Monday by the Audit Bureau of Circulation, which certifies the accuracy of sales figures, continues a long-term trend of flat to sinking readership, reported The Chronicle. The average Sunday circulation for U.S. dailies fell 3.1%, compared with September 2004, according to an analysis by the Newspaper Association of America. The Chronicle said its paid Sunday circulation declined 13.5% to 467,216 copies. On Monday through Saturday, it averaged sales of 400,906 copies during the six-month period. Chronicle Publisher Frank Vega said the newspaper's circulation declines - - nearly 80,000 weekday papers and just over 73,000 on Sunday - - were owed almost entirely to a deliberate strategy of trimming promotional distributions and giveaways. "We cut a lot of what you w! ould call unprofitable circulation around the first of the year,'' Vega said. "We made a decision that we want quality, profitable circulation that better serves our advertisers." Among the nation's largest newspapers, the Atlanta Journal-Constitution and the Boston Globe each reported weekday circulation declines in excess of 8%.

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Radio, TV, Ad Agencies & Myths

Homework

Our intent is to not malign the newspaper and magazine media or ad agencies.  Each has it's place but let us first destroy some of the myths about radio. Some of this applies to television as well. We do disagree with the methodology and tactics of many ad agencies which serve the travel industry. Before spending your ad budget, we recommend some homework.

 

Myth #1:  You have to be able to see it. 

A long time ago, someone bought into the "a picture is worth a thousand words" adage. This may be true if you are trying to describe grandma's facelift or the new baby's first recognition of you, but a picture cannot describe how you feel. This a concept that a few travel and tourism media and advertising people won't or cannot grasp...a verbal description of the experience of being there. No amount of advertising, free promotional trips or travel magazine story can replace a human voice describing with passion, how he or she is moved, enthused, surprised and impressed with your destination.

 

Still not convinced? Imagine someone with a following and credibility speaking to hundreds of thousands of people each day for five days in a row, condemning your place. You don't want that! 

 

Verbal communication  has been the fundamental form of interaction with other humans since we first walked upright and is still the most relied upon and packs power when it originates from someone we know and trust. 

 

Myth #2:  You must choose the top stations or big name networks.

Buyers should learn the benefits of qualitative vs. quantitative This has been an issue for years. The advertising agency industry, for the most part, do not understand nor do they seem to care about the importance of qualitative data. If they were truly committed to your success, they would end mindless cost per point buying.

 

Winning creative awards is important to most agencies. Whether the spot works or not seems to be a lesser priority. Acceptance and admiration from their peers is key.

 

Denis Beausejour, vice president of advertising at Proctor & Gamble says that there will be "two kinds of agencies 10 years from now: digital agencies and dinosaur agencies. We believe that having some component of sales volume [as a factor in compensation] will make the motives identical."  Accountability!

 

Tourism, traditionally slow to change and innovate, tends to stay with the dinosaurs. Isn't it time to think out-of-the-box?

 

  

 

 

Gallup poll says adVERTISING  PRACTITIONERS rate "just above used car salesmen" in ethics
Advertising Age which is the weekly advertising trade magazine, reports on their web site AdAge.com that advertising practitioners rank poorly among other professionals in honesty and ethical standards, according to a new national Gallup poll: "A mere 9% of people polled by the Gallup Organization rated ad professionals' ethics as "very high" or "high," putting them slightly ahead of car salesmen, who got 6%, and telemarketers, with 5%...Among Gallup's respondents, 50% rated ad pros' ethics "average" and 36% rated them "poor" or "very poor." Those numbers are a noticeable drop from a year ago, when 11% rated ad pros' ethics as "high" or "very high," 56% rated them "average" and 27% rated then "poor" or "very poor."

More Radio Info

Numbers Lie

Classical, Smooth Jazz and selected News/Talk radio has been a leader in the qualitative arena. In television, cable has leaped ahead of the big three networks, yet the dinosaur agencies continue to bet much of their client's money on the tired old horses.  Numbers lie. Many agencies take the fast easy route by buying CPM and 12+ or 25-54 demos rather than digging deeper into WHO is listening or watching.  Often the client doesn't understand and frankly they don't have time to understand. Most clients will tell you, "that's what we hire an ad agency to do". 

 

The nature of Talk, Smooth Jazz and Classical Music radio is it has a foreground audience that pays attention to what it hears; it is an affluent audience; it is a mature educated audience; it is a socially and politically and economically dynamic audience and it's a great place to be. Pound for pound, dollar for dollar, I'd say every buck spent on these radio formats will get you the bang that three bucks will get you on the equivalent level of listeners on music radio, print or "Big Three." TV.

 

Myth #3:  Radio DJs are not credible.

First of all you don't want a "DJ".  We choose credible, likeable radio hosts who are respected by their affluent educated listeners. Secondly we never pick a winner at random. Instead we choose radio station trip winners who will deliver the positive message in their own candid words on-air. A testimonial from an ordinary first-time visitor to your destination is very powerful.

 

Myth #4:  An agency can get a better deal from radio & TV.

Sometimes. Because agencies are held in high regard by radio & TV through high volume, they most often are able to negotiate below-book rates. Agencies often buy top 5 stations in a market. Most often those stations are not your stations.

 

If you are in the travel and tourism business, this is likely not your target unless you are a theme park or ski resort. When agencies buy top-tier 12+ media, they spend your money unwisely and in the end, costs you much more.

 

Finally, agencies are not likely to recommend radio for simple economic reasons. Their economic reasons. Buying television and print is exceedingly more expensive than buying radio. When agencies are compensated through commissions, it follows that the bigger the buy the better the bottom line.

 

Please don't misunderstand me. We're not suggesting that tourism and travel jettison their ad agencies but I am suggesting that tourism reps should do their own research, look over their shoulders and maybe, get a second opinion.

 

Do we sound like I don't have much respect for advertising agencies? It is true. I do not. At least most agencies. In my experience in doing business with agencies from Toronto to LA, I found most agencies hold two priorities near and dear to them (1) how much of our client's money can we spend and (2) Can we win an awards.

 

Demand accountability.

 

 

Stan Campbell- President

Travel Media Network

 

Taking The Road Less Traveled

 

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