Posted on 11/30/2004 1:38:39 PM PST by schaketo
TORONTO -- Some marketers have concerns about advertising in U.S. newspapers because of circulation scandals that have rocked the industry, media buyers said yesterday at the Audit Bureau of Circulations conference in Toronto.
"I'm getting a lot of questions from clients about it. I remind clients that the vast majority of publications play by the rules," said David Verklin, chief executive officer of Carat North America, a major buyer of advertising time and space.
Speaking on a panel about what advertisers want from print, Mr. Verklin said pharmaceuticals giant Pfizer Inc., one of Carat's large clients, is "very concerned" about the scandals.
Last June, Hollinger International Inc. said it overstated circulation numbers at its Chicago Sun-Times newspaper. Later, Tribune Co. said it inflated circulation numbers at its Hoy and Newsday papers, and Belo Corp. said it overstated circulation at the Dallas Morning News.
Because this was the first Audit Bureau of Circulations (ABC) conference since the scandals broke, the incidents were a major discussion topic both in presentations and in informal discussions.
"It's heartbreaking. It's sickening. But come on, we're human. There's going to be people who abuse the system. Thank God they were caught," Jay Smith said in a question and answer session after a speech. Mr. Smith is president and CEO of Cox Newspapers Inc., which publishes the Atlanta Journal-Constitution, among other newspapers.
Mr. Smith said that when the scandal broke, he immediately telephoned all his publishers to ask if there was anything he should know. He said he was relieved to hear that his publishers stood behind their published circulation numbers.
Sunni Boot, the president of ZenithOptimedia Canada, said that while some Canadian marketers have asked her about the circulation scandals, it is not as big an issue as it is in the United States.
But Ms. Boot suggested that ABC needs an ad campaign to talk about the good work it does. Some panelists yesterday suggested that if it weren't for the bureau, the scandals might never have been made public.
The Audit Bureau of Circulations, formed 90 years ago, is the leading third-party auditing organization for North American newspapers and magazines.
There was also much discussion about the way the media landscape has changed as a result of the Internet and niche publications.
In a keynote speech, a senior editor of BusinessWeek magazine suggested that in order to compete with niche publications, mass market newspapers and magazines may need to change dramatically.
Mary Kuntz cited predictions that ad revenue for mass media will only grow 3.5 per cent a year through 2010, while ad revenue for "narrowcasting" media will grow 13.5 per cent. As a result, she said, mass market publications will need to find new ways to close the gap between what readers pay for a publication and what it costs to produce it -- a gap traditionally covered by advertising.
"That ad subsidy will inevitably shrink," Ms. Kuntz said.
She predicted that mass market publications will respond by boosting prices, increasing their on-line presence and blurring the lines between content and advertising.
She said serious news publications such as BusinessWeek should never blur the lines between news and advertising, but that in other types of publications, such partnerships could be good for readers
Wow, this guy must be psychic.
"But Ms. Boot suggested that ABC needs an ad campaign to talk about the good work it does."
Huh? I'd just as soon hear Rush Limbaugh interview himself.
I misread... I thought the article was about mousketeers.
Wow, this guy must be psychic psychotic.
Here's a story about Newsday who baked their circulation figures.
http://freerepublic.com/focus/f-news/1291405/posts
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