Cooperative Marketing Programs That Work

Circulation Management, Feb, 2000 by Kit G. Hatcher, Janet Timian

CREATING PARTNERSHIPS WITH ADVERTISERS THAT PAY OFF FOR BOTH THE CIRCULATION AND ADVERTISING DEPARTMENTS.

In "Let's Dance," Fred Astaire complains to Ginger Rogers that "our two feet haven't met yet" The same can be said of many a magazine circulation and advertising department. Frequently, there's a definite lack of marketing romance there.

Yet, with circulation battling declines in traditional acquisition methods, and advertising facing increasing competition from the Internet, there have never been more compelling reasons for the two areas to combine forces in creative ways. In the consumer special interest and business-to-business arenas, in particular, there are numerous opportunities for cooperative marketing and advertising programs that can yield pockets of targeted names and new subscribers, offer subscribers value-addeds that enhance their relationships with the magazine and may translate into improved retention and lifetime value, strengthen bonds with advertisers by providing them with valuable leads and services, and even produce incremental advertising space. And, with the right approach, all of this can be accomplished at minimal cost.

These programs don't just come together by themselves, of course. They require substantial legwork and coordination in the planning stage and both clerical help and supervisory follow-up on the implementation end. Territorial concerns and engrained thinking and operating habits may have to be overcome to establish successful inter-department efforts. And, as a circulator, you no doubt already have a full plate, and very few "discretionary" budget dollars just waiting to be applied to new programs. Further, you may have tried various "alternate sources" in the past that ultimately failed to justify the effort and resources they required.

However, the whole key to the approach discussed here is to move away from scatter-shot efforts and toward a serious, coordinated, companywide marketing initiative. The goal is to establish a series of ongoing programs in order to derive "critical mass," or maximum benefits, over time. And, yes, we have seen quite a few publishing companies succeed with such initiatives.

In fact, your motivation for spearheading such an initiative lies in the significant potential for realizing tangible circulation benefits that will enhance your performance and, ultimately, make your core job easier. A simple presentation of the various types of programs possible, and the results seen by other companies, can get the ball rolling. Top management's support is critical. You may want to approach higher-ups with the general concept to gain approval for organizing a series of exploratory meetings before making an initial pitch to your advertising counterparts. They're likely to be intrigued and maybe even excited by the possibilities, as long as you make the mutual benefits for advertising and circulation clear. Naturally, you'll want to take the same approach with advertising colleagues.

Ideally, the chief players in circulation and advertising will be open not only to exploring various opportunities for coordinating their interests, but will find ways of fairly sharing the work and budget costs involved. But if it looks like the initiative is in danger of getting hung up by these issues, you may want to consider taking a different tack. With management's support, you should be able to build the relatively small costs involved (mainly additional clerical help and, for more ambitious projects, perhaps the assistance of a consultant) into your own budget.

WHAT'S IN IT FOR ADVERTISING?

Circulation and advertising should approach advertisers with cooperative marketing concepts as a team. The "sale" itself is usually quite easy, for good reason. Here's just a partial list of the benefits advertisers can realize from these programs:

* Access to distribution channels not normally available;

* "Free" names from responses;

* Minimal costs for additional exposure to targeted prospects, including exposure in house ads and circulation promotions;

* Alliance with a national magazine and associated loyalty "rub off";

* Ability to offer prospects/customers targeted content through discounted subscriptions, sample issues and other "value-addeds";

* Use of the magazine's marketing expertise;

* An opportunity for large and small advertisers alike to "test" advertising in the publication.

For the advertising department, the programs represent additional opportunities to interact with both clients and prospects, and to provide them with value-added services.

And, although a magazine might occasionally decide that it's worth- while to offer an advertiser a small comp ad as part of a program, well-conceived programs maintain or even expand existing ad space and revenue. Co-op programs can and should be a tool for keeping advertisers on board, securing longer contract commitments, and breaking new advertising accounts.

There are many ways to achieve these goals within co-op programs. To cite just one, a special interest title secured annual display and classified advertising contracts from major manufacturers by providing "goodie bags" to readers who purchased through its classified advertising. The magazine paid for the plastic bag bearing its logo (and inserted a relevant article reprint and a subscription offer in it), while advertisers bore the costs of supplying the free samples and coupons. Talk about a win/win...