2003 CIRCULATION EXCELLENCE Awards

Circulation Management, July 1, 2003

It's CM 's privilege to present the recipients of the annual Circulation Excellence Awards, which recognize strategic contributions of circulation to the overall success of consumer and business-to-business magazine publishing companies. The 2003 awards drew the highest number of entrants ever - all impressive - which made the process of choosing winners in each category as difficult as it was exciting. CM and the 2003 panel of judges think that the winning-entry capsules that follow in the pages ahead will provide inspiration and help spark some ideas to meet your own current circulation objectives.

CEA entrants were asked to state their circulation goals over the past one to two years, and demonstrate how they achieved those goals. The creativity and ingenuity demonstrated in achieving objectives are critical factors in the judging process. The judges have full discretion in determining the numbers and levels (gold and silver) of winners within the categories, which include launches and Best Use of Internet, as well as several tiers of circulation size ranges. The Internet award winners were chosen from a pool of all entries that included Internet marketing components within their circulation strategies.

The winners were honored at the Circulation Excellence Awards luncheon in New York City on May 13, during the 2003 Circulation Management Conference & Expo. The presenters were Susan Allyn, consumer marketing director of EMAP-Metro's FHM , and Barry Green, VP, director of circulation for Hearst Business Media, both of whom were also judges.

CM and the judges congratulate not only the winners, but all entrants, whose outstanding efforts are clearly advancing the overall performances of their individual companies.

CONSUMER PUBLICATIONS

CIRCULATION SIZE: UP TO 399,999

GOLD WINNER

THE NATION The Nation Company L.P. (New York, NY)

Average Paid Circulation: 127,712 (12/02) Circulation Objective: 120,000

Circulation Director: Art Stupar

The Nation employed very talented copywriters, targeted educated prospects and used direct mail to push the circulation envelope.

TN's primary objectives in 2002 were continued circulation growth, and improved profitability. As a circulation-driven weekly, TN depends primarily on circulation profitability, although it has a loyal base of advertisers interested in reaching its unique audience of educated, affluent and progressive trend-setters. The challenge was to boost the number of new subscribers without increasing the cost of acquisition. One goal was to increase the circulation from 112,000 from December 2001 to 120,000 by December 2002. The magazine surpassed that goal, finishing the second half of 2002 with an audited circulation of 127,000.

In the process, TN has maintained high-quality circulation - response rates are 4-5 percent, conversion rates on direct mail are 65 percent, and the repeat renewal rate is 85 percent. In 2002, it was able to raise its subscription price from $52 to $59 for repeat renewals.

TN used two techniques to maintain circulation growth. It created a series of direct mail campaigns that capitalized on anti-Bush and anti-conservative sentiment. The direct mail campaigns were aggressive in their approach - reminding people of the scandals around Enron and WorldCom, as well as providing information on the continued erosion of civil liberties under Attorney General John Ashcroft. TN also focused on the growing distrust its readers have of big corporate media.

The response to its direct mail campaign has been staggering, resulting in a gross return of 4.71 percent and a pay-up rate of better than 52 percent. The control package was almost as successful with a gross response rate better than 4 percent and a pay-up rate of 50 percent.

The other successful strategy was to use TN's popular Web site and free weekly news alerts to generate subscriptions. The initial goal was to attract 9,000 subs, but that was handily surpassed. The site brought in 15,000 new subs - all at a profit and many at a full-year term.

GOLD WINNER

YOGA JOURNAL Yoga Journal LLC (Berkeley, CA)

Average Paid Circulation: 286,262 (12/02) Circulation Objective: 275,000

Circulation Director: Barbara Besser Circulation Manager: Luciana Downing Newsstand Consultant: George Clark

Yoga Journal has experienced significant growth in both subscription and newsstand sales. The magazine hit its 2002 targeted 20 percent increase in circulation with a substantially higher contribution from newsstand sales than planned. Profitability objectives were quickly exceeded as newsstand revenues rose, and as single copies - with their insert card production - replaced expensive direct-mail generated subscriptions. With average sales of more than 100,000 copies per issue, the magazine has been the top-selling health and fitness title at Barnes & Noble and Whole Foods for the past two years.

Circulation growth is attributed to further cooperation between editorial and circulation on covers, continued use of polybagged editorial premiums, and judicious research into allocating promotional spending. Targeting promotion dollars with airport, supermarket and specialty retailers allowed YJ to gain penetration in very restricted locations. The staff is focused on building relationships with wholesalers and retailers and expanding foreign distribution, where sales rose a whopping 73 percent in 2002.