2003 CIRCULATION EXCELLENCE Awards

Circulation Management, July 1, 2003

VP, Circulation: Anne Loganbuhl

Nickelodeon Magazine's circulation objective for 2002 was two-fold: grow its rate base by 100,000 to 1 million while simultaneously increasing the circulation P&L contribution to the bottom line. Not only did it meet both of these goals, but the bottom line for the year beat the budget by 28 percent. The strategy on the newsstand side was to partner with its national distributor to optimize distribution and sell-through. Careful attention to distribution allotments and participation in in-store promotions helped increase draw 2.5 percent over 2001 and increase efficiency 12 percent.

The magazine was placed in strategic locations - kid-oriented areas in the store. This increased sales as well.

Direct-to-publisher overall strategy was to revitalize the magazine's messaging across all sources with a renewed focus on the target consumer and increased emphasis on the strength of the editorial product, as well as leverage its brand equity. Direct-to-publisher special promotions subs increased 29 percent from 2001 to 2002 and now represent close to 5 percent of the file mix. Partnering with internal and external partners, the magazine created family-friendly new business subscription acquisition programs. Program partners included Quaker, Best Buy, Pepperidge Farm and Kmart.

Increased newsstand sales and direct-to-publisher business allowed the magazine to eliminate less profitable sub sources, and, in some cases, to increase remit from agent orders.

Interestingly, improved customer response is also credited with the magazine's success. The magazine found that by including its 800 number and online access information on all renewal and billing pieces, it was able to increase price as much as $5 - with no response rate falloff.

GOLD WINNER

PARENTING Time Inc. (New York, NY)

Average Paid Circulation: 2,136,283 (12/02) Average Analyzed Non-Paid Circulation: 88,522 (12/02)

Total (Average Paid and Analyzed Non-Paid Circulation): 2,224,805 (12/02) Circulation Objective: 2,150,000

Consumer Marketing Director: Suzanne Quint

Parenting has had a strong record of growth dating back to its launch in 1987. Its recent focus on source development resulted in impressive new gains and drew attention of the judges. In the second half of 2001, total circ was up 30 percent, and in the first half of 2002, it grew another 26 percent. The magazine was second in subscription growth among all ABC-audited magazines. In the second half of 2002 total circ rose again - this time 9 percent. As the magazine's rate base went up 26 percent in October 2001, the financial goal going in to 2002 was to preserve circulation profitability. The magazine tapped high volume, high quality, unique sources. First, it successfully converted hundreds of thousands of subscribers from its 100-percent controlled sister publication, BabyTalk. Some new tactics tested in 2002 - including polybagging BabyTalk with an offer and full-scale telemarketing - resulted in a 20 percent lift in cost-efficient subscriptions. Working with sampling company First Moments, which Parenting acquired in 1999; and new targeting initiatives, including Hispanic hospitals, improved performance from this source. Smart testing with the title's exclusive partnership with First Foto, the nation's largest in-hospital photo company, also paid off, increasing net subs by 25 percent and profitability per sub by 49 percent, driving $170,000 to the bottom line. A very cool fact is that Parenting's millions of pieces of direct mail each year were at break-even circulation economics during this time.