Controlled circulation: trend or trial? Faced with dwindling circulation and low returns, some publishers are starting to consider giving the magazine away

Folio: The Magazine for Magazine Management, Jan, 2002 by Geoff Van Dyke

With the decline of stampsheet houses as a major player in a consumer title's subscription portfolio--underscored by American Family Publishers' decision to cease offering sweepstakes giveaways altogether-- the idea of making greater use of controlled circulation is one that is starting to gain ground in publishing circles.

Yet while the notion may have promise, circulation executives should be cautious before diving headfirst into the pool of subscription giveaways, say several media-buying experts.

"It depends on the client, what they are looking to sell, and who they are looking to sell to, but among some, there is definitely a negative connotation associated with controlled circulation." says Sean Cunningham, executive vice president and media director for Lowe, Lintas & Partners. "You could say that, among those folks, the attitude is that if people actually cared about a certain book, they'd care enough to buy it."

SWEEPSTAKES PUSH THE ISSUE

Despite the skepticism of traditional advertisers, the move toward controlled circulation was given a push in December 2000, says San Francisco-based circulation consultant John Klingel. That's when the Audit Bureau of Circulations changed the rules that allowed publishers greater freedom in claiming nonpaid subscriptions as a part of their rate bases.

"It's moved more people to looking at it and--just anecdotally--I've heard from a good many clients who are using controlled more heavily than they used to," Klingel says.

"I don't know what the hard numbers would show," Klingel continues, "but I suspect you would start seeing a spike just after December, and that it's been growing most of the year. It is something you will see more and more, and the fact that so much content is given away on the Internet makes some people less leery of it than they used to be."

Though an impressively large or especially targeted circulation will always attract advertiser interest, titles that rely heavily on controlled circulation must pass "the sniff test" to ensure their viability, says Cunningham.

"Anyone can send out copies of their publication and say 'these are our readers.' But are they actually reading what you send them, or just throwing it away?" asks Cunningham. "And even if they are reading, are they looking at the ads? And how likely are they to buy something?

"It can work, but a magazine that is going out free does have to prove itself, and it can be a chicken-and-the-egg scenario," Cunningham adds. "You have to show that your title deserves its ratebase to attract the advertisers, but you need the advertisers first to be able to show that," he says.

Nonetheless, the trend is one that can have positive results--if the niche the title serves is sufficiently targeted to an audience that a specific advertiser covets.

"It takes time to prove that the demographic you are sending out controlled really does respond to your publication, but it can happen, and if I see it happening, it's something that I'll advise to my clients," says Jeanne Tassaro, senior vice president of print for Young & Rubicam's The Media Edge.

"In some cases, it's an idea I can sell them on, and in others, they don't want to take the risk," adds Tassaro. "But from our perspective, because the aversion to it is sometimes really greater than it should be, we can often get good value for our advertising dollar.

"I think that's really one of the areas where the good media buyer comes in and uses his or her judgment to separate the facts from the smoke and mirrors," she adds.

COSTLY LISTS A PROBLEM

However, the biggest hurdle advertisers face is compiling or purchasing lists of subscribers.

"The Internet has meant an absolute explosion in the amount of demographic and consumer information sources out there, but they are by no means cheap, and not always either as accurate or as reliable as one might like," says Klingel.

He adds: "Controlled circulation will ultimately make its presence known when publishers can access good lists at a reasonable enough price to justify giving away their titles."

Geoff Van Dyke is editor of FOLIO:'s Circulation Extra.