Sweeps stage a comeback

Folio: The Magazine for Magazine Management, Oct, 1989 by Liza Frenette

Stamford, Conn.-Faced with mammoth postage increases and flat response rates, Rodale Press and other publishers are turning to sweepstakes for subscriptions and renewal.

Sweeps, which had once lost favor with publishers, are making a comeback, observers say. Five years ago, renewal efforts focused on editorial content, according to direct response consultant Herschell Lewis. "But now we have trained people to buy at a discount or not at all. Sweepstakes, premiums we need some weapon to get them to renew.

More than half (56 percent) of 100 consumer circulation directors report using sweepstakes and/or premiums in renewal efforts, according to a spring survey by Capell's Circulation Report.

Although magazines may be eager to use sweeps, they are reluctant to discuss results,notes one source. "It's a touchy subject because advertisers don't like to think subscribers came from sweepstakes. There is a perception that sweepstakes appeal to downscale people."

Rodale, a newcomer to sweepstakes strategies, has been testing sweeps on renewals, conversions and prospects for Prevention and and Organic Gardening, says Bob Kaslik, corporate circulation director. The company was hoping to increase response to make up for added mailing costs.

But for Rodale, sweepstakes have not proved an easy solution. Although the offer had improved some areas that had seen discouraging responses, others were "real disasters," Kaslik says. Still, he adds, Rodale will continue to refine the creative and make clearer, tighter offers. "If we can make that work, we'll consider sweepstakes on some of our smaller publications."

Other publishers are turning to high-priced sweepstakes more regularly now in renewal campaigns. The increasingly aggressive promotions are designed both to stave off com petition from new magazines and to keep pace with group subscription efforts.

"Independent publishers are going for larger value sweepstakes because they don't want to be completely overshadowed by efforts from Publishers Clearinghouse or American Family Publishers," says Hilleary Hoskinson, circulation director, U. S. News and World Report, which is using a $1 million sweepstakes as part of its current renewal campaign. This is the largest purse the magazine has ever offered. He would not discuss responses.

Sports Illustrated, too, is running a $2 million sweepstakes for new subscribers and some renewals, according to Phil Polishook, assistant direct marketing manager. But most loyal SI subscribers, he adds, aren't sweetened by sweepstakes in renewal efforts. Sports videos are also offered as gifts.

Money is using a $2 million personalized sweeps for a new business mailing and for selective renewals, says circulation director Michelle Jaworski. She declined to discuss responses.

Money began using sweepstakes offers three years ago, Jaworski says, because they heighten consumer response and awareness of the magazine. "Sweeps are what's going on out there competitively," she says.

American Family Publishers, for example, runs sweepstakes every two years that are now worth $10 million, Between this blockbuster sweepstakes, it runs smaller campaigns of $1 million.

"Sweepstakes make a significant difference in returns, especially if they're used on the original mailing," says Henry Cowen, chairman of The Cowan Group, Inc., a company that creates sweepstakes and other promotions for publishers. "They can double renewal rates." His company, he says, creates five times more magazine subscription sweepstakes packages now than in the past.