Negotiating space trades; if you've overlooked this source or been a bit apprehensive about approaching it, now is the time to sharpen your skills and trade yourself some new subscribers

Folio: The Magazine for Magazine Management, Jan, 1988 by Eliot Schein

Negotiating space trades

If you accept the unassailable fact that your major competitor's subscriber file is the best audience to approach to generate new subscribers to your magazine, then it stands to reason that trading space with your competitor is a pretty good idea.

Many publishers refuse to rent their active subscriber files to their competitors for direct mail solicitation. However, space trades negotiated between circulation promotion people seem to be a little more palatable. This is true especially these days, when there are no preclusive restrictions on the use of tear-out (or bound-in) reply cards inserted immediately before a page of circulation promotion advertising. With the legalities and production considerations out of the way in the eighties, the dream of tapping your competition's market can easily come true.

Two kinds of competition

It seems there are two kinds of competition. For example, the competition between Stereo Review and High Fidelity differs significantly from that between Harper's Magazine and The Atlantic. Stereo Review and High Fidelity are in direct competition not only for readership, but also for a specific universe of advertisers. The special interest "hobby" publications--such as the stereo, photography and skiing magazines--have limited prime target markets of potential advertisers. The advertisers thus are special interest advertisers.

However, when it comes to magazines like Harper's and The Atlantic, there may be significant crossover in types of advertisers, but not the heated competition for the narrow field experienced by the so-called "hobby" books.

(You may have noticed that American Photographer advertises for subscribers in the pages of Popular Photography. Please be aware that both are Diamandis Communications, Inc., publications, and this kind of "in-house" crossover is not only common, but intelligent.)

Whatever your type of publication, there are some important guidelines that will help you do the most effective job when it comes to negotiating a space trade with your opposite number at a competing publication.

First, no matter what your competitor's response, try to maintain a friendly, dignified attitude. Sometimes the initial reaction from your competitor will be militaristic: The person may respond as if he or she were dealing with the enemy. Anger, sometimes loud voices, and even pejorative terminology can come into play. These outbursts are usually tempered by time and the basic salivary reaction that kicks in as soon as your competitor realizes he/she is getting a similar shot at your circulation.

So, wait until they come to their senses. Then you can deal and try to devise a situation that is fair to all concerned. Chances are, you'll come out significantly ahead of the game. Why? Because you will have been the person who initiated the deal. This means you probably will have two things going for you:

1. Your timing (since you are the initiator) will be right for you to do some outside promotion. Your competition's timing will not be as perfect--in fact, you will be springing a thought upon them.

2. You doubtlessly will have not only the budget, but perhaps also the artwork and mechanical ready for the ad and card (if any) you are planning to run. This puts you at a distinct advantage because your competitor, in order to provide the same timing, may have to play a little bit of catch-up ball, as well as run a message that may not be perfectly oriented for the use intended.

Second, be aware that trade negotiation is usually based on the unit of circulation numbers. If you and your competitor have exactly the same amount of audited circulation, you will probably need to do a one-for-one trade: one page and one card in their book for one page and one card in your book. This sounds simple enough. But think about it: Do your competitors have exactly the same number of paid readers as you do? Most likely not.

Dealing with the inequities

Therefore, here are some of the ways of dealing with the inequities.

Most important, never run less than a full page. The card is an option, and a good one, but a full page should be your lowest unit of exchange. Running a partial-page ad in your competitor's publication makes your publication look less credible than it should. If your competitor has twice as much good circulation as you, trade two pages for one; but never, never run less than a full-page unit.

But suppose the difference in circulation is only 15 percent or 20 percent. Argue like crazy. Sing the praises of your audience's superior quality, renewability, level of learning and earning--anything you can grab. And slough off the "small difference in quantity" as not a significant factor. Go for the one-to-one trade! Failing that, why not offer to sweeten the pot? Offer some expire file names or a list trade test, to some degree, that your competitor has been trying to effect for years and years.

Knowing when to advertise

Third, be aware of the advantages of good timing. The best time for you to run your ad in the competition's magazine is in an issue that will be on sale during your next direct mail promotion. The best time for you to have your competitor run an ad in your magazine is in the first one served to the bulk of your new soft-offer respondees. This helps assure that that issue of your publicatioon is a little thicker, physically, than it otherwise might have been--due, of course to the page or perhaps page and card which, without your trade, would not have appeared. This "loading" will help increase your overall pay-up rate because new subscribers will feel your magazine has more value.