Stampsheet business down for publishers - Brief Article

Folio: The Magazine for Magazine Management, Dec 15, 1994 by Jeffrey M. O'Brien

A falloff in stampsheet response rates--combined with impending postal increases--has sent magazine publishers scrambling to increase their own directmail efforts as the industry preps for the holiday rush.

Although both major stampsheet agencies--Publishers Clearing House and American Family Publishers--are reportedly down, the name cited most often is PCH, which recently agreed to clarify terminology in its sweepstakes packages following a probe by 14 state attorneys general. Several circulation directors keen on stampsheets attribute the falloff to that agreement. But others believe it's just a return to normalcy after banner response rates in 1992 and '93.

At Time Inc., total expected returns were down this year, says Brooke McMurray, director of agency marketing. McMurray says the changes in the PCH packaging have sterilized the offers, and that the language may no longer imply a greater than average chance of winning.

Some observers note that PCH recently began cluttering packages with its own offers, which has negatively affected returns. "It's having an impact on the subs they sell," McMurray says.

Yet other circulation specialists aren't so quick to lay blame at PCH's door. Eileen O'Brien, direct marketing source manager at Business Week, has noticed a falloff in response, but thinks it has as much to do with a price increase in the magazine's offer as anything else. "I find it hard to believe everyone was reading the language anyway," says O'Brien. "They just fill out the forms because they want to win." Besides, she adds, response hasn't been down enough to cause panic.

Don't blame copy

"We've been in substantial compliance [with stricter requirements] for the better part of two years, so don't believe softness can be attributed to copy changes," says PCH president and CEO Robin Smith. "AFP is reportedly soft and has not modified its copy." AFP executives could not be reached for comment.

Not everyone is concerned. Dan Capell, editor of the newsletter "Capell's Circulation Report," says that according to a September survey, "things were fine."

Adds Susan Allyn, director of consumer marketing at New York City-based Wenner Media: "Publishers will make up for shortfalls by using direct mail and alternative methods."