Mind The Gap

Mind The Gap Blog

Entries for month: January 2013

Subscribers want newspaper inserts, not junk mail

27 January 2013

As tough as it was for the media to pick the winners of the local elections, it seems all too easy for the U.S. Postal Service (USPS) to pick the best way for millions of Americans to receive coupons, pre-prints, and flyers.

Considering the number of advertisers that rely on preprint advertising to drive traffic to their stores, more research and consideration should have been given to the preferred delivery method.

Let’s make a deal

In August 2012, the USPS announced the approval of the Negotiated Service Agreement with Valassis Communication, which will drastically change the competitive landscape of pre-print advertising.

The Newspaper Association of America, representing 2,000 newspapers, filed an emergency injunction seeking to block the deal. But, due to the financial state of the USPS, the injunction was overruled.

In the three-year deal, Valassis would receive an additional discount after the weekly “Red Plum” package reaches 4 ounces and an additional million pieces are distributed annually. These discounts are payable as a year-end rebate.

This gives Valassis an unfair advantage over newspapers and other direct mail companies, based on the steep discounts compared to both TMC and the high-saturation programmes that newspapers pay.

What readers want

A few months ago, I was discussing this issue with a few folks from Civic Science, a data partner to many news media companies.

John Dick, CEO of Civic Science, pushed out a question through the company’s national network of news and blog sites. Between October 17 to 29, 2012, Civic Science surveyed 4,781 print newspaper subscribers in the United States about their preferences for receivin

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About this blog

Mind The Gap is a blog that features posts by Andrew McFadden, director of innovation and business development at the Press-Enterprise in Riverside, California, USA, as well as thoughts from leaders of technology start-up companies that compete with or support newspapers. The blog focuses on the impact of technology on content producing companies and how technology can accelerate organisational change, grow advertising revenue, and improve audience retention.


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March 2013 ( 2 )
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