MEDIA: Reader's Digest chips away at agency bias - Talking up direct marketer skills to tackle media bias

<p>In the splash of red that is the latest advertising revenue report </p><p>by CMR, a handful of titles appear to have bucked the steep downtrend, </p><p>growing by double digits - triple figures in one instance - in the first </p><p>six months. </p><p><BR><BR> </p><p>Of the winners, it's the 52 per cent rise in Reader's Digest's revenue </p><p>that is impressive. At a time when rivals have either seen ad pages </p><p>disappear or are struggling to maintain advertising income, the region's </p><p>biggest-selling title added US$2 million to revenues. </p><p><BR><BR> </p><p>But desperate times call for drastic measures. For Reader's Digest, the </p><p>depressed global economic climate has considerably added to the degree </p><p>of difficulty it now faces in achieving "incredibly aggressive" revenue </p><p>and circulation targets for its three Asia-Pacific editions. </p><p><BR><BR> </p><p>Which is where two major editorial changes - this month's cover redesign </p><p>and the launch before year-end of the practical advice RD Living section </p><p>- come in. </p><p><BR><BR> </p><p>For a company like Reader's Digest, the changes are significant; it's </p><p>the publishing equivalent of trying to fix a wheel that isn't </p><p>broken. </p><p><BR><BR> </p><p>"When you're the world's best-selling magazine, change shouldn't come </p><p>easy. Everything we do is carefully evaluated. But the tests we did were </p><p>completely conclusive," says associate publisher for Asia, Peter </p><p>Jeffery. </p><p><BR><BR> </p><p>The conclusive proof Jeffery talks about are the focus group evaluations </p><p>it conducted in Asia and the success it enjoyed in the US when the the </p><p>new cover design was introduced. According to Jeffery, newsstand sales </p><p>in the US climbed eight per cent on the back of the new cover although </p><p>overall newsstand sales dipped 10 per cent in the same period. </p><p><BR><BR> </p><p>"It's important for us because newsstands have hardly been a channel for </p><p>us. It's been exclusively direct marketing," he says. </p><p><BR><BR> </p><p>Whether the new cover will see it repeat its US success in Asia remains </p><p>to be seen. What is crucial though is the title's efforts to chip away </p><p>at agency bias. Few doubt the magazine performs strongly on key media </p><p>buying criteria. But for the 20-something media buyer, who grew away </p><p>from Reader's Digest during adolesence, the magazine is more solid than </p><p>sexy. </p><p><BR><BR> </p><p>Still, the first half ad revenue spike provides early proof that </p><p>Reader's Digest's message is getting through. Investments in sales, </p><p>marketing and research-driven initiatives to play up the company's </p><p>strengths as a direct marketing organisation are key strategies in </p><p>breaking down lingering bias towards the magazine. </p><p><BR><BR> </p><p>Fifteen new advertisers, including several local corporations, have </p><p>signed up from October onwards. Among them are Volvo, Mitsubishi, Sony, </p><p>consumer goods company Fraser & Neave of Singapore and the Philippines' </p><p>national petrol chain Petron. The FMCG category is proving to be a </p><p>bright spot, says Jeffery. It went from nothing last year to a little </p><p>less than 20 per cent of revenue this year. </p><p><BR><BR> </p><p>Jeffery credits the latest spate of advertising deals to Reader's </p><p>Digest's ability to deliver a critical mass of consumers. </p><p><BR><BR> </p><p>Its circulation base comprises 709,342 copies across Asia, according to </p><p>audited figures for 2000, making it the region's largest-selling </p><p>title. </p><p><BR><BR> </p><p>On top of the numbers, the ATMS 2000 report showed Reader's Digest </p><p>outperforming rivals across categories such as car ownership, travel, </p><p>personal finance and investment, computers and consumer electronics. </p><p><BR><BR> </p><p>"Whether you're selling cars, home electronic products or any other </p><p>consumer products, the actual numbers of consumers of that product who </p><p>read the magazine is higher than any other title," says Jeffery. "The </p><p>people who subscribe to our magazine tend to be DM and offer-responsive. </p><p>We've leveraged this internally to sell our products; we will now </p><p>leverage it externally for our advertisers." </p><p><BR><BR> </p><p>Reader's Digest subscription renewal rate runs to about 60 per cent, </p><p>with subscribers having stayed with the magazine for about nine years on </p><p>average, according to Jeffrey. That subscribers in Asia are younger than </p><p>those in its other markets, and are in the middle to upper class </p><p>demographic mean they are in "the ideal life stage to be receptive to a </p><p>range of products and brands". </p><p><BR><BR> </p><p>In playing up the company's strengths as a DM operator, Jeffery is </p><p>confident Reader's Digestcan claim the real prize - to enjoy the best of </p><p>both worlds as a regional and local buy. </p><p><BR><BR> </p><p>Media agencies have started toting up the magazine's strengths. </p><p>Christina Wong, Zenith Media Hong Kong associate director of its </p><p>strategic planning department, says its ability to offer flexibility </p><p>through split runs across Asia gives the title an edge over some of its </p><p>regional competitors. </p><p><BR><BR> </p><p>"Advertisers can adapt their messages accordingly and this is a huge </p><p>advantage. Plus, the improvements to the editorial product ensure a </p><p>quality advertising environment, which makes us confident to book </p><p>Reader's Digest." </p><p><BR><BR> </p>