Guest Forum | Favorite Links | Dee Bonner Files
Dee Bonner | Shelbyville, IN
Advanced Search



home : news & opinion : news & opinion
January 23, 2019

10/23/2009
Conundrum or Karma?
Afloat in a sea of red ink
Afloat in a sea of red ink
If your business enjoys a 65% share of market and the market expands by 13% over a ten-year period, is it reasonable to expect that your business will also grow by 13%? It seems it would grow by 13% if you simply maintained your market share, doesn't it? But what if the market expands and your business doesn't grow? Or, what if the market expands and your business shrinks? If you think that's unlikely to happen, consider the following information.

The United States Postal Service requires publishers of periodicals to file an annual Statement of Ownership, Management and Circulation. The reports must be filed each year by October 1. Publishers also are required to publicly print the information in the first issue produced after the October 1 filing date.

The USPS uses the report to insure publishers meet circulation requirements that allow them to qualify for certain rates of mail delivery. Publishers are responsible for providing correct information on the statements of ownership and must maintain meticulous subscriber counts that correspond with postage statements. Discrepancies can trigger a more detailed postal audit so it's critical for publishers to continually monitor print orders and distribution quantities.

Since information reported on a periodical's statement is considered to be fairly accurate, advertisers can use the published reports to help measure the cost-effectiveness of advertising in specific publications. An advertiser can see a publication's average distribution quantities, calculate household penetration and factor in costs for a variety of different ad sizes to determine an optimum advertising investment. Household penetration is a standard comparative measurement used by newspaper advertisers. It is the percentage of household units reached by a newspaper within a defined geographical area and is computed by dividing paid circulation by the number of households in that area.

Here's an example:

The most recent annual Statement of Ownership published by The Shelbyville News on October 2, 2009 reported an average total paid distribution of 6,536 copies. The U.S. Census Bureau lists the number of households in Shelby County at 18,834. When you divide 6,536 copies by 18,834 households, you arrive at a household penetration of 34.7%. That means your advertising message has the potential to reach approximately one-third of all Shelby County households.

Here's another example: The prior year's Statement of Ownership published by The Shelbyville News on October 1, 2008 reported an average total paid distribution of 7,528 copies. The U.S. Census Bureau listed the number of households in Shelby County at 18,672. Divide 7,528 by 18,672 to arrive at a household penetration of 40.3%.

Oh, look! Here's another example: Paxton Media Group purchased The Shelbyville News from the DePrez family in late 1999. The newspaper's circulation was 10,800 copies and the U.S. Census Bureau listed 16,561 households in Shelby County. Therefore, household penetration at the time was a whopping 65.2%.

During the past ten years, the number of households in Shelby County has increased by 13.7% while the newspaper's average paid circulation has decreased by 39.5%.

Conundrum? Or Karma?



Reader Comments

Posted: Monday, October 26, 2009
Article comment by: Scott

That's easy...karma.

Posted: Friday, October 23, 2009
Article comment by: Barney

I vote "karma."

During the 1980s, the newspaper's circulation reached well over 11,000.

But it was a real newspaper then. Not an advertorial rag.


Posted: Friday, October 23, 2009
Article comment by: Francis Robinson

Pablum...



Article Comment Submission Form
Please feel free to submit your comments.

Article comments are not posted immediately to the Web site. Each submission must be approved by the Web site editor, who may edit content for appropriateness. There may be a delay of 24-48 hours for any submission while the web site editor reviews and approves it.

Note: All information on this form is required. Your telephone number is for our use only, and will not be attached to your comment.
Submit an Article Comment
First Name:
Required
Last Name:
Required
Telephone:
Required
Email:
Required
Comment:
Required
Passcode:
Required
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.
   








Life
Guest Forum | Favorite Links | Dee Bonner Files
Copyright 2019
DeeBonner.com, P.O. Box 464, Shelbyville, Indiana 46176

Software © 1998-2019 1up! Software, All Rights Reserved