U.S. agencies and advertisers stick to what they know: circulation, not readership

Since this magazine business is all about audience (identifying them, attracting them, signing them up, keeping them and then renting access to them), there has always been some discussion about selling on total audience rather than on guaranteed circulation. Most Canadian consumer magazines sell on readership most of the time. In the U.S., magazines have traditionally relied on a paid rate base, a guaranteed number of copies for which end users have paid something.

A year ago, Time magazine decided to test the waters by offering advertisers the ability to buy based on guaranteed total readership of 19.5 million, as measured by MRI, or against a 19 percent smaller rate base of 3.25 million copies.

Though Time is being coy about the results, a story in Mediaweek says that the magazine fell far short of its goal of having 20 to 30 per cent of clients buy on the basis of eyeballs (total audience). All Ed McCarrick, president and worldwide publisher of Time Group, said was “a few” are buying on audience but would not give specifics, saying he doesn’t discuss clients.

Asked why more advertisers haven’t warmed to the idea, he said, “I really don’t know—I think the newness of it and the approach. They approach magazines with a very conventional way of looking at them.”

Some media buying agencies said none of their clients had signed up for the audience deal and cited the nature of MRI data, which are reader-reported, while others said their clients had other priorities.

“It’s not hot on the docket,” said Ginger Taylor White, group account director, print at Carat. Barry Lowenthal, president, The Media Kitchen, saw the offer as a way to shift the conversation away from circulation. “There are a lot of magazines that have a better audience story than circulation story,” he said.