Thursday, July 11, 2013

Quote, unquote: The smaller guarantee at RDA

"A business model that treats consumers as fodder for advertising bases isn't one that gets your customers as engaged as any of us would like. To really be relevant in this age we want to have a much more direct relationship with customers. By truly declaring what our business model is going to be, we have a lot of confidence that we can begin to grow our customers. It's not about constant retreat."
-- Robert Guth, president of Reader's Digest Association, speaking (in Ad Age) about the decision to slash the guaranteed rate base of the magazine to 3 million from 5.5 million. (As recently as 2007, RD had a rate base of 10 million. RDA just recently emerged from bankruptcy and has forecast a return to profitability by 2014.

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