Home-delivery based distribution model gains advertisers…
The Latino Newspaper Network (LNN), an ad sales network launched last October by four weekend home-delivery-based Spanish-language newspapers, has made progress in attracting advertisers.
“We have a number of advertisers already participating, with more scheduled to begin in the upcoming weeks. They include Best Buy, Toys R' Us, Pep Boys, Office Depot, Kmart, Home Depot, AT&T Wireless, Valassis and News America,” Sally Newbury, president of the Naperville (IL) based Latino Newspaper Network told Portadatm.
LNN member papers are San Francisco's El Mensajero, San Diego's Enlace which improved and expanded its circulation last year (see “New weekly newspaper ad-sales network bets on home-delivery,” page 3, Portadatm No. 7 January-February 2004), Impacto USA (formerly El Económico) relaunched January 24, 2004, and Noticias de la Semana, a weekly published by the New York Daily News and scheduled to launch in May 2004.
...new members by year-end...
Currently all member newspapers are weeklies, but the network is open to any papers that meet the network's auditing, delivery and content standards and are willing to use the weekend home-delivery model. Newbury notes that “the requirements are very specific and adherence is mandatory. Our business is 100% focused on meeting the needs of advertisers, so we are looking to expand into regions where the advertising community indicates they have needs. Talks are ongoing with other markets and we hope to have more to announce before the end of the year.”
When asked by Portadatm why the network chose to emphasize home-delivery distribution, Newbury answered that “weekend home-delivered newspapers outperform single-copy and free rack distribution in every readership and sales performance tracking study. Our goal is to ensure that the advertiser's message gets into the home and is read and shopped by the consumer. This is what differentiates us from other free, bulk-dropped or single copy publications. To achieve this goal, we utilized the most recent U.S. Census data, at the most geographically finite level possible to determine our sub-ZIP code delivery.”
...too advertiser driven?
Some newspaper market observers have criticized home-delivery distribution models for being advertiser, not reader, driven. They point out that ultimately, what is good for readers is good for advertisers and not nece-ssarily the other way round. To these critics Newbury answers that LNN “conducted focus groups in Los Angeles where we asked Hispanic consumers if they would like to have their newspapers delivered to their homes and we received an overwhelming positive response.”
LNN focuses on national and major retail categories, targeting automotive, wireless, travel, fast food, packaged goods, as well as discount, department, drug and grocery stores. Newbury adds that the CPMs offered by LNN publications are “lower than their general newspaper competitors, and significantly lower than broadcast.”
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