Convention 2012: Printed Circulars Research - A Case Study for Newspapers

  • Nov 15, 2012

Jane Hungarter

As retail advertisers evaluate their media strategies, newspaper advertising has garnered quite a bit of attention from those keeping tabs on the newspaper industry. Based on the results of a recent research study conducted by A.T. Kearney, Inc., the future is bright for printed circular business.

Kearney’s study revealed that newspaper circular advertising is here to stay for a variety of reasons:

  1. Industry experts have a consistent point of view about the value of inserts.
  2. Publishers are protecting the circulation of advertising vehicles by providing readers with local content in a high-quality environment.
  3. Local newspapers are retaining readership.
  4. Circulars are sought after by consumers.
  5. Despite conventional wisdom, the younger demographic will rely on newspapers.

The study also found that retailers are committed to printed inserts as they continue to be positioned as one of the largest marketing line items. Many have increased their use of circulars because they are the best tool for driving store traffic. In fact, fifty-two percent of consumers who use media for planning and shopping indicate that newspaper circulars are the advertising medium most critical to their shopping experience.

Many have questioned the threat of digital advertising and its potentially negative impact on the print insert business. This study concluded that digital’s emergence is actually complementary to circular business. As these advertising channels continue to expand and evolve, the unique characteristics of each provide value to the retailer. Whereas digital is used for information gathering and comparison, newspaper inserts trigger entrance into the buying funnel and are used to drive traffic to the actual store locations.

To date, retailers have made small investments in digital advertising, but have not seen significant results, further underscoring the benefit and value of newspaper circulars.

Click here to read the entire report.

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