October 2009 Archives

As reported in Tuesday's issue of MediaBuyerPlanner...

The average cost of a :30 spot on prime time dropped 16%, to about $84,000 in the third quarter, from the same quarter in 2008, according to analysis by independent media agency TargetCast. The decrease - slightly more than in recent quarters when declines were in single digits - was due to lower ratings and the recession.

Ratings among adults 25-54 were down about 10% in the quarter, compared to the same quarter last year, excluding the Olympics which ran in Q308, says Gary Carr, TargetCast svp and executive director of national broadcast.

TargetCast said Fox has the highest average cost, at $121,000. ABC, CBS and NBC average between $70,000 and $80,000.

Total broadcast dollar volume for the upfront, which stretched well into the third quarter, was down 22% for broadcasters, to $7.2 billion, according to Credit Suisse.

The cost of cable spots increased slightly during the same period. Ratings across the top 15 cable nets were up nearly 5% in 25-54s, due to original scripted series,newsworthy events and reality shows. The average cost of a prime time cable ad across those top 15 nets increased a corresponding 5%, to just over $10,000. ESPN and TNT had the highest ad cost, at $27,000 and $17,000, respectively.

Cable's upfront was also down significantly, though not as much as broadcast. The tally for cable was $6.73 billion, down 12% from last year.

The fourth quarter may not follow the trend seen in Q3, media buying executives believe, pointing out that networks have been earning double-digit CPM price increases in scatter, according to MediaPost. 

Make the most of any TV campaign by using a vanity 800 number to optimize your TV media budget.  Vanity numbers increase ad response, resonate better with consumers than numeric toll-free numbers, and will help improve cost-per-lead and overall ROI of your advertising campaigns.  For more information on vanity numbers, email us today and an Account Manager will contact you to review the benefits they bring to ad campaigns, call tracking features, and pricing.

MediaPost News

by David Goetzl, Thursday, October 15, 2009, 5:00 AM

Comcast COO Steve Burke has hyped the potential for massive growth from advanced advertising platforms being developed by Canoe Ventures. A new report seems to buttress his confidence, projecting industry-wide revenues in the emerging field will top $4 billion in 2014.

Advanced advertising is somewhat of a catch-all term encompassing addressable opportunities as well as interactive. Cable operators have deployed some or both at local levels, while Canoe -- a consortium of the six largest cable distributors, including Comcast -- promises to activate them on a national level.

Satellite operators have offered interactive options, though in fewer homes than Canoe could potentially reach.

Research firm Parks Associates predicts U.S. revenues from advanced advertising will be more than $130 million next year, then grow exponentially through 2014.

Cable operators such as Comcast may be facing a soft ceiling on revenues from traditional cable subscriptions and are searching for new revenue streams. (The possible NBC Universal acquisition would be a dynamic example.)

Parks Associates forecasts the $4 billion for advanced advertising dollars in 2014 will account for about 12% of all ad revenue from cable, DBS and telco TV providers.

That $4 billion figure in 2014 would also be 73% higher than the 2013 projection.

Heather Way, research analyst at Parks, states: "In the short term, digital TV operators continue to ramp up their investment in advanced advertising solutions as a preemptive move to sustain ad revenues. In the long term, the investment serves to grow the advertising business segment."

Canoe plans on offering an iTV option for lead generation, where a viewer can opt-in to receive a special promotion or coupon from a marketer, simply by using a remote control. Also under the advanced advertising umbrella as growth drivers, Parks Associates said, are long-form VOD ads; marketing messages delivered via DVRs; and banners on interactive program guides.

Background: An automotive financing company offers indirect lending programs at franchise and independent automobile dealers in the Southeast. Interested car buyers must apply for credit approval either over the phone or on the company's Web site.

Client Profile: In 2008, the auto financier opened a consumer lending division that specializes in title pawn rescue. The new division is growing rapidly.

Challenge: The company was launching a new advertising campaign with television, billboards, and vehicle wraps.

Strategy: A fellow automotive retailer recommended that the company activate a memorable vanity 800 number for their new campaign. As they started researching available toll-free numbers, they recognized the importance of selecting an unforgettable number that would enhance their brand and drive more incoming calls.

Results: The company uses their vanity 800 number as the storefront of their business. When they started looking for the best toll-free number for the new division, the marketing director knew it had to align with their brand, be easy for consumers to remember, and he insisted on getting a number with the original 800 toll-free prefix.

He says, "We really wanted a vanity toll-free number that had the 800 prefix because it is easier for consumers to remember, and the 800 prefix lends more credibility to our business over another prefix, like 866 or 877."

Since activating 1-800-NEW-DEAL the marketing director shares, "We had no idea we would get this kind of response when we launched the new campaign. Each month our call volume and the number of legitimate leads we receive from 1-800-NEW-DEAL are going in the right direction."

He attributes part of the company's newfound success to their advertising campaigns that feature 1-800-NEW-DEAL, and their Web address. According to the marketing director, "Every month, we receive hundreds of qualified leads through the phone number. We also get qualified leads coming into our Web site every month, which is also highlighted in our ads."

On average, the auto financier gets about 450 incoming leads into the vanity 800 number. That amounts to approximately eight times more qualified leads coming into the phone number versus the Web site.

"Our auto credit business is thriving during the current economic conditions," he says.  Due to their success, the company has plans to expand their business in the near future.

Nine Ways to Get More out of Your Dealership's Advertising

Think Consistent Advertising Campaigns that Steer Relationships...

By Laura Noonan

This year you are likely focused more rigorously on improving your advertising's ROI.  It is a common goal shared by many dealers as the market of buyers shrinks, and the inventory on dealer lots expands.  Advertising budgets are often one of the first areas to be reduced during slow times, which ironically just perpetuates the growing inventory as fewer ads reach fewer potential buyers. Unfortunately, reducing the ad budget is an unavoidable reality for many, making it all the more important to ensure that those remaining ad dollars are going as far as possible.

So, how do you get the most out of your advertising budget and secure a healthy ROI? 

1.       Commit to an advertising campaign that integrates several media formats, but maintains the same call-to-action throughout all pieces of the campaign. 

2.       Clearly state, several times, what it is that you want people to do.  For instance, "We have dozens of certified pre-owned vehicles in our inventory.  And, if you call 1-800-PRE-OWNED today, we'll send you a free CARFAX^® report on any certified pre-owned vehicle on our lot.  Call 1-800-PRE-OWNED today to speak with a sales person and take advantage of the free CARFAX report."

3.       Use a direct-response tool in all pieces of the campaign that is easy for buyers to remember and easy to track, like a toll-free vanity 800 number (800-NEW-FORD) with call tracking services.

4.       Analyze the response rates to your overall advertising efforts by monitoring your campaigns and tracking how many calls come into your dealership because of ad buys.

5.       Track the Cost-Per-Lead of your campaigns based on the cost of the overall campaign versus the number of leads the campaign generates.  This is easy with a call tracking system.  Most vanity 800 number and call tracking providers offer a campaign summary tool.  All you have to do is plug in the campaign spend numbers and as calls come in, the tracking system updates and automatically calculates the CPL.

6.       Build a strong lead database and market directly to these contacts.  Research tells us buyers are not only using the Internet to find a new car.  A toll-free service with a call tracking system will capture each incoming caller's name, address, and demographic profile, including average home value and household income based on the caller's location. 

7.       Stay consistent with your advertising plans.  Instead of a one-time splash, successful dealerships develop campaigns that will keep their name and brands in the market place, and in front of buyers on a regular basis.  If you have to cut back somewhere, buy smaller newspaper ads, run thirty-second radio spots, and thirty-second television non-peak spots.  Smaller ads and shorter spots allow advertisers to stretch budgets and maintain a presence in the media for a longer period of time.  And, repetition is the key to retention when it comes to buyers!

8.       Target your existing customers.  If a relationship preexists, then it only makes sense to take advantage of that.  Inevitably, this core base will need service for check-ups and repairs.  A savvy dealer includes the same trackable direct-response tool in the communications to these people, because chances are, even though they know who their dealer is, they cannot remember the dealer's local or numeric toll-free numbers.  So, a smart dealer gets their dealership a branding, toll-free vanity 800 number like 1-800-GREAT-CARS.

9.       Splash your dealership's toll-free vanity 800 number on all 'dealer plate' vehicles and courtesy shuttles.  These cars and trucks serve as mobile billboards, and a perceptive dealer knows not to miss out on an opportunity for "free" advertising. 

Finally, as Leo Burnett (of advertising fame) said, "Make it simple.  Make it memorable.  Make it inviting to look at.  Make it fun to read."

Laura Noonan has 16 years of experience in the vanity 800 numbers and telecommunications industry.  She coaches hundreds of auto clients each year on using toll-free vanity 800 phone numbers as direct marketing tools to increase advertising response rates.  Laura can be reached at lnoonan@800response.com or 1-800-NEW-SALES.

From Apryl Duncan, for About.com

In a recession, the first dollars that a company usually cuts come from the advertising budget. Advertising in a recession is actually a smart business move to grow your business now and for the future.

McGraw-Hill Research conducted a study of U.S. recessions from 1980-1985. Out of the 600 business-to-business companies analyzed, the ones who continued to advertise during the 1981-1982 recession hit a 256-percent growth by 1985 over their competitors that eliminated or decreased spending.

American Business Press analyzed 143 companies during the economic downturn back in 1974 and 1975. Companies that advertised in those years saw the highest growth in sales and net income during the recession and the two years that followed.

The numbers aren't a fluke. They prove there's a reward for companies who are aggressive with their advertising efforts in a recession.

Here are even more reasons why you need to advertise your business in a bad economy:

Your Competition Won't
Most small businesses have a limited advertising budget. During a recession, it's easy to make up some of those dollars by holding back on advertising.

All that really does is open up the marketplace for that company's competitors. The presence the business has spent ad dollars on to build up is now an open field for the competitors that are willing to advertise.

Let's say you own an auto parts store. Consumers still need your company, no matter what the economy. Cars still break down. They still need windshield wipers and people will even buy those tree air fresheners. Your company can be the one the customer chooses because you've made your own presence known.

You Can Create a Long-Term Position for Your Business
Standing out in the marketplace is hard enough when you and your competition are battling it out in the ad world. As your competition cuts back on ad spending, your advertising can cut through that clutter.

Consumers may not be spending as much but they are still spending. If you're not the company they think of when they do spend, your sales will decrease. While your competition is cutting back, you have the chance to be the company consumers spend with now while gaining their future business as you continue to advertise in good times and bad.

To Establish an Advertising Contact
This is the perfect time to establish a relationship with the person you'll be doing business with at TV stations, radio stations, magazines, online, etc. An Account Executive can be your go-to contact to get your ads in prime placement, negotiate good deals on rates and even get extras thrown in for your ads.

You can also use this new relationship to further grow your business. Talk with the AE about sponsorships, advertising trades and partnering.

Get Better Deals on Advertising
This is where you can use your new advertising contact. Ad inventory still has to be sold. TV stations, radio stations and magazines still have budgets to make.

Now's a good time to get deals on your ad space. You can get more exposure through more ad placement and even freebies added into the mix. If you're trying to get airtime on TV, for example, a station might also offer online advertising on its website as part of the deal. Negotiations are easier for the advertiser in a recession.

You Can Speak Directly to Customers Looking for Bargains
Don't be afraid to address the bad economy in your advertising. Customers are looking for good deals. Some national advertisers are a prime example of this.

Travelocity aired a simple commercial to announce its Silver Lining Sale. In the first three seconds, you see the words, "We know times are tight."

Wal-Mart is running an effective ad campaign. The commercials don't say, "Hey, come on out. We've got electronics, clothes, sporting goods, prescriptions and more at a low cost." Instead, the ads focus on very specific items and how much you'll save over a year by purchasing these items directly from Wal-Mart. The world's largest retailer posted its best sales performance in nine months, with a 5.1-percent sales gain in February 2009 as a result.

Hyundai's ads touting the Assurance Plus program is another example of an advertiser that's not ignoring these tough economic times. In its ads, Hyundai announces its program that will pay your payment for three months if you lose your income. If you still can't pay after three months, take your car back to the dealership.

Is it an effective program? Hyundai has already seen a 4.9-percent sales gain as of March 2009 while Toyota is down 36-percent.

In a bad economy, there are many opportunities to expose your business to new customers that aren't always possible in a good economy. Every one of them can be explored to help you solidify your place in business and stand out from your competitors.

Negative Words Prove To Be Catchy

by Jack Loechner, Thursday, October 8, 2009, 8:15 AM

Subliminal images, images shown so briefly that the viewer does not consciously 'see' them, have long been the subject of controversy, particularly in the area of advertising.

According to a study led by Professor Nilli Lavie, UCL Institute of Cognitive Neuroscience, published in the journal Emotion, people are able to process emotional information from subliminal images, and demonstrates conclusively that even under such conditions, information of negative value is better detected than information of positive value.

In the study, Professor Lavie and colleagues showed fifty participants a series of words on a computer screen. Each word appeared on screen for only a fraction of second, at times only a fiftieth of a second, much too fast for the participants to consciously read the word.

The words were either positive (e.g. cheerful, flower and peace), negative (e.g. agony, despair and murder) or neutral (e.g. box, ear or kettle). After each word, participants were asked to choose whether the word was neutral or 'emotional' (i.e. positive or negative), and how confident they were of their decision.

The researchers found that the participants answered most accurately when responding to negative words, even when they believed they were merely guessing the answer.

Professor Lavie said: "There has been much speculation about whether people can process emotional information unconsciously... (the study shows) that people can perceive the emotional value of subliminal messages and... (demonstrates) conclusively that people are much more attuned to negative words.

 The professor says that there are evolutionary advantages to responding rapidly to emotional information. She says "We can't wait for our consciousness to kick in if we see someone running towards us with a knife or if we drive under (inclement weather conditions) and see a sign warning 'danger'."

Since "Negative words may have more of a rapid impact," she explained, the research might have implications in the use of subliminal marketing to convey messages for advertising as well as public service announcements for safety campaigns.

Professor Lavie opines that "'Kill your speed' should be more noticeable than 'Slow down'. More controversially, highlighting a competitor's negative qualities may work on a subliminal level much more effectively than shouting about your own selling points."

For additional information about the UCL study, please go here.

Better Not to Mention the Lousy Economy

Oct 12, 2009

- Mark Dolliver

NEW YORK With the recession impinging strongly on consumer behavior, some brands' ads acknowledge its effects. Others remain silent on the topic. Which approach do consumers prefer? An AdweekMedia/Harris Poll, conducted last month, finds relatively little enthusiasm (and lots of indifference) for ads that refer to the downturn.

Given a choice of ways to describe their reaction to advertising that refers to the recession, 23 percent said such ads "make the brand seem more realistic."

But slightly more (27 percent) said such ads "make the brand seem manipulative," while another 12 percent said they find these ads depressing and, as such, are "less likely to buy the brand." A plurality (39 percent) said they have no opinion of such ads, which suggests the ploy has little resonance with many consumers.

Female respondents were more apt to find such advertising "realistic" (27 percent) than "manipulative" (25 percent). The pattern was reversed among men, though, with 29 percent terming such ads manipulative, vs. 18 percent regarding them as realistic.

NEW YORK (AdAge.com) -- The marketing industry isn't just under threat of regulatory pressure by the federal government -- it's also under fire in states across the country. The issues range from pushes to tax advertising (under discussion in the legislatures of at least 15 states) to a county supervisor in Virginia asking his legislative committee to determine if it can regulate "human billboard" advertising.

"States are under enormous financial pressure and they're looking at any source they can find," said Dan Jaffe, exec VP-government relations for the Association of National Advertisers. "That's ... why there are more taxes and creative ways to tax the industry to pay for programs that are being somewhat diminished."

There have been several proposals so far this year to tax or restrict advertising, notably in South Dakota and Arizona. The legislation in South Dakota was killed in committee and the Arizona proposal never came to a vote. Bills have been introduced in the New York State Assembly to restrict the deduction for direct-to-consumer prescription drug advertising, and to tax ads for certain foods, beverages and entertainment products to combat childhood obesity. Neither bill has moved.

A bill was introduced in the Massachusetts legislature to ban all alcoholic-beverage ads on public facilities, such as trains and bus shelters. A hearing was held last month, but the bill has not moved.

In Florida, seemingly the headquarters of advertising industry headaches, a bill introduced to repeal the ad-tax exemption last year was shot down (again), but a bill to end the ad-tax deductibility for pharmaceutical companies is on the table.

Fight in Maryland
Even in states where the threats are benign at the moment, the industry is bracing. "In Maryland, most advertising services are not subject to sales tax, but tangible items produced from advertising services and equipment used in producing ads are taxed. So we have seen an uptick in sales audits of agencies and production companies," said Cynthia Blake Sanders, the legislative committee chair for the American Advertising Federation's Baltimore chapter.

Ms. Sanders, who said Maryland has an economic climate that is "hostile to business, including those in advertising and communications production," said AAF-Baltimore is assisting the national AAF in opposing any federal cessation of the business expense deduction for health-care advertising. "But we have seen signs that the Maryland delegation may not back the advertising community in this fight," she said.

Said Mr. Jaffe: "There's been real anger at the business community right now because the government believes the business community failed in their responsibilities and brought on this current economic crunch. ... But, unfortunately, sometimes these regulations make the problem worse."

New York has been another bugaboo state for the ad industry. The state has already passed a bill that forces consumers who buy products from internet sites based in New York to pay state sales tax -- dubbed the "Amazon Tax" -- which resulted in dozens and dozens of marketers pulling their ads on New York-based websites. Now New York City has angered the beverage industry with its anti-obesity ad campaign that targets sugared drinks.

In Michigan, where the economy is one of the worst in the nation, the state Senate is voting this week on tax incentives being offered to filmmakers. Michigan currently offers a 40% tax break to entice filmmakers to come to the state, and it has worked -- Clint Eastwood filmed "Gran Torino" there two years ago, and an Ernst & Young study showed that states realize strong ROI with the credits (New York got $1.90 back for every $1 in tax credit; New Mexico realized $1.50 back on every $1).

But the Michigan Senate has interpreted the current bill to exclude commercial filmmakers, which could severely curtail the ad industry in the state. "We've already talked to the Big Three automakers and they said they would commit to between 40% and 50% of their commercials to be produced in Michigan [if commercial filmmakers receive the same tax credit as movie makers]," said Bill Ludwig, vice chairman of Warren, Mich.-based Campbell Ewald. Mr. Ludwig says a report shows that participation just from the automakers alone would reap, conservatively, $20-$30 million and create 1,300 permanent jobs and 15,000 work-a-day jobs.

Analysts Confident Advertising Will Rise to Pre-Recession Levels

Published on October 08, 2009 in MediaBuyerPlanner. 

UBS analyst Michael Morris believes the recent ad slump does not represent a permanent change in how marketers reach out to consumers, and says ad revenue will return to pre-recession levels.

Morris based his belief on an examination of trends over the last 30 years, during which time companies consistently spent 2.3 cents on advertising for every $1 of consumer spending, writes the Associated Press (via Yahoo Finance).

Morris expects the third and fourth quarters of this year to show advertising improvement, based on the fact that consensus estimates say revenue at the top 100 U.S. ad spenders will rise 3.0% in 2010.

In the third quarter of last year, ad sales fell 3.6%, with more significant drops following in Q409 and Q109 (at -7% and -9.5% respectively). The precipitous drop began to slow in Q209, down 6.9% compared to the year before, writes MediaPost.

Morris said big ad spenders were overzealous in their cuts between 2007 and 2009. While revenue at the top 100 advertisers fell 6%, those advertisers cut ad spending by 13%. As the economic recovery picks up its pace, Morris is confident those spenders will begin to move toward pre-recession spending habits.

Meanwhile, Deutsche Bank analyst Doug Mitchelson raised his earnings estimates, pointing to the fact that national advertising revenue came in higher than expected in Q3.

Both Mitchelson and Morris raised the third-quarter adjusted profit forecasts for CBS, Time Warner and Viacom.

Clear Channel Outdoor Holdings Inc. invested in an all-new digital communications network in White Plains, N.Y.

Clear Channel officials say this is the nation's first digital display network concentrated in a downtown area. The company developed the network at no cost to the city. White Plains officials will be able to use the network to post communications from city departments to the general public. Clear Channel Outdoor will sell advertising on the digital billboards. Advertising images will be rotated every eight seconds.

An electronic billboard is the perfect advertising space for clients who want more flexibility in their ad messages, keeping them up-to-date with the latest seasonal specials, campaigns, and promotions. 

A general manager of an outdoor company's location has some advice to those who use digital boards as part of their ad campaigns.  "One, make sure you include a strong call-to-action on your billboard and your ad will deliver impressive results. Two, include a vanity 800 number.  They are always easier for people to remember and dial. Three, call tracking provides monitoring and analytical tools to measure a campaign's performance. And finally, digital billboards using a vanity 800 number aligned with a client's brand will create lasting awareness and response for your client."

Just for some fun on a dreary Wednesday in Vermont...

A Timeline of Toll Free History

1967: AT&T launches "Inbound WATS."
1984: Toll Free Services "Unbundled" by MFJ*

1990: 800response starts offering shared use vanity 800 numbers and a proprietary call routing and call tracking system to small and mid-size businesses in the US.

1994: Toll Free Number Portability Mandated
1996: "888" Service Introduced
1997: International Toll Free Introduced
1998: "877" Service Introduced
2000: "866" Service Introduced

2006: 800response expands service of vanity 800 numbers and call tracking and monitoring to Canada, and becomes the leading vanity 800 number provider in North America.

Five Common Questions about Toll-free Services

It's not enough these days to just include your phone number in advertising campaigns. In this current market, you need an edge to get more out of those slashed ad budgets. You have to look at your phone number as a marketing and advertising tool - something that is necessary to include in your advertising strategy - a tool that will improve response rates to your advertisements, drive interested car buyers to your dealership, while also integrating with your lead-tracking and management system.

Here are five questions to ask your phone service provider to make sure you are leveraging every incoming phone call to the greatest possible extent.

1.       Do I need a special phone line or phone system in order to activate a toll-free or vanity 800 number?

No.  You can easily activate a toll-free or vanity 800 toll-free number, without having to make any changes to your existing phone system.  During the activation process, you will designate which phone line you want the toll-free number to ring to -- just choose one of your existing phone numbers. 

2.       I only advertise in my local market, not nationally.  Can a toll-free number work only in my local region, where my advertising reaches, or do I have to get and pay for national coverage?

If you don't advertise nationally and do not want to field calls from all over the country, you need a regional toll-free service. There are providers who offer toll-free vanity numbers on a local or regional basis.  During the set-up process, they will work with you to define the area codes that your advertising will reach, and you will receive all calls that dial your toll-free number from within those area codes.  You will not receive or pay for calls that dial your toll-free number from outside the defined area codes for your account.

3.       Can I have the toll-free number ringing to multiple dealerships?

Yes.  There are various advanced routing tools to direct your incoming calls to different store locations in any manner you choose. Advanced call routing options will take care of your business's needs, no matter how sophisticated they may be. You can choose to have the calls ring to the location closest to the caller, or have all calls ring to a single location, or prompt callers with a message that lets them select a location.

4.       When should I consider using a vanity 800 number?

You should always consider incorporating a vanity 800 number into your advertising strategy.  Vanity 800 numbers are an integral component of any advertising campaign.  They facilitate in branding a business (i.e.; Ford dealership using 1-800-NEW-FORD^®), and research (and common sense) tells us they are easier for consumers to remember than a 10-digit numeric toll-free number, therefore they improve advertising campaign performance (with more calls), and overall ROI.  Vanity 800 numbers are best used in media formats that are temporary for the consumer, like television ads and outdoor ads.  These media formats require an element of memorability, which vanity 800 numbers lend to advertisements.

5.       Do most toll-free service providers offer a tracking service as well?

Not necessarily.  There are toll-free number providers out there who will find and activate a toll-free number for you, but that is where their service ends.  It is good business practice to find a service provider that offers additional features like call tracking and recording, so you can optimize your incoming calls by analyzing their origins, capture the caller's contact and demographic information, and record incoming calls for dealership training purposes.  Only a provider that offers call tracking and monitoring services can help you build your lead database, and integrate incoming leads with your existing lead-tracking process to contribute to the lead management cycle.

The key factors in a comprehensive lead tracking and management system is to know who is calling into your stores, when they're calling in, why they are calling, and to turn those leads into prospects that become part of your targeted marketing and advertising campaigns, and promotional events.  Toll-free and vanity 800 service providers that offer tracking services will help you build a complete lead-management program for your dealership. 

Ford is a registered trademark of Ford Motor Co.  There is no relationship between 800response or any of its affiliates and the aforementioned company.  

NAA: Subscriber Churn Down For Newspapers

by Erik Sass, Yesterday, 5:34 PM

Amid the generally catastrophic tenor of most news about the newspaper business, one piece of good news stands out: Subscriber churn has decreased over the last decade, from 54.5% in 2000 to 31.8% in 2008.

The decrease in turnover holds out the hope that after losing a large number of readers to the Internet, print newspaper circulations may stabilize around a core group of committed readers.

The findings, released by the Newspaper Association of America in the 2009 edition of its "Circulation Facts, Figures and Logics" survey, indicate that "publishers have focused their efforts on retaining subscribers in key market segments that translate into maximum advertiser value," according to NAA President and CEO John Sturm.

This also translates into stronger circulation revenues, as the average price of seven-day home delivery rose from $3.37 in 2006 to $3.66 in 2008.

Newspaper publishers have sought to bolster circulation revenues to offset steep, continuing declines in advertising revenue. In the first half of 2009, total ad revenues amounted to just under $13.44 billion, down 43% from $23.48 billion in the first half of 2006.

The declining churn rate among subscribers seems to fit with the conventional wisdom that there is are readers who will stay loyal to print. This is clearly good news for newspapers, which have seen overall circulations fall steadily over the last decade.

According to a MediaPost analysis of figures from the Audit Bureau of Circulations, total weekday circulation for 100 leading newspapers fell from 29,992,627 in the six-month period ending March 2003 to 24,596,042 in the six-month period ending March 2009 -- a drop of 18%.

However, these core print readers consist mostly of older people who have become accustomed to the print product. As the demographic wave moves forward, this cohort will naturally shrink, meaning that newspapers still face a continuing long-term decline in readership -- just at a slower pace than over the last decade.