Posted November 4, 2010
by ACGMedia
Newsprint prices have increased 22% in 2010 per a recent article by Philip M. Stone in Follow the Media. This should continue to create an interesting set of negotiations in print advertising, as the newspapers historically have always passed those costs directly on to the advertiser. Yet, in today's era, where many advertisers are starting to seriously question the ROI of print advertising, lowering the cost of print advertising is all that is accepted.
Tags:
Newsprint,
Rates
Posted July 7, 2010
by ACGMedia
The USPS has proposed a rate increase effective January 2, 2011. This has the following immediate implications:
- First-Class Mail stamp increases two cents to 46 cents and would add less than 13 cents a month to the average American household’s budget.
- Each additional ounce will cost 18 cents.
- Postcard stamp increases to 30 cents.
- The first ounce of a large envelope (flat) will cost 92 cents.
This will have a mixed impact on the newspaper industry, particularly in regard to preprints. For those newspapers that are carrier delivered, this will be a benefit, as the their operating costs will not be impacted, while shared mail and direct mail costs will rise, thus making the carrier deliver papers more financially attractive to advertisers.
As for mail delivered newspapers, some will benefit and some will suffer. As
Editor & Publisher points out, depending on the size and volume of inserts a mailed newspaper (or mailed product) deals with, they may still come out ahead. Some products will see only a 4% rate increase, instead of the 8% that others will see. While 4% isn't good news, it is better than 8%.
Tags:
Rates,
USPS
Posted July 8, 2009
by ACGMedia
USPS high-density decrease approved
Commercial and nonprofit mailers of US Postal Service Standard Mail high-density flats, mail pieces delivered to each address on a delivery route, will enjoy new minimum per-piece prices decreases of 0.1 cent. The decreases kick in on July 19. In addition, mailers will see decreases to the pound price element that match the Standard Mail Saturation rate.
The Postal Regulatory Commission approved the rate on July 1, potentially setting a new precedent on how to address a rate decrease in a period of deflation.
The order can be accessed at http://www.prc.gov/ under “docket search” (Docket No R2009-4) or “daily listing” for July 1.
This was the first time under the Postal Accountability and Enhancement Act of 2006 that a decrease in postal rates was sought, reflecting a steady decline in the consumer price index over the last few months. One commenter on the price adjustment, identified in the decision as the public representative, contended that the price cap does not apply to price decreases. The US Postal Service supported this position in their statements noting “the legislative history of the PAEA indicates that Congress was concerned about capping the extent to which the Postal Service could increase prices, not decrease prices.
”The PRC responded by suggesting a future rate increase could be larger than it otherwise would be if the cap calculation and unused rate adjustment authority remained unset.
“If the Postal Service continues to exercise its pricing flexibility in a similar manner in the future (small increases or decreases in rates), this rounding problem could become more pernicious,” the PRC decision said.
The PRC has approved the rate adjustment, but also maintained that the new rates will be used as the base rates for the next cap calculation for the Standard Mail class.
Tags:
Rates,
USPS
Posted June 30, 2009
by Dennis Albert, ACGMedia
"Dear advertiser, I’m writing to share some important updates regarding your zone display advertising in The Seattle Times. As you know, The Seattle Times is proud to have retained nearly all former P-I subscribers since the transition, which has resulted in The Seattle Times significantly growing its weekday audience. This increased reach has had a particularly positive effect for zone advertisers like you. Depending on the zone, your advertising is now reaching 15% to 38% more area consumers. That means you’re getting even more value from your advertising at a time when keeping a high profile in the marketplace is more important than ever. This increased zone coverage has also resulted in additional production costs, so we will be adjusting zone advertising rates beginning July 1, 2009. These moderate rate changes vary by contract level, but in most cases your cost per consumer reached will still be lower than it was prior to the P-I closure. (See the enclosed rate sheet for a complete rate chart.) Please note that we’ve also added a new $25,000 contract level to reward advertisers at that spending level. I want to thank you for your business and your continued partnership. "
Tags:
Rates,
Zone Changes
