Monday, June 21, 2004

Circulation Problems Show Misguided Thinking of the Industry

Is anyone surprised or shocked by the recent disclosure of circulation misstatement at Hollinger's Sun-Times or the Tribune's Newsday and Hoy publications?
If you've been in the industry for any reasonable amount of time (say five years or more) you would quickly realize that circulation is king. No matter what area of publishing you work in sooner or later the weight of circulation is felt. But, probably in no greater place than advertising sales.
This article is not about assigning blame, there's plenty to go around. But I find it interesting that advertisers and publishers alike are standing with their hands over their mouths, awed by the current developments. Give me a break. This has been going on since before my time.
Advertisers say they're interested in reaching customers at deeper levels, getting higher ROI, being fully integrated, etc., but everyone in the industry knows that a dropping circulation is an advertising death warrant. In this environment, few publishers have the guts to say, "forget forcing high circulations we're going to focus on building a quality, stable readership." It's an environment ripe for the unscrupulous and nigh impossible for those trying to do the right thing but pressured for greater results. So how do we fix it?
In the days ahead there will be many interesting ideas to be sure. Some will be new and some will be rehashed from the previous circulation snafu. But ultimately I believe it's the simple that will get results.
As a child if I lied, got away with it or got off easy I found very little aversion to lying or even getting caught again. But when I lied, got caught and received significant punishment I was left with an indelible mark as to the importance of honesty. Ultimately, it didn't matter if I saw honesty as a vice or virtue. What mattered was the incentive to recognize its importance. I fail to see much difference in its application today. Cheaters and liars should be punished.
Publishers need to set up internal policies and controls. They need to appropriately convey them to their employees and they need to practice it at the highest levels (A double standard ultimately pans out to a single standard - whatever the boss is doing).
Second, the industry (newspaper and magazine publishers) need to set up a system for looking into and punishing circulation fraud on a consistent, swift and vigorous basis. This system should be well understood and communicated to industry members.
The newspaper and magazine publishing industries must become media leaders again. They must innovate and drive the industry not settle for being led about by advertisers or other media forms. They must make tough decisions, set high standards and be accountable. Herein they will begin to regain the profitability and recognition that some believe only cheating will get them.
-PA-