march 2006 publisher’s statement circulation update
TRANSCRIPT
March 2006 Publisher’s StatementMarch 2006 Publisher’s StatementCirculation UpdateCirculation Update
2006 March ABC Publisher’s Statement Update Agenda• Los Angeles Times 2006 Circulation Strategy• Total Circulation• Managed Reduction in Other Paid• Growth in Individually Paid• Readership Strength and Growth• Additional ways to connect to the LAT community• Appendix: Key ABC Circulation Categories
Los Angeles Times Ongoing Circulation Strategy
• Decrease Other Paid circulation
• Reinvest in Individually Paid
circulation
While a managed reduction of Other Paid circulation causes a drop in total
circulation, for you, the advertiser, it means access to a higher-quality
audience of readers willing to pay for Los Angeles Times content.
• Higher Composition of Individually Paid circulation
• Strong weekend circulation
March 2006 Publisher’s Statement
While total circulation has decreased, Individually Paid is actually on the rise, which means that the newspaper is getting more valuable to readers.
As expected, managed reductions of Other Paid circulation pushed Total Paid circulation down 5.4% daily and 1.8% Sunday.
Daily (Monday–Friday)
March 2005Actual
Individually Paid 774,720 778,096 +0.4%
Other Paid 125,857 73,745 –41.4%
Total Paid 900,577 851,841 –5.4%
Sunday
March 2005Actual
Individually Paid 1,201,924 1,203,198 +0.1%
Other Paid 51,925 28,120 –45.8%
Total Paid 1,253,849 1,231,318 –1.8%
March 2006Actual
March 2006Actual
Total Paid
We have discontinued Hotel Guest distribution (November 2005), and scaled-back our classroom T.I.E. programs (January 2006).
March 2006 Change
Daily(Monday–Friday) Sunday
Hotel Guest Copies (20,180) -80.2% (24,436) -77.1%
Times In Education (32,835) -38.6% (1,909) -38.8%
Third-Party-Paid/Other +902 +5.8% +2,540 +16.6%
Total Other Paid (52,113) -41.4% (23,805) -45.8%
Circulation of less value to advertisers has been decreased in the interest of higher-value circulation
Other Paid
Growth in Individually Paid Circulation
March 2006 Change
Daily(Monday–Friday) Sunday
Home Delivery +24,265 +4.3% +21,172 +2.3%
Single-Copy Sales (13,876) -9.0% (28,960) -11.5%
Other (JDAs and Bonus Days) (7,012) -13.1% +9,062 +19.1%
Total Individually Paid +3,377 +0.4% +1,274 +0.1%
A growth in home-delivered circulation delivers greater reach to subscribers who are most responsive to Los Angeles Times content
Increases in Individually Paid circulation are driven by home-delivered circulation, especially from expansion of our Three-Day (Friday/Saturday/Sunday) service in 2005.
Individually Paid
Home Delivery now represents an even greater composition of total circulation.
Home Delivery as Percent of Total Circulation
+6% points +3% points
2005 2006 2005 2006
Monday–Friday Sunday
63% 69% 72% 75%
Greater composition of the most responsive subscribers who pay to receive the Los Angeles Times at home
Individually Paid
Individually Paid
A greater composition of Individually Paid circulation delivers greater advertising efficiency.
Individually Paid as Percent of Total Circulation
+5% points +2% points
2005 2006 2005 2006
Monday–Friday Sunday
86% 91% 96% 98%
Strong end-of-week and weekend subscriptions
Actual March 2006
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
920,982
779,863
713,045
Individually Paid Circulation by Day of Week
September 2005*
691,948
1,203,198
773,353
679,430
679,256
685,661
748,594
885,936
960,208
1,189,876
938,518
• Friday benefited from the 3-day circulation program.
• Weekday volume changes are largely attributed to shifts in bonus day distribution from Thursdays and Saturdays to Mondays and Tuesdays. The shift was made to reinforce weekend subscriber loyalty, and increase subscriber exposure to the weekday product.
*September 2005 Publisher’s Statement; day of the week figures were not reported prior to this report
Individually Paid--Day of Week
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
752,639
780,957
851,832
990,904
791,161791,183
1,002,759
1,247,569
995,897
943,495
1,231,318
Total Paid Circulation by Day of Week
864,721
849,602
September 2005*
796,602
Actual March 2006
• Weekday volume changes are largely attributed to shifts in bonus day distribution from Thursdays and Saturdays to Mondays and Tuesdays. The shift was made to reinforce weekend subscriber loyalty, and increase subscriber exposure to the weekday product.
• In addition, all days reflect managed decreases due to elimination of the Hotel Program and reduction in the Education Program (TIE).
*September 2005 Publisher’s Statement; day of the week figures were not reported prior to this report
Total Paid
Source: Scarborough Research 2005 R1 and 2006 R1, NADbase Spring 2006 Release, MRI 2005 Doublebase.
The Los Angeles Times and Latimes.com together reach more than 4.9 million in the L.A. DMA.
Sunday readership (05-06) of the most affluent (HHI $100,000+) grew 13%.
2005 2006
927,886 1,045,812 +13%
Change
The combined reach of the Los Angeles Times and Latimes.com is greater than any other media vehicle in the marketplace, including all radio stations during a.m. drive time, all broadcast TV stations during ½ hour of prime time, all magazines, and all other Sunday newspapers combined.
Total Times Readership
Monday–Friday Sunday
2,176,204 3,281,209
4,974,943
Total LAT + Latimes.com
Source: Scarborough Research 2005 R1 and 2006 R1
The Los Angeles Times DAILY readership is growing dramatically in the Inland Empire and Ventura County.
2005 2006
79,987 108,591 +36%
Change
2005 2006
110,041 137,941 +25%
Change
2005 2006
76,928 86,768 +13%
Change
Riverside County- Daily
San Bernardino County- Daily
Ventura County- Daily
Source: Scarborough Research 2005 R1 and 2006 R1
2005 2006
152,269 170,355 +12%
Change
2005 2006
191,564 210,253 +10%
Change
2005 2006
115,335 119,336 +4%
Change
Riverside County- Sunday
San Bernardino County- Sunday
Ventura County- Sunday
The Los Angeles Times SUNDAY readership is growing dramatically in the Inland Empire and Ventura County.
Additional, new ways to connect with the Los Angeles Times community
and extend your reach
Los Angeles Times products combined -- including print, online and direct mail -- reach a total of 7.7 million, or 59%, of all adults in the LA DMA.Source: Gallup 2005
New opportunities to extend your reach• www.latimes.com
• With 3.7 million registered users, latimes.com is the ultimate Web destination for Angelenos
• West Magazine New Sunday magazine with a distinctly Californian focus featuring articles
and fiction from award-winning contributors, bold photography and a cutting-edge Style section
West will reach 3.28 million people, making it one of the most widely read magazines in the L.A. DMA
• TheEnvelope.com Now available in print• The only web site devoted entirely to entertainment awards now includes
an in-paper component
• LAT 125th Anniversary opportunities in paper and online– Special commemorative sections on readers’ favorite topics (e.g. 125
years of Sports)– Latimes.com/125: a special web site with ongoing coverage of the most
entertaining historical stories that shaped the city
Summary2006 Circulation & Readership Outlook
• Through a higher composition of quality Individually Paid subscribers and strong weekend readership, the Los Angeles Times delivers more customers who want and pay to read our editorial and your advertising.
• The Times is the leader in L.A. DMA readership, providing unmatched reach to the largest number of customers. The Sunday Times has the broadest reach of ANY competing media vehicle.
• Reach the Los Angeles Times community through new high-impact and relevant opportunities: a compelling new Sunday magazine, 125th anniversary celebrations, and exclusive in paper and online content your customers won’t find in a competing media vehicle.
Appendix: Key ABC Circulation Categories • Total Average Paid circulation:The total top-line average circulation number
• Individually Paid: Copies directly purchased by individuals• Home delivery: Copies delivered to individual subscribers at home
• Single-copy sales: Copies purchased at the newsstand
• Weekend: Copies delivered to individual subscribers on weekends only
• Other Paid: Copies that are not directly purchased by individuals• Hotel/guest single copies: Copies paid for by hotel guests as part of their bill
• Newspapers in education: Copies distributed in schools for classroom use
• Employee copies: Copies given to current and retired newspaper employees
• Third-party sales: Copies purchased in bulk by hotels, restaurants and retail stores, distributed free to guests and customers
Higher Individually Paid circulation shows greater “wantedness” of product.