1. Poly Bag Promotion Kelly A. Velander May 21, 2003

2. America Online CD-ROM

3. America Online (AOL) Client relationship Increase membership Newsstand promotion

4. Newsstand Promotion Opportunities Advertisers (AOL) Viable investment New marketing audiences Magazines Additional revenue Increase newsstand sales Generate additional advertising revenue

5. Newsstand Promotion Threats Advertisers (AOL) Impact sales results Added value Publishers Packaging issues

6. Research Question Do poly bagged magazines with promotional pieces increase sales on the newsstands?

7. Research Goals To determine: Do promotional pieces increase newsstand sales? What poly bagged promotional pieces increased newsstand sales by the greatest percentage? What are magazines’ objections to poly bagging newsstand copies?

8. Methodology Sample 308 magazine employees Advertising sales representatives Publishers Editors Circulation managers Survey Components Cover letter Survey

9. Survey Response 308 sample size 76 completed survey 25% response rate

10. Research Findings Have you poly bagged newsstand copies of any issue? 53% Yes 47% No

11. Research Findings How many times a year, on average, do you poly bag newsstand copies? 64% poly bag their newsstand circulation 1 to 3 times per year. 15% of the publications poly bag 4 to 6 times per year.

12. Research Findings What is the percentage increase in single-copy sales when your publication includes a poly bagged promotional piece? 34%0 – 5% increase 43%6 – 10% increase

13. Research Findings

14. Why do you NOT poly bag newsstand copies of any issue? Consumer physical distraction Reduced sales Front cover distraction High costs Production delay Lack of request from advertisers to poly bag newsstand circulation

15. Research Findings Poly bagging promotional pieces on the newsstand is an effective tactic to sell single copies.

16. Research Answer Yes, poly bagged magazines with promotional pieces increase sales on the newsstands.

17. Recommendations Hypothesis test in a sample of small, medium, and large newsstand publications. Reinforce advertising concept to magazine publishers. Increase newsstand sales Generate additional advertising revenue

18. Questions?

19. Poly Bag Promotion Kelly A. Velander May 21, 2003