Time Inc. has announced that Time will be reducing its ratebase from 4 million to 3.25 million. The magazine will also boost its newsstand cover price by $1.
The statement takes an overtly gushy tone, billing the move as a “bold attempt to revolutionize the way mass magazines sell advertising.” Ed McCarrick, Time’s president and worldwide publisher assures the public (read: advertisers and train wreck enthusiasts) that they’re making a “groundbreaking move from a position of strength.” Freshly installed managing editor Richard Stengel says it’s a “bold step.”
There’s a reason for all the hyperbole: cutting ratebase has traditionally been seen as sign of weakness – or the result of a circulation snafu discovered by an auditor. So Time has to come out on the offensive, and this may just be the move that starts a new ratebase reduction fad.
Observers, namely, Dan Capell, have noted that it will take one of the big guys – Time Inc., Hearst, Conde Nast, etc. – to make the first move before others take the step. They have also said that ratebase has become an increasingly ineffective audience measurement tool for an ad buy and that magazines should be measured in a way similar to other media.
Plus, reducing ratebase can pay dividends in distribution efficiencies. What remains to be seen is if other publishers can break their ratebase habit and if media buyers will make the leap along with them.
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