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The Valassis NSA W hat it is; where it’s headed

The Valassis NSA W hat it is; where it’s headed. An NTMC Webinar 9/18/12. Organizer. Philip Brown Executive Director Newspaper Target Marketing Coalition. Slides and questions Only panelists audible -- attendees muted Type questions into the right-hand panel

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The Valassis NSA W hat it is; where it’s headed

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  1. The Valassis NSAWhat it is; where it’s headed An NTMC Webinar 9/18/12

  2. Organizer Philip Brown Executive Director Newspaper Target Marketing Coalition • Slides and questions • Only panelists audible -- attendees muted • Type questions into the right-hand panel • Brief survey following webinar • Webinar video will be posted on NTMC website

  3. Moderator Duff Heyl TMC Sales and Operations Manager Arizona Republic • Today’s webinar: • Understand the Valassis NSA and Prepare your response • Summary of the USPS Valassis NSA • Basis for PRC approval • NAA response and contract status • Implications for newspapers • We will announce a follow-up program next week: • Review where Valassis may launch • What their program will look like • What newspapers are doing protect their Sunday insert business

  4. Today’s Panelists Paul Boyle, Senior Vice President / Public Policy Newspaper Association of America Susan Duchin, Executive Director, Advertising Baltimore Sun Don Poepping, Business Development Manager Las Vegas Review-Journal Keith Gilpin, former VP Adv. Dist. & Operations Orange County Register

  5. The Valassis NSA Newspaper Target Marketing Coalition - Webinar September 18, 2012 Paul J. Boyle Senior Vice President / Public Policy

  6. Brief Background on NSAs (contract rates) 10-Year Legislative Battle on Postal Reform 2006 Postal Bill Establishes Criteria for NSAs Must not cause “unreasonable harm in the marketplace” Must contribute to the net financial position of the postal system Must be offered to similarly situated mailers

  7. Why Did the Postal Service Give Valassis a Contract Rate Now? • USPS Focused on Package Delivery and Ad Mail • USPS Losing $Billions – Environment was Ripe • Alternative Delivery Used as Leverage

  8. What’s in the Agreement? • NSA is for 3 Years • Must be 2nd Piece in Valassis Markets • Minimum 3 Inserts/ Discounts Start at 4 oz. • National Retailers of Durable and Semi-Durable Goods in 30 or More States • Valassis Midweek Advertisers - Not Eligible

  9. What is in the Agreement? (cont.) •Minimum Volume - 1 Million Pieces Annually • Begin First Mailing within 90 days (August 23) • Rebates at the End of the Year • Mail Package Does Not Get Discounts if: • Ad Inserts from Local or Regional Advertisers • Ad Inserts from “Non-Durable Goods Retailers” • Surcharge for Converting Solo Mail into Package

  10. Why did the PRC Approve? • PRC Says NSA Helps USPS “Better Compete” for Pre-Printed Inserts • Newspapers Have a Monopoly over Weekend Pre-prints • Newspaper Industry Overstates Impact

  11. What is NAA’s Response? • More than 40 Companies Filed Comments • NAA Files Appeal / Petition for a Stay - PRC didn’t fully evaluate market impact • NAA Exploring Legislative Solution

  12. Implications for Newspapers? • Potential Markets (low HH penetration / rates ) • Valassis Using Discounts to Promote Agency Business? • Challenges for Valassis? (will advertisers agree on markets/footprint; other feedback?)

  13. audience questions? panelist comments?

  14. Please take the very brief webinar survey you will receive later today And, look for an invitation next week to our follow-up webinar in early October – specific strategies for dealing with the NSA and protecting your insert business

  15. THANKS to all of today’s attendees and panelists!!

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