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Time Inc. Selective Binding Recommendation

Date: 09 Sep 1993
Length: 2 pages
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Abstract

This confidential 1993 Philip Morris memo shows that TIME magazine entered into an agreement with Philip Morris to merge its customer database with PM's smoker database to help PM sell cigarettes. An objective "was to create 'smoker' editions of TIME's publications" and to help PM "speak to smokers in innovative and highly targeted ways."

Selective binding is a computerized, database-driven binding process allows publishers to break out regional or interest-specific advertising and/or editorial editions of a given issue. Presumably, such a system would enable TIME to remove cigarette ads from issues of the magazine going to schools, however apparently TIME has not done this, as many issues of the magazine arriving at school libraries continue to carry cigarette advertisements. Photos of TIME magazine issues carrying tobacco ads that were mailed to schools can be seen at http://whyquit.com/ads/Time_Warner.html

TIME Inc., is the publisher of more than 125 magazines that carry tobacco ads, and five that don't.

Recently, the American Legacy Foundation (the organization set up by the 1998 Master Settlement Agreement to fight tobacco use) held a $500 a plate award dinner where it presented TIME magazine with a prestigious tobacco control award for “helping the American Legacy Foundation reach a national audience in support of the foundation’s educational and awareness campaigns.”

Several public health physicians strongly criticized Legacy's giving TIME this award in an article published in the March 4, 2005 edition of The Cancer Letter. [Legacy Foundation Calls Time Inc. "Hero" Of Tobacco Control, But Activists See Villain, By Kirsten Boyd Goldberg, The Cancer Letter, March 4, 2005 (Vol. 31 No. 9)www.cancerletter.com ] Legacy was also criticized for its action by the American Council on Science and Health in a February 4 editorial entitled, "TIME is not on our side," by Rivka Weiser, who said,

"While Time, Inc. has taken some steps to support tobacco control, it is shocking that the corporation is being given a high-profile award for its advancement of the cause. Time, Inc.’s four most highly-circulated magazines -TIME (its flagship magazine), Family Circle, People, and Sports Illustrated - which reach a paid circulation of over 15 million readers combined (and therefore bring in much advertising revenue), all promote smoking through their cigarette ads." http://www.acsh.org/factsfears/newsID.510/news_detail.asp

Fields

Notes

Thanks to John Polito

Quotes

CONFIDENTIAL FROM: Diane Cimine SUBJECT: Time Inc. Selective Binding Recommendation

We are currently planning a trial use of a custom designed magazine program created by PM Media/Direct and Time Inc. through a merger of our smoker database and the subscriber list of their magazines. The test will be funded within current brand plans for '93 and would involve Marlboro, Merit and Virginia Slims.

BACKGROUND

PM and Time Inc. entered into a confidential agreement last June which enabled our smoker database to be merged with subscribers of Time Inc.' s publications based upon age, sex and primary brand. The objective was to create "smoker" editions of Time's publications to enable the company to a) cut out of pocket expense by limiting advertising to audiences that are prime prospects and b) longer term, speak to smokers in innovative and highly targeted ways.

Such an attempt at merger was initiated several years ago and was not used since the match was deemed too small for worthwhile application. While we have had discussions with other companies about this matter (Times-Mirror, Hachette, Conde Naste and Meredith ), Time Inc. is the first to be ready, able and willing to enter into such a partnership. There are several reasons for this: Tune Inc. has the widest and largest selection of titles*; it is the company that PM does the most business with (in '93 dollars, upwards of $32mm); additionally, they are the best equipped with the database capability to make this happen.

*TIME INC. produces TIME, SPORTS ILLUSTRATED, PEOPLE, ENTERTAINMENT WEEKLY, FORTUNE, MONEY, LIFE, SOUTHERN LIVING and COOKING LIGHT

Recommendation: We recommend running a series of 3 ads in each of 3 titles during 4th Quarter' 93 to give us trial on the long term viability of this program.

MAGAZINE SELECTION: TIME, Sports Illustrated and People are recommended since they provide the largest smoker audiences of those measured and are currently being used Merit, Marlboro and Virginia Slims, respectively.

TIMING:

In order to begin learning on this project in' 93, we will schedule an insertion for each brand in one publication once each in October, November and December (specific dates TBD). We will attempt to time insetions [sic] in conjunction with ongoing schedules. Funding for this trial would be met predominately from a transfer of spending within the print plan - each brand will receive particulars once a decision to go is given.

Company
Philip Morris
Author
Cimine, Diane (PM Media Manager, New York c. '92-94)
Recipient
LeVan, Suzanne A. (PM Premium Brands VP, '94-95)
Lund, Nancy Brennan (PM Marlboro VP, '94-95)
Mikulay, Robert L. (PM Marketing Sr. VP c. 1993)
Region
United States
Litigation
Stmn/Produced
Named Organization
Entertainment Weekly
Fortune Magazine
Hachette
Life Magazine
Merredith
Money Magazine
People Magazine
Southern Living
Sports Illustrated
Time Magazine
Times Mirror
Conde Nast
Cooking Light Magazine
Type
MEMO, MEMORANDUM
BUDG, BUDGET, BUDGET REVIEW
Subject
advertising
advertising activity
advertising medium
advertising to youth

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PH1LIP MORRIS USA INTER-QFFICE CQRRESPONDENCE • TO: S uzanne LeVan Nancy Lund Bob Mikaulay FROM: Diane Cimine 120 PARK AVENUE, NEW YORK, NY 10017-5592 DATE: September 9, 1993 CONFIDENTIAL SUB.lECT: Time Inc. Selective Binding Recommendation We are currently planning a trial use of a custom designed magazine program created by PM Media/ Direct and Tune Inc. through a merger of our smoker database and the subscriber list of their magazines. The test will be funded within current brand plans for ' 93 and would involve Marlboro, Merit and Virginia Slims. S Background PM and Tune Inc. entered into a confidential agreement last June which enabled our smoker database to be merged with subscribers of Time Inc.' s publications based upon age, sex and primary brand. The objective was to create "smoker" editions of Time' s publications to enable the company to a) cut out of pocket expense by limiting advertising to audiences that are prune prospects and b) longer term, speak to smokers in innovative and highly targeted ways. Such an attempt at merger was initiated several years ago and was not used since the match was deemed too small for worthwhile application. While we have had discussions with other companies about this matter (Times-M'irror, Hachette, Conde Naste and Meredith ), Tune Inc. is the first to be ready, able and willing to enter into such a partnership. There are several reasons for this: Time Inc. has the widest and largest selection of titles*; it is the company that PM does the most business with (in' 93 dollars, upwards of $32mm); additionally, they are the best equipped with the database capability to make this happen. * TIlVIE INC. produces TIME, SPORTS ILLUSTRATED, PEOPLE, ENTERTAINMENT WEEKLY, FORTUNE, MONEY, LIFE, SOUTHERN LIVING and COOKING LIGHT Recommendation: We recommend running a series of 3 ads in each of 3 titles during 4th Quarter ' 93 to give us_trial on the long term viability of this program. MAGAZINE SELECTION: TIME, S ports Illustrated and People are recommended since they provide the largest smoker audiences of those measured and are currently being used Merit, Marlboro and Virginia Slims, respectively. . TIlMIING: In order to begin learning on this project in ' 93, we will schedule an insertion for each brand in one publication once each in October, November and December (specific dates TBD). We will attempt to time insetions in conjunction with ongoing schedules. COSTS: Funding for this trial would be met predominately from a transfer of spending within the print plan - each brand will receive particulars once a decision to go is given.
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Sub,ject Date, Page 2 For perspective, however, the following outlines the out of pocket differences and efficiences that are involved in such usage. TIME NATIONAL PAGE COST: $111,435. NATIONAL CIRC CPM: $27.36 CIRCULATION: 4,000 (29% of which are smokers) SMOKER CPM: $96.07 SELECTIVE RATE COST: $46, 803. SELECTIVE CIRC CPM: $98.33 CIRCULATION: 476 (100% of which are smokers) SMOKER CPM: $98.33 NOTE THAT EFFICIENCIES COULD IMPROVE CONSIDERABLY AS WE FIND PARTNERS (IDEALLY WITHIN PM COMPANIES ) TO TAKE ADVANTAGE OF THE REMNANT SPACE. Keep in mind, however, that while the economies of scale seem quite attractive, this method of delivering advertising can only be used for a small portion of overall print spending for several reasons: a) our maximum reach can not currently exceed 45% of all smokers (the size of our database) b) such carving of readers is limited to subsription only copies c) so far, only Time Inc. is ready to go with this concept Next Stens With your approval, we will meet with each brand manager involved to determine copy usage. Presuming a successful trial of this project, we would incorporate a more extended program with creative applications into our' 94 plans. Please advise of any issues or concerns. cc: D. Beran J. Eibon J. Morgan R. S tirlen J. Hanrahan (Leo Burnett) ~ O ~ C3T 00 - ~? ~ ~

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