August 13, 1998
Sweepstakes Drop to Hurt Subscriptions
Magazine publishers will have a tougher time attracting new subscriptions next year because of a 30 percent to 40 percent decline in sweepstakes marketing tied to lawsuits against American Family Publishers and Publishers Clearinghouse, predicted Philip Whitney, vice president of consumer marketing for Money Magazine, during a session at this week's DMA List Day.
The drop in sweepstakes marketing will cost the industry 1 million to 1.5 million subscribers and lead to more direct mail subscriptions offers, he said. "We will be doing a lot more mailing for the same amount of customers."