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Old 10-10-2008, 03:42 PM
  #29  
Bob Mitchell
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Default RE: Magazine ad rates


ORIGINAL: 804


From Mark Smith's candidate forum:



Bob,
Your assumptions are relatively close. I'm not sure that there is a magazine on the market that would be profitable without some revenue generated from subscriptions. The AMA members who receive Model Aviation are, essentially, the magazine's subscription base. A certain amount of each member's dues is allocated to the magazine as a benefit of membership.

So, yes I agree that an amount from each member's dues goes to "subsidize" the cost of the magazine. But, no more so than an amount of each member's dues goes to "subsidize" the cost of the liability insurance protection each member also receives as another benefit of membership.

Just as I mentioned above that I don't think any magazine could break even without at least some revenue generated from subscriptions, I don't believe Model Aviation can either. What we can do is manage the publication as efficiently as possible so as to keep the amount of member dues earmarked for Model Aviation as minimal as possible. This includes making sure that our advertising rates are inline with industry standards as well as responsibly managing all of the expenses associated with publication. In the past our advertising rates were a bit low relative to some other publications. In January of this year we raised our rates to bring them more inline with the other model aviation publications. These rates will be regularly reviewed and adjusted as needed.

Mark
To 804:

Thanks for reminding us all of that. You beat me to the punch.

The point that I've been trying to make is that if we expect MA to operate in a free market/real world, we have to remember that other magazines operating in that free world have subscription income. It's a contradiction to ask it to be so, and at the same time exclude any (subscription) contribution from member dues when looking at it's cash flow. If one is going to compare MA to a commercial publication it must be an apples/apples comparison.

That doesn't mean that an increase in revenue from any source wouldn't be welcome. It would either reduce the subscription/subsidy (depending upon your point of view) or provide additional monies to the general fund.

I have wondered, though, why I see AOPA Pilot on some newstands, but not MA. Any ideas?