By: Helen Jung, AP Business Writer
(AP) One of the Northwest’s largest newspaper advertisers warned Tuesday that newspapers need to boost readership to make sure they are not passed over for other marketing options.
Daniel Edelman, chairman of The Bon Marche, said the Seattle-based department store chain slightly decreased its spending on newspaper ads in 2002 while it increased its buying of television and radio spots. Edelman made his remarks at the annual convention of the Newspaper Association of America.
Although his company, a division of Federated Department Stores, remains a loyal newspaper advertiser, it is trying to spend its marketing dollars efficiently, he said. And newspapers need to increase their circulation to show retailers that they deliver customers.
“A larger audience would produce higher results, and higher results for us would warrant us spending more of our advertising budgets with newspapers,” Edelman said. “Work with us, partner with us, challenge us and yourselves to deliver a superior product. And keep your advertising rates competitive,” Edelman said.
The chairmen of two other Seattle-area retailing institutions — Costco Wholesale Corp. and Starbucks Corp. — also offered their insights into marketing, although neither company advertises much in newspapers.
Jeff Brotman of warehouse chain Costco said the company does not take a mass market approach, noting that its customers are on average 49 years old, married, and with a household income more than double the national average.
With such a targeted customer base, Costco restricts its product line-up to those items the chain believes would appeal to them.
It also spends its $50 million marketing budget on publishing a monthly magazine for small business owners, direct mailings and even going door-to-door to sign up new business customers.