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‘Time’ Considers Elimination of Rate Base

Time magazine’s new managing editor Richard Stengel has been seeking ways to better compete with rival Newsweek and other news sources, including changing its publication date from Mondays to Fridays and shifting the editorial focus a bit to include more essays, news analysis and lifestyle pieces.

Now, in a move that could help change how print advertising is bought and sold, it looks as though Time is considering eliminating its rate base, relying instead on metrics that track reader engagement and audience levels, Mediaweek reports. While Time would not be the only publication to do so, it would certainly be the most prominent.

The magazine’s consideration of eliminating the rate base comes after a year of circulation struggles and changes for the magazine industry. Last year, several high-profile magazines missed their rate bases; others were forced to reduce circulation numbers after EBSCO Consumer Magazine Services and other subscription agents’ services were disallowed by the Audit Bureau of Circulations. The ABC also changed its rules, effective the first half of this year, requiring publishers to separate verified (unpaid) circulation copies from the paid circulation category, which allows advertisers to look more closely at the combination of paid and unpaid circulation that make up the rate base.

Rebecca McPheters, president of consulting and research firm McPheters & Co., claims that the rate base is at this point “just an anachronism.”  She points out that the value to the advertisers is not the number of copies - or how they are paid for and distributed - but who reads them. “It would be a very brave thing for Time to do and would be an exciting development for the industry,” she is quoted as saying.

Robin Steinberg, senior vp, director of print investment for MediaVest, however, says that it would be difficult to justify doing business with a magazine that doesn’t guarantee a rate base.

Newsweek’s new editor, Jon Meacham, may be forced to look at some of these issues, as well - particularly the publication schedule, writes The New York Times. For advertisers, a Friday edition may prove to be more attractive, as it reaches consumers before the weekend when they tend to shop.