Wednesday, January 18, 2006

Rogers gets cozier with Canada Post

A lot of people felt uncomfortable about the request for proposal last fall from Canada Post, which wanted to use its database to publish a magazine for people who move (i.e. relocate). In other words, to compete with the very people who pay them to deliver their own magazines. But apparently Rogers Publishing didn't have a problem with it. It has won the contract to produce
Smart Moves/Demenageur delivered weekly as a standard-sized magazine to the estimated 1.2 million Canadians who register changes of address with Canada Post each year. First issue will be April 3.

Plus an as yet unnamed home decor magazine (one edition in French, one in English), focussed on shopping for the home. It will be delivered six times a year to 250,000 selected homes from the Canada Post database and will be sold on newsstands. First issue is in September. The decor magazines will be oversized and perfect bound.
"We are delighted that Canada Post selected Rogers as the publisher to work with on these magazines," said Rogers Publishing President and CEO Brian Segal. "They recognize the power of magazines to deliver information and ideas to consumers, and to be superb advertising vehicles for the marketers who want to reach them.

"Research shows that someone who moves spends more in the three months after their move than in a four-year period. These magazines will reach people in their mailbox at that critical time when they are looking for inspiration and guidance -- and making a broad range of major purchase decisions."


Marc Blondeau, Senior Vice-President of Consumer Publishing for Rogers, says: "Following our successful 2004 launch of LouLou as shopping magazines in English and French, we understand the keen interest for a shopping magazine for the home. Our new magazines in September follow the success in the U.S. and other markets of magazines in this exciting new shopping magazine category."

Whether Canadian House and Home or Style at Home or even Cottage Life will be very happy about having the guy who delivers their books competing with them for advertising? That's anybody's guess.

9 Comments:

Anonymous Anonymous said...

Anyone notice a trend? A mag industry supplier wants to get in on some of our action, and a big chain climbs on board to help. Same thing with Transcon enabling the Nova Scotia Liquor Corp to get into the mag publishing biz. A case of 'If you can't beat em...' or just opportunism that helps drive out competition? Likely partly the former, but mostly the latter.

7:54 am  
Anonymous Anonymous said...

You mean Style at Home, of course.

8:39 am  
Blogger D. B. Scott said...

Thank you, anonymous whoever you are. Of course it was Style at Home; now corrected.

9:29 am  
Anonymous Anonymous said...

let's try this again: not to mention the blatant trampling all over privacy issues.

11:42 am  
Blogger D. B. Scott said...

That's a very good point. When people pay Canada Post a fee for a change of address package, is it implicit or explicit that they are giving permission for using their name for other purposes? All the magazines that are Canada Post's customers (and now, its competitors) are required to meet stringent privacy requirements; is Canada Post itself following the rules?

12:02 pm  
Anonymous Anonymous said...

Because I respect the people who post on this blog, I wanted to make some comments.
First, it is really important to say that privacy will be respected in all respects. The Smartmoves magazine has been distributed at retail. It now will mail to the CPC customer. It will pay the same Pub Mail rates as any magazine. Advertisers that in the past did not have a way to reach this audience now will be able to use a delivered magazine.
Second, most magazines end up using suppliers -- such as printers -- that in fact own magazines that might also be competing for ad dollars. But the opportunity here is to divert dollars from other media, such as TV and newspapers, into delivered magazines. That will help all magazines, as advetisers develop more magazine material.

1:32 pm  
Anonymous Anonymous said...

Thanks Michael, for clearing up a lot of things. I have total respect for Rogers' compliance with privacy legislation, and didn't mean to imply otherwise. What I don't know, and thanks DB for the clarification on my point: have Canada Post obtained permission in the Change of Address process to solicit that list by mail? And do they make this list available to the marketplace?

1:45 pm  
Anonymous Anonymous said...

To clarify: As part of the COA process, CPC will inform its customer that they will get an issue of the Smartmoves Movers Guide magazine as a benefit of registering for the COA. CPC is not soliciting the list. CPC cannot rent the list (to Rogers or anyone).

3:40 pm  
Anonymous Anonymous said...

Sorry, the first reply should have read: "a mag industry supplier who is also owned by government using its monopoly position to draw revenue away from already existing private enterprise." It's OK to talk about competition from other entrepreneurs, but don't put my tax dollars up against me. Second, I don't see a general increase in liquor advertising in print since the NSLC started its mag. There's no evidence of ad dollars being diverted from other media. The record doesn't support the theory that increased outlets will lead to increased spending. Rather, the record shows the pie remains constant while the slices get thinner. And I still think it's just generally a bad idea for government to get into industries that already exist. Stick to public sectors where the market is being ignored by private interests.

8:03 am  

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