Four out of five of Bookspan’s marketing budget dollars will go for direct mail solicitations
MOST READERS have at least one specialized interest, be it crafts, mysteries, cooking or New Age spirituality. Whatever the niche, Bookspan wants to scratch it.
Bookspan, a year-and-a-half-old partnership between Bertelsmann AG’s Doubleday Direct Inc. unit and Time Warner’s Book-of-the-Month Club Holdings, currently operates over 40 niche book clubs. Company executives predict that number could balloon to more than 100 in the next few years; indeed, half a dozen new clubs have already been started by the two partners over the last three years.
Changes to a nine-figure marketing budget reflect the increased importance Bookspan’s niche clubs represent. Of the 185 million direct mail pieces it sends out annually, between 30% and 40% solicit for the smaller, focused programs. Five years ago, niche marketing accounted for only about 10% of Bertelsmann’s efforts.
At the same time, the company’s strategy calls for maintaining member levels in the general interest programs, replacing lapsed individuals with new ones.
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