Reader’s Digest has decided to stop using sweepstakes promotions.
But the publishing behemoth still plans to test online and offline sweepstakes periodically, and said that third-party agents may still use sweepstakes sometimes.
The Pleasantville, NY firm said it will also reduce its current rate base from 11 million to 10 million copies, beginning next January. It will reach an estimated 40 million U.S. readers.
The firm will now rely mostly on non-sweepstakes direct mail, package inserts, telemarketing and the Web to build and retain subscribers.
This move is apparently a continuation of a policy begun in 2002.
Last summer, the company–which is often credited with the creation of the sweepstakes offer—had decided to cut back its ratio of sweepstakes mailings to less than 10% of its mailings by year’s end.
After converting most of its 40 million to 50 million annual acquisition offers to non-sweeps over the last few years, the single biggest elimination will come this year in renewals, once sold entirely through sweeps. In January, about 50% of the notices were non-sweeps sold, and no sweepstakes had been planned for 2003. (Direct, July, 2002).