THE RECENT CONTROVERSY over the American Family Publishers and Publishers Clearing House sweepstakes contests will cause problems next year for both magazine publishers and direct marketers, Money magazine’s vice president of consumer marketing Philip Whitney told attendees at last month’s List Day conference.
Whitney predicted a difficult 1999 since subscription and circulation numbers have already dropped following the rash of lawsuits filed against the two mailers. AFP and PCH’s business is off 30% to 40%, a loss of some 1 million to 1.5 million subscribers, he said.
Whitney argued that fallout from the controversy will ultimately increase mail volume to consumers as publishers try to regain subscribers with new offers. When these offers reach already overstuffed mailboxes, response will fall, he said.
Whitney also noted that former AFP and PCH responders will be replaced by “less attractive customers” and magazine files “will become inundated with bad responders.”
The lawsuits alleged that the sweeps companies misled consumers into thinking they’d won cash or prizes when they hadn’t and that their chances of winning would be better if they purchased a magazine.
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