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Subject: AEJ 95 MerskinD NWS Adopton of personal advertisements by daily press
From: Elliott Parker <[log in to unmask]>
Reply-To:AEJMC Conference Papers <[log in to unmask]>
Date:Sat, 10 Feb 1996 19:30:39 EST
Content-Type:text/plain
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HELP WANTED: THE ADOPTION OF
PERSONAL ADVERTISEMENTS BY THE DAILY PRESS
 
 
 
 
 
 
 
 
 
 
 
Debra L. Merskin, School of Journalism & Communication, University of
 
            Oregon
(503-346-4189)  Email:  [log in to unmask]
 
Thomas J. Herling, S.I. Newhouse School of Communications, Syracuse
 
          University
 
 
 
Submitted to the annual meeting of the Association for Education in
Journalism and Mass Communication, Washington, DC,  1995
 
 
 
 
 
Running head:  HELP WANTED
 
 
 
HELP WANTED: THE ADOPTION OF
 
PERSONAL ADVERTISEMENTS BY THE DAILY PRESS
 
 
 
Abstract::  This study reports the findings of a national telephone survey
 
               conducted to explore the adoption of personal advertisements by
the daily
 
               press.  The findings show widespread adoption of these ads, with
a reported
 277 percent increase from 1987 to 1993.  Most of the newspapers made use
 
               of voice mail technology with the ads becoming an increasingly
important
 
               source of revenue.  Newspapers are facing questions concerning
the changing
 role of the newspaper in a changing society.
 
 HELP WANTED: THE ADOPTION OF
 
PERSONAL ADVERTISEMENTS BY THE DAILY PRESS
 
        Individuals and organizations constantly confront new ideas, products,
 
              behaviors and technologies.  These innovations have been formally
defined
 
               as "ideas, practices or objects that are perceived as new by an
individual
 
               or another unit of adoption."[1]   Adoption is defined as "a
decision to make
 
               full use of an innovation as the best course of action available"
to solve
 
               problems.[2]   In the case of daily newspapers, the problem is
ensuring
 
           continuing revenue.  Audiotex technology is an innovation which
newspapers
 
               are adopting in growing numbers to improve classified advertising
revenue
 
               with services such as personal advertisements.
        There is little empirical research available regarding newspaper
 
        classified advertising.[3]   This study contributes to this limited body
of
 
               literature as well as to the literature on the adoption of
innovations.
 
               The information provided in this study is useful not only to
researchers,
 
               but also to newspapers that are interested in the extent of the
adoption of
 voice technology.
        Newspapers and the Adoption of Innovations
        Newspaper organizations have historically been innovation adopters.  In
 
               the early nineteenth century several innovations made the modern
newspaper
 
               possible.  Developments in the printing process, cheap paper,
typography,
 
               plate-making, the telegraph, along with the social innovation of
a rise in
 
               literacy, made the mass circulation press possible.[4]
        Along with  innovations in the physical production of the newspaper and
 
               the ability to  produce large numbers of copies, another powerful
 
        innovation was the adoption of advertising in the daily press.  Since
1833
 
               when Benjamin Day found he could no longer sell  his New York Sun
for six
 
               cents a copy,  newspapers have relied on advertising support.[5]
This
 
           support comes from outside commercial enterprises and individuals in
the
 
               form of retail and classified advertising.
        The newspaper business evolved, changing from a time when newspapers had
 
               been driven by a strong editorial personality toward becoming the
 
        market-driven mass medium it is today. In 1879, American newspapers and
 
              periodicals received 56 percent of their revenue from circulation
and 44
 
               percent from advertising.[6]   By 1889, the split was
approximately 50-50.
 
               Just ten years later, ad dollars made up a majority of newspaper
income;
 
               45.5 percent of revenue came from circulation while over 54
percent came
 
               from advertising by 1899.
        Since World War II, the dollar volume of the newspaper industry has grown,
 from $2.1 billion in 1950 to $32.2 billion in 1990.  Despite the decline
 
               in the actual number of daily newspapers during the same period,
newspaper
 
               ad revenue grew steadily.[7]
        However, newspapers have faced an increasingly competitive market for
 
             audiences and advertisers, particularly with the rise of electronic
media.
 Newspapers' share of advertising expenditures has declined in the last
 
              thirty years.  The Newspaper Advertising Bureau reported that
although
 
             newspapers enjoyed more than a thirty percent share of total
advertising
 
               expenditures in 1960, the figure has steadily dropped to 29.4
percent in
 
               1970,  27.6 percent in 1980 and 24.9 percent in 1990.[8]   This
trend is
 
            likely to continue as new advertising vehicles, such as interactive
media,
 
               enter the market.
        Classifieds in a Competitive Market
        Classified advertising is considered to be "the backbone of the
 
       newspaper."[9]   Pejoratively referred to by some as the "want ads,"
 
        classifieds have long been a major source of newspaper ad revenue.
 
          Seventy-million adults across the United States read one or more
classified
 advertisements per week, and of that number, 12 million follow up with an
 
               inquiry.[10]   According to the Newspaper Association of America,
classified
 
               advertising made up 35 percent of newspapers' $30.7 billion in ad
revenue
 
               in 1986.
        During the recent recession, however, newspapers suffered losses due to a
 
               decline in the three major classified advertising categories:
automotive,
 
               employment and real estate.  New strategies were sought to defend
the $10.8
 billion classified advertising base.[11]   According to Newspaper Association
 
               of America President Cathleen Black
 
We are at the beginning of a time when the newspaper as it is
 
              historically viewed, will take on a broader role.  It doesn't only
 
                   have to be a traditional newspaper as we know it.[12]
        The adoption of new technologies may allow daily newspapers to remain
 
             competitive with other media such as television and cable.
According to
 
               Deppa, the appearance of "phone, fax, modem and audiotex are
waking papers
 
               up. Without audiotex, newspapers will be the odd man out."[13]
Audiotext has
 
               been hailed by Editor and Publisher  as "the lifeline that could
pull
 
            newspapers out of the swamp of lost revenue."[14]           Nearly
one-third of all
 
               newspapers now supply audiotext services to their readers.
Callers can
 
              select items of interest from a menu printed in the newspaper.
Once the
 
               item of interest is selected, callers use a touch-tone phone
enter the
 
             advertisement's access code and to receive information or leave a
voice
 
              message for the advertiser. In some cases these are free 1-800
number
 
            calls.   In others,  the 1-900  number access is billable by the
minute,
 
               with prices ranging from $1 to $2 per minute.
        According to Piirto, the biggest use of newspaper-based 900 numbers has
 
               been for classified advertising categories such as real estate,
automotive,
 help wanted and personals.[15]   The Baltimore Sun has a service where readers
 can respond to employment advertisements by leaving a voice resume.
 
            Callers can dial up not only the news and weather but classified
 
       advertisements "read" by a computerized voice providing stock-market
 
           information, housing loan rates, lottery results, pizza places,
jokes, soap
 opera updates or to respond to personal (dating) advertisements.
        Adoption of Voice Personals
        Although personal ads have been around for many years, the numbers
 
          increased substantially in the 1960s and 1970s, mainly in alternative
 
            papers such as the Village Voice and the Boston Phoenix.  In the
late 1980s
 and 1990s there was an explosion of personal ads in the daily  press.
 
              Newspapers such as the Washington Post,  the Green Bay Gazette,
the San
 
              Francisco Examiner  and the Syracuse Post -Standard  now feature
these ads.
  Many of these large daily newspapers have begun using voice mail for the
 
               personals.  The addition of voice mail personal advertisements to
the
 
            repertoire of classified ads suggests an important change in sources
of
 
              revenue for the daily press.
        Promoted as a solution to changing lifestyles, audio enhanced personal
 
              advertisements also represent the adoption of a technological
innovation
 
               for the newspaper industry.  According to Webb:
 
We are seeing audiotex as an evolution out of people's basic need for
 
                    information.  They don't necessarily take time to sit down
with the
 
                    newspaper in the morning. If you look at the way society is
going,
 
                   audiotex is simply the medium which is going to be more
attractive to
 
                    their lifestyle and fit right into their lifestyle.[16]
        Few have addressed the importance of the addition of voice personal
 
           advertisements to the repertoire of products offered by the daily
newspaper
 and what this represents in terms of image, function, and financial
 
           success.   Rogers' model proposes that adoption of innovations in
modern
 
               society offers choices that help solve the problems of daily life
for
 
            individuals and organizations.  Ideas, practices or objects which
are
 
            perceived as new are selected and used as the best option
available.[17]
 
            Previous studies have shown that the adoption of an innovation
follows an
 
               S-shaped cumulative curve.  The reason for the normal S-shaped
curve is
 
              based upon the role of information and uncertainty reduction.
Adopter
 
             categories can be set forth as ideal types on an innovativeness
continuum.
 The types are innovators, early adopters, early majority, late majority,
 
               and laggards.  In all of these categories, opinion leadership
plays an
 
             important role.  Although discussion of the adoption of innovations
tends
 
               to focus primarily on the individual, organizations also adopt.
Examples
 
               include computerization of government offices, computerized
photographic
 
               feeds of newspapers, and technology in schools.
        The growing adoption of personal ads implies that a transition is also
 
              taking place in  dating behavior.  Previous studies of this
phenomenon have
 been primarily conducted by researchers in the disciplines of family
 
            studies, sociology and to a lesser extent, marketing.   For example,
 
            Hirschman analyzed the personals from a marketing perspective,
noting the
 
               phenomenon as a "complex, heterogeneous marketing exchange."[18]
Other
 
           studies have addressed the issue of physical appearance,[19]
aging,[20]  deviance,[21]
 relationship development,[22] gender differences[23]  and differences based on
 
              sexual orientation.[24]
        Mate-seeking through similar electronic media has been explored in
 
          articles recounting the experiences of popular communication patterns.
 
              Users of the French Minitel  system have been found to post
messages
 
           soliciting romantic adventures to a community bulletin board, often
 
          withholding their identity or using a pseudonym.[25]   It has been
suggested
 
               that this activity is seen as "the emotional equivalent of safe
sex in an
 
               age when physical contact is often associated with
contamination."[26]  Adelman
 and Ahuvia reviewed the growth of "marriage market intermediaries" by
 
             discussing various formats from video-dating services to personal
 
        advertisements.[27]  These researchers argued that these artificial
 
      partner-seeking environments foster inappropriate disclosures that
actually
 hinder the process rather than facilitating it .
 
 
 
Method
        This study was conducted to gauge the extent of adoption of voice mail
 
              personal advertisements.  Additional information was sought about
the
 
            reasons newspapers have added the ads, methods of responding to the
ads,
 
               and the physical characteristics of this section of the
newspaper. This is
 
               a descriptive study.  No formal hypotheses were tested.
        A telephone survey was conducted to measure the extent of the adoption of
 
               personal advertisements by daily newspapers.  The sampling frame
consisted
 
               of 268 newspapers with circulations of 50,000 or more as listed
in Editor &
 Publisher Yearbook, 1991.  A random sample of 67 newspapers was drawn
 
             using the systematic skip interval method.
        From November 1992 to May 1993,  interviews were conducted with classified
 managers at each of the 67 newspapers.  A 100 percent response rate was
 
               achieved.  The newspaper managers were called during regular
business
 
            hours, typically in mid-afternoon when deadline pressure was less
likely to
 interfere.  Occasionally, reaching the right person to interview was
 
            difficult.  At one California paper, the interviewer was connected
with
 
              seven different people before finally reaching the appropriate
person.
 
              Approximately two to three calls were necessary to complete each
interview.
  Two newspapers refused to answer the questions by phone but did reply via
 fax.
        These representatives were asked if the newspaper was running voice
 
           personals, and if so, the year of adoption.  Additional questions
addressed
 any criteria used in accepting or rejecting ads, such as those from
 
           gays/lesbians or "alternative lifestyle" ads, such as those seeking
 
          multiple partners or more exotic variations.  Other questions
concerned the
 mechanics of the ads, the days of the week the ads ran, how responses were
 made to the ads, and what costs were involved.  A sample page (tear sheet)
 was requested from each paper to verify these replies.
 
 
Findings
        Nearly four out of five (55) of the newspapers reported carrying personal
 
               advertisements, as Table 1 shows.  An additional 11 percent of
the dailies
 
               said they had plans to add the personals within the next few
months.  Five
 
               newspapers were not carrying dating ads, nor did they indicate
having any
 
               plans for doing so.
 
Table 1
NEWSPAPER ADOPTION OF THE PERSONALS
 
 
Frequency
Percent
Carries
55
82.1
Plans to add
7
10.4
No plans to carry
5
  7.5
 
67
100.0
 
        Table 2 shows nearly two-thirds of the newspapers began running the ads
 
               between 1991 and May of 1993.
 
Table 2
 
YEAR OF ADOPTION OF THE PERSONALS
 
Year                Frequency                       Percent          Cumulative Percent
 
1993
6
10.9
100
1992
21
38.1
  89.1
1991
17
30.9
  50.9
1990
6
10.9
  20.0
1989
1
1.8
    9.1
1988
1
1.8
    7.3
1987
3
5.5
 
    5.5
Total
55
100
 
 
 
Figure 1 shows that the cumulative diffusion curve follows a classic
 
           S-shaped pattern.
 Figure 1
CUMULATIVE ADOPTION OF
PERSONAL ADVERTISEMENTS BY NEWSPAPERS
1987 - 1993
 
 
 
 
 
 
 
 
 
 
        More than one third of personal ads sections (36 percent) occupied
 
          one-half to one page of space.  Another third of the papers filled 1
to 2
 
               pages.  Two newspapers (3 percent) had personal ads sections of
three pages
 or larger while the remainder of the papers had sections of one-half a
 
              page or less.  Nearly two-thirds of the newspapers ran the
personals in a
 
               full-sized section of the newspaper while a smaller percentage
presented
 
               the personals in tabloid inserts.
        More than a third of the dailies (36 percent)  ran the ads on Fridays,
 
              Saturdays and/or Sundays.  Approximately 27 percent of the papers
ran the
 
               ads on some combination of weekdays and about a quarter of the
papers ran
 
               the ads seven days per week.  A few papers had other
arrangements.
        Newspapers also varied in the types of advertisements they would accept.
 
               As Table 3 reveals, half (50.9 percent)  would not accept gay
ads.  Most
 
               (76.4 percent) would not accept "alternative lifestyle" ads.
More than
 
              two-thirds of the newspapers applied their own criteria to
screening the
 
               language of the ads while 22 percent relied on a voice mail
service to
 
             perform this task.
Table 3
ACCEPTANCE POLICY
 
 
Frequency
Percent
Accepts gay ads
27
49.1*
Does not accept gay ads
28
50.9
 
 
 
 
 
Frequency
Percent
Accepts alternative lifestyle    ads
13
23.6
Does not accept alternative     lifestyle ads
42
76.4
*  Newspapers may have a combination of these policies, totals therefore do not
equal
 
                100%.
 
        Voice mail was found to be the most common method of responding to
 
          personals (79 percent).  Only nine papers offered the more traditional
way
 
               of responding, which is by letter only (13.4 percent).
Frequently, the
 
              daily newspaper was not the only local publication carrying the
personals.
 Two-thirds of the papers surveyed had competition from another local paper
 for personal advertisers (66 percent).
        Although most of the newspapers surveyed would not reveal detailed
 
          financial information, almost half of the papers indicated that the
ads had
 been a financial success.  According to one manager, the paper received
 
               approximately 300 ads per month and that the average time spent
responding
 
               is 3 minutes at a cost of $1.95 per minute.  Even if the
advertiser's ad is
 free, each ad generates approximately $108.  This would result in revenues
 of over $30,000 per month or roughly $400,000 per year.  Another paper
 
              indicated that their take was over $500,000 during the past year.
        Many papers have invested in their own voice mail hardware.   Others rely
 
               on vendors.  The financial success of the personals has been a
selling
 
             point for the many voice mail vendors involved in the personal ads
 
         business.  Although this study did not specifically investigate the
 
          involvement of vendors, many representatives mentioned that  the work
load
 
               (and the revenue) are shared with a vendor.  Often, these
companies manage
 
               the advertising placement, response retrieval, and reply process.
Most
 
              vendors represent more than one newspaper.  Compensation
arrangements vary.
  For example, one newspaper representative indicated her paper takes 90
 
               percent of the revenue generated from the ads and the vendor
retains 10
 
              percent.
Discussion
        The findings suggest that daily newspapers have adopted voice mail
 
          personals as a course of action available to solve three problems:
revenue,
 readership and service.
        Revenue.  A newspaper is primarily a business and in the midst of the
 
             recent economic recession many papers sought ways to replace lost
revenue.
 In many cases,  the organizational decision was made to pursue a solution
 
               through the adoption of a new technology--voice mail--which has
provided a
 
               means of generating revenue through charges for access to
advertisers and
 
               respondents.
        Readership.  The addition of personal ads suggests that newspapers are
 
              looking to  (1) increase readership of the newspaper by attracting
 
         non-subscribers in general,  (2) increase readership of the newspaper
by
 
               the lucrative but shrinking younger audience and,  (3) draw
readers into
 
               the classified section of the newspaper in hopes that they would
read and
 
               respond to other classified advertisements.
        Service.  Many of the newspapers cited the altruistic duty of the
 
         newspaper to serve the public. One way of doing this was by helping
people
 
               meet people.  Representatives suggested that the dating community
is
 
           changing because people are particularly busy, many of whom are
caring for
 
               children.  Women's involvement in the labor force was also cited.
These
 
               characteristics of modern life therefore limit the options of
people
 
           seeking to meet others.
        It is important to note that this was a study of daily  newspapers, rather
 than of the alternative press.  Those dailies that had not adopted the
 
              personals cited reasons such as conflicts with the "family image"
of the
 
               newspaper, not being a "proper role" for the daily newspaper and
attracting
 unsavory advertisers to the paper.  All of these reasons are part of
 
            traditional perceptions surrounding personal advertisements.  In
addition,
 
               there is stigma associated with running an ad for a date.  A
common
 
          perception has been that a person must be desperate and dateless to do
so.
 The widespread adoption of personal advertisements by the daily press
 
             suggests that perceptions are changing on part of the public and
the
 
           newspaper community.
        Newspaper personal ads imply a changing role for the daily newspaper in
 
               contemporary society.  The mating trade is now worth millions of
dollars
 
               and takes a variety of forms, from 1-900 telephone numbers to
introduction
 
               services.  The importance of this to newspapers is multi-fold.  A
financial
 problem for newspapers is the diminishing numbers of subscribers.  This
 
               translates into reduced audiences for advertising.  As a result,
newspapers
 have narrowly targeted sections in hopes of attracting more readers.
 
             Efforts to capture the elusive younger audience has motivated many
 
         newspapers to add personal advertisements to its repertoire of
services.
 
               The personal ads section serves a need for users and viewers--a
dating and
 
               entertainment function.  These uses translate into hundreds of
thousands of
 dollars a year in revenue.  The amount of revenue generated is likely to
 
               vary with market size, promotional efforts,  and amount of repeat
business.
        Newspapers also need to compete with other media for these audiences. To
 
               do so, they must remain competitive technologically as well as in
terms of
 
               their content.  Newspapers have a variety of tools to serve
readers that go
 far beyond the confines of the printed page.  Fax information, on-line
 
              data retrieval, and telephone news lines are now available to
provide
 
            readers with a tremendous amount of information that the paper
simply does
 
               not have room to print.
        Some critics might suggest that providing access to dates for members of
 
               the community is not a suitable role for the press.  These
critics may feel
 that using precious space to advertise call-in services for dates, jokes
 
               and other seemingly frivolous items, trivializes the newspaper.
This may
 
               lower the reputation of newspapers in the eyes of an increasingly
skeptical
 readership.
        In addition, personal advertisements and the voice technology used by them
 may only be a fad--a passing fancy of readers soon to be replaced by some
 
               other preoccupation.  Newspapers are spending a considerable
amount of
 
             money to carry these ads.  Adopting voice personals requires that
the
 
            newspaper pay for expensive voice mail equipment or to share the
revenue
 
               with vendors.  The opportunity for vendors to make a tremendous
amount of
 
               money through the newspapers could be a problem.  For example, a
newspaper
 
               may unable to ascertain whether the vendor is operating in an
ethical
 
            manner.  For example, an unscrupulous vendor may seek to increase
responses
 by planting intriguing yet phony ads.  These are questions the newspapers
 
               need to address when considering adoption of the personals,
summarized in
 
               Table 4 (next page).
 
Table 4
 
Implications for Newspapers
of Carrying Personal Advertisements
 
Advantages
 
        y  Revenue producer.
 
        y  Attracts readers and potential subscribers.
 
        y  Provides a service to the community.
 
        y  Creates another use  for the newspaper.
 
        y  Keeps the newspaper competitive with other media.
 
        y  Encourages relationships with outside vendors.
 
 
Disadvantages
 
 
        y  Requires the newspaper pay for expensive equipment or share revenue
           with suppliers.
 
        y  A source of potential liability to the newspaper.
 
        y  A loss to the community of service as detracting from the proper role
 
               of a
           daily newspaper.
 
        y  Questionable nature of vendors.
 
 
        The findings of this study suggest several areas of future research.  For
 
               example, the adoption of voice mail services in general, and
personal ads
 
               specifically, suggests  a fundamental change in the newspaper as
it has
 
              traditionally  been known.  Future studies could exam this
changing role of
 the newspaper.  Another area of research is the phenomenon of the
 
         organizational adoption of innovations by the newspaper. Also, factors
of
 
               resistance to innovations on the part of newspapers.  The
personal advertis
 
               ements themselves represent a wealth of information on the users
and
 
           readers of the daily paper.  In addition, the availability of a
technology
 
               that facilitates the dating and meeting process suggests a change
in
 
           popular perceptions of securing a partner.
        As well as being a possible source of new revenue and a sign of changing
 
               lifestyles, voice mail personal advertisements also suggest a new
function
 
               for the daily press, evolving out of people's basic information
needs.
 
              That information can also include the availability of people
within the
 
              community who are looking for some type of personal relationship.
Just as
 
               one can order up information on how IBM stock is trading, so too
can people
 call up to get more information about a "single white male, 32, looking
 
               for good times."  As the adoption of personal advertisements adds
to the
 
               repertoire of products featured in an evolving daily press,
newspapers have
 to face questions about the changing role of the newspaper in a changing
 
               society. As individuals in a mass society come to rely on the
media for
 
              information, the media respond by redefining themselves through
the
 
          adoption of new communications technologies.
 
 [1] Notes and References
 
          Everett M. Rogers, Diffusion of Innovation
, 3rd Ed. (New York:  The Free
 Press, 1983), 11.
 
[2]   Rogers, Diffusi
on, 15.
 
[3]       J.L. Zagorsky,  "Understanding the Economic Factors Aff
ecting
 
          Help-Wanted Advertising," Journal of Advertising
 (September, 1994): 75-85.
 
[4]   W.D.Sloan, J.G. Stovall, and J.D. Start
t,  The Media in America
 
           (Worthington, Ohio:  Publishin
g Horizons, 1989),88.
 
[5]       Melvin L. DeFleur and Everette E. Dennis,
Understanding Mass
 
         Communication, 5th ed. (Boston: Hough
ton Mifflin, 1994), 82.
 
[6]   Sloan, Stovall and Startt, The Media in Am
erica,  121.
 
[7]   DeFleur and Dennis, Understanding Mass Communication.
, 90-91.
 
[8]   R. R. Szathmary,  "Newspapers fight back: Innovations in
marketing,"
 
               Sales and Marketing Management  44 (May 1992
):  57.
 
[9]       D. Gersh, "The Latest on Classifieds," Editor & Publisher
,  12 July,
 1986: 17.
 
[10]   Gersh, "Classifieds," 17.
 
[11]    C.
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               presented at The S.I. Newhouse Sch
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[19]      J.E. Smith,  V. A. Waldorf, an
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[23]       S. Sitton and E.T. Rippee
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