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Newspaper marketing

Promoting the News Corp. Marvel campaign

IMG_5154 (1)Here is how we are promoting the News Corp. Marvel offer at the front of the newsagency on the lease line. While the display is nt as big at the publisher would like, it is in the very best position for eyeballs, the the front of the shop and next to a stunning display of Marvel licenced products, most of which you cannot see in the photo.

While I like the promotion, News Corp. needs to re-visit newsagent compensation as what we make does not cover the actual costs involved and the sales kick is not sufficiently long-term to provide a good return on our investment.

Looking at this more broadly, the company’s approach to sharing reasonable details of the promotion early denied many newsagents enough time to get in other products to leverage the border opportunity. I consider their approach selfish and not what we should see from a supplier that says they support our channel and want newsagents to have a string future.

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Newspaper marketing

News Corp. is asking newsagents in SA to give away a local newspaper for no compensation

News Corp. has taken on charity status with its request (offer) for retail newsagents in South Australia to give away the Messenger newspaper for free.

This does not make sense to me at all.

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If you think this will attract traffic it will not, in my opinion.

News is asking newsagents to provide a service. This massive company ought to have the decency to offer fair compensation.

I would be shocked if any newsagent says yes.

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Ethics

The unknown Shopkins promotion fails to help the newsagency

IMG_7564Most people purchasing the herald Sun in the newsagency on Saturday did not know about the free Shopkins cards as part of the News Corp. Top Trumps promotion. We asked and most times the response was what? or huh?. We had a few people come in to collect the cards but not many.

There was no discernible for the retail business from this promotion that I could see. There should be though as that is the goal of these promotions.

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Newspaper marketing

Paranoia, selfishness and ignorance deny newsagents achieving a better return on newspaper publisher promotions

IMG_6106The Dr Seuss promotion run nationally by News Corp. over the last two weeks has been a terrific success, driving traffic and purchases in response to TV advertising and house ads in the papers.

Aside from the issue in some states of senseless cutting of newspapers supply by News and the appalling margin in most states for the Dr Seuss books at at the heart of the promotion, News has missed an opportunity tholepin newsagents make many times more from this promotion. This is why I say:

Paranoia, selfishness and ignorance deny newsagents achieving a better return on newspaper publisher promotions 

Paranoia because News will not share details in a high-profile campaign like this early enough for newsagents to source other product in the same licence.

Selfishness because News only looks at a promotion like this from the perspective of their company when a less selfish approach could make the promotion more profitable for newsagents and therefore drive greater support from them.

Ignorance in that News people have not made themselves adequately aware of the opportunities for newsagents with allied product.

Take the Dr Seuss promotion, given enough time newsagents and / or their marketing groups could have sourced licenced Dr Seuss product to sell alongside the News titles during the promotion. This would have made the promotion more valuable to newsagents. It could have also driven even  more newspaper sales than the promotion itself drove.

But these things take time to organise. In the case of Dr Seuss licenced product, given how decisions are made around it. it could have taken at least six months to undertake necessary negotiations. Once newsagents knew that it was a Dr Seuss promotion it was too late. The opportunity was lost.

News and other publishers need to consider more that their products are a piece of a large jigsaw for newsagents. They are no longer a stand alone jigsaw. For them to be genuinely valuable to newsagents we need earlier, more transparent and more thoughtful engagement. Stop worrying about a competitor finding out. When it comes to newspapers in Australia, we don’t have genuine competition – far from it even in two newspaper cities.

While News has in the past briefed some or all the groups on promotions, it is too late for sourcing licenced product that needs to be imported. I’d love to see this change.

This is not a blog post that should anger folks at News. No, they should see this post it as an opportunity to work smarter so newsagents make more money and more deeply engage with their next major licence promotion.

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Newsagency opportunities

News Corp. promotion favours supermarkets over newsagents

The TV commercial from News Corp’s Herald Sun promoting the Dr Seuss book series lists three supermarkets by brand yet lists newsagents as, well, newsagents. The folks at News ought to respect brands newsagents trade under more than this. Their failure to list the brands demonstrates a preference for the supermarket brands in my view.

Here is a photo from the TVC – listing the supermarkets.

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Newspaper marketing

Another poorly managed newspaper promotion from APN

Screen Shot 2016-01-31 at 10.32.47 amNewsagents were given three days notice about a promotion by APN’s. The email promoting promotion of a complex Scratch and Win competition was sent at the close of business Wednesday.

Sending an email late on Wednesday results in a lower readership.

When will they learn that promotions need to be simple. The process they are imposing on newsagents is cumbersome and time consuming.

Newsagents were not given an opportunity to opt out. With barely two days notice APN promoted the participating newsagents 0 without any other communication with those newsagents.

Promotions like this, that do little to drive sustained revenue growth, are a tax on the limited time resources of newsagents.

It is also frustrating that the prize pushes people to fuel outlets and not back to newsagencies.

Overall, this appears to a poorly considered and poorly executed promotion with little regard for newsagents and the time required of them to execute.

Newspaper publishers need to be smarter if they want to run promotions that genuinely serve the needs of their products and retail newsagents.

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Newspaper marketing

Adelaide Advertiser thanks newsagents

Screen Shot 2016-01-29 at 9.46.16 pmNewsagents in South Australia were sent this letter by from News Corp’s Adelaide Advertiser yesterday. It is a thank you for support for promotional activity.

While the letter is good and, I am sure, appreciated by newsagents, there is more to consider here beyond the commission made from selling promotional products. remember, these promotions are designed to serve sales of newspapers.

From the Advertiser and all outposts of News Corp. I would like to see data provided by News on the benefit to newsagents beyond the sale of promotional items. Here is my question: Did the promotional items generate sustained new sales of the supported newspapers or is it only revenue from the promotional products on which newsagents can count?

This question is important given the paltry margin on promotional items offered in most states. The case put by all publishers in such situations is the real profit is from a sales boost beyond the promotion. So, it would be good to see this data – what over the counter sales boost did the promotions generate?

I do note that in South Australia, newsagents receive the best commission for promotional products. Kudos to the local news Corp. office for this.

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Newspaper marketing

The shift in newspaper marketing newsagents need to see and confront

IMG_2486For decades the focus of newspaper marketing has been home delivery as it sat at the heart of the economic model pursued by newspaper publishers. Long-term home delivery customers were gold when it came to setting advertising rates. Advertising revenue has been the most important revenue stream to publishers.

That was then.

This is now.

The ad stuck on the front of the Sunday Age newspaper at the weekend was all about promoting six months access on any device, anytime. This is a digital subscription. No sign of a home delivery offer in sight. No support for the print product being used to serve the ad.

I have written here previously that I expect Fairfax to be the first newspaper publisher to retreat from seven day production of a capital city newspaper. On pure circulation numbers it ought to be one or more of the News Corp. dailies in single paper cities. However, in smaller cities there are factors other than circulation that can keep a newspaper publishing. Also, I think News is more invested in not being first than Fairfax.

This ad reflects a change on focus by Fairfax. We need to take notice … today, not next month, not in six mounted, today.

  • What percentage of transactions in your business include a newspaper?
  • How many newspapers are sold alone?
  • How much do other parts of your business rely on habit-based newspaper shoppers?
  • What is the overhead of newspapers in your business – in terms of space and labour?
  • What new traffic are you generating now to replace newspapers into the future?

These are other questions deserve consideration and answers. Thinking about this issue and the starter questions I have noted is a positive thing to do. The only negative in all this would be if you did nothing.

I have not written this post to alarm anyone. Rather, it records the fact of the shift on focus of Fairfax marketing – with the hope of engaging newsagents in thinking about retail businesses without daily newspaper traffic.

While the decline in over the counter newspaper sales is not new, too many newsagents are yet to factor this into their business planning.

Rupert Murdoch started talking about the shift in April 2005. Back then, he was considered to be slow to the digital discussion. sadly, he appears to have been an early adopter compared to too many newsagents.

The future of your newsagency with less reliance on newspapers is up to you. Just as Fairfax is clearly planning for less income from print, so must you.

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newspaper home delivery

News Corp. Christmas show bag in SA frustrates some newsagents

Screen Shot 2015-11-16 at 10.35.39 amSouth Australian newsagents are being asked to run another Christmas promotion by News Corp. in addition to the promotion I mentioned yesterday. Customers are required to purchase four newspapers, cut out tokens, hand these in with $8.00 in return for the bag.

Inside the Christmas bag is a Santa sack, actually this is the bag itself, colouring book, pencils, reindeer hat, snowflake, Christmas card kit and wrapping paper.

The items in the bag do not look like $8.00 worth to me. However, I am not the customer. Maybe some mms and dads here could comment on the perceived value of the promotion.

If I am right and considerably more that $8 in value is not obvious, this promotion will not work.

Newsagents in regional locations will be hit hard if the promotion failed as they will be required by News to freight unsold bags back to Adelaide, most likely wiping out any margin on the bags sold.

This promotion feels wrong: poor selection of products, poor value, wrong time of the year, high compliance cost – all to support low margin product when smart newsagents are primarily focused on other product categories from which they easily make 50% and more.

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Newsagent suppliers

Why is News Corp requiring newsagents to promote Woolworths, a big competitor?

In a galling extension of the News Corp support of supermarkets over small business newsagents, News in NSW has emailed requiring they engage in a Woolworths marketing campaign:

On Thursday 29 October, 2015 The Daily Telegraph will give readers the chance to collect a Free Woolworths Tote bag. The Tote bag is free with purchase of The Daily Telegraph Thursday 29 October.

Most Woolworths stores have also be allocated stock of bags. Where you currently deliver The Daily Telegraph to a Woolworths store you will be required to deliver the Woolworths Tote bags to these stores with The Daily Telegraph on Thursday 29 October.

Newsagents will be paid a distribution fee of $0.20 (inc GST) per bag. This fee is payable for both Newsagent and Woolworths stock.

20 cents is not enough for this. The compensation needs to be more than 50 cents. That aside, requiring small business newsagents to support Woolworths is an offensive impost on newsagents in my view. Here is part of what one newsagent emailed me today:

I have emailed my News Ltd rep and have let him know that there is no way I am promoting Woolworths actively in my shop.

If News was true to what it publishers it would support small business newsagents more.

Can newsagents refuse to engage in the campaign? News would say no to this. While I do not have a News contract in front of me, I expect a case could be made about the fairness of supporting a major competitor. It is a question those representing newsagents should have been on the front foot on days ago.

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Newspaper marketing

More on the APN / News Corp. tie-up

Here is an ad promoting The Morning Bulletin digital pitch to the Rockhampton region. Like with the Daily Mercury pitch I wrote about yesterday, if you take the deal at the 50% off price you get free access to News Corp. content.

The folks at The Morning Bulletin must have realised that there would be concerns about the dilution of local voices to cause them to run with a headline of LOCAL STORIES MEAN A GREAT DEAL TO YOU. With the majority of the content on offer through the deal not local, the headline could be seen as misleading.

While I am all for publishers monetising content, I am concerned for the impact of moves like this on local voices. People in regional communities need to decide how much they are prepared to spend on local content. That is the key driver of moves like this.

Here is the flyer:

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Where does this end? Given the different stories they publish, could Fairfax offer free digital access to News Corp. content in return for a discounted long-term subscription?

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Newspaper marketing

Why newsagents should not resist providing News Corp. sales data through XchangeIT

I am aware of some newsagents refusing to provide News Corp. with sales data through XchangeIT. The provision of this data is one reason for News now using XchangeIT to send supply files to newsagents.

Unlike some magazine publishers, News wants to reduce the paper wastage of returns – saving them money as well as newsagents money. The best shot they have to make more accurate allocations is through timely access to accurate data. Hence the move recently to partner with XchangeIT.

I have met with senior people from News in Sydney on this and related topics several times and am certain there is no sinister plan afoot here. No, there is no conspiracy.

The data being provided is for the stated intended use only. Indeed, the data being provided would to help the company move against newsagents as it is narrow in its scope.

Even a fractional decline in newspaper returns can be valuable for News and valuable for newsagents.

I encourage all newsagents to get on board with this project and to ensure that accurate sales data flows back to News through XchangeIT.

Now before anyone comments – the folks at News and XchangeIT are not aware I am writing this nor have they asked me to write this. I have written this because I think this project is good for our channel. The more we and our suppliers use timely accurate data the better (are you reading this magazine distributors and publishers?)

There are other factors that will reduce newspaper sales in and through newsagencies that newsagents need to be aware of. Worrying about the supply of this data to News is a waste of time in my view.

Yes, News will put their needs ahead of newsagents, as they should. We, too, should put our needs ahead of News – such as where we place newspapers, how we market the product and the time we invest in managing the category. All our efforts should be focused on our profits from the category as it is with News.

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Ethics

Some newsagents concerned about lack of Disney story book collateral

disI’m opening this thread for a newsagent concerned about the collateral received from News Corp. for promoting the Disney story books. They say the one blow up character and two posters are not enough for what appears to be a big promotion.

My advice if you’re concerned about the collateral received is to contact News.

If you comment here and want more collateral, include your store details so News Corp. people reading this can contact you.

This is the first time I have noticed the blow up collateral. It’s a good idea but challenging to display if you don’t fill it with helium as some are finding.

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Newspaper marketing

News Corp. David Attenborough DVD promotion to soften impact of newspaper price rise

attendbThe same day the the cover price of the Herald Sun and other News Corp. newspapers increases the company is launching the David Attenborough DVD series in a marketing campaign that is expected to be successful in driving sales as people collect the coupon that is necessary for getting a DVD.

Shopper interest in the DVDs is strong and we are still a few days away from launch. Key to achieving maximum success will be access to enough newspaper and DVD product. Some parts of News Corp have a good track record with such promotions while others have a poor track record. In this regard, I’m happy I’m in Victoria.

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Newsagency opportunities

News Corp. pushes newspaper shoppers to supermarkets while ignoring newsagents

newscorpritchiesdealNews Corp. yesterday advised newsagents in Victoria of a deal with Ritchies supermarkets where Ritchies get a free Herald Sun if they spend more than $30 in Ritchies.

It frustrates me that News Corp. does deals like this and others with supermarkets yet they ignore retail newsagents. Two years ago the company made considerable noise that it had plans to drive sales of its newspaper products in newsagencies. They have done nothing – unless I have missed it.

The average newsagency is finely balanced, layered in its reliance of traffic and revenue sources with each stream of the business relying on the other. Every customer encouraged, lured and bribed to change their habit to a purchase elsewhere is a loss not only for that purchase but much more and a loss not only for newsagents but other suppliers such as magazine publishers and card companies.

I think this Ritchies campaign is ill-conceived and unfair on distribution and retail newsagents. It looks like a pitch from people who do not understand print media and the role Australian newsagents play.

Here is what one newsagent directly affected wrote yesterday to News Corp. about this promotion:

I am gob smacked at the narrow minded attitude your company is taking with these types of promotions. They are designed purely to hurt my Retail Market. Supermarkets do enough damage on their own without you guys handing things to them on a platter!

You come into my office and tell me how News Ltd is so focussed on improving the retail strategy with newsagents, how focussed they are on increasing sales with newsagents; it seems to me that is a load of bollocks!

This promotion is solely intended to take customers away from newsagents and hand them to the supermarkets on a platter!!

I disagreed and made formal complaints when you told me about the “trial” offer for News Ltd to control supply of my Ritchies store; nothing was done. It was plain to see that you never had any intention other than to take control of the Ritchies account.

I complained when you stuffed the supply figures up at Easter and I requested that the supply control was given back to my store; I know the seasonal data, you don’t. Nothing was done. No communication or feedback was given from News Ltd, you just continued with the status Quo!

Now some numb-nut sitting in an office thinks “oh hey, how can we screw newsagents over even more”………..and the above promotion is the answer…..sheer brilliance from your marketing team.

You write An exciting promotional offer has been developed to introduce more readers to The Herald Sun.”You’ve simply developed a way to take customers away from my store, decrease my basket size, and impacted heavily on MY cash flow by giving a newspaper away for free…………I don’t see anything exciting about it!

This mentality of giving stuff away for free must stop! You have a respected brand that people will pay for; bastardising the product simply to increase your supply numbers is far from brilliant!

You failed to discuss this issue with me which reeks of pure arrogance; I guess you would have known what the response would have been from newsagents!

No mincing of words there. Good on him.

It’s actions like this from News that encourages newsagents to put newspapers to the rear of the store and then to put them on a lower shelf – a slide to newspapers ultimately exiting newsagencies. We can get off this slide if News Corp. employs people who understand print media and who respect Australian newsagents.

If you wrote to News, publisher your comments here. Where do you stand?

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Ethics

Another newspaper stand

newspaperstand2Further to my recent posts here and here about newspaper stands, check out what I saw Sunday at New York’s La Guardia airport. While it does not hold a lot of stock, you could place your top selling daily at the bottom and the others in the pockets above. The stand is sturdy so there would be no problem jamming the pockets.

This stand is easily moved – allowing us to keep the newspaper pitch fresh to regulars.

Since it is slim it could work right at the counter, driving impulse purchases of newspapers.  In fact, I could see two of these stands being useful in different locations in-store.

The days of the boat anchor newspaper stand newsagents were forced by publishers to use under threat of receiving a default notice are over thankfully. What we need now is an efficient newspaper stand that serves our businesses and our customers without giving up too much space and without one publisher dominating.

Getting the right stand could help some newsagents become more engaged with the newspaper category.

I like this stand I saw Sunday a lot. Unfortunately, the people I spoke with did not know the supplier – but I’m doing some research.

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Newsagency opportunities

Mr Men challenges for newsagents in SA

mr-men-stuff-upSouth Australian newsagents are not being supplied enough volume of the Mr Men books to satisfy demand generated by promotion in The Advertiser  and through TV and other advertising.

The circulation manager at News in Adelaide wrote to newsagents saying that they, newsagents, should direct customers to News and the company will endeavour to assist. Note the line written by someone who has not spent enough time serving customers at a newsagency counter:

I must stress that you should make no commitment to the customer that they will definitely be supplied their order.

News is heavily promoting the Mr Men books in its newspapers and on national TV. It would / should have known the success the campaign could achieve and should have ensured sufficient supply in South Australia. Thankfully, I am not experiencing short supply in Victoria.

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Newspaper marketing

Sunday newsagency marketing tip: email campaigns work

Regular emails with promotions can reconnect past shoppers with your business and attract them back based on what you;re promoting.

Pacific Magazines through their free Nexus program provides newsagents with a free email marketing platform. If you are a in Nexus you should be sending an email out every fortnight. Plus you should be seizing every opportunity to harvest customer email addresses. Pacific is happy for newsagents to promote anything using the free emails.

I’ve heard of plenty of email campaigns working for newsagents. I use them.

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marketing

News Corp. changes to newspaper distribution remuneration should help drive value of newsagency businesses

News Corp. Australia has this morning released the long-awaited results of the national newsagent remuneration review.  I see the changes announced as a reinforcement of commitment to newsagents from News.  The headlines as I see them are:

Three year contract. This gives newsagents certainty, something they can sell. It will help newsagency sellers and buyers. But most important, the three year contract term will help banks better understand and price the value of a newsagency business. This should make borrowing to purchase a newsagency easier. The three year term also encourages newsagents to consider capital investment within the context of such a term.

Consistent fee structure. Under Kim Williams leadership News transitioned from a  state and regional business with many silos each with its own approach to management and each with its own newspaper delivery fee structure to a more centrally run company.  The new fee structure of essentially two fixed fee-per-copy fees – category 1 (20 cents a paper) and category 2 (25 cents a paper) – quits close to fifty fee structures.  Gone is a fee that reflects a percentage of cover price.  I see this as focusing attention on the distribution business as a freight business.

Fixed fee-per-copy replaces sliding scale delivery fee. Gone is the discount for second and third newspapers delivered to one address. The new approach treats each delivery as a delivery.  This move to a fixed fee-per-copy approach is sensible from what I can see. This change should increase the income earned by many newsagents.

They remuneration decision shows that News is committed to the newsagency channel. Beyond the increase in fees, the more valuable changes are contract tenure and the fixed fee-per-copy.  My understanding is that these moves will increase the income earned by distribution newsagents.

While newsagents will be frustrated that they have to wait for six months for the remuneration changes to take effect, the time is necessary for News deliver changes to its internal systems. The delivery pricing model is quite different to what some News systems have been used to.

I see the remuneration and contract changes as part of a broader process being undertaken at News.  The company has work to do with retail newsagents to drive single copy sales. As a retail only newsagent this issue is important to me if I’m to continue to sell newspapers.

News also is yet to fully address the issues of consolidation following the suspension of the T2020 project in Queensland earlier this year. That said, the FAQ document accompanying the announcement indicates the company is supportive of voluntary territory consolidation. I’d be keen to see it go beyond this and actively encourage newsagent-driven distribution territory consolidation.

News has a website with some details. All affected newsagents will start receiving letters from today.

While these are my views, what really matters is what other newsagents think. Over to you…

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Newsagency management

Sunday newsagency marketing tip: show off your experience

Newsagencies don’t have any exclusive products. Magazines, newspapers, stationery, lotto, toys, gifts – what we sell is available anywhere.

What is exclusive to us is our experience and the customer service through which we provide access to that experience.

My newsagency marketing tip today is in the form of a question I think we each need to ask ourselves: what are we doing to show off our experience?

  1. Are we working the shop floor and sharing our magazine range knowledge?
  2. Are we guiding people on their stationery purchases?
  3. Are we helping card shoppers really see the depth of our range?
  4. Are we showing off with delight new cards in store or new stationery lines?
  5. Are we showing off through demonstration to customers on the shop floor products no other retailer with these products would show off in a practical way?

Sure we have lots of retailers competing with us. Almost none of our competitors has our experience nor our ability to get on the shop floor and show this off.

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marketing

Newspaper masthead cover-up promoting digital edition

The masthead of The Australian was partially covered yesterday with a sticker promoting a $10 28-day home delivery / digital subscription offer.

While the masthead and editorial content coverup is disappointing, the offer itself got my attention. For 35 cents a day subscribers get the paper (six out of seven days) and digital access. The usual price – as promoted on the sticker – is $1.42 a day (over seven days).

The cynic in me wonders how much the subscription offer is about driving digital subscriptions compared to print subscriptions. If you look at the subscription offers for The Australian you can see that a six day home delivery subscription is $8.95 while a seven day digital subscription is $2.95.  On that basis, News is indicating that printing and distribution cost $6.00, or $1.00 a day. Take away newsagent commission and the delivery fee and then factor in the cost of printing and trucking the newspaper wonder how much News makes from print. The digital product is 100% News. The key is reader engagement with advertising and whether News can get to a point of making anything close to advertising from digital as it does from print.

So, I do wonder how much these bundled, print and digital, offers are about migrating people to digital. Overseas experience indicates that it’s a successful strategy for growing digital engagement.

As a retailer selling newspapers I don’t like these stickers as they seek to get people engaging less with my newsagency.

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Newsagency challenges