Despite recent high visibility horror stories and congressional hearings, sweepstakes are far from endangered, according to John D. Klingel, world circulation director for The Reader’s Digest Association.
Furthermore, Reader’s Digest has “a whole lotta lawyers, spending a whole lotta time” on the issue, according to Klingel. The company expects that coming legislation will not be as devastating as originally thought. During the initial period of alarm, Reader’s Digest’s response fell by 15%, as opposed to the 40% to 50% experienced by the industry as a whole.
But while the company plans no decrease in its sweeps mailings–and will likely increase their volume–it is also planning to test 10 million non-sweeps packages next year, the company’s first such test in 32 years.
Sweepstakes responses have been rising, and rising significantly, according to Klingel. While response rates during the height of anti-sweeps hysteria were all below expectations, returns on in-field Book and Home Entertainment sweeps packages are running at three times over budgeted projections.
Part of sweepstakes’ renewed vitality stems from Reader’s Digest’s willingness to modify the medium. In December 1998, the company launched a 50,000-piece sweeps campaign using a double postcard. Although the card drew 50% lower than the standard sweeps package, the average cost per order was $6 cheaper and the campaign turned a $5 million profit. The company said it used the double postcard to make marginally performing lists profitable.
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