East End Life Advertising Policy

(Revised June 2006)

Purpose

Commercial Operations, the professional in-house sales team for East End Life, accepts internal and external advertising on a commercial basis from customers directly and through their recognised agents.

The aim of this service is to generate revenues, which will provide a high quality, cost effective medium to reach the majority of the borough's residents, as well as providing legitimate competition in the media market. Therefore enabling the council to communicate directly with its residents achieving it's communications aims.

East End Life has a policy of ethical selling, its sales people are honest, decent, ethical, truthful and professional in all transactions with customers. The paper's ethical policy extends to the categories of business to which it sells advertising space. Unlike other local papers, East End Life does not accept advertisements from any business engaged in the sexual services industry.

Income generated from sales of advertising space in East End Life covers the costs of printing and distribution of the paper, and as much of the staffing costs as possible on an incremental basis. It has not been an objective that advertising should fully fund the entire costs of East End Life, due to the higher salary costs of local government employees compared to local newspapers in the commercial sector. Accommodation and other overheads such as the cost of training provided are also significantly higher than in local papers.

However Commercial Operations does work on a cost reduction basis (see below), whereby increases in income either deliver a larger better quality paper and no extra cost to the council or this income further drives down costs where the paper's quality and size remain the same. Where further commercial efficiencies can be gained through improved cost effectiveness on print, distribution and other third party budgets a virtuous `magic circle' of increased income, lower costs, improved quality, larger paper and higher circulation can be achieved.

Organic growth on a cost reduction basis

East End Life operates commercially on a cost reduction basis. It reduces costs through organic growth of advertising, which generates increases in income over and above the costs of additional pages required. This gives the paper both increases in editorial pages, and income to either invest in editorial or offset against existing costs. Where and when revenues do not grow or meet targets the size and scope of the paper is reduced so as to not expose the paper (council) to unnecessary costs, and to maintain cost efficiencies. Unit costs for pagination and print run increases are monitored and advertising rates, targets and `tipping points' to enable such increases, or further cost reductions are regularly monitored, reviewed, and implemented.

Advertising Rates

Advertising Rates are set by the Commercial Development Manager in consultation with the Advertising Manager and with regard to current market conditions locally and nationally. The advertising rates are adjusted when and where applicable so as to maximise income for the council without reducing revenue streams through becoming priced out of the local market place. These are then published with the `Rate Card', which is made freely available to all advertisers and their agents, and applied transparently.

Discounts and Agency Commission

The Commercial Development Manager in consultation with the Advertising Manager sets any customer discount rates and `agency commission'. Both of these are then published with the `Rate Card', which is made freely available to all advertisers and their agents, and applied transparently.

Terms & Conditions of Acceptance of Advertising

East End Life has Terms and Conditions of Acceptance of Advertising, cleared by the Council's Legal Service. A copy of this is available to advertisers. These Terms and Conditions of Acceptance of Advertising are regularly reviewed in light of operational and legislative changes.

All advertising is accepted in compliance with the standards and rulings as published by the Advertising Standards Authority, the British Code of Advertising Practice and Sales Promotion. Registered charities may seek an exemption form VAT by completing the relevant VAT exemption form as supplied by the Inland Revenue.

Advertising Confirmation and Cancellation

All advertisements and inserts booked into East End Life must have an auditable `written' confirmation. This can be done by; customer purchase order, letter, fax, memorandum or e-mail, or on a confirmation form supplied by East End Life.

Advertising agencies may supply verbal confirmation, as this method is industry standard using a named agency person, sometime followed by a verbal or written purchase order number, which all legitimate `bonded' agencies will honour.

Cancellations of advertising bookings are only accepted in writing giving, verbal cancellations are not accepted. Long term contracts are subject to a notice period, which is notified to the sales customer during negotiations and is clearly displayed on East End Life's booking forms.

Advertising Booking & Copy Deadlines

Advertising booking and copy deadlines are set by the Commercial Development Manager, in consultation with the editor and production manager of the paper, and are published for sales customers and their agents.

Advertising Rate Card

An advertising rate card is published, and regularly updated containing the full advertising rates, discounts, mechanical data and other necessary information required by both advertisers and their agents. The advertising rate card is made freely available to both advertisers and their agents. In both paper and electronic format.

Advertising Revenues Pagination Schedules

The Commercial Development Manager, and or the Advertising Manager decide the pagination of the paper each week, in consultation with the Editor, based upon the advertising revenue booked into the paper against the costs for print & reprographics and distribution.

Training & Personal Development

A schedule of both in-house and external sales and team development training is in place reflecting requirements identified in the PDR process and subsequent one to one with staff. A positive attitude to staff development and training is encouraged within Commercial Operations with team members actively encouraged to enhance and develop their skills and knowledge.

Readership Surveys

The Commercial Operations team, in consultation with the editorial, media, & web teams, and the Head of Communications regularly undertakes a detailed, robust and independent representative survey of Tower Hamlets residents to identify the readership of East End Life and other local and national media consumption among residents. The resident's views on how the council does and should communicate with them and attitudes East End Life, along with distribution and other indices are also measured. The results of these surveys (2001, 2003, 2005, and planned 2007) are tracked over time and the necessary responses to resident's feedback are implemented.

Appendix 1:

East End Life annual sales totals

1999/2000 - £385,600 - Up 38% (first year of commercial operations)

2000/2001 - £482,000 - Up 33%

2001/2002 - £588,000 - Up 14.5%

2002/2003 - £707,000 - Up 20%

2003/2004 - £809,000 - Up 14.5%

2004/2005 - £922,000 - Up 14% (excludes HRA income @ £60K)

2004/2005 - £1,013,000 - Up 10% (excludes HRA income @ £60K)

Terms and Conditions of Acceptance of Advertising

(Attached)

East End Life Readership Survey - ICM May 2005

(Attached)