PUBLISHER TO EXPAND LOTTO MAGAZINES: AD-BACKED TITLES TO REACH 5 STATES IN '97; 38 BY 2000

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The publishers of LottoWorld are betting that custom publishing deals for the 38 states that offer lotteries will produce jackpots at the newsstands.

Lottery Players Publishing Co. plans to launch four new state lotto magazines by yearend. The concept has shown promise in New York, where the company in October debuted New York Lottery Players Monthly.

The New York Lottery's publishing model is serving as a template for deals in other states, including Georgia, Nebraska, Vir- ginia and West Virginia.

The publisher is introducing magazines in those states during the third and fourth quarters, said Rich Holman, chief operating officer and editor in chief.

The New York Lottery approves editorial and advertising for each 48-page magazine, and also oversees distribution at newsstands and retail outlets where lotto tickets are sold.

While the magazine has predominantly local and direct-response advertisers, and regional credit card affinity programs, it carried an ad for Lorillard's Newport cigarettes.

Color pages are priced at $10,000 for the New York title, but will vary according to the other state magazines' circulation numbers. Circulation is 1.1 million for New York.

Subscriptions are available at $9.95 a year, but New York Lottery Players Monthly actually bears a low 50 cents cover price and is free with a $5 lottery-ticket purchase.

'A GREAT ADVERTISING STORY'

"To get to an 18 million circulation with no distribution costs is a great advertising story," said Mr. Holman of the New York venture. "The challenge with Madison Avenue is that the lottery audience includes everybody over 18, every race, every culture."

The publisher expects to have books in all 38 lottery states by the year 2000 with an expected circulation of 18 million.

Allen Gutwirth has joined the publisher as director of marketing and sales, from VP-marketing and sales at Video Marketing Concepts, a company that markets parking garage promotions. He is developing a national ad and promotion strategy

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