AIM group Press release:

"Whether you call them digital editions, replica editions or electronic editions, the number of newspapers offered online by NewsStand Inc., Olive Software and NewspaperDirect/PressDisplay.com are growing steadily as an alternative delivery medium and method.

Thousands of copies are delivered daily. Unlike newspaper Web sites, these look and feel just like the newspaper - except on screen instead of on paper - and they provide the advantage of audited circulation.

There are some things they can’t do - we’ll get to that in a minute - but there are lots of important reasons for a publisher to consider them. Among the most intriguing: Regardless of distributor strikes, blizzards, hurricanes or distance, these electronic editions are always delivered.

Digital editions include every ad that your print edition does, and they can provide advertising “extras” such as video and audio files, front-page “belly band” and “stick-on” ads that disappear when the issue is opened, response cards, trackable hyperlinks and other enhanced tools.

They can build circulation among readers who want the paper in a timely fashion, whether they’re local or halfway around the world. They reduce paper, ink and distribution costs.

They’re fully searchable, so readers can look for what they want immediately, whether it’s editorial or advertising content. They’re archivable, so you can increase back-copy sales and text archive sales.

Even though digital editions are in their infancy, it’s clear they work. Some newspapers have added 2 percent to 3 percent to their total daily circulation with digital versions - a very impressive figure in light of general circulation declines. Some magazines have converted 10 percent to 15 percent of their circulation to e-distribution.

You can see why: One magazine said it saves 65 cents for each copy distributed online. If you multiply that by tens of thousands of copies, 52 times a year for a magazine (or 365 times per year for a newspaper), online savings can be substantial.

Steve Gray, managing publisher of The Christian Science Monitor, has a great attitude about his paper’s so-called treeless edition.

He doesn’t view it as a panacea, but as one more way to reach a far-flung audience. He’s not counting down the days until it replaces the print Monitor; instead, he is offering it as an option for people who want to save trees, or receive each edition when it’s published, or want a less expensive subscription.

One thing digital editions can’t do - at least for a while - is replace your Web site. I’ve heard clueless publishers say, “We’ll just shut down our Web site and replace it with a digital edition.” Bad mistake. They’re a different format, a different product and a different medium. And whatever Web revenue you’ve been able to generate - meager though it might be - you’ll lose it instantly if you shut down your site for a digital edition.

Digital editions also don’t (yet) offer the advantage of expanded classifieds. With online classifieds generally producing 50 percent to 70 percent of newspapers’ Web revenues and offering one of the products where digital is demonstrably better than newsprint, it’s imperative to maintain Web classifieds and content.

Three vendors are in the lead providing newspaper digital editions: NewsStand, NewspaperDirect/PressDisplay.com and Olive Software. Each has its strengths and advantages. All offer dozens of daily titles - PressDisplay has more than 170 - which you can test, download and try for yourself. Smaller, newer vendors include Advanced Publishing Corp. and Tecnavia.

Is it a must to publish a digital edition? Not yet. But it’s another relatively low-cost tool for increasing circulation, expanding distribution and serving readers and advertisers with a product extension that many will want and appreciate.s

Editor’s note: The AIM Group has completed a research report about digital editions. Because it was sponsored by NewsStand to educate publishers it is free of charge. The report is available for free download at AIMGroup.com or at NewsStand.com. If you’d prefer to have it e-mailed to you as a PDF, send your contact details to digital@aimgroup.com.