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Controlled circulation refers to providing a periodical—newspaper or magazine—at no cost to readers who meet specific advertiser-attractive criteria. Along with newsstand sales and subscriptions, it is the third major form of distribution. Such newspapers and magazines may be mailed free to those on a list, or made available for pick-up in public locations. Although they provide no direct revenue from readers, controlled-circulation publications are an extremely attractive, relatively low-cost advertising vehicle for individuals or companies seeking narrowly defined, captive audiences.

Among the most common examples of this category of journalism are in-flight airline magazines, and those found in many hotel rooms. American Airlines' Nexos and the Radisson Hotel's Voyager are made available to their customers free of charge, and contain articles and advertisements selected to appeal to travelers and vacationers. Many of the articles are advertorials, provided by public relations and marketing firms promoting services and products.

Controlled circulation was originally developed as a distribution technique in the specialized business and trade magazine field. Indeed, unlike consumer magazines, more than three-quarters of business magazines and newspapers rely primarily on this method of circulation. For example, Offshore Engineer is mailed only to individuals who are involved in buying equipment and services for the offshore oil drilling industry. Fishing boat subscribers of WorkBoat magazine pay nothing for the magazine because they are highly sought buyers of commercial boats and related equipment. In 2005, more than 4,000 trade magazines used or relied upon controlled circulation.

Origins

The first controlled circulation magazines were published by Putnam Media, based in Itasca, Illinois, which began in the 1920s as a single title buyer-to-buyer publishing house serving manufacturing facilities under the leadership of “Colonel” Russell L. Putman (died 1973). Putman was an innovator in controlled circulation, reader service cards, and four-color printing processes for front covers. With the launch of Chemical Processing magazine in 1938 and Food Processing two years later (both provided free to those working in these industries), Putman was quickly positioned as a leading publisher in controlled circulation. Mailed free to those registered with professional organizations in these fields, early issues included a prepaid postcard where readers could recommend others who might be interested in receiving Chemical Processing or Food Processing. With a rapidly growing list of readers, Putnam was able to generate significant ad sales that surpassed any potential subscription revenue. Controlled circulation magazines sell more than 2 million ad pages yearly to reach their defined readers.

Controlled circulation newspapers trace their history back to the 1940s when Walnut Creek (California) publisher Dean Lesher (1902–93) began what is widely believed to be the first free daily newspaper, now known as the Contra Costa Times. It featured advertising, much like a “free shopper” newspaper, along with some community news items, event calendars, and announcements. In 1962 he converted that newspaper and three others in the county that he owned to paid circulation. However, Lesher's model of free distribution of an advertising-dominated newspaper has been copied by other publishers across the country, many of which also produce a separate traditional newspaper. In 2005 there were 1,370 newspapers in the United States with controlled circulation.

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