Metro, Associated Newspapers' free morning newspaper, has set its sights on overtaking the circulation of the Daily Mirror within the next 12 to 18 months. The ambitious plan follows a significant increase in national circulation to about 1.36m copies a month.
The title has come a long way since its launch in March 1999 when, with a monthly circulation of 85,000 copies, it had a tough job convincing media agencies of its value. Now, Metro's young and affluent readership has ensured its place on the media schedule of a huge array of brands.
Despite this growth, Metro faces accusations that its bland editorial approach and free distribution model means it cannot compete with its paid-for rivals in terms of quality and brand association. Furthermore, the newspaper's contract for distribution on the London Underground network is up for renewal in 2010.
Notwithstanding this, while the capital's evening freesheets London Lite and thelondonpaper have been accused of 'burning money', Metro is profitable. DMGT, which owns Associated Newspapers, described it as a 'star performer' in its recent results and, although details have not been released, it is understood that the paper is making more than 拢8m a year.
With its increase in circulation, Metro clearly wants to significantly boost its ad revenue accordingly, leading some agencies to express reservations about its ad rate hikes (Marketing, 29 August).
'Metro has extended its reach to stations such as Barnes and Richmond and the audience is still upmarket and urban, but there is more waste and I expect there will be fewer readers per copy,' argues Vizeum press associate director Hannah Murphy.
Marc Sands, director of marketing at Guardian News and Media, believes there is a proportional relationship between price and quality. 'If the paper wasn't free, people would not pick it up,' he explains. 'I have never heard anyone say they are a Metro reader, as they would with The Sun or The Guardian. Metro is the blandest thing on Earth.'
However, David Fletcher, head of Mediaedge:cia division MediaLab, suggest that this lack of editorial identity could be viewed as a positive thing for Metro. 'The fact is that if you read Metro, people can't tell anything about you, and it is brilliantly packaged for that 15 or 20 minutes you spend travelling.'
The newspaper, whose proposition is based around the 'Metro moment' experienced by commuters on their way to work, is actively picked up by readers from distribution bins. In contrast, London's evening freesheets are handed out by distributors outside stations. 'There is a huge difference between having a paper thrust in your face and going out of your way to pick up a copy, particularly during rush hour,' says one press director.
One problem shared by all freesheets, though, is the sight of discarded copies littering trains and the streets outside stations, and anecdotal evidence suggests that the increase in Metro's circulation has led to more abandoned newspapers. However, the title is taking a proactive approach to recycling, and Metro managing director Steve Auckland claims circulation growth has been carefully controlled. He adds that, while there were minor issues in two stations where distribution bins are shared with thelondonpaper, the strategy has been successful.
Having already agreed to provide recycling facilities in partnership with Westminster Council, Metro is encouraging readers to be environmentally friendly via ads in the paper. The newspaper's assistant managing director, Karen Wall, says the freesheet is focused on communicating the benefits of recycling to its readers, and is looking to provide more recycling bins.
Agencies certainly expect to see the entry of more newspapers and magazines into the freesheet market, with rumours circulating that The Evening Standard is planning to go free and that News International is plotting to secure the Tube contract for thelondonpaper in 2010. Even The Guardian was reported to be considering a launch, which it denied.
Nonetheless, Metro is bullish about its prospects and, having proved its value to advertising agencies and seen off competition with aplomb, it has good reason to be. What's more, Auckland suggests that the company's distribution experience means that even if it loses the Tube contract in 2010, Metro will still be able to operate - a daunting prospect for its rivals.