One of the major obstacles to successful digital publishing for newspaper companies is the Sunday circulars which remain popular and prevent many readers from canceling completely their print subscriptions. For many, the big hope of retaining those paid advertising circulars has been iCircular, the mobile ad service from the Associated Press.
Today it was announced that iCircular has been sold to Wanderful Media, is a digital advertising company based in Los Gatos, Calif.
It appears that many newspaper companies are content to outsource their digital circulars business just as they did their classified recruitment and automotive business – getting marginal revenue boosts from digital while losing all of their print classified revenues. It is a dangerous strategy and one that could bring in huge profits for start-ups, while decreasing the same for the media partners.