Know-How Exchange : Strategy

[NOTE: I interchange "we" and "our client" alot so don't get confused]
our client is a local community oriented magazine. the magazine features a broad array of content to match the interests and lifestyles of this particular community.
their main competitors are basically advertising circulars, meaning just ads for local businesses, sales, events, etc.
our client's magazine is printed higher quality than the competitions' and because of the great content, people spend more time with it and keep it around longer.
Naturally, our client's ad rates are almost double.
We know that we are offering real value because there are many advertisers who realize the value of our publication in helping them achieve branding and name recognition, and who advertise consistently.
our main selling point has always been, and this is echoed by our advertisers, that since readers spend more time with our publication, they are more likely to notice and remember an ad. vs. the other publications which they leaf through to see the latest sales and then trash.
The issue we are facing is that there is still a relatively large market share which we cannot penetrate mainly because we have a hard time convincing these advertisers of our value.
In other words, the advertisers that realize the value on their own are willing to advertise and the advertisers who don't realize the value on their own can't be convinced.
One additional note, is that we have never done a real campaign to advertisers to convince of the value we offer, and our sales efforts have been minimal. Most of our business comes from advertisers who are readers themselves and realized that they belong in this publication and are willing to spend the money.

Therefore, we would like to do a proper, ongoing awareness campaign to educate prospective advertisers about the unique value we offer.
The issue we are facing is, that we are not sure what our message should be. meaning what will be the most effective way of selling our value.

Option 1 is to simply point out that our magazine stays around longer and is likely to be re-read and therefore your ad gets more exposure ie. more bang for your buck.
this argument should theoretically hold true for any advertiser.

Option 2, and this is more sophisticated, is that indeed the advertisers may be right. For businesses who don't need long term name recognition (e.g. they're advertising a short term sale, etc) then they are essentially selling to customers who are already looking for their product and the cheaper publications would be effective in conveying their message.
HOWEVER, for advertisers who are selling a product that people might not need right now, but they need consumers to remember them down the road, then our publication is a far more effective medium because the content causes them to focus and block out "noise", causing your ad to more likely be remembered, giving you long term name recognition.
so this second argument would only hold true for those "long term" advertisers, which would be our highest value customers, and our campaign message should be geared more towards educating that segment about the benefits of branding and building name recognition through a more effective medium.

Essentially this question can be boiled down to what is the value we are really offering (more ad views VS. deeper reader engagement) and therefore who should we target (all advertisers trying to reach this local market VS. advertisers needing long term advertising).

I hope i have spelled out the question clearly enough, but please don't hesitate to ask for clarifications.

P.S. one more objection we have faced is that advertisers feel if anything the articles could DISTRACT readers form the ads, making our publication in fact less effective. I don't see how this could be true because that would really contradict the entire basis of advertising in almost any media, but i was wondering how we could counterattack this point.

Thanks you for taking the time to read this and I look forward to your responses!