Thursday, July 17, 2008

Digital Media Comes of Age


Digital Media Comes of Age
By Vin Crosbie
http://www.clickz.com/showPage.html?page=3630189
A consumer magazine whose multimillion copy circulation has been declining for decades seeks a digital media chief. According to its recruitment ad, the digital chief's main responsibility "will be to develop and launch profitable new digital services that increase the circulation of the company's renowned publication."

Do you remember when you were a child and your parents dressed you up and asked you to open the door and greet guests at their dinner parties? Years later when you were a teenager, how would you feel about doing that? Would you like that to be your main responsibility now that you're an adult?

I'm amazed at how many magazines still focus on digital media primarily as a mechanism to drive traffic to print and reverse the inevitable decline of that traditional medium.

Using digital media primarily as a way to increase print circulation might have made a bit of sense in the Internet's early years, when it was opened to the public in 1991. Yet when public use of the Internet entered its teenage years and began to become a mature medium in its own right, all print media companies should have acknowledged that and stopped using digital as an adjunct, billboard, or child to the parent operation. Though many magazine companies have made that change, it's amazing how many still have not. (The same can be said about many broadcast companies' treatment of digital media.)

Public use of the Internet will be 18 years old next year. It can still be a bit reckless and uncertain, learning its way around, but it has certainly become a mature medium in all natural ways. It's about time that every media company began treating digital that way and acknowledging its full rights as a medium.

Moreover, when you were 18 years old, did your parents say that your main responsibilities were household chores? You probably weren't too happy about that, but at least it was better than being a cute little doorman whose role was simply to drive traffic to print. I mentioned that many media companies have begun to acknowledge that digital is maturing. I've noticed that many consumer magazines, broadcasters, and newspapers have lately rephrased their recruitment ads to say that digital will "be responsible for developing and launching profitable new digital services to enhance the company's stable of brands."

Although being responsible for new digital services that "enhance the company's stable of brands" is better than just "increase the circulation of the company's renowned publication," it's still not a happy role for digital. Using online to enhance the company's stable of brands means making the parent's household shinier and more attractive for a new kind of guest. It means dusting off the old place, trying to make the legacy brands attractive online, and convincing the digital audience that you're not a teenager driving your parents' Buick.

I sympathize with digital media executives who've been put in that teenage role. I can see some of the reasons they accept it. Life is less risky and more convenient under a parent's roof, and the allowance they get from their parents might be more lucrative than what they can get venturing out on their own.

However, the problem is that some -- probably many -- of those legacy brands don't make sense to operate online. Many are brands that developed as the best of what the print medium does and are unsuited for online media, no matter how much money the parents throw that way.

While it's OK for a legacy brand to have a digital presence, the purpose of digital shouldn't be to enhance traditional media brands, nor to leverage those brands' legacy goodwill online, when many are too old or can't naturally adapt for the online environment. Nor is simply rebranding old brands a good idea. Remember Pathfinder?

Business is business and not a place for the sentimental, even those sentimental about old brands. If the legacy brand is old and tottering in its own medium, there are probably natural reasons for it. It's not digital's role to give life-support to declining legacy media or legacy brands. Whenever a new medium comes of age, its primary role is to venture out on its own, not prop up its parents or legacy.

Digital media is coming of age. It's about time for digital media to venture out on its own. It's time for media companies to stop treating it like a child.

Tuesday, July 15, 2008

Is readership rising or falling?


Is readership rising or falling?
By Simon Owens
http://bloggasm.com/is-newspaper-readership-rising-or-falling

Amid the countless stories detailing the blows the newspaper industry has taken in both advertising and circulation, one positive theme has remained constant: More people are reading newspapers than ever. Or, more specifically, more people are visiting newspaper websites. The New York Times, for instance, has a weekday circulation of just over a million. Its website - depending on which metrics you use - has somewhere close to 18 million separate people that visit it each month.
But according to a new study (pdf) released by the Readership Institute, a division of the Media Management Center at Northwestern University, even this one glimmer of hope for the industry may be overblown.

To complete the study, the Readership Institute hired a polling firm to conduct over 3,000 phone interviews in 100 "impact" markets. The questions focused in on how much time and effort was spent reading a person's local daily paper, making sure to differentiate between the print and online edition.

Based on the answers, the study concluded that website "penetration" is relatively low, with only a fifth of the respondents saying they visited their local papers' websites within the past month. Approximately 62 percent of the respondents said they have never once accessed the newspaper's website.

Mary Nesbitt, managing director at the Readership Institute, told me in a phone interview today that the level of website penetration has remained relatively the same since 2003.

"The penetration within the average impact area is not as high as most would like it to be," Nesbitt said. "It has changed a little bit over the last few years, picking up a little bit. But there's still a big opportunity to grow and engage an online audience."

As for the print edition of the newspaper, its core readership is showing a slow, steady decline. The Readership Institute developed a "Reader Behavior Score" to not only measure how often a person reads his local newspaper, but how much time is spent with it and the extent to which he reads it. The RBS is based on a seven-point scale, and this year the average score was 3.38, a drop from 3.55 in 2006.

Respondents that were ages 18 to 24 showed the sharpest decrease in readership, with a score of 2.40 (compared to 2.84 in 2006). Older readerships either stayed the same or actually showed significant increases.

So what accounts for the disparities between the website statistics boasted by most newspapers and the results of this study? Nesbitt wouldn't speculate much on this, but it's possible that many of those new readers are flowing in from outside the local impact area, either through search engines or links from other websites. Also, the study relied on the respondents to make off-the-cuff estimations of the time they spent reading newspapers, a fact that likely resulted in people making generalizations for reading habits that are often very complicated and sporadic. Readership has always been an incredibly complicated thing to measure, and even with the sophisticated analytic tools we have today to measure website traffic, there are still unresolved arguments over how to accurately gauge a website's readership.

But Nesbitt said one thing is likely certain: since the Readership Institute began conducting these surveys in 2000, readership is bleeding at a much slower pace than advertising and circulation revenue.

"What it tells us - contrary to what we read and see and hear - is that newspapers are not going to hell in a handcart," she said. "At least in terms of their audiences . . . They are read and used by a huge number of people on a regular basis. Truth be told that number has been declining slowly and what has been driving that is that frequency of reading has decreased."

And when I asked her whether there's any optimism for the industry that can be found from these studies, Nesbett was quick with one positive piece of spin.

"Something that's interesting is that even though website readership is very low, to me that says opportunity," she replied. "And the other thing is how the trust and credibility of the newspaper seems to be having a beneficial brand effect on the website as well. That's very positive to me."

But whether this brand will remain intact remains to be seen. The Newspaper Association of America reported recently that online newspaper advertising jumped 19 percent in 2007.

The flip side to that? Overall, total advertising revenue has dropped 12 percent from last year. Only time will tell whether newspapers online counterparts will ever catch up, or if this decade truly signifies the beginning of the end of the industry as we know it.

Contact me at simon.bloggasm@gmail.com

Monday, July 14, 2008

Trio recalls horror of magazine-selling stint


BoSacks Speaks Out: We get these horror stories from time to time. This article was filled with more intimate detail than usual. It is a sad statement that this kind of old style practice continues even for the smallest or any percentage of magazine circulation.

The counterpoint to the story is, of course, the honest local high school or church groups which do good work and which are, in fact, actually local.

I think it is important for us all to acknowledge that these seedy situations are sadly still alive and well, thriving somewhere in our circulation systems and perhaps even in our own home towns. I acknowledge that it is not directly we who perpetrate the crimes and the offences, but it can't be denied we are involved, however distantly, in this process.

"He who profits by a crime commits it"
Seneca (Roman philosopher, mid-1st century AD)


Trio recalls horror of magazine-selling stint
BY RICK FOSTER SUN CHRONICLE STAFF
http://www.thesunchronicle.com/articles/2008/07/13/

When Sue Rodabaugh answered a help-wanted ad that turned out to be from an itinerant door-to-door magazine sales company, she hoped for fun, travel and an opportunity to see a bit of the country while making money to catch up on bills.

But Rodabaugh, who accepted an offer to travel to the Philadelphia area to join a street sales crew, along with her boyfriend and their roommate, said they found neither fun nor a bootstrap opportunity.

Instead, she said they were dropped off in unfamiliar locations, forced to walk up to 10 hours a day and were housed with up to 40 other young salespeople in a threadbare New Jersey motel.

The 19-year-old, her boyfriend, George Tibbetts, 23, and their roommate, Derek Isbister, 21, left before completing a three-day training period when Rodabaugh's grandmother agreed to wire them bus fare.

But along the way, the Attleboro trio said they witnessed lying and misrepresentation by magazine salespeople, rampant drug use and mistreatment of crew members.
In one instance, she said, one saleswoman stole checks from a residential mailbox and coerced her to sign them - presumably so they could be cashed.

"It was unbelievable," Tibbetts said. "We were all looking at each other, asking one another what are we doing here?"

Rodabaugh said she and her friends were desperate to earn money, all having lost their jobs within the same week. But she now regrets urging the others to take the chance.

"I can't believe I was so naive to go along with it," said Rodabaugh, who along with the men have since told their story to the FBI.

Rodabaugh and Tibbetts said that after agreeing initially to take a bus to Philadelphia, they were given tickets to Wilmington, Del., where they were picked up by a crew representative.

As trainees, each was given $20 a day to help them get started. Most of the time, however, they were broke.

Crew members and trainees performed daily calisthenics and attended meetings at which their handlers "amped up" their charges by having them repeat slogans and sales routines.

Nights were devoted to partying, punctuated with drug use and underage drinking, Tibbetts said.

During their days on the road, Tibbetts and Rodabaugh said they spent up to 10 hours a day walking and canvassing neighborhoods through 100-degree heat mixed with thunderstorms.

Crews were transported from neighborhood to neighborhood in vans whose drivers were sometimes so reckless that Tibbets said he literally had to hang onto his seat at speeds up to 80 mph.
Tibbetts said he and his friends weren't the only ones shocked by the conditions and business practices of the crew. Eight other prospects also dropped out over a three-day period.

Sadly, said Earlene Williams, director of Parent Watch, which tracks the activities of itinerant magazine solicitors, such reports are neither rare nor isolated to major metropolitan areas.

Labor abuses against crew members, mostly young and with few skills or job prospects, are widespread, she said.

In the past, sales crew members who failed to produce or stray from the rules have been beaten, had their commissions withheld , been abruptly fired and dropped off at the side of the road, she said.

Sometimes, members who make their team look bad by not selling enough subscriptions are subject to isolation or humiliating treatments, like being forced to run a gauntlet of jeering fellow sales people.

Often, young women end up sleeping with their titular managers or supervisors.

"It's one way to protect yourself," Williams said.

That's not the worst that can happen.

Phil Ellenbecker's teenage daughter worked for an itinerant sales crew for only two days in 1999 before a van, driven by a serial traffic offender, overturned in Janesville, Wis., killing her and half the 14 young salespeople inside.

Ellenbecker later formed the Dedicated Memorial Parents Group to expose abuses in the door-to-door sales industry.

Contrary to enticements found in advertisements, Ellenbecker said, most crew members earn relatively little in commissions. And with $20 or more a day deducted for hotel costs, many members end up heavily in debt to the operators.

"It can be compared to indentured servitude," Ellenbecker said.

It's different for those who run the crews. They reap the benefits of profits earned by the salespeople who work for them.

On his MySpace site, the supervisor of the crew that employed Tibbetts and Rodenbaugh claimed to earn from $45,000 to $60,000 per year.

Neither the supervisor, the company that employs him nor the National Field Sales Association, which represents door-to-door sales organizations, returned calls from a reporter.

Howard Polskin, a representative of the Magazine Publisher's Association industry umbrella group, said subscriptions obtained through door-to-door sales represent a tiny fraction - estimated at 1 percent or less - of the magazine business.

He said the MPA has established strict guidelines for solicitors that require background checks for sales personnel and ban false or deceptive selling practices.

A statement released by the MPA said the group "has long urged its members to identify any subscriptions" coming from organizations that prey on the vulnerable or pose a danger to the public, "and recommends that its members cease doing business with any company that does not fully comply with the law."

Nevertheless, salespeople are constantly under pressure from their bosses to make sales quotas, watchdog groups say.

Rodabaugh said that during her sojourn in a vehicle with three other women, salespeople frequently represented themselves as local residents to gain the trust of potential customers. She said one worker took a box of blank checks from one house's mailbox - a federal offense - and coerced her to endorse them.

Subscription orders are frequently paid by check.

Williams said crew members typically work as independent contractors to avoid minimum wage laws and other requirements for employees.

Workers usually bunk three to four to a hotel room and are dispatched on their daily rounds in vans driven by a car handler. Crews are usually dropped off and picked up four to five times a day, knocking on doors in different neighborhoods.

After two or more weeks based in a particular region, crews move on to other parts of the country.

Salespeople are usually given a quota of five sales a day or 30 sales a week, Williams said, which can be raised later based on production.

Those who fulfill certain sales criteria may be told they can earn points toward a $1,000 prize or a trip to Disney World.

A 2007 investigation by The New York Times, however, found that many crew members made little money, saved less and were subject to violence and taunting.

The report said the earnings of many members was kept on the books for later payment, rather than paid to them immediately.

Many states, but not Massachusetts, have attempted to control traveling crews by requiring permits for door-to-door solicitations. But even in those states, companies often flout the rules, moving their operations rapidly to stay ahead of law enforcement.

While riding with a sales crew as a trainee in New Jersey, Rodabaugh said her van driver was stopped several times for not having the proper permits, and then was yelled at when her crew did not make enough sales.

State Rep. Cleon Turner, D-Yarmouth, has been trying to push through a bill that would require door-to-door sales firms to register with local police before beginning sales campaigns. And citizens would be able to have their homes placed on a "no-knock" list if they don't want solicitors calling at their doors.

The bill, which was promoted by the Yarmouth Police, was occasioned by reports of crimes, harassment and intimidation during and after walk-up solicitations, Yarmouth police Lt. Steven G. Xiarhos said.

So far, however, the bill has made little progress. A few Bay State communities, such as Amesbury, have adopted local ordinances requiring salespeople to register with the police.

Crimes by door-to-door solicitors are all too common.

Ellenbecker's group, which often aids police in investigating crimes related to door-to-door selling, currently has 27 alleged felony cases on its books, including a woman customer who was raped and murdered by a salesman.

In May, Beverly police arrested a 25-year-old Philadelphia man on a charge of assaulting a 13-year-old girl near her home. Police, who said the man tried to grab the teenager, classified the incident as an attempted abduction.

Both the suspect and two companions working for a magazine-selling crew were convicted felons, according to the police report.

The same trio also visited several other Massachusetts communities last spring, including Seekonk.

Most sales crews are run by independent companies rather than magazine publishers. Selling organizations get their magazine supply either through contracts with publishers or through clearinghouses linked with individual sales organizations.

The third-party connection makes it possible for publishers to eschew any responsibility for sales crews or their tactics while still reaping the benefits of subscription revenue, said Parent Watch's Williams.

In most states, door-to-door salesmen are subject to little regulation, Ellenbecker said.

However, the National Field Selling Association maintains a code of ethics for sales organizations to promote fair treatment of salespeople and to keep out criminals.

For example, the NFSA code requires that blind ads for sales crews contain "sufficient information so that an individual may know the basic nature of the offer."

However, an advertisement placed in The Sun Chronicle by the sales group that hired the local trio made no mention of selling magazines or where or under what circumstances trainees would live or earn money.

A series of ads placed by the same company on Internet help-wanted sites carried the enticement, "Live Like A Rock Star."

The NFSA code also specifies that background checks are to be conducted to ensure that salespeople are of good character.

Tibbetts and Rodenbaugh said they were told about the background checks, but were not aware that any checks were actually conducted on them.

The NFSA, which did not respond to a Sun Chronicle reporter's phone call, does not publish a list of the members who subscribe to its code on its Web site.

Although disgusted with what they called abusive treatment, unsafe driving and deceptive practices, the Attleboro trio said they're happy about at least one thing.

"We're glad to be back," Tibbetts said.

Ellenbecker, whose daughter died under conditions similar to those endured by the local trio, said he hopes consumers who know the facts won't patronize sales crews whose members are likely to be exploited young people.

"If someone comes to your door, and you don't know them or can't be certain they're with a legitimate group, don't do business with them," he said. "You're just feeding the monster."

In India, Magazines That Translate Well


In India, Magazines That Translate Well
By HEATHER TIMMONS NEW DELHI
http://www.nytimes.com/2008/07/14/business/media/14mag.html?_r=1&ref=business&oref=slogin

- Hairstyles to crave and hints on how to get over heartbreak. This month's must-have lip gloss and a new nine-iron that will make your golfing buddies jealous.

An explosion of Western magazines has hit newsstands in India in the past 12 months, pitching a familiar mix of consumption and gossip, relationship advice and expensive goodies.

Indian versions of Vogue, Rolling Stone, OK!, Hello, Maxim, FHM, Golf Digest, People and Marie Claire have all sprung up this year, and GQ and Fortune are soon to follow. They join familiar names like Cosmopolitan, Good Housekeeping and Reader's Digest.

Despite rising inflation and a slowing economy, India remains one of the world's bright spots for magazine publishing. Magazine advertising in India is expected to grow by 20 percent to $302 million in 2008, according to the International Federation of the Periodical Press. A whole new class of nouveau riche Indians has been created in recent years as the economy and real estate prices soared and two-income families became the norm in some upper-income urban areas.

"There are one million homes earning more than $100,000 each" in India, said Alex Kuruvilla, the chief executive of Condé Nast India, the only major foreign-owned publisher that has set up a fully staffed India division to write and print a fully owned title. In October Vogue magazine will have been in India for a year, and Condé Nast is introducing the men's fashion magazine GQ in September.

Most of the new Western magazines being published in India are not really Western at all - they are written, photographed, edited and designed almost completely in India. Many are published under licensing agreements with the media company that owns the name. Even though they are all published in English, their content may be completely different from their American or British counterparts.

While the name may be familiar to an American reader, the flavor is distinctly Indian. Instead of Heloise's syndicated household hints column, for example, Good Housekeeping runs "Ask Mrs. Singh." This month, Mrs. Singh tackles how to keep your home fresh during the monsoons that sweep through India during the summer (rubber mats and fresh flowers help).

Some, like Maxim, seem to pride themselves on pushing the envelope of good taste even further than they do in their home markets. The magazine's July issue includes the feature "48 Ways to Get a Gori" (gori is Hindi for fair-skinned woman, and is used in this context to mean a foreign white one). Some ideas the article offers: keep in mind most American women are extremely angry at Indians for stealing their jobs; don't ask an Italian woman if her family is part of the mob; to approach an Israeli woman, try a suicide bomber joke.

The July issue of Vogue carries the Annie Leibovitz photo shoot of the honeymoon of the "Sex and the City" characters Carrie and Mr. Big that appeared in the June Vogue in the United States; an underwater fashion shoot off the Indian islands of Lakshadweep; a cover story on the Bollywood debutante Asin Thottumkal; and a mix of international and local ads.

"We like to talk about 100 percent Indian content, where every piece would be relevant to an Indian audience," said Mr. Kuruvilla, though that means the magazine may pick up the occasional piece from another Condé Nast publication.
Most of the women's magazines, including Vogue, also carry pages of ads for an Asian cosmetic staple, whitening cream intended to lighten the skin. Many of these advertisements are from global companies like Estée Lauder and L'Oréal.

Even with a cover price of 100 rupees, or about $2.50, and a steady demand for imported paper, the 50,000-circulation Vogue India is close to break-even in its first year, Mr. Kuruvilla said, thanks to a steady flow of luxury advertising. "That is something we hadn't even planned for," he said. "We expected it in Year 4 or 5."

People magazine made its debut this month. While there are plenty of outlets for Bollywood gossip, from newspapers to blogs, "I was searching for a magazine with a lot of soul along with good packaging," said Maheshwer Peri, the president and publisher of Outlook Group.

Unlike Vogue India, People in India does not employ a single person from Time Inc., or Time Warner, he said, and the media giant has no stake in the Indian edition of the magazine. For its first issue, People India published 150,000 copies, and sold 70 percent of that number, he estimates.

The Outlook Group also markets and distributes BusinessWeek and Newsweek in India and has signed up two more news magazines that Mr. Peri said he could not yet disclose. The advantage with global news magazine are the "brands are known and the content is almost free," Mr. Peri said.


New opportunities are coming all the time. "The biggest challenge I have is to downplay the expectations about India," Mr. Peri said. He never gives a presentation that starts with India's one billion-plus population, he said, because then people's projections about the number of readers "go haywire."


India relies on an unorthodox street-side distribution system for more than half of all of its magazine sales. In major cities, packs of young boys stand in traffic islands in the middle of highways, holding up the latest copy of a glossy, and yelling "Vogue, madam? Indian Vogue! Golf Digest?" into the windows of stopped cars.

While many of these new magazines may cost 100 rupees an issue, these boys usually earn much less than that a day; they receive a commission from their boss, usually a middleman who gets a commission from what he sells from a magazine distributor, who in turn buys the magazines from the publisher for a fraction of the cover price.

Publishers in India say the system is something they have little control over, and liken street-side magazine distribution to the American paper route, a way for children to earn a little extra money. But the children selling the magazines tell a different tale.

"If on a particular day my sales are poor, then I am abused by my employer, at times beaten as well," said Sonu Kunar, a 12-year-old boy selling a variety of local and Western titles at the intersection of two busy New Delhi roads. Sonu says he works from 9 in the morning until 8 in the evening, and earns about 1,000 rupees, or $23.15, a month. He lives with 13 other children in a small room, and sends all the money he earns back to his family in the eastern state of Bihar.

Despite India's reputation for conservative attitudes toward sex, Cosmopolitan was one of the first titles to come to India nearly 12 years ago. Mala Sekhri, now Cosmopolitan India's publishing director, was approached by Hearst, which was looking for new markets at the time.

When she first brought copies of international editions of Cosmo to India, she could not even bring herself to show them to potential advertisers. "The few people who saw it turned the covers over" so they did not have to look at the explicit copy on the front, she said. "People said 'Are you sure? This is not what India is all about,' " Ms. Sekhri said.
They struggled for the first few years to create the right balance between Cosmo's international image and what would work in India, she said. Although Cosmopolitan's publisher, Hearst, wanted to be sure the brand was intact, executives there understood there were a lot of things that were not relevant in India at the time, she said. "For example, premarital sex - we had to skirt around that issue to begin with," she said.
Now "some of the features run in India have been racier" than those in the United States, she said.

Hari Kumar contributed reporting to this article.

Tuesday, July 08, 2008

Second Half Magazine and Media Industry Predictions


Second Half Magazine and Media Industry Predictions
'Us will go to them. Radar will blink. OK! might not be.'Posted by Dylan Stableford
FolioMag.com
http://www.foliomag.com/2008/second-half-magazine-and-media-industry-predictions

Layoffs. Lawsuits. Shutterings. Salary freezes. Ad page declines. Budget reforecasts and slashings. Abrupt resignations. Oh, and that whole recession thing. In short, it wasn't a pretty first half for the magazine industry. Yet, judging by some of the 2008 predictions FOLIO: solicited back in December [0], it wasn't unexpected. We again asked people from all corners of the magazine (and media) world to weigh in with their second half predictions. Here they are, lightly-edited, in no particular order.

NAME: Larry Burstein
TITLE: Publisher, New York Media
[1]SECOND HALF PREDICTION: Those magazines that harness the tremendous power of the Web for their brands will thrive. But only if they build dynamic Web businesses. Many magazines believe simply having a Web presence is enough; a site for value add opportunities or subscription offers. It's not. Readers, visitors, and advertisers are demanding more.

NAME: Reed Phillips
TITLE: Managing partner, desilva + phillips
[2]SECOND HALF PREDICTION: We're not seeing a rebound in valuations yet. The demise of the credit market continues to depress the multiples buyers are willing to pay and now the U.S. economic downturn and higher costs of oil are also eroding confidence among buyers. I guess since my prediction was for year-end 2008 I might still be right, but I'm much less optimistic at this time.

NAME: Emily Gordon
TITLE: Managing editor, Print [3]; editor, Emdashes.com
[4]SECOND HALF PREDICTION: AOL repositions as AWESOMENESS OVERLOAD! All caps, exclamation point. Content from, and click-approved as awesome by, millions of 10-year-olds (there is also a portal for infants) uploads every second; as you might expect, there are plenty of baby hedgehogs. The new AOL has it all-news, shopping, sports, social networking, how-tos, tickets, casinos, messaging, radio, weather, polls, ads, apps, maps, dating, PSAs on STDs, candidate soundbites, horoscopes, music, video, ringtones, games, and e-mail. It just all goes by in one second. It's pretty painless, actually.

NAME: Bob Sacks [5]
TITLE: President/Publisher, Precision Media Group
SECOND HALF PREDICTION: As atoms get heavier and more costly to move the industry finally realizes that computerized digits do not need to be picked up by fuel burning trucks for either initial delivery or as the dreaded return and thrown into a land fill.

Us will go to them. Radar will blink, and OK! might not be.

B-to-B will move to make digital editions the default choice for subscribers. Production managers will change their job descriptions to Coordinators of Data Distribution, sometimes called the living D.E.A.D. ("Distributors of Edit & Ads Department") ending centuries of the need to understand putting ink on paper. More publishing dinosaur management who don't already have their own Facebook page, nor the knowledge of how to build one, will be asked to either jump from the executive terrace or take what's left of the money and run.

NAME: Henry J. Boye
TITLE: Publisher, Harvard Business Review
SECOND HALF PREDICTION: The economy will soften further (at least in the US) causing a continued drag on all of us that serve consumers. The staffs and budgets supporting advertising and marketing efforts will be pinched even further, greatly increasing the focus on effectiveness of spend. This will increase demand for integrated offerings that drive value in the practical and proven (versus simply intuitive) sense.

NAME: Mark A. Newman
TITLE: Editor-in-chief, Southern Breeze
[6]SECOND HALF PREDICTION: Sadly, I think it's going to get worse before it gets better. When salary and hiring freezes are the "good" news of the day, I feel that there's going to be a lot more closings, layoffs, buyouts, etc. And with Starbucks shuttering 600 U.S. stores, where are all of the out-of-work magazine staffers going to hang out and be bitter or work? Editorial types will have to update their skill sets and become well versed on the electronic aspects of publishing more and more by becoming the in-house web editors, web reporters, and bloggers. And I wouldn't be surprised if surviving staffers-especially at smaller pubs-are going to have to really expand their skill sets and become pros at everything from buying and pricing paper to IT. Those with secure jobs (as secure as they can be, that is) are likely going to stay put longer before climbing that corporate ladder or venturing to another company where you can find yourself out of a job in 6 months due to cutbacks. I also think that before the end of the year, a long-time big name consumer book publisher is going to undergo major overhauls that will send the industry reeling to the point that top editors will start considering the priesthood as a more viable option than publishing! And when it DOES start getting better, it will just mean no more layoffs or shutdowns; there will be new pubs launched hither and yon but not at the same levels as before.
NAME: Patrick Gavin
TITLE: Editor, mediabistro's FishbowlDC
[7]SECOND HALF PREDICTION: I predict that a white male will be selected to replace Tim Russert.

NAME: Bob Eckstein
TITLE: Cartoonist [8], New York Times, Time Out New York
SECOND-HALF PREDICTION: As magazines have officially become leisure items for seniors (eg. most healthy magazines have been AARP, Reader's Digest, Modern Maturity, Playboy, etc.), TV will follow suit and expect to see more shows for seniors this upcoming season:

NAME: Kyle du Ford
TITLE: Freelance writer
SECOND HALF PREDICTION: 10 Guaranteed 100% Accurate Predictions or Your Money Back! 1. Jann Wenner will fire somebody.2. Men's Health will put an actor on the cover with great abs.3. Jack Johnson will make another superfluous cover. Sans shoes. 4. Due to travel constraints, staff writers will change their titles to researchers, if only in spirit.5. Outside Go will replace Best Life on stylish men's coffee tables.6. Paper costs will increase.7. iPhone will make another superfluous cover. Sans shoes.8. Maxim will feature more breasts in 2008 than 2007.9. Readymade will make you feel stupid by introducing a product you could never build if you had 1,000 men and $500,000.10. FOLIO: will not even make mention of 1-9. Can you believe these guys?

Thursday, July 03, 2008

'Buy Safe' Campaign Organizers Rebuke Criticism


'Buy Safe' Campaign Organizers Rebuke Criticism
By Bill Mickey
http://circman.com
Publishers weigh in; BPA, ABC Defend Initiative.
Buy Safe Media, the BPA and ABC-backed campaign warning marketers against buying ads in non-audited b-to-b publications, has faced unusually harsh criticism since its launch last week.

Industry pundits, including consultant and noted columnist Bob Sacks, were among the first to weigh in on the program, calling the initiative "an attack at the heart of the entrepreneurial publishing business." Sacks wrote: "The new pathology actually disgusts me."

Samir "Mr. Magazine" Husni lamented "how low some folks in our industry are willing to sink in order to make their business flourish."

And it wasn't just pundits who were disturbed. At Access Intelligence, where several prominent titles remain un-audited, including CableFax and MIN, Sylvia Sierra, SVP, corporate audience development, downplays the need for an audit. "Some of our strongest brands are not audited and take advertising. It is hard to argue the $1,000-per year subscription value that readers place on the information and advertisers place on reach."

A 'Legitimate Beef'

Yet, Ted Bahr, president of BZ Media, and an official supporter of the Buy Safe campaign is more concerned about the publishers that fly under the radar and push inflated or inaccurate metrics.

"I am spending hundreds of thousands of dollars to acquire and maintain the circulation I am claiming, then I spend the money maintaining it in BPA required formats, then I pay BPA between $10,000-$15,000 to audit my books," he says. "That's the ethical standard for publishing in this industry. My competitors are therefore able to spend way less than I do, and compete with me by cheating and lying to our mutual customers. My only recourse is to try and educate the advertisers that they need to pressure these outlaws into auditing."

BPA CEO Glenn Hansen adds, "Publishers that have made that investment have a legitimate beef with those that cannot demonstrate from an independent verification that they have made that same investment."

Ditto for the Audit Bureau of Circulations, which also backs the Buy Safe program as a partner. "The campaign site specifically notes that auditing is not a necessity for all publications," says Neal Lulofs, ABC's SVP, communications and strategic planning. "I can't fathom why the promotion of media auditing would 'disgust' someone. We are an auditing firm and we are promoting the benefits of auditing-for publishers and buyers alike. We are not 'forcing' anyone to become audited. But in competitive environments, buyers usually insist on it. For instance, there isn't a single paid-circ newspaper above 25,000 in the U.S. that isn't audited. That's not because we force them to do that, but because audited newspapers attract more ad dollars."

A Question of Demand

Yet smaller ad buyers-as BPA confirmed when it was surveying client-side media buyers prior to launching the campaign-may not care or even know about audits. At Hanley Wood, which has several un-audited titles in its stable of more than 30 magazines, auditing is more of a case-by-case consideration. "It depends on the advertiser market," says Nick Cavnar, VP circulation and database development. "Advertiser markets dominated by small advertisers that don't work through agencies aren't that familiar with the statement format. They don't understand it so there's not a great demand for it."

This is precisely why BPA launched the Buy Safe Media campaign, but Cavnar focuses on the practicalities of auditing. "If we don't have advertisers asking for one, then we may not audit the magazine. We work according to what advertisers are looking for. We run the circulation the same way whether it's audited or not. It's a question of whether it's something that helps in the advertising sales."

Audit Landscape Getting Complicated

Sacks and Husni took the Buy Safe program to task because they say it's magazines attacking magazines, and that energy could be better applied to arguing the print medium's viability against other media-TV, radio, and online.

Yet Hansen circles back to accountability and the advertiser's demand for it. "In a perfect market, where all magazines are audited, I think Bob and Samir are justified in saying, 'Don't fight among yourselves, fight against other media. But in a market where we're not all yet at the same level playing field, I think that's an unfair expectation on their behalf. It's not the fact that it's BPA or ABC-it's the fact that they've made the investment in developing quality audience and they can prove that and that gives the advertiser accountability."

But, according to Access Intelligence's Sierra, there is a bigger picture to be focusing on-the mash-up of media platforms. "We are now media companies whose portfolios include print magazines and many other assets," she says. "Most of the other assets (Web sites, e-letters, trade shows, Webinars, paid information) are not audited, and yet, revenue is shifting from print magazine advertising to the other assets. Advertisers want to know 'Who are these people?' and the audit bureaus are not showing reach, only numbers. I can't think of a single reason to pay for the current audit offerings given their shortcomings."

Tuesday, July 01, 2008

The Real Viability of Digital Editions


The Real Viability of Digital Editions
By Bob Sacks
http://rs6.net/tn.jsp?t=exjwyocab.0.5fadzocab.cuf4zubab.1&ts=S0350&p=http%3A%2F%2Fwww.pubexec.com%2Fstory%2Fstory.bsp%3Fsid%3D110150%26var%3Dstory

Resistance to digital magazines is futile. Here's why.
I've been inundated lately with e-mail requests about the viability of digital magazine editions. The letter that put me over the top was from an old and dear acquaintance, who is a senior production director, that said, "Digital editions of magazines will never get traction with the magazine-reading public." This is a ridiculous attitude. And if it is yours, too, bury it now with other ridiculous ideas like the world is flat and man will never fly.

Perhaps Jeff Gomez, author of the book "Print Is Dead," put it best when he wrote: "To expect future generations to be satisfied with printed books is like expecting the BlackBerry users of today to start communicating by writing letters, stuffing envelopes and licking stamps."

Do we expect magazine readers to become any less sophisticated as time and technology roll by? Things change, platforms evolve, business models adjust, and people's habits change, too. History is loaded with once-successful personal methodologies that are now nothing but antiquated dust.

This is not a discussion of whether or not print will survive. That is moot. What is important is how people will read in the future. Gomez's comment is spot on. How people read today gives us the smallest inkling of how people will read in the future. I'd be curious to know the number of words read on a computer screen (including PDAs, cell phones, e-readers, etc.) versus those read in print.

Digital editions will play a central role in the magazine business's future success. They are growing in popularity, and eventually will become ubiquitous. The only thing holding the format back presently is a perfect substrate. Computer screens are good for the task, but not perfect in their portability, flexibility and readability in various lighting conditions. What the industry is waiting for is a substrate that can match the robust nature and inherent abilities in digital editions.

The new technology is not far-off science fiction. The future is here now; it is just not widely distributed. Amazon's Kindle, Sony's Reader and several others are e-paper devices, and they are available now. These devices will not go away; they will only get better and more advanced at what they do-distribute content. In 2011, there will be full-color versions of e-paper products released. By 2025, e-paper devices will be the predominant way in which people read. And they will most likely be reading some formulation of digital-edition technology.

Perhaps we need to look at it this way: When will the digital page be more user-friendly than the printed page? Is it so impossible to foresee a future of comfort and ease holding a full-color, flexible screen that has the ability to project any book or any magazine with greater richness and depth of coverage than its printed predecessor?

Gomez hypothesized that, "It's not about the page versus the screen in a technological grudge match. It's about the screen doing a dozen things the page can't do." Digitized words should count for more. "What's going to be transformed isn't just the reading of one book, but the ability to read a passage from practically any book that exists, at any time that you want to, as well as the ability to click on hyperlinks, experience multimedia, and add notes and share passages with others," Gomez noted.

The same logic holds true for magazines. This is not a Hamlet-type argument, "to read or not to read." It is a question of what format/platform we will be most comfortable reading in the future. Nowhere in history do you find society willingly going backward. As Jerry Garcia is reported to have once said, "You are either on the bus or off the bus."

Bob Sacks (aka BoSacks) is a printing/publishing industry consultant and president of The Precision Media Group (BoSacks.com). He is also the co-founder of the research company Media-Ideas (Media-Ideas.net), and publisher and editor of a daily international e-newsletter, Heard on the Web. Sacks has held posts as director of manufacturing and distribution, senior sales manager (paper), chief of operations, pressman, circulator and almost every other job this industry has to offer.

Thursday, June 19, 2008

BoSacks Speaks Out: BPA-ABC's Unwise Attack on Magazines


BoSacks Speaks Out: BPA-ABC's Unwise Attack on Magazines

The new pathology detailed below actually disgusts me. There are over 18,000 magazines printed today and of that number 7,000 are newsstand titles. There are approximately 1,000 new titles started each year. This report and the campaign against legitimate magazines listed below is an attack at the heart of the entrepreneurial publishing business. ABC, ABM, BPA, and the Association of National Advertisers have a very minor fraction of the titles published in their bullpen, yet they wish to crush all who stand in their way or choose not join their exclusive clubs. I am not alone with these feelings. Samir Husni wrote to me in an email last night that:

. . . it is about time for magazines to start looking at customers who count and not just counting customers . . . those folks who publish great magazines like Good and Flaunt do not need an auditor to tell them how many people are receiving their magazine. Their customers, both the advertisers and the readers know the relationship that they enjoy between the reader and the magazine . . . It is a pure case of jealousy and greed to launch such a campaign. When are we going to learn not to attack each other and focus on other media. Advertisers who want to reach that unique upscale audience of V magazine are not interested to see either the ABC audit or the BPA audit . . . When are we going to learn . . . I have no earthly idea . . .

It is unconscionable to attempt to crush the rest of the industry. It is attacks and stupidity like this that will tear down the very industry that they are attempting to prop up with self-serving dogma. Like chastity, auditing is/and should be a choice. A pox on all your houses; but I cannot wish harm on my industry by wishing that ye reap what ye sow.
BoSacks
-30-

Fear is the main source of superstition, and one of the main sources of cruelty. To conquer fear is the beginning of wisdom.
Bertrand Russell (1872 - 1970), Unpopular Essays (1950), "Outline of Intellectual Rubbish"

BPA and Friends Turn up Heat on Un-Audited Magazines
By Bill Mickey
http://www.circman.com/viewmedia.asp?prmMID=4025&prmID=1

An educational campaign targets client-side, b-to-b buyers. BPA, along with about 10 other association and auditing bodies, including ABC, has ramped up a campaign to combat ad buying in un-audited titles. Called Buy Safe Media, the program targets client-side buyers in b-to-b markets that spend $250,000 or less on advertising. The program, initiated two years ago by BPA at the request of member publishers, has emerged from a testing and research phase and the 11 associations and auditing bodies have begun to reach out to their constituencies in earnest.

"About two years ago, our publisher members on the b-to-b side were telling us that more and more of the buying decisions were being made at the client level, not through an agency," says Peter Black, BPA's SVP, business development. "They were concerned that the person at the client company did not have an appreciation for audits or quality circulation data." BPA conducted a Web-based survey of about 500 b-to-b client companies across a variety of markets in spring 2007. The results turned in very low numbers for audit awareness.

The survey inquired about certain criteria upon which buyers based their purchase decisions-placement of editorial, price, audit, and so on.

"There was a choice for 'other,'" recalls Glenn Hansen, BPA's CEO. "We had over 300 written-in responses to the 'other.' When we analyzed that, about two-thirds were actual attributes that an audit would provide, but the respondent didn't associate with an audit. They wrote in things like distribution, quality circulation and proven audience." A personalized direct mail campaign was then launched last fall targeting CEOs, CFOs and, finally, media buyers at 1250 companies identified as having purchased ads in un-audited magazines across five b-to-b markets.

The mailing cited the number of pages that company had purchased over the year along with the dollar value of those pages. The letter also pushed the recipient to the Buy Safe Media program's Web site, which features a video and information on the pitfalls of buying un-audited media. "Insist on audited media, and be safe," urges the site. "Based on our tracking, we got a ten percent response rate to the direct mail [from the CEOs]," says Hansen. "Then we broadened it to CFOs and we got a six percent response from them." The third effort, however, targeted to the actual media buyer, squeaked out a .5 percent response.

"Maybe they just didn't want to be faced with the reality that they bought un-audited media and there were a lot of dollars at risk," says Black. Supporters backing the initiative include ABC, ABM, BPA, the Association of National Advertisers, and seven others. "Everybody is handling communications with their respective memberships," says Black. BPA, for example, has announced a Webinar on the subject to recruit more publisher partners.

Following that, another direct mail campaign targeting 3300 CEOs and 800 CFOs from companies that buy six or more pages annually in un-audited titles will be launched next week. "We will cite the number of pages they're running, the likely dollar value of those pages, and the message will be to drive them to the Web site to give them more information to better safeguard their investment," says Black.

Tuesday, June 17, 2008

Print Ads Come out Top of the Charts


Print ads come out top of the charts with UK consumers
http://www.creativematch.co.uk/viewNews/?96125
Print advertising generates the most positive reaction with UK consumers and is seen as having the most relevance, according to a study.
Dynamic Logic's latest AdReaction study gauges consumer's opinions of advertising. Newspaper ads top the chart with 53% of consumers considering them as "very" or "somewhat" positive.
Christina Goodman, Director of Global Marketing & Business Development, Dynamic Logic, said: "When asked about their overall attitudes towards general advertising formats, consumers feel very differently about the various media platforms.
Certainly, if asked, most people will never say they would like to have more advertising in their lives. However, the results show that there are certain types of advertising that people may be more receptive towards.
"More interruptive or intrusive formats, such as telemarketing and SPAM (Non-opt-in email) are towards the bottom of the list in terms of consumer appeal. Print advertising (Newspapers and Magazine) as well as TV and Outdoor advertising rate most positively.
"What is surprising is the breadth of feelings about different advertising formats. This research shows there is a significant difference between how consumers feel about Mobile ads (70% negative) versus Newspaper ads (9% negative)."
Mobile phones
Mobile phones are considered extremely personal to the consumer and the perception may be that ads on mobile phones will be intrusive and interruptive - like SPAM, even more so than telemarketing and non-opt-in emails, according to this ranking.
Therefore, there is an opportunity for advertisers and brands to change this perception by connecting with their audience when the message is relevant. It is also likely that many of the people have not yet seen mobile ads, so this perception may vary with exposure.
Online ads
Online search ads fall among the middle of the list, perhaps because search remains a relatively new ad format compared to Newspaper and TV (where people are trained to expect advertising).
Search ads - designed to be informative within an information-seeking environment - tend to strive for relevancy, thus one might expect for that reason alone to see search higher on the list of consumer preference.
http://www.dynamiclogic.com/na/

Monday, June 09, 2008

Think Ad Revenue Is All Going Online? Think Again.


Think Ad Revenue Is All Going Online? Think Again.
By Melissa Campanelli and Noelle Skodzinski
Publishing Executive Magazine
http://www.pubexec.com/story/story.bsp?sid=107635&var=story

The results of a new study about how the industry sees its future may surprise you. Plus: Industry revenue trends in print, webinars, events . . . and more!

While there is no denying the digital revolution, a new study by Publishing Executive, called the "2008 Publishing Advertising Trends Study," shows that online revenue is not exceeding print revenue for most publishers . . . and the majority of publishers don't expect it to-that's right, ever.

For the study, Publishing Executive worked with independent research company Readex Research to survey Publishing Executives from a variety of industry segments including business-to-business (b-to-b), consumer, association and professional publishing. More than 250 publishers participated.

What did the study's findings reveal? For starters, 89 percent of respondents said their organization's current online revenue does not exceed its print revenue. (In this case, online revenue included Web sites, e-newsletters and webinars/webcasts.) Nine percent of respondents said that their current online revenue already exceeds their print revenue.

While that may not come as a big shock (though the 9 percent whose online revenue already exceeds print may be higher than some of us would expect), this next finding might: More than two-thirds (68 percent) of respondents reported that they do not anticipate their organizations' online revenue will exceed their print revenue in the future. Twenty-eight percent said they anticipate their online revenue will surpass their print revenue.

However, as for the 28 percent of respondents who anticipate that their online revenue will exceed print, they seem to expect the change will occur fairly quickly-74 percent said they expect their organizations' online revenue to exceed their print revenue within the next five years.

The number of respondents who don't think their online revenue will exceed their print revenue may come as a surprise, especially since-at least among b-to-b publishers-magazine revenues were expected to post a 4-percent drop in 2007, while digital content revenue was slated to increase 20 percent, according to statistics from industry association American Business Media (ABM) that appeared in a February 2008 article in Publishing Executive, titled "Special Report: Your Guide to the 2008 Media 'Brandscape.' " ABM CEO Gordon Hughes also stated in that article that digital's growth rate puts it on a pace to surpass print magazines by 2011 at the latest.

Because ABM represents the interests of the business media only, and many larger publishing houses, Publishing Executive designed its "2008 Publishing Advertising Trends Study" to provide an expanded view of the industry. Publishing Executive wanted to find out: Do b-to-b, consumer, association and professional publishers share a common perspective on the future of their products in print and online? And, is the size of your organization a factor in whether you expect your online revenue to surpass your print revenue?

A Closer Look
Breaking the numbers down by type of publication, 93 percent of both b-to-b and consumer magazine publishers said their organizations' current online adverting revenues do not exceed their print revenue. Ninety-two percent of association publishers answered the same way.

What about their expectations for the future? B-to-b publishers' perspective of the future skewed slightly more heavily toward online revenues than the other industry segments. Thirty-six percent of b-to-b publishers said they anticipate that their online revenue will exceed print in the future. Twenty-four percent of consumer publishers and 27 percent of association publishers also expect their online revenue to exceed print.

Company size made a slight difference in respondents' replies, but perhaps not as you would expect. Mid-size companies (defined here as those with revenues between $1 million and $4.9 million) had the highest response rate to the question: In the future, do you anticipate your organization's online revenue will exceed its print revenue? Seventy-six percent said no. At larger companies (those with revenues of $5 million or more), 61 percent said they don't expect online to exceed print revenue. And of the smaller companies (with revenues less than $1 million), 67 percent said print will remain the larger revenue generator.

Tracking Revenue Streams
The study also asked respondents to reveal their sources of advertising revenue in 2007, including Web sites, e-newsletters, webinars or webcasts, print, event and event sponsorships, and reprint/e-print/rights sales.

According to the respondents, print advertising holds the biggest piece of the revenue pie for all types of publishers, bringing in an average of $2.78 million in revenue.

Events, touted by many companies in the industry as a significant growth area, contributed an average of $1 million.

The Web accounted for an average of $550,000 in revenue; e-newsletters, $350,000; webinars and webcasts $330,000; and reprint/e-print/rights sales, $290,000.

Keeping in mind those figures are averages across all survey respondents, the picture changes slightly when you focus in on specific magazine segments. For example, b-to-b magazine publishing respondents, when segmented out from the larger group, reported print advertising generating an average of $4.8 million in revenue in 2007, well above the total group's average. Association publishers followed with $1.8 million, and consumer magazines attributed an average of $1.7 million to print advertising revenue-both falling below the overall average of $2.78 million.

In all categories of publishing, events and event sponsorships followed print as the second-largest revenue source, making the biggest splash in b-to-b, with an average of $2.1 million in revenue being drawn from events and sponsorships-again above the overall group's average of $1 million. Consumer magazines generated an average of $180,000; and association publishers, an average of $560,000.

B-to-b publishers also outweighed other categories in terms of revenue from Web advertising. For b-to-b publishers, the Web accounted for an average of $1.24 million in advertising revenue in 2007-way above the overall group's $550,000 average-while it accounted for an average of only $180,000 in revenue for consumer magazines and $130,000 for association publishers.

E-newsletters were also significant revenue generators for b-to-b publishers, accounting for an average of $1 million in advertising revenue in 2007. Consumer publishers reported no revenue from e-newsletters, while association publishers reported an average of $30,000.

As for webinars/webcasts, b-to-b publishers again reported the highest figures in advertising revenue from this medium in 2007-an average of $900,000-while consumer publishers reported no revenue from webcasts, and association publishers reported an average of $30,000.

Great Expectations? Revenue Growth Predictions
The survey also asked respondents whether they expected their organizations' revenues for certain types of advertising to increase, remain the same, or decrease in 2008 compared to 2007.

Print: A Mixed Bag, but Almost Half Predict Growth. While print naysayers abound in the industry, it seems at least among respondents to this survey, many publishers anticipate print-revenue growth this year-44 percent of respondents said their print ad revenue would increase, while 30 percent said it would remain the same, and 18 percent said it would decrease. Seven percent of respondents said they don't know what to expect.

Looking at print expectations by segment: Almost half of b-to-b publishers (48 percent) said they expect their print revenue to increase, while 28 percent expect it to remain the same, and 23 percent expect it to decrease. For consumer publishers, 47 percent expect it to increase; 22 percent expect it to remain the same; and 15 percent expect print advertising revenues to decrease. For association publishers, 31 percent expect their print revenue to increase, 49 percent expect it to remain the same; and 16 percent expect it to decrease.

Web: Majority Sees Increasing Revenue. According to the study, however, more are optimistic about Web growth. Sixty percent of respondents expect advertising revenue for the Web to increase in 2008; 26 percent expect it to remain the same. No respondents said they expect Web advertising revenue to decrease, but 12 percent said they didn't know, and 2 percent gave no response.

B-to-b publishers, in general (74 percent), expect Web revenue to increase. Consumer and association publishers are slightly less optimistic, with 54 percent of consumer publishers and 49 percent of association publishers expecting an increase in Web advertising revenue this year.

E-newsletters: Predictions Say Growth or Flat, but No Decline. According to the study, more than a third (37 percent) of respondents expect their organization's revenue from e-newsletters to increase in 2008. A slightly greater number (39 percent), however, expects it to remain the same. No respondents expect advertising revenue in this area to decrease.

B-to-b publishers, in particular, expect to see growth here-60 percent of b-to-b publishers expect e-newsletters to bring in more revenue this year. Twenty-five percent of consumer publishers and 24 percent of association publishers expect an increase in e-newsletter revenue.

Events: Some Growth, a Bit of Decline, but Many Foresee a Flat Year. Twenty-seven percent of respondents indicated that they expect revenue from event/event sponsorships to increase in 2008 compared to 2007, while 41 percent expect no change, and 3 percent expect a decrease.

Broken out by category, 33 percent of respondents from b-to-b publishers said they expect advertising revenue from events to increase in 2008, while 25 percent of those from consumer magazines expect event revenue to increase, and 24 percent of association publishers expect growth in this area.

Webinars/webcasts: Not a Pot of Gold for Everyone. Perhaps surprising to some, most respondents do not expect to see increases in advertising revenue this year in webinars/webcasts (both terms were used to avoid exclusion of those who perceive a difference between the two). Just 16 percent of respondents expect to see webinar/webcast revenue grow, while nearly half (47 percent) expect a flat year. Only one respondent reported anticipated decline, but 27 percent said they didn't know what to expect from this revenue source this year, and 11 percent didn't answer the question.

While 28 percent of b-to-b publishers expect revenue in this area to increase, only 12 percent of association publishers and 3 percent of consumer magazine publishers shared this perspective.

The Acquisition Market
The study also examined publishers' immediate plans to expand by acquisition. One-third of respondents said they plan to acquire properties in either print, digital or events in 2008. Almost two-thirds (61 percent) do not have such acquisition plans.

Thirty-nine percent of b-to-b publishers plan to acquire at least one media property in 2008, while 27 percent of consumer and 14 percent of association publishers plan to do the same.

Melissa Campanelli is editor-in-chief of eMarketing + Commerce (eM+C), a Target Marketing Group publication, and a former deputy editor at DM News. She also is author of the books "Entrepreneur Magazine's Open an Online Business in 10 Days" and "Start Your Own e-Business."

Tuesday, June 03, 2008

Time Warner Tries Metering Internet Use


BoSacks Speaks Out: I think there is much more in this story than meets the eye for every publisher. If we accept the fact that at least part of the future of publishing is digitally related, then this is a very important story. As we move our franchise into a digital broadband environment, then the process our readers use to get our material and the cost for them to do so becomes paramount. And especially so, if we are including our own videos or connections to other broadband services.

Do any of you remember paying for AOL by the minute? Is this a return to those heady days of yore? Ouch!


"I have ever been opposed to banks, - opposed to internal improvements by the general government, - opposed to distribution of public lands among the states, - opposed to taking the power from the hands of the people, - opposed to special monopolies,"
Sam Houston (American General, Lawyer and Politician, 1st president of Texas, (1836-38, 1841-44), 1793-1863)



Time Warner Tries Metering Internet Use
By Peter Svensson, AP Technology Writer
Time Warner Cable starts customer trial with metered Internet access in Texas
http://biz.yahoo.com/ap/080602/tec_time_warner_cable_internet.html

NEW YORK (AP) -- You're used to paying extra if you use up your cell phone minutes, but will you be willing to pay extra if your home computer goes over its Internet allowance?
Time Warner Cable Inc. customers -- and, later, others -- may have to, if the company's test of metered Internet access is successful.

On Thursday, new Time Warner Cable Internet subscribers in Beaumont, Texas, will have monthly allowances for the amount of data they upload and download. Those who go over will be charged $1 per gigabyte, a Time Warner Cable executive told the Associated Press.

Metered billing is an attempt to deal fairly with Internet usage, which is very uneven among Time Warner Cable's subscribers, said Kevin Leddy, Time Warner Cable's executive vice president of advanced technology.

Just 5 percent of the company's subscribers take up half of the capacity on local cable lines, Leddy said. Other cable Internet service providers report a similar distribution.

"We think it's the fairest way to finance the needed investment in the infrastructure," Leddy said.

Metered usage is common overseas, and other U.S. cable providers are looking at ways to rein in heavy users. Most have download caps, but some keep the caps secret so as not to alarm the majority of users, who come nowhere close to the limits. Time Warner Cable appears to be the first major ISP to charge for going over the limit: Other companies warn, then suspend, those who go over.

Phone companies are less concerned about congestion and are unlikely to impose metered usage on DSL customers, because their networks are structured differently.

Time Warner Cable had said in January that it was planning to conduct the trial in Beaumont, but did not give any details. On Monday, Leddy said its tiers will range from $29.95 a month for relatively slow service at 768 kilobits per second and a 5-gigabyte monthly cap to $54.90 per month for fast downloads at 15 megabits per second and a 40-gigabyte cap. Those prices cover the Internet portion of subscription bundles that include video or phone services. Both downloads and uploads will count toward the monthly cap.

A possible stumbling block for Time Warner Cable is that customers have had little reason so far to pay attention to how much they download from the Internet, or know much traffic makes up a gigabyte. That uncertainty could scare off new subscribers.

Those who mainly do Web surfing or e-mail have little reason to pay attention to the traffic caps: a gigabyte is about 3,000 Web pages, or 15,000 e-mails without attachments. But those who download movies or TV shows will want to pay attention. A standard-definition movie can take up 1.5 gigabytes, and a high-definition movie can be 6 to 8 gigabytes.

Time Warner Cable subscribers will be able to check out their data consumption on a "gas gauge" on the company's Web page.

The company won't apply the gigabyte surcharges for the first two months. It has 90,000 customers in the trial area, but only new subscribers will be part of the trial.

Billing by the hour was common for dial-up service in the U.S. until AOL introduced an unlimited-usage plan in 1996. Flat-rate, unlimited-usage plans have been credited with encouraging consumer Internet use by making billing easy to understand.

"The metered Internet has been tried and tested and rejected by the consumers overwhelmingly since the days of AOL," information-technology consultant George Ou told the Federal Communications Commission at a hearing on ISP practices in April.

Metered billing could also put a crimp in the plans of services like Apple Inc.'s iTunes that use the Internet to deliver video. DVD-by-mail pioneer Netflix Inc. just launched a TV set-top box that receives an unlimited stream of Internet video for as little as $8.99 per month.

Comcast Corp., the country's largest cable company, has suggested that it may cap usage at 250 gigabytes per month. Bend Cable Communications in Bend, Ore., used to have multitier bandwidth allowances, like the ones Time Warner Cable will test, but it abandoned them in favor of an across-the-board 100-gigabyte cap. Bend charges $1.50 per extra gigabyte consumed in a month.

Monday, June 02, 2008

It's not all grim news in magazine land


It's not all grim news in magazine land
Some titles are showing strong gains in ad pagesBy Diego Vasquez http://www.medialifemagazine.com/

It surely seems the worst of times for consumer magazines, suffering as they are from the ad recession and increasing competition from other media. Indeed, over the first quarter of 2008, consumer titles experienced their worst tumble in years, with ad pages down more than 6 percent. Still, a number of magazines are showing strong gains, in some cases double-digit increases in ad pages over the prior-year period.

They include The Economist, OK!, Every Day with Rachael Ray, Women's Health, Wondertime, Men's Journal, Guideposts and Parents, among others. One might write off some of those gains to good fortune, a title being in a category of magazines that's somewhat insulated from the spending cuts that have swept through media and magazines in particular. But that's only a small part of it, if at all. In fact in many cases the gaining titles are in some of the worst-hit categories. By far the bigger factor is what the magazines are doing for themselves. They're investing dollars, they're repositioning, they're creating new voices that reach readers in new ways, they're building staff, they're adding features to their web sites, they're selling aggressively, they're taking chances.

They're heeding an age-old maxim of magazine publishing: Invest during downturns, as others cut back, and you'll win market share. In some ways, the Economist best exemplifies this aggressiveness. The title competes in two of the roughest ad categories, newsweeklies and business titles, which were each down nearly 14 percent over the quarter, yet its ad pages were up more than 5 percent. For that, North American publisher Paul Rossi credits the magazine's ongoing push to build circulation in the U.S. market, which rose 13 percent in second-half 2007, to 720,882, over the year-earlier period, according to the Audit Bureau of Circulations. "Circulation helps push up our rate base, which is good, but what it really does is grow the readership numbers," he says.
That in turn had made the magazine more attractive to more advertisers. "It allows us to go into other categories. Historically we would get luxury import cars, but now we have more Detroit cars. We can now go deeper into personal finance." "People want to know why we're up in pages," says Rossi. "At the end of the day we have a product that's never been more relevant, and more and more people are finding it."

*** In the case of Women's Health, whose ad pages were up 51 percent over the first quarter, its growth comes from a different way of talking to its readers. If the old mantra of women's titles was to prey on their insecurities, the new mantra, exemplified by the Rodale title, is that it's just fine to be who you are, and we're here to help you be even more. "We're all about it's good to be you. We encourage women and give them all the information we can," says publisher Mary Murcko. "We empower them to challenge themselves a little bit and have the confidence to do what they want and not to be afraid." It seems to be the language women relate to. A sister publication to Men's Health, the title launched in October 2005 with a rate base of 400,000, and that was quickly bumped to 850,000 and then in January to 1.1 million. "We've found our voice and our perspective pretty early in the plot," says editor Tina Johnson. "We've been speaking in the same voice women use to speak to themselves."

***At Every Day with Rachael Ray, where ad pages were up 38 percent in the first quarter, there were several factors at work. Certainly one is that Ray is all over television, and yet viewers never seem to tire of her bouncy good humor. But also the title launched in late 2005 with a very practical approach to cooking: putting interesting meals together in little time, and that set it apart from the traditional culinary titles, where growth had slowed for the most part. But publisher Anne Balaban says it goes beyond that. "Rachael brought a different point of view to the marketplace. She's about 'have fun and if there's something you want to do, it doesn't have to be perfect, just go ahead and do it.'" Thus the magazine's tagline, "Take a Bite Out of Life" "In this economic environment, marketers want to align their brands with something that puts a smile on customers' faces, and that's what we do," Balaban says.

*** At Guideposts, ad pages were up nearly 37 percent in the first three months of the year. Publisher Amy Molinero says sales have slowed for second quarter but are still ahead of a year ago, and that's for several reasons. The magazine has pushed deeper into food, with editorial support, and it's added to its sales staff. "Also, we've done well in the travel category, which is also new," says Molinero. Though the magazine has published for more than 60 years, it only began taking advertising in 2001. It has a rate base of 2.345 million. Says Molinero: "People had never heard of us, and they couldn't believe how long we've been publishing. While everyone else was coming down we were going up. We only had up to go."

*** In the crowded celebrity category, conventional wisdom had OK!, the British import, failing without much ado. The feeling was that it had come too late to the market. Nearly three years later, OK! is still here, and it's showing strong growth, with ad pages up 38 percent in first quarter at a time when the category grew just 2.7 percent in pages. Publisher Tom Morrissy credits that growth to the staff-building that went on in 2007. "We hired 20 sales and marketing people, and we were building programs and planting the seeds. And now they're just starting to sprout. So a lot of the work you're seeing now was accomplished a year ago." He says newsstand sales are up 22 percent so far this year, and the title has now been measured by MRI for the first time. The title has also been adding special issues. That's created a momentum for the sales team. Says Morrissy: "Presenting growth is fun for both the seller and the buyer. It really resonates with buyers who are looking for rays of light in the market."

*** At Men's Journal, which was up 21 percent in pages in the first quarter, publisher Will Schenck credits several factors: "We made a decision last year to try to capitalize on all aspects of the lifestyle of the reader. We've done a good job of developing some new categories, financial services and pharmaceuticals in particular. We've also done well in Detroit." But also helping, says Schenck, is a new corporate department at Wenner Media. "We now have the power of Rolling Stone and the power of Us Weekly to benefit us." It's given the magazine momentum with marketers, he says. "Our magazine is for a guy who's confident, and that breeds sales. Marketers seem to appreciate that. You go into meetings and you talk about it from the perspective of momentum. At the end of the day they don't give a hoot if you're up in ad pages. You're defined by the company you keep."

*** For Diane Newman, publisher at Parents, which is up 19 percent for the quarter, it's all about staying current and in touch with the new moms as they come along. "If the brand doesn't stay current, people can go other places. So we really acknowledge the new mom. We literally target Gen-Y moms. She's very different from the Gen X moms who preceded her," says Newman. "We walked away from what might be traditional sentimental editorial and photography and made it much more relevant for this generation," she says. "Keep it fresh for readers and advertisers, and they totally get it."

Sunday, June 01, 2008

Mass-Media Extinction Prediction 'On Target'


Michael Crichton, Vindicated
His 1993 prediction of mass-media extinction now looks on target.
By Jack Shafer
http://www.slate.com/id/2192382/
In 1993, novelist Michael Crichton riled the news business with a Wired magazine essay titled "Mediasaurus," in which he prophesied the death of the mass media-specifically the New York Times and the commercial networks. "Vanished, without a trace," he wrote.
The mediasaurs had about a decade to live, he wrote, before technological advances-"artificial intelligence agents roaming the databases, downloading stuff I am interested in, and assembling for me a front page"-swept them under. Shedding no tears, Crichton wrote that the shoddy mass media deserved its deadly fate.
"[T]he American media produce a product of very poor quality," he lectured. "Its information is not reliable, it has too much chrome and glitz, its doors rattle, it breaks down almost immediately, and it's sold without warranty. It's flashy but it's basically junk."
Had Crichton's prediction been on track, by 2002 the New York Times should have been half-fossilized. But the newspaper's vital signs were so positive that its parent company commissioned a 1,046-foot Modernist tower, which now stands in Midtown Manhattan. Other trends predicted by Crichton in 1993 hadn't materialized in 2002, either. Customized news turned out to be harder to create than hypothesize; news consumers weren't switching to unfiltered sources such as C-SPAN; and the mainstream media weren't on anyone's endangered species list.
When I interviewed Crichton in 2002 about his failed predictions for Slate, he was anything but defensive.
"I assume that nobody can predict the future well. But in this particular case, I doubt I'm wrong; it's just too early," Crichton said via e-mail.
As we pass his prediction's 15-year anniversary, I've got to declare advantage Crichton. Rot afflicts the newspaper industry, which is shedding staff, circulation, and revenues. It's gotten so bad in newspaperville that some people want Google to buy the Times and run it as a charity! Evening news viewership continues to evaporate, and while the mass media aren't going extinct tomorrow, Crichton's original observations about the media future now ring more true than false. Ask any journalist.
So with white flag in hand, I approached Crichton to chat him up once more. Magnanimous in victory, he said he had often thought about our 2002 discussion and was happy to revisit it. (Read the uncut e-mail interview in this sidebar.)
Although Crichton still subscribes to the New York Times and Wall Street Journal, he dropped the Los Angeles Times a year ago-"with no discernable loss." He skims those two dailies but spends 95 percent of his "information-gathering time" on the Web.
He concedes with a shrug that the personalized infotopia he crystal-balled in 1993 has yet to arrive. When we talked in 2002, Crichton scoffed at the Web. Too slow. Its page metaphor, too limiting. Design, awful. Excessive hypertexting, too distracting. Noise-to-signal ratio, too high.
Today he's more positive about the medium. He notes with satisfaction that the Web has made it far easier for the inquisitive to find unmediated information, such as congressional hearings. It's much faster than it used to be, and more of its pages are professionally assembled. His general bitch is advertisements in the middle of stories, and he's irritated by animation and sounds in ads. "That, at least, can often be blocked by your browser," he says.
In 1993, Crichton predicted that future consumers would crave high-quality information instead of the junk they were being fed and that they'd be willing to pay for it. He's perplexed about that part of his prediction not panning out, but he has a few theories about why it hasn't.
"Senior scientists running labs don't read journals; they say the younger people will tell them about anything important that gets published-if they haven't heard about it beforehand anyway," he says. "So there may be other networks to transmit information, and it may be that 'media' was never as important as we who work in it imagine it was. That's an argument that says maybe nobody really needs a high-end service."
It will take a media visionary, he believes-somebody like Ted Turner-to create the high-quality information service he foresaw in his 1993 essay. In addition to building the service, the visionary will also have to convince news consumers that they need it.
Sounding like a press critic, Crichton criticizes much of the news fed to consumers as "repetitive, simplistic, and insulting" and produced on the cheap. Cable TV news is mostly "talking heads and food fights" and newspaper reporting mostly "rewritten press releases," he says.
Crichton suggests that readers and viewers could more objectively measure the quality of the news they consume by pulling themselves "out of the narcotizing flow of what passes for daily news." Look at a newspaper from last month or a news broadcast.
"Look at how many stories are unsourced or have unnamed sources. Look at how many stories are about what 'may' or 'might' or 'could' happen," he says. "Might and could means the story is speculation. Framing as I described means the story is opinion. And opinion is not factual content."
"The biggest change is that contemporary media has shifted from fact to opinion and speculation. You can watch cable news all day and never hear anything except questions like, 'How much will the Rev. Wright hurt Obama's chances?' 'Is Hillary now looking toward 2012?' 'How will McCain overcome the age argument?' These are questions for which there are endless answers. Contentious hosts on cable shows keep the arguments rolling," he says.
Crichton believes that we live in an age of conformity much more confining than the 1950s in which he grew up. Instead of showing news consumers how to approach controversy coolly and intelligently, the media partake of the zealotry and intolerance of many of the advocates they cover. He attributes the public's interest in Mike Huckabee, Ron Paul, and the Rev. Jeremiah Wright to its hunger for a wider range of viewpoints than the mass media provide.
He tosses out a basket of questions he'd like to see the press tackle, some of which I've seen covered. "What happened at Bear Stearns?" got major play this week, after Crichton answered my questions, in a Wall Street Journal series. And I know I've seen "How much of the current price of gas can be attributed to the weak dollar?" answered a couple of times but can't remember where. (Answer: a lot.) But such Crichton questions as "Why have hedge funds evaded government regulation?" and what specific lifestyle changes will every American have to make "to reduce CO2 emissions by 60 percent?" would be great assignments for news desks.
"I want a news service that tells me what no one knows but is true nonetheless," he says.

Thursday, May 15, 2008

New study on digital magazine and newspaper editions: growth, trends, and best practices


New study on digital magazine and newspaper editions: growth, trends, and best practices
CAMBRIDGE MA, US: The Gilbane Group announced the general release of Digital Magazine and Newspaper Editions: Growth, Trends, and Best Practices, a pioneering and comprehensive study of the growing market for digital editions of periodical publications, earlier this week.

The study features statistics that, in an industry first, unify audited data from two sources (BPA and ABC) with data from unaudited publications. Highlights from the statistics include:
The number of business-to-business (B2B) publications offering digital editions has increased over 300% from 2005 to 2007, with total subscriptions also increasing over 300%.

The number of consumer publications offering digital editions has increased over 200% from 2005 to 2007, with total subscriptions also increasing over 200%.

Digital vs. print penetration of B2B subscribers is up from 13.3 to 15.0%, while digital penetration of consumer publication subscribers is down from 2.2 to 1.4%.

The 130-page report includes 22 case studies of publishers, representing several dozen digital edition titles, which showcase a number of industry best practices identified by the study's authors. These span a wide range including big-name consumer magazines (Hearst, Playboy), leading B2B publishers (Reed Business Information, American Legal Media), daily newspapers (Toronto Sun, The Guardian), and catalog and directory publishers (Welco, Canadian Donors Guide).

Insights
The report also includes insights from five publishing technology visionaries on the state of digital editions and ideas for how to make them work for publishers. Visionaries include Gloria Adams of PennWell, Brent Lewis of Harlequin Enterprises, Mike Edelhart of Infovell, Peter Meirs of Time Inc., and Marta Wohrle, formerly of Hachette Filipacchi.

Digital Magazine and Newspaper Editions: Growth, Trends, and Best Practices presents data from leading digital publishing companies. Contributors include Nstein, Nxtbook Media, Olive Software, and Texterity (Platinum Sponsors); Advanced Publishing, YUDU Media, and Zinio (Gold Sponsors); and Audit Bureau of Circulations and BPA Worldwide (Data Sponsors).

Authors of the report are Steve Paxhia, director of publishing strategy and technology practice at Gilbane, and Bill Rosenblatt, senior analyst. Both are said to be recognised authorities on publishing business and technology strategy and have worked with many different publishing businesses and technology vendors.

Impressive growth
Said Paxhia, "Our study shows that growth to date of the number of digital publications and the number of digital subscriptions has been impressive. While this paradigm shift is still in its early stages, there are plenty of examples where publishers using today's best practices have generated impressive results. This is the most exciting time to be in publishing since Gutenberg invented the printing press."

Frank Gilbane, CEO of the Gilbane Group, said, "This new report on digital publications illustrates our continued thought leadership in the publishing market, which is embracing many of the content technologies that we have been following since 1993. At the same time, it's only one of several first-of-a-kind market studies that Gilbane Group is releasing this year."

The study is available for immediate download at http://gilbane.com/Research-Reports.html.