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Archive for the ‘Magazines’ Category

  • May
  • 1

How are Magazine Publishers Reacting to Declining Print Revenues?

How_are_Magazine_Publishers_Reacting_to_Declining_Print_RevenuesWe’ve been predicting there’ll be a ’shake out’ in the magazine world for quite some time and last week saw a major casualty with the demise of Bauer’s ‘More’ magazine after 25 years of publication.

Although the shut down of so high profile a title came as a surprise, a look at More’s recent circulation figures made the reasons easy to understand. The July to December ABCs revealed a 40% fall in weekly circulation to plunge the magazine below 100,000 for the first time, and this despite a an reader research-led revamp last Summer involving a move away from celebrity-focused editorial.

Magazine publishers are still struggling to find lucrative alternatives to print circulation and advertising revenues. Audiences are moving online and, with so many alternatives for advertisers in this environment, publishers are struggling to replace offline revenues with online ones. Bauer clearly decided the prospects for future ad revenues weren’t good, online or offline, so ‘More’ had to go.

Different publishers are approaching this core challenge in different ways.

For example, whilst Bauer is selectively trimming its magazine portfolio, they’re also selectively expanding in other areas.  Their acquisition of Planet Rock in February, a loss making radio station previously owned by millionaire and rock music fan Malcolm Bluemel, reflects their view that radio in general is a growth media and that guitar music in particular is a fast growing genre.  Further radio acquisitions may follow – Bauer is believed to have held talks to buy the loss making Absolute Radio.

Bauer may be shifting the balance of power of their media portfolio in reaction to the changing media habits of consumers but IPC have taken a different approach. Their response has been to align their commercial offering more closely with the needs of advertisers in the hope that more attractive formats will help to boost flagging advertising revenues across their existing portfolio.

The owner of Marie Claire, Look and InStyle has launched a new advertising position across all its titles – Inspired Conversations. The aim is to connect advertisers more closely with IPC’s editorial content – a shift towards ‘native marketing’ we predicted earlier this year – and to offer a more holistic solution to their advertisers challenges across their magazine portfolio.

Take IPC’s new ad product Amplify, launched earlier this month. Amplify  involves the advertiser taking over a section of an IPC title’s site relevant to the campaign. This advertising unit features both the advertiser’s creative and IPC’s editorial content. Consumers who interact with the advertiser’s creative are driven to the advertiser’s chosen site, and those that interact with the editorial content are driven back to the section of the IPC brand’s website that is sponsored by the advertiser. So far, so good, but that’s not all.  Using RadiumOne’s data-driven advertising platform, IPC can analyse who’s interacting with the advertiser’s content and how they’re interacting with it to identify a relevant audience with purchase intent.  The advertiser-sponsored content is then served (or amplified) to other audiences who fit this profile across IPCs range of sites.

IPC has also launched Social Catalyst, a venture which will use PeerIndex’s network of over 150,000 key influencers to generate genuine word of mouth for advertisers across Facebook, Twitter, LinkedIn and Quora, in addition to other blogs and websites.

And more advertising innovations will follow – 2 new advertising initiatives are to be announced in the coming weeks and further research is being undertaken with advertising partners into how consumers engage with brands, content and advertising across all platforms.

Trimming your portfolio and trying to extract more value from your existing portfolio are 2 strategies you’d expect in a sector in decline, but surely launching new titles is counter-intuitive?  Well, that’s exactly what challenger brand Shortlist Media are doing.

However, it’s new title – Never Underdressed – will be digital only.  The fashion title, which is being pitched against market leaders such as Elle, Vogue and Marie Claire, will launch next month on desktops, tablets and smartphones only.

Of course the content will be key to its success but Shortlist are also banking on a range of ‘innovative and immersive new advertising formats that extend across desktop, tablet and mobile and allow brands to deliver…high impact campaigns across all platforms simultaneously.’ They’ve certainly appointed a team to deliver digital advertising innovation  with the project being headed by Carrie Tyler, the former digital director of Elle, as editor, and Lucy Alexander, the ex-digital ad director of Elle, as publisher. It will be interesting to see if a ‘mobile first’ product can cut through the clutter in the women’s magazine world and deliver a solution to advertisers markedly better than those titles adapted to the mobile environment.

Which strategy will succeed? Perhaps all of them.  Some titles are clearly past their sell-by date, publishers need to offer ad formats that are less interruptive in line with general trends in advertising, and the lower costs of distribution of digital only products will make easier to launch challenger titles. And publishers need to try new things – otherwise their influence over consumers and their share of advertising revenues will continue to fall.

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By: Carrie Millard

  • Apr
  • 17

What Brands can Learn from Net a Porter’s Approach to Content Marketing

Net_a_Porter_The_Collections_Special‘Content marketing is the art of communicating with your customers and prospects without selling…Instead of pitching your products or services, you are delivering information that makes your buyer more intelligent. The essence of this content strategy is the belief that if we, as businesses, deliver consistent, ongoing valuable information to buyers, they ultimately reward us with their business and loyalty.’

This extract, from the Content Marketing Institute, succinctly sums up the theoretical basis of content marketing.

With reference to Cialdini’s 7 laws of persuasion, content marketing plays on the ‘law of reciprocation’ – if brands give consumers something that they value (i.e. useful advice) then consumers feel the need return the favour (i.e. by making a purchase). Good content marketing works on other levels too – making a brand more likeable and approachable and presenting it as an authority – factors that further deepen the relationship with the consumer and make the brand even more persuasive.

Many premium brands are starting to wake up to the power of content marketing but one that saw its potential right from the start was Net-a-Porter.
Back in 2000 when Natalie Massenet founded the luxury fashion etailer, she envisaged it as “fashion magazine of the future,” offering consumers a seamless path from inspiration to purchase. Until recently, this vision took the shape of a layer of editorial that sat atop the product selection, providing buyers with a point of view on the current season. However, in the past couple of months, things have moved to a different level.

It all started in February of last year when Tess Macleod-Smith, who was Publishing Director for Esquire and Harpers Bazaar, was recruited to develop a new media and publishing division at Net a Porter. The aim was to use content to broaden the audience and to attract advertising revenues to complement Net a Porter’s core transactional revenues. Macleod-Smith’s Editor-in-Chief at Harpers Bazaar, Lucy Yeomans, followed soon after and the first fruits of the division were announced in February this year.

First came the launch of The Edit, a digital magazine distributed to 1.5 million Net a Porter customers every week. The themed editions demonstrated Yeomans’ editorial influence – rather than just focusing on new products on the site, Yeomans’ aim was to create something different. Her philosophy for The Edit, ‘ …it’s considered, it’s curated, it’s not reactive, it’s putting something together with a real point of view.’

Perhaps counter-intuitively for an online brand, The Edit’s launch was accompanied by Net a Porter’s first foray into print with the launch of The Collections Special. Featuring shoots by Paolo Roversi, David Bellamere and Liz Collins, the 104-page magazine showcased the spring collection whilst carrying advertising from the likes of Valentino, Gucci, Michael Kors and Alexander McQueen. It was distributed to 120,000 of Net a Porter’s top customers who had expressed an interest in print.

But the most ambitious project is yet to come. This Autumn will see the launch of a 300 page magazine, featuring content ranging from world class fashion shoots and style pages alongside features on beauty, travel, art, culture and politics. The new title will be available on newstands globally and via subscription, will be available 6 times a year and will feature APP technology to make it shoppable.

How should other premium brands react to Net a Porter’s content marketing approach? We think there are several lessons to be learnt.

Firstly, it’s about giving something of value to your customers, not just thinking about your own products. These initiatives feature editorial on brands that Net a Porter doesn’t feature and content that will entertain, inspire and inform their readers in other aspects of their lives beyond fashion. In addition, they will be open to advertisers who’s product doesn’t feature in Net a Porter’s tightly curated collections. As Yeomans explains, ‘ You can’t cover Asian influences without talking about Prada. You can’t do geometry without talking about [Louis] Vuitton. We have to make sure we are looking after the… [customer] first. Not everything will be shopable via Net-a-Porter, but we’ll make sure her path to buy those things is as easy as possible.’

It could be argued that it would be difficult to meet advertising revenue targets without opening up the opportunity to a broader stable of brands, but this approach also demonstrates a brand with confidence in its offering, and with its readers’ best interests at heart.

Secondly, it’s about knowing your customer. Yeoman’s can draw on the findings of Net a Porter’s 7,000 strong customer panel, each of which keeps a detailed diary. It’s difficult to pitch content correctly unless there’s a deep understanding of how your customer lives their life, what they want out of it and what other content they consumer and how.

Finally, it’s clear that if a pure online player is prepared to invest in print, then print remains a significant channel for luxury brands. Yeomans justification is simple, ‘ I really love print and I think there’s something incredibly luxurious about it…[but] for me, it goes back to the [customers]. They buy four or five magazines per month…’ Net a Porter need a print offering because their customers love to consume print.

Of course, one of the benefits of this approach to content marketing is the ability to build a deeper, direct relationship with their customers – a relationship which bypasses traditional publishers and potentially saves brands a hatful of marketing spend.

Publishers are alive to the threats and are working hard to add their own new revenue streams. Cosmo’s Shopping Genie app demonstrates the way things are likely to go, with magazine brands leveraging their role as trusted adviser to drive commercial revenues from purchases.

Publishers stepping into ecommerce. Retailers becoming publishers. Both parties seem set on a collision course. The next few years are going to be very interesting indeed…

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By: Neil Cunningham

  • Mar
  • 20

Hearst to Launch Cosmo Fashion

Hearst_Launches_Cosmo_FashionHearst are to launch a new bi-annual fashion extension to the successful Cosmopolitan magazine franchise – Cosmo Fashion.

Under the creative direction of Shelly Vella, Fashion & Style Director, Cosmo Fashion is being positioned as a ‘premium book which will deliver gorgeous, inspirational main fashion as well as dedicated watch, jewellery and accessory features.’ It will also include a page on male fashion to help readers to keep their men stylish too.

With an initial print run of 100,000, the new title will have a premium look, with an uber-sized coffee table format, foil-blocking on the cover to attract the newstand magpies and content showcased on glossy solaris paper stock. The first edition will be available from 18th September, a day after the end of London Fashion Week SS14.

On the digital front, the main key vehicle for this new fashion content will be a new weekly enewsletter to be sent to Cosmopolitan’s existing subscriber list. This will link to new content on the site which will include ‘behind the scenes’ insight into the making of the Fashion issue, as well as ’secret’ content that will be unlocked during the Fashion Weeks in September. A Little Black Book’ of the trendiest and must be places in each of the fashion capitals (London, Milan, New York and Paris) is also promised.

This new venture is very much in line with Hearst existing strategy of launching magazine extensions – recent ventures have included Company Edit and Cosmo Body. It’s cover price, at £6, although a significant premium on buying the magazine (£3.60) is broadly in line with other dedicated fashion titles such as Elle Collection (£7) and Marie Claire Runway (£6).

There’s no doubt that Cosmopolitan readers are an attractive demographic for premium fashion advertisers.  The magazine’s own research has found that their readers account  for £1 in every £14 spent on fashion in the UK – more than the readers of any other magazine. And it’s reach amongst AB women in the UK – almost 400,000 in total - is unsurpassed. 

But Cosmopolitan has been an unattractive advertising vehicle for some premium fashion brands because of the ‘racy-ness’ of much of its content. A magazine dedicated to fashion overcomes this problem and means premium fashion brands can access these readers without worrying about compromising their brand values.

And the tone of the new magazine will help to. Its aim is to be fashion shopping bible, rather than purely a fashion look book like some of its competitors. The Cosmo Shopping Genie app will be heavily promoted on its pages offering advertisers the enticing possibility that interest will be turned straight into purchase.

In short, we think this will offer a quality environment and highly relevant audience for premium fashion brands without any of the content concerns that come with it’s ’mother’ title.

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By: Carrie Millard

  • Feb
  • 20

Men’s Magazine ABCs: July to December 2012

Shortlist continues to hold the top spot in the men’s sector with a year on year rise in circulation of 1%, their 10th consecutive increase.

Shortlist, like Stylist, has expanded into many areas digitally with the launch of their daily email newsletter Mr Hyde and their innovative Blippar issue. The Blippar issue, which they ran at the end of November, was a great success receiving 227,000 ‘blips’ and 51,000 unique users making it the biggest ever execution Blippar have worked on with any media. Technology of this kind will become a must for advertisers to consider this year as it allows consumers to develop a much stronger brand connection through its interactive capabilities. In addition to their digital expansions, Shortlist’s dedicated fashion title Mode made its first foray into the ABC reports with an exceptionally strong circulation of 268,879.

Though both Shortlist and Sport remain in poll position in the men’s lifestyle sector ahead of the paid-for titles, Sport has seen its first decline since 2011. This is perhaps surprising considering the impact of the Olympics and the resultant heightened interest in the sports sector.

Mens_Magazine_ABCs_July_December_2012_Chart1

Men’s Health remains the market leader among the men’s paid-for titles, despite a 6.3% period-on-period circulation decline, to 202,704. As expected, however, Men’s Health digital figures are very impressive, boasting 12,676 this period and continuing to grow. Looking at a combined print and digital figures their circulation numbers are down but not quite so significantly at -2.6% YoY and -0.4% PoP.

Some of the titles within the men’s market really are struggling with almost 50% of titles experiencing a loss during the six-month period, with bi-monthly magazine Healthy for Men taking the biggest hit, -20.5% PoP and a huge -35.8% YoY.

Upmarket men’s magazines Esquire and GQ outperformed rival lads’ mags with a robust set of sales figures in the final half of 2012.

Esquire reported a 12.6% sales rise, to 61,579, in the six months to December compared to the previous half year. This represents its highest print ABC figure since 2005 and is reflective of its huge success on the UK newsstand. Other titles in the market are either flat or down on the newsstand, which highlights the success of the brand under editor Alex Bilmes and the impact of world exclusive covers such as Daniel Craig, Rihanna and Cameron Diaz.

In addition, Esquire continues to have a strong multi-platform presence, with Esquire.co.uk engaging with more than 130k unique users a month and a ground-breaking re-launch is planned soon.  With the digital edition becoming tablet-optimised from the March issue onwards, Esquire expects even more growth with their affluent and early adoptive audience. The brand will continue to grow in to new areas in 2013 with the imminent launch of luxury bi-annual “The Big Black Book”.

GQ is also performing well, bucking the general market decline and remaining static YoY & PoP. There have been no alterations on their cover price or subscription price changes to encourage additional sales either which is positive and Conde Nast have been investing in digital outdoor advertising to help recruit new readers of the title.  This year marks the 25th anniversary of GQ which will culminate in their December issue which they are expecting to be their biggest issue ever and will include plenty of partnerships & promotional activity.

GQ is one of the highest read magazines digitally and, as with Men’s Health, the GQ digital figure is really helping to bolster their print circulation.  If we include this figure in a total circulation, GQ has had a YoY increase of nearly 10%. Men’s Health & Esquire are still only flat pdf/Zinio style downloads whereas GQ have their fully interactive, all-singing, all-dancing app. We would then expect that once Esquire launch their tablet-enabled app in March their digital numbers will rise and perhaps even eclipse those of GQ.

Mens_Magazine_ABCs_July_December_2012_Chart2

Wired saw a minor circulation dip of 2% in the final half of 2012, to 51,105. Compared with the same half in 2011, sales are steady at 0.1%.

The ‘lads mags’ market are really struggling to hold onto their newsstand numbers. Nuts have been hit the hardest with almost a 30% decline since Jul – Dec 2011. One of the reasons we could attribute to the downfall of the ‘lads mags’ market is the increasing availability of this kind of content online. Websites such as Buzzfeed provide the humorous anecdotes; newspaper sites provide the sport and so on. All of this can be so easily accessed at the click of a button for free and perhaps print versions of these without video content are now obsolete for the male audience of today.

In summary, men’s lifestyle as a whole is actually up 9% YoY, despite the struggles of some titles, with Shortlist remaining top. Freemiums are still leaders of this sector despite Sport taking a decline. We expect Shortlist will continue to grow as they are able to keep testing and launching in new regions.

Although it seems many men’s print titles have declined the strong digital presence has lessened the gap and before long they will be able to quote these as a whole coverage figure. This will be of particular relevance as titles like Esquire launch their fully interactive tablet enabled editions.

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By: Lucy Jennings

  • Feb
  • 20

Women’s Magazine ABCs: July to December 2012

The women’s lifestyle sector has seen further decline since the last ABCs (Jan-Jun 2012). In the previous period, 8 publications increased their print circulations.  Between July and December 2012 only 3 managed increases, with the picture one of almost universal decline – More!, Psychologies and Company were amongst the worst hit.

Womens_Magazine_ABCs_July_December_2012_Chart1

Stylist maintained its place at the top of women’s lifestyle sector after posting positive figures for four consecutive periods. Glamour comes second in the sector but still leads the way in the paid titles despite a sharp decline of 9.8% PoP and 9.1% YoY.  However, with Glamour still to officially launch their iPad edition in their April issue, it will be interesting to see how this changes in the next period.

Easy Living had a YoY increase of 7.1%. The February issue was the first in their new ‘iPad’-sized format, which is considered to be the next stage up from Glamour’s handbag-sized design. In a struggling market this re-format has made the magazine easier to carry around but still with the realistic, relatable content for women 30 and above – most likely responsible for this positive increase. However, we must not forget the title’s recent price drop which must also have proved a good incentive (£3.70 to £2). When you put this into the context of its nearest competitor Red magazine – priced at £3.90 – it’s not surprising that it’s stealing some share.

Harpers Bazaar has also seen a restructure as Justine Picardie joins as new editor. Primarily an author, Justine has re-vamped Bazaar. The 3rd issue into her editorship is the biggest to date – including a new take on shoots and editorial. Harking back to the style of Bazaar editor Diana Vreeland, the magazine will revert to their old traditions – for example, the launch of ‘Why don’t you?’ in answer to Red Direct and Vogue’s More Dash. They’ve also launched “Bazaar Shops” – editorial focused on the high-street – recognising that their readers do not wear head to toe designer and prefer to mix their look.

Elle, Red and Instyle have remained relatively stable despite their slight YoY declines. Instyle has actually increased PoP by 1.5% and Elle 2.27%. Red have just appointed new Editor Sarah Bailey (former Deputy Editor of Harper’s Bazaar) who’s new take on the publication will be interesting to assess in the next period.

Worst hit this period are the celebrity focus magazines – in particular Look, More! And Hello!  – dropping by an average of 10% period on period. A reason for this further decline is that online outlets for fast gossip such as the Mail Online – which has over 2 million unique users – are easily accessible, making print gossip fast obsolete.

This is further reflected by the growth of the digital  and social media properties of these titles – although Reveal suffered a 24% YoY decrease in circulation, its website attracted more than a million visitors in the last 7 months and 400,000 unique users in January alone, illustrating the strong hook of the brand itself. 2013 my see a timely bonus for these titles, however - with a royal baby soon on the way, Hello! in particular could see a boost to their circulation (UK newsstand sales increased 27.3% the year of the Royal wedding).

Company also took a hard hit this period, dropping -10% PoP. This has a lot to do with focusing on fashion only, removing lifestyle and repositioning itself in the market to avoid being referred to as ‘Cosmo’s little sister.’

Cosmopolitan tells a similar story of sharp print circulation falls – dropping 12.7% compared to the first half of 2012 to record an average monthly circulation of 308,482. This represents an 18.3% year-on-year drop for the magazine, according to latest official figures.  It does have a strong digital presence, with a circulation of 10,841, but this is not enough to bridge their shortfall. Cosmopolitan have justified the recent figures by stating the magazine is made around quality rather than volume – turning down discounting the magazine as well as removing promotions that brought the brand more down market. So although the audience has dropped it is from the lower end of their demographic.

Arguably what is represented in this period’s print figures is innovation and experimentation. For example, Click-to-buy apps are becoming more prevalent in the fashion magazines after the success of Cosmo’s Genie app and Reveal’s ‘See It Buy It’ app, launched last May. The total circulation of digital editions has rocketed year on year, up over 260%. But this is only half the story. The full impact of the rise in tablet sales over Christmas and the effect it will have on print brands as a whole will, we hope, manifest itself positively in the next consumer release due this summer.

There is currently a low number of iPad editions, the majority of titles have been content with either Zenio editions or straight PDF. Conde Nast have been the main market leader in this sector with Wired, Vogue and GQ all being interactive. With the constant pressure for brand extension, Hearst are leading the way in cross platform solutions across the young women’s group – Red, Cosmo, Company – and boast a higher collective circulation of their women’s titles compared to Conde Nast.

In Summary

Despite the fact that the majority of women’s lifestyle titles have declined, this year promises a new dawn with digital downloads being counted as a net figure. No doubt we will see many titles finally jumping on the interactive iPad bandwagon in order to boost their own figures.

Womens_Magazine_ABCs_July_December_2012_Chart2

With the multitude of magazine touch points available advertisers can now benefit from multi-channel consumer engagement. Digital platforms also offer accountability, something we haven’t been able to execute fully in print. They offer rich media and bespoke formats and interactive content which are exciting and engaging and have direct connection to transactional services. Hearst are forever innovating their 360 degree offering. Red will soon launch their extension, Red Local. Hearst have also shrewdly partnered with The Hut Group – multi-website online retailer – to develop a new e-commerce initiative of developing commercial websites for their magazine brands.

It will be interesting to see what Glamour will do in the future. Yes, they have WOTY – but what else is there on offer? We have seen that titles like Stylist have a lot of room to grow, and Hearst are continuing to increase their cross platform offering – what will become of the nation’s favourite young women’s title?

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By: Carrie Millard