Michael from Microsoft suggest a great service from Maghound. Maghound offers online membership which allows you to choose, change and manage magazines for a fixed amount per month. For example for $4,95 a month you can choose 3 magazine titles from the hundreds of titles. Seven magazines will cost $ 9,95 a month. This Time Inc company understand the needs of today's "zapping" behaviour of consumers; adding or changing titles is easy.
Advertising Age ran an article from Cathie Black, the President of Hearst Magazines, on the future of magazines. A great read when you want to hear some positive news, like 2008 featured 715 magazine launches, readership of magazines increased since 2000 with 14%, whilst newspapers and TV lost readers and viewers and total magazines circulation in 2008 was flat compared to 2007 at 345 million copies.
I came across a very interesting list of articles on the Life, Death and Rebirth of Media via Patou Nuytemans. It includes articles from the USA and Europe about the developments in the print media. An excellent read.
The current economic situation will move advertisers to run more often the same commercial or ad. This despite the increased wear-out of TV commercials. Wear-out refers to a situation that an ad or TV commercial gets unnoticed - because of lack of interest- or even creates irritation because of the high showing frequency. For print advertisements this point is reached after three ads, which proves the effectiveness of print advertising. This figure has been stable over the last 10-15 years. For TV advertising the wear-out figure has plummeted from 15-20 exposures during that same period to only 8 now. Advertising Age has some interesting views on this subject in a recent article.
I saw this great example of integration of online and offline media in the German press recently. It uses a print ad, 3D software, a webcam and the internet to show a Mini Cabrio on the ad. It looks like the work of David Copperfield! You can be your own illusionist by downloading this pdf and by following the German instructions on this website. By the way this new technology also come with a new name: Augmented Reality.
Last week I presented a Future Perspective on Print Media to a group of Dutch advertising and graphic professionals, all of them clients of Spijker and Scaldia. As always happens with this presentation there was a lot of interaction and discussion. On one point we all agreed: innovation is key for print media to maintain its current position. The Esquire cover was seen as an innovation and a way for magazines to attract readers. When magazines do so these impressive machines can continue producing fine paper.
This week marks the Magazine Week in the UK featuring a "buy one, get one half price" promotion, a poll on Britain's favourite cover and various promotional activities in retail stores. The theme of the PPA is "Indulge your passion.. try another magazine today". For the advertisers and media agency there are plenty of facts that support the strong position of magazines: consumers spend ₤ 2 billion on magazines each year, more of the internet generation read consumer magazines than any other age group, average reading time of a magazine is 50 min. and a magazine is picked up 5.4 times before it is finished with. I'm wondering whether the consumer and b2b sides of this campaign are compelling and unique enough to be convincing.
In the US the Magazine Publishers of America (MPA) also launched a B2B campaign titled "Under the influence of magazines". This campaign consists of magazine ads, online ads and a website and is directed at the marketers and advertising agency industry. Key message is the sales impact magazines have. A separate website covers the research that supports this claim. The US magazine market also shows a decline in the number of ads placed. Over the first half of 2008 the decline was 7.4%. The initiative comes just a couple of days prior the the annual magazine conference titled Unleash the Power.
Claiming results to sell media space is also the message of online advertising and was the message of TV advertising. Despite the convincing facts it remains uncertain whether magazines will become HOT again among planners and advertisers thanks to this $ 1 million campaign.
To commemorate Esquire's 75 anniversary the magazine has published a limited edition October issue using so-called electronic ink on the cover. This allows moving words and flashing images on the cover. The technology behind this remarkable cover is a thin sheet with electronics, fueled by a battery, that bends with the cover. Esquire mentions in an article in the magazine that it took them more than a year of serious development and innovations in the production of the magazine. In the meantime it invites hackers to work with the electronics. Ford's advertisement at the inside cover also uses the e-ink to make the car reflecting the street lights. As the magazine is produced at limited quantities the collectors value is big, eBay prices range from $14,99 to $99,99 for a single copy. (I've ordered mine with a good friend in New York).
I invited Thomas Stickelmaier from Time Magazine to present the recent Magazine Experience survey to Sappi Europe. Although the presentation provides many convincing arguments to continue using magazines in the media mix, the presentation felt short of assuring the audience of the future of magazines. The presentation did not provide an unbiased view of magazines nor did it provide further details on -for example- the role of magazines for younger readers. I believe that promoting the use of print media will only be successful when an objective view is provided, including shortcomings of print media. Below you can view the European and the US survey.
EMS, the European-wide media study revealed last week the results of its latest survey. EMS researches the affluent and influential people in Europe and is a valuable balance to many single-media, single-country studies. The study confirms what so many individual surveys have indicated: print media are steady or slightly in decline. On average pan-regional titles were read by 25,3% of the EMS sample, which is a decline of 1.1% compared to last years figures. Individual titles had very little movements, with the free newspapers increasing their average issue readership (AIR).
The EMS survey makes a distinction between the Top 13% and Top 3% (EMS Select) in its sample. The more affluent the higher the readership for print and reach of television. AIR for pan-European (News and Business) print was at respectively 7.2% and 15,3%. Reach of pan-European TV (News and Business channels) was 42,7% for EMS and 53,8% for EMS Select. Next year digital usage will be added to the survey. This will offer an even more complete view of media consumption of this exclusive and influential group of people. Especially in B-to-B and corporate marketing this survey is relevant as C-suits (which are often the target audience in B-to-B) are among the target group of EMS.
Reading magazines is, for 22% of the respondents surveyed by Time Inc, regarded as "a gift to myself". A third of them take special time to read a magazine (45% of the C-suits do so). This research titled "Magazine Experiences" also shows that 96% of the respondents expect to read at least as many magazines in the next 12 months. The research presents evidence about media multi-tasking consumers: watching TV is hardly a unique activity, 38% of viewers are at the same time online. The effectiveness of TV is already questionable but these figures put also sole attention to television in a different perspective.
I have not yet read the full research, as soon as it is available I'll include the link.
I was invited by Kris Decoodt last week to Microsoft's Digital Inspiration event in Louvain-la-Neuve. Microsoft wanted to brief brand owners, creative and media agencies and programmers on the latest developments at Microsoft. I sat in a session specifically designed for agencies, but was somewhat disappointed. There was some interesting research about the use of online media and its function. On the basis of worldwide research among 400 respondents Microsoft deducted that 19 percent of all time spent with media is spent online. And almost 40 percent of this is used for communication, 18 percent for information, 16 percent for entertainment, surfing, transaction and creation all score less than 10 percent. The flaw on online media is the shared attention: 71 percent of online activities are conducted while people are doing other things. Internet access is interwoven with working, eating, watching TV, listening to music or chatting to friends as the report mentions.
Some interesting examples on online advertising were shown by David Pugh-Jones. A couple of these examples uses the Q-code or UpCode. This code gives access to more detailed information when captured with a mobile phone. A year ago I wrote about this application in Life with Print, and at the DRUPA it will also be featured.
The number one sensation was of course Steve Ballmer, Microsoft's CEO. The Aula Magna of the University was packed with Microsoft believers, what became quickly clear when Steve B. made some jokes. He presented an interesting overview of which business Microsoft is in (its basically a software company, working for desktop and enterprises, is involved in non-PC devices and online advertising). With a goal of being on every desk and in every home. His most important quote was that content and communication media will come together and that we will consume content in a more social context. Video can be watched on different screens, be it a TV, a computer, and iPod or a game console. Barriers between the media will disappear and content will be exchangeable between these media. In this context Steve B., as he refers to himself, also announced that in 25 years time people will not make a distinction between print and TV. I would be interested in Rupert Murdoch's perspective on this.
(Picture:Bert Claeys)
I was reading about life hacking (programmers productivity tricks) the other day and that made me think of the way we select, process and memorise information. It seems to me that the abundance of information on the Internet suggests the illusion that we can know and learn everything. However because of the enormous amount of information that is scattered over the Internet we will never be able to maximalise our know-how. What is lacking are these life hacks that help us to select and collect the most relevant information. Search engines help us to identify the articles, images or video on the net, but we still have to rank them in terms of importance, credibility and accuracy. Most of us do not have the time for that.
Therefore consumers and businesses rely on editors to select the information. The continuous increase of the number of magazine titles demonstrates that consumers value editors that can put together information relevant for specific segments. And it is the credibility of the magazine or newspaper brand that is the reason to believe the information.
Online consumers and businesses develop other tools: lists, social networks and referrals are the new tools to select and optimise their information need. I believe that the need for editors will continue to exist and that they can help reducing the information stress related to the information overload.
Imagine a magazine the size of 1.5m by 2m, with no advertising, on display at café's, bars and bookstores, with no strict editorial goal but with a very strong design appeal. This one sheet magazine is called "Is not Magazine" and available in major cities in Australia. It is pasted on outdoor posters sites in Melbourne and Sydney and also available at indoor poster sites in bookstores and bars. The poster magazine can be read like the "wall papers" in China and can be ordered for €17 and will also do great as decoration.
When magazines are added to a mix of online and television advertising purchase intention increases with 7% (vs TV and online 5.6%), brand favourability increases with 7.3% compared to 4.5% with TV and online. On other brand metrics as aided brand awareness and advertising awareness the effect of adding magazines is important but less impressive.
Recent research of 32 cross-media campaigns across ten categories by Dynamic Logic (a Millward Brown research company) provides strong evidence for the use of a mix of different media. And the important role magazines play in the effectiveness of advertising investments. Magazine effectiveness represent for example 62 % of the combined effect on brand favourability. The research also shows the limited value of online advertising on the five metrics. The incremental effect of the online investment tops at 22% of the combined effect.
This is the second analysis made by Dynamic Logic, I have reported on earlier research (17 cross-media campaigns) in the Sappi publication Life with Print. Comparing both pieces of research the striking decline of effectiveness of online media becomes apparent. Online advertising' share topped at 38% on the brand favourability metric.
It seems that this new research -based upon more cases- includes the effects of diminished newness and therefore attention of online media.
The MPA (Magazine Publishers of America) published a week ago further proof of the effects of integration of media. I've written about integration before, the various pieces of research confirm with strong evidence that magazines boost traffic to websites. And have a strong effect on purchase intention. The effect on website visits, after having seen an automotive ad in magazines, was strongest, traffic almost doubled. Online media need offline media to generate traffic was confirmed by a survey of BIGresearch. Magazines scored best among the Top 10 media to trigger online search, TV scored second and newspapers third. Internet advertising scored only a ninth place at slightly more than half the score of magazines. Magazine brands are strong brands as another study showed. After having watched an online video ad on a series of sites, consumers turn most to magazine sites for further information, significantly more often than going to online portals.
Integrating media and the interaction between media is making media planning a lot more complex and interesting. Understanding the role of print media in this new media landscape goes beyond readership surveys. Tools need to be put in place to trace the path consumers follow after reading.
I did a presentation two weeks ago to an international company in Belgium about the impact of Internet channels on their B-t-B media mix. During the discussion we started talking about the way consumers deal with the lack of trust related to news or insights presented via the web. The equation "for free = no value = no trust" holds true for a great number of people. A study from Forrester shows that although trust in traditional media as television, newspapers and magazines reduced over the period 2002-2204 , it is still more than double that of Internet. However consumers develop alternative strategies. When asked who they trust for product information, consumers rate recommendations from friends/family, online consumer opinions and requested email updates higher than advertisements on television, radio or magazines. Other research from Forrester shows that more than 20% of European online consumers sent a link to friends or family and also visited links provided by friends or family. It looks like that word-of-mouth and buzz marketing is the driving force behind the growth of social networks. This could also imply a revival of customer magazines on the condition that customers can participate.
Sappi Fine Paper launched at the first Interactive Advertising Bureau Europe (IAB) Conference the third booklet in the Life with Print serie. At the European summit of internet interactivity the paper manufacturer presented a point-of-view on how traditional media and new media integrate to the benefit of effectiveness. This booklet covers interviews with leading people from MasterCard Europe, Carlson Marketing, IAB Europe and Philips, includes international cases from Microsoft, Eurostar, Timberland and Napster, views from Joseph Jaffe, Rupert Murdoch and Pelle Törnberg and research on how integration of internet boosts the overall effect of print campaigns.
The Life with Print programme -developed by Frysk- is addressing advertisers, media and creative agencies and underlines the importance of print media as part of the media mix. The programme is used worldwide with emphasis on Europe, USA, South-Africa and Asia. Other booklets in the series are "Direct Mail in the media mix" and "Brochures and Catalogues in the media mix". The booklets can be ordered via LifeWithPrint@sappi.com
Eija Ailasmaa, President and COO of Sanoma Magazines, gave her view on the developments on the magazine markets. Interesting figures about the number of launches (590 new titles in 2005 in UK, 150 in 2006 in Sweden), with declining average circulation figures ( -5,4 % for women magazines in The Netherlands during the period 2000-2006) new introductions remain imperative. But introductions are expensive as Portfolio in the USA shows ( estimates range from $100-150 mio). After free newspapers Ailasmaa also referred to free magazines as a major development, Sport in London is a great example, and also cultural city guides or customer magazines. The growth area is online, Sanoma showed a 42% increase over the last period. However online represent today only 5% of total revenues. Nevertheless it will shape the industry according to Ailasmaa.
The 2006 figures from the Publishers Information Bureau (PIB) in the USA show that total magazine rate card revenues are up 3,8% compared to 2005. Total ad pages were flat at -0,1% compared to the preceeding year. Drugs and remedies is the largest category representing 10% of total magazine ad dollars, Automotive -that is spending a lot online- still buy most ad pages. The strongest growth comes from Retail showing an increase of 20,5% in dollars and 10% in ad pages. This growth figure is surprising given the interest this category has for online media.
