An average of one new regularly published consumer print magazine arrived on the scene every other day in the first half of 2013. There was no let down in new magazine titles reaching the nation’s stands in comparison to the same period in 2012. As we approach the end of the second quarter of the year the numbers are holding up at 389 titles compared to that of 394 in the same time period of 2012. It should be noted that, historically speaking, more new magazines are published in the second half of the year than the first half.
The number of titles published on a regular frequency in the first six months of 2013 reached 96 titles compared with 100 titles in 2012.
New magazines, all in print… as in ink on paper, continue to arrive at the market place at a very fast pace that seems not to be affected by the economy or the downturn in sales at the single copy front.
Needless to say the phenomena of bookazines continue to lead the way and titles devoted to single topics are the leaders of the new magazine crop of 2013 thus far. Note from Mr. Magazine™: All the numbers mentioned above are from actual copies of said magazines, all bought or mailed to me. Those numbers do not include magazines to be published or magazines that were not purchased or obtained. It has been my policy that if I do not have the actual physical copy of the magazine I do not include it in any count.
The American magazine business model is not one that depends heavily on single copy sales. It is a subscription based business model. No wonder than that some publishing companies seem disconnected from their newsstand departments despite the fact that sales at newsstand exceed 3 billion dollars and more than 100,000 stores sell magazines in the United States and Canada. Newsstand is a leading indicator of consumer trends but its complicated distribution system and financial terms such as RDA, IPO, rack fees, etc. make it difficult to embrace. In spite of its complexities, however, newsstand should be at the forefront of publishing because of its ability to predict future successes and failures for a publisher.
For example: Editors at a top-ranked, niche magazine radically adjusted editorial focus based upon two factors: a change in advertising strategy designed to expand sales opportunities, and recognition that the existing audience for the niche was contracting. The publisher’s marketing projection predicted a small decline in readership from core subscribers, but believed the gains from the new audience would outstrip the losses. The results, however, were far worse than the projections. The title successfully grew the new desired audience, but the success was mitigated by a rapid decline in existing audience. My team provided the disappointing results to consumer marketing, warning that similar declines might be recognized in renewals, and ultimately in direct mail results. Indeed, newsstand predicted the consumer marketing declines accurately and ultimately the title folded.
In the second part of the Mr. Magazine™ Interview, Luke Magerko continues his explanation on how we can fix and enhance this important venue of magazine distribution. Click here to read part two of the interview.
You know it’s no surprise if I tell you I’m bullish on the printed magazine. I only call them magazines if they’re printed; otherwise I call them magazine media.
But you don’t have to take my word for it. You don’t have to take the word of any media pundit, reporter, or analyst. People who know more about printed magazines are those who actually publish magazines.
In this mini-documentary Mr. Magazine™ Presents: Bullish on the Printed Magazines, you will see and hear top magazine media executives tell you why they are bullish on the future and power of the printed magazine. Also, below are five sound-bites from the top magazine media executives and the transcript of the interviews.
Now for the sound-bites:
Mary Berner, CEO of the MPA, on the power and future of printed magazine: There are some who will want to read it in print, on mobile, tablet, or look at the websites, but I think the print remains the anchor of the experience.
David Carey, president of Hearst Magazines, on whether he believes there is a future for the printed magazine: Absolutely. Despite what some of the digital naysayers have to say; people love magazines.
Steve Lacy, chairman and CEO of Meredith Corp., on why he is bullish on the future of magazines: I’m really so bullish because I see an amazing opportunity to support the consumer, especially the Gen Y consumer that is very, very engaged.
Bob Sauerberg, president of Condé Nast, on whether Condé Nast believes in a digital first strategy: It’s a brand-first strategy, so we start with our brands and their foundation is in print.
Skip Zimbalist, chairman and CEO of Active Interest Media, on whether there is a future for the printed magazine: Absolutely. When we look at our readers, who are passionate about what they do, they’re boaters, yoga enthusiasts, horseback riders; they love print.
And now the lightly edited transcript of the mini-documentary Mr. Magazine™ Presents: Bullish on the Printed Magazines:
Samir “Mr. Magazine™” Husni, founder and director of the Magazine Innovation Center, The University of Mississippi: You know it’s no surprise if I tell you I’m bullish on the printed magazine. I only call them magazines if they’re printed; otherwise I call them magazine media.
But you don’t have to take my word for it. You don’t have to take the word of any media pundit, reporter, or analyst. People who know more about printed magazines are those who actually publish magazines.
For this segment of the Mr. Magazine™ Minute, I decided to interview five top executives and ask them their opinions on why they’re bullish on printed magazines. You will see from their answers that I’m not alone and that these people are as bullish about the future and the power of the printed magazine as I am, and much more.
Without any further ado, they are – in alphabetical order, Mary Berner – Chief Executive Officer of the MPA, the Association of Magazine Media, David Carey – President of Hearst Magazines, Steve Lacy – Chief Executive Officer of the Meredith Corporation, Bob Sauerberg – President of Condè Nast and Skip Zimbalist – Chief Executive Officer of Active Interest Media.
I hope you’ll enjoy this little segment about Bullish on the Printed Magazine and feel free to get in touch with me if you have any questions or comments. You can always reach me at samir.husni@gmail.com
Thank you and enjoy the show.
Mary Berner is CEO of the MPA.
Samir Husni: As head of the MPA, what do you think is the role of the printed magazine in this digital age?
Mary Berner: I think the printed magazine is a completely unique experience. There’s nothing like it. It’s unique as a lean-back experience, it’s uniquely immersive, and as we see from the research with college-aged kids, it shows that they love print magazines. It’s something that is like nothing else, so it will complement and supplement the digital experience.
There are some consumers who will always want to read that magazine in print. There are some who will want to read it in print, on mobile, tablet, or look at the websites, but I think the print remains the anchor of the experience.
Samir Husni: If you can separate your role as head of the MPA and think more as a magazine publisher; are you bullish on the future of our industry?
Mary Berner: Yes, I’m extremely bullish, because I think we have key assets that are important in this wildly-competitive market. And we’ve got brand relationships. So when you think about other media – you think about television or music – ABC is not a brand. And NBC is not a brand. People will go and watch the programming, so they’ll watch the program from any platform.
People go and seek out the magazine brand. They go and look for Vogue or Cosmopolitan on every platform. So, that relationship with the consumer, I think, in this kind of digital explosion, is what’s going to be the most important.
Those are great assets and you’ve got that relationship, which gives you permission to do pretty much anything.
Samir Husni: Thank you.
David Carey is President of Hearst Magazines.
Samir Husni: You have two magazines like The Food Network and HGTV that have increased their rate base, and in the case of The Food Network, I believe 11 times in the last five years and HGTV in the last two years.
David Carey: If we could do it more than twice a year, we would. But I think that we can only do it every six months.
Samir Husni: Do you think there’s a future for the printed magazine?
David Carey: Absolutely. Despite what some of the digital naysayers have to say; people love magazines. And they love them in their ink-on-paper version, and they of course love them in their new digital format.
We live in this on-demand world. There’s nothing more satisfying than going to the newsstand by a subject area that you’re passionate about and you literally own it right then. You take it home and you get to devour it. And that will never change.
Samir Husni: Thank you.
Steve Lacy is CEO of the Meredith Corporation.
Samir Husni: Why are you so bullish about the magazine industry and print, in general?
Steve Lacy: I’m really so bullish because I see an amazing opportunity to support the consumer, especially the Gen Y consumer that is very, very engaged. As a cook, as a gardener, as a home enthusiast; she wants the print product for relaxation when she finally gets the kids in bed. She wants the digital property for taking action and she wants the mobile property when she’s engaged at retail and ready to make a buy.
And we need to be there with our curated content and support her needs as a home enthusiast.
Samir Husni: So you don’t believe in digital first?
Steve Lacy: I believe in all platforms all the time.
Samir Husni: Thank you.
Bob Sauerberg is President of Condè Nast.
Samir Husni: How bullish are you on the printed magazine in this digital age?
Bob Sauerberg: Our strategy is to build brands and our brands start with our magazines. Print has never been more vital. The consumers tell us every day through all of our business channels, from subscriptions to retail, that they want print. They love it and they are actually willing to pay more for it, which is an important part of our strategy in the long term.
I’m very bullish on what our brands can be in all platforms. But it all starts in print. And I think that’s the biggest part of our business and I think it will be probably forever.
I think the potential, on top of print, to build our brands in digital, on websites and in video, is also significant. And the growth for that will be an accelerator of real stability in the print business.
Samir Husni: Do you think it’s a mistake to go with a digital-first strategy for magazine media companies?
Bob Sauerberg: It’s a brand-first strategy, so we start with our brands and their foundation is in print. And we’re taking the DNA of the uniqueness of the brand and that content and going into these other platforms.
I wouldn’t characterize us as digital-first; I would characterize us as brand-first and we’re trying to be the best at every platform that we publish.
Samir Husni: Thank you.
Skip Zimbalist is CEO of Active Interest Media.
On widening your brand and the risk of going too far: There’s always this tension between getting wider and getting a bigger audience, but getting so wide the passion and the average avidness of the reader declines as you get too broad.
Samir Husni: Do you think there’s any future for printed magazines in this digital age?
Skip Zimbalist: Absolutely. When we look at our readers, who are passionate about what they do, they’re boaters, yoga enthusiasts, horseback riders; they love print. That’s not to say that we don’t have a lot of people who enjoy digital, but it’s a relatively small percentage right now, about six percent on average in our group, some as high as eight percent, some as low as four percent. And it’s growing maybe one or two percent per year.
But these are new people coming in to the industry. The existing readers love print. And we find that most of the digital readers who are coming in, over 80 percent of them have never subscribed to the magazine and have never been a newsstand buyer of a magazine. So these are brand new people coming in.
And I think there are certain formats that really lend themselves to print, especially those that have a lot of lush photography in them, those with long-form journalism, and those that have a lot of advice and how-to, lend themselves to print.
I’m very optimistic about it and we see our audience in print as stable. We don’t see our audience as going down. I’m optimistic and when television came in, people said it was the death of radio; well, radio is still here and doing very well, thank you. And I think print magazines are going to be here 20 years from now and doing very well, as well.
Samir Husni: As a leader in the industry and a publisher of a lot of specialized magazines; do you think that’s the future and there’s no room for mass print magazines?
Skip Zimbalist: I’m not going to say that, but I’ll say when I was putting AIM together, that’s the place I chose to concentrate on.
Even within the specialty magazine, or the enthusiast magazine sector, there’s the question always of what I call “brand width.” If you have a magazine, how wide can the brand be and still be relevant to readers?
An easy example would be: can you have a skiing magazine combined with a snowboarding magazine? No, you can’t. It’s two different cats. And if you did that half of the people reading the magazine would find half of the content not relevant to them.
Can you have a saltwater fishing magazine and a freshwater fishing magazine? No, you can’t. Those are two different things.
So there’s always this tension between getting wider and getting a bigger audience, but getting so wide the passion and the average avidness of the reader declines as you get too broad.
Frankly, when I look at competitors and I see them going big, I say, “There goes another competitor,” because I know they’re not going to be in business very long and that’s typically the case.
I also think it’s important in the advertising world. Because if you’re going after general advertisers who are just trying to reach a very broad demographic, males 18-25, or females 25-34; there are a million ways that those advertisers can reach that audience; whereas, if you’re trying to sell a backpack, there’s really only one magazine that you can go to reach backpackers. Or if you’re trying to reach yoga enthusiasts, there’s really only one magazine.
So the balance of power between the publisher and the advertiser is a lot more even in niche magazines, than they are in general interest magazines.
In the final of five Mr. Magazine™ Minutes mini-series with top magazine media executives, chairman and CEO of Active Interest Media Skip Zimbalist tells Samir “Mr. Magazine™” Husni why he is bullish about the future and power of print magazines and magazine media.
On Friday, watch for the release of Mr. Magazine™ Presents: Bullish on the Printed Magazines, a mini-documentary featuring all five interviews in the mini-series The Power and Future of the Printed Magazines. Join Mary Berner, David Carey, Steve Lacy, Bob Sauerberg, and Skip Zimbalist and yours truly in the first ever Mr. Magazine™ mini-documentary. Stay tuned!
In the fourth of five Mr. Magazine™ Minutes mini-series with top magazine media executives, president of Condé Nast Bob Sauerberg tells Samir “Mr. Magazine™” Husni why he is bullish about the future and power of print magazines and magazine media.
On Thursday, in the last part of this mini-series, Skip Zimbalist, chairman and CEO of Active Interest Media answers Samir “Mr. Magazine™” Husni’s question about why he is bullish on print magazines and the power and future of the magazine media industry.
And watch for a Friday release of Mr. Magazine™ Presents: Bullish on the Printed Magazines, a mini-documentary including all five interviews and an introduction by me, exclusively on the Mr. Magazine™ blog.
In the third of five Mr. Magazine™ Minutes mini-series with top magazine media executives, the chairman and CEO of the Meredith Corporation Steve Lacy tells Samir “Mr. Magazine™” Husni why he is bullish about the future and power of print magazines and magazine media.
On Wednesday, in part 4 of 5, Bob Sauerberg, president of Condé Nast answers Samir “Mr. Magazine™” Husni’s question about why he is bullish on print magazines and the power and future of the magazine media industry.
And watch for a Friday release of Mr. Magazine™ Presents: Bullish on the Printed Magazines, a mini-documentary exclusive on the Mr. Magazine™ blog.
In the second of five Mr. Magazine™ Minutes mini-series with top magazine media executives, the president of Hearst Magazines David tells Samir “Mr. Magazine™” Husni why he is bullish about the future and power of print magazines and magazine media.
On Tuesday, in part 3 of 5, Steve Lacy, CEO of Meredith, answers Samir “Mr. Magazine™” Husni’s question about why he is bullish on print magazines and the power and future of the magazine media industry.
Luke Magerko mission: I want to de-mystify the data and provide simple reporting and recommendations which will reduce publisher expense and provide opportunities for growth. And with such a mission and at a time that the single copy sales have been trending down year after year since 2008, I opted to interview Luke and ask him about his mission, his plan to save the newsstands and thus the downturn of an industry in search for answers.
As we all know the newsstands and single copy sales are not an easy nut to crack. Everyone at retail knows the problem. It is the solutions that have been escaping us time and time again. So my hope is that through those series of in-depth (and lengthy) interviews with Mr. Magerko, we can at least start a debate at some of the issues he is raising and some of the solutions he is proposing.
In the first of five Mr. Magazine™ Minutes mini-series with top magazine media executives, the president and CEO of the MPA: The Association of Magazine Media Mary Berner tells Samir “Mr. Magazine™” Husni why she is bullish about the future and power of print magazines and magazine media.
On Monday, in part 2 of 5, David Carey, president of Hearst Magazines answers Samir “Mr. Magazine™” Husni’s question about why he is bullish on print magazines and the power and future of the magazine media industry.
What is on the mind of Stephen M. Lacy, chairman of the board and CEO of Meredith Corp.; David Carey, president of Hearst Magazines; Bob Sauerberg, president of Condé Nast; and Efrem “Skip” Zimbalist III, chairman and CEO of Active Interest Media (AIM) when the questions are all about the newsstands and magazines at retail? Well, I was honored and privileged to moderate this panel of top magazine media executives at the MPA/PBAA Retail Marketplace conference on Tuesday June 11 in Philadelphia.
Karlen Lukovitz, editor of IPDA Daily Publishing & Retail News published an excellent recap of the panel. I hope you enjoy taking a peek inside the magazine media executives as they answer some of the most important questions regarding printed magazines at the newsstands.
By Karlene Lukovitz, IPDA Daily Publishing & Retail News Top Magazine Execs Focus on Retail Channel
Top executives affirmed the critical importance of the retail channel for magazine media, and offered their views on how publishers, retailers and other channel partners can stem sales declines and maximize the category’s performance and profitability. Shown above, from left: Stephen M. Lacy, chairman of the board and CEO of Meredith Corp.; David Carey, president of Hearst Magazines; moderator Samir Husni; Bob Sauerberg, president of Condé Nast; and Efrem “Skip” Zimbalist III, chairman and CEO of Active Interest Media (AIM).
Top executives affirmed the critical importance of the retail channel for magazine media, and offered their views on how publishers, retailers and other channel partners can stem sales declines and maximize the category’s performance and profitability.
The panelists: Stephen M. Lacy, chairman of the board and CEO of Meredith Corp.; David Carey, president of Hearst Magazines; Bob Sauerberg, president of Condé Nast; and Efrem “Skip” Zimbalist III, chairman and CEO of Active Interest Media (AIM). Moderator (center in the photo above): Samir Husni, professor and director of the Magazine Innovation Center at the University of Mississippi’s School of Journalism.
Assessing Trends Going Forward
Asked if the magazine sales declines that commenced with the recession in 2008 will level off going forward, Hearst’s Carey noted that the category has faced several simultaneous issues, including a decline in the frequency of consumer grocery trips as a result of the recession; the “mobile blinder” syndrome (wherein consumers use their mobile devices rather than notice products displayed at checkouts); and the declining draw of most film stars as cover subjects.
“I think there’s an opportunity to address each one, but it’s not so easy,” he said. “Hopefully, the improved economy will translate into increased visits to stores,” and the magazine category needs to work with the retail community to find a solution to the mobile blinder factor. “We have to co-opt that experience at the front of the store” with magazine content and promotional innovations that employ digital and mobile technology, he said.
At the same time, there’s a demand for the new, demonstrated by the combined 700,000 monthly single-copy sales for Hearst’ s recently launched Food Network Magazine and HGTV Magazine, he said. Publishers also need to refurbish magazines that might have “lost their way a bit,” and increase promotional activity on every level, Carey believes. “If we do everything simultaneously, I’m not sure we’re going to reverse the slide, but I think there’s a good chance to moderate it,” he summed up.
Meredith’s Lacy added that consumers who were once in traditional supermarkets three times per week are now often spreading their business to competitive formats like warehouse clubs, which changes the dynamic.
“We’re working very hard on our product,” he said, noting the success of special interest publications (SIPs) and bookazines. “I think certain things will continue to decline, but I think we’ll continue to innovate with new and different types of product and help fill in a consumer need.”
“We have to stop the decline,” declared Condé Nast’s Sauerberg. He acknowledged that “there’s no silver bullet,” and stressed that all supply-chain partners have a role to play. “This industry has brands like no other, it has assets like no other, it has editors and consumer marketers like no other,” he said. “And we’ve all accumulated incredible digital assets that I think will really help us grow. We’ve got to work together to ‘product-ize’ those things, to get to retailers and really move the needle.
“There are hundreds of projects we’re going to need to put in play,” Sauerberg continued. “But it’s so important to us to have this [retail] business be as good as it can be. And our digital assets are the best thing that ever happened, because they’re bringing new people into our brands and ultimately new people into the stores. These people like to consume our content.”
Zimbalist said that AIM has spent a lot of time on its covers and working with partners on selecting the right retail dealers and right in-store locations, but hasn’t spent a lot of time “marketing directly to consumers to come into the store to find the magazine,” as other types of consumer product marketers do.
There’s much that can be done by combining magazines’ databases (built from a variety of sources, including subscriptions and digital) with retailers’ databases to promote directly to consumers and drive them into stores, he pointed out.
Demonstrating the Category’s Full Value at Retail
Lacy pointed out that publishers are developing new mechanisms to prove magazines’ full value to retailers, beyond the magazine sale itself.
He cited Meredith’s new ad sales guarantee, based on work with Nielsen, which demonstrates the high levels of engagement of its magazines’ readers; that they’re inspired to purchase products as a result of seeing ads in the magazines; and that they buy more products than consumers who don’t see the ads.
He also noted Meredith Xcelerated Marketing’s partnership with Lowe’s, in which the retailer’s database is overlaid on Meredith’s to enable driving and measuring sales lifts of their branded products.
Developing such partnerships with retailers and promoting the inevitably positive results about magazines’ impact on sales of other retail products is critical to the magazine category being able to work with retailers to secure the right kind of in-store placement and display, he stressed. In the past, lack of such data has been the “missing link” in decisions about magazines versus other categories’ placements at front of store, he added.
Retail As Crucial as Ever for Publishers
How important is the retail consumer magazine buyer to publishers?
Consumers who buy magazines at retail are “absolutely critical” to the business of Meredith and other publishers looking to reach Gen Y consumers who are enthusiasts in areas including home improvement, cooking and gardening, he said. “They are the lifeblood of our business going forward.”
Carey noted that Hearst sells more than 4 million magazine copies a month at retail, so the channel is clearly economically important to the company. In addition, retail sales are critical in determining whether to roll out a test magazine concept–and as ongoing indicators (akin to Nielsen ratings for TV) of how in-synch the magazines are with consumer needs. “We have our hits, but if we don’t execute well, we really get punished by the marketplace,” he said. “The positive in that [feedback] is that it puts a lot of pressure on us to make sure that every single cover is well-thought-out in terms of its construction and execution.”
“We live in an on-demand world, and retail sales satisfy that need,” he said, although as important as it is, today it must be one of many ways people access magazine brands’ content. “We’re on the same curve as TV and all other media: You have to be ubiquitous with your distribution,” he said.
Condé Nast’s magazines at retail act as “100,000 billboards” all over the country ever month–a “huge lead-gen” source for the company, as well as a highly profitable business in and of itself, said Sauerberg. Retail consumers “are not only engaging with us on a monthly basis; they are our next set of customers–so we love this business,” he said, adding that the company’s editors “agonize” over every issue’s cover and content, including reviewing consumer trends on social media and other factors.
Zimbalist said that retail will continue to be “critically important.” AIM is redoubling efforts to get into specialty retail stores serving the same consumers that AIM titles serve, such as equine and boating–”and if it’s Vegetarian Times, to be in the section where soy is sold.”
He added that retail distribution is excellent for exposing consumers to magazine brands and sampling, and that single-copy purchasers are the most responsive consumers. They typically read a magazine cover-to-cover within 24 hours–which is very important to AIM’s advertisers (most of which are direct response). “It’s the purest form of feedback that you can get,” because the magazine is competing in an open marketplace against many others, and a magazine has just seconds to influence the consumer to choose it, he said.
Prospects for Bookazines
High-priced bookazines are very profitable for both the publisher and the retailer, and Condé Nast will be publishing a growing number of them, reported Sauerberg. “I think this is going to be a big piece of the sales potential over the next few years, and I think the better we get at it, the better the sales and profits for the retailer.”
Zimbalist agreed that bookazines are very important. He said they demonstrate consumers’ willingness to pay high prices for high value, and are a great way to test ideas for new magazines.
Lacy, noting that Meredith has been publishing special interest publications/SIPs since 1938, says these offer the advantage of being able to be expanded or reduced in number based on economic circumstances. When the economy–including home remodeling and decorating–was very robust, Meredith was up to about 200 SIPs per year; currently, it publishes about 130 per year, he reported.
In addition to their profitability and usefulness for testing magazine concepts and how in-synch a magazine is with its readers, he said that SIP’s tend to flow into and support the activities of Meredith’s monthly magazines and digital and ecommerce businesses. SIPs “are a big part of what we do,” he said.
Hearst is using SIPs in a variety of ways, reported Carey. One is accessing new markets. For example, the frequency of Cosmopolitan for Latinas was increased from two issues last year to four this year, and Hearst will be testing an Hispanic edition for another magazine this year, he revealed. He noted that the premium-priced Esquire Big Black Book is in its seventh year, and that Hearst is looking selectively at extensions off its existing brands.
“With the high pricepoint and longer shelf life, [bookazines] have very good economics for us,” and have gotten strong retailer support, particularly in airports, Carey said. He reported that Delish, a digital product in partnership with Microsoft, did a print supplement polybagged with four Hearst magazines at Wal-Mart last year, and saw sales lifts of 10% to 25%, demonstrating consumers’ desire for added value.
Mobile: Pros and Cons
While mobile phones are a serious challenge to checkout impulse categories, the executives agreed that they’ll also be valuable as retail promotional vehicles.
AIM is doing a lot of push messaging through smartphones, because mobile is driving virtually the entire growth of its Web traffic, according to Zimbalist. He points out that phone location devices will enable sending promotions about a new issue at retail when the prospect or existing reader is in the store. “You can’t fight mobile, but you can use it,” he said.
Sauerberg said that within five to 10 years, there will be massive programs offering all kinds of ways to target and promote to consumers in-store, and the magazine business needs to be prepare to leverage these capabilities.
Carey added that, in addition to using mobile messaging, it makes sense to try to design store promotions that reach consumers in parts of the store where they’re likely to be shopping (and attentive to what’s around them) rather than using their smartphones.
Lacy pointed out that Meredith’s recently acquired all-digital brand AllRecipes is an eye-opener, because about a quarter of the 25 million unique visits per month are generated right in store aisles, as shoppers look for recipes and ingredients information. As a test, Meredith took one of its food special interest publications and put the AllRecipes logo on the cover. This yielded a 40% retail sales lift, he reported.
“This is a digital consumer, and she’s also very interested in the print that ties this all together. Our greatest corporate lesson in the last year has been to figure out how to connect those dots and help our advertisers sell product to her when she’s right there in the supermarket. Everything that we’re seeing is that Gen Y is very engaged in these brands on every platform, from mobile to print.”
Innovations, Focus Going Forward
Asked about innovations, Zimbalist said that while it’s early days, “there’s got to be a way for us to partner with retailers to sell digital copies and digital subscriptions” generated by a consumer’s interest being spurred by seeing a magazine in-store.
He also said that events that AIM partners with retailers on, such as clinics in an outdoor retailer helping consumers on a topic like putting a backpack together, bring the magazine to life in the eyes of the consumer and generate substantial sales for the retailer.
Carey said that it’s time that publishers put aside some of the old orthodoxies, when it comes to promotions. “The goal is to move product, and as we partner and use our own covers as promotional tools, we have to continue to push the boundaries,” he said, noting that select retail copies of an upcoming issue of Cosmopolitan will have a visible discount IRC in the “belly button” area of the model.
He also said that publishers should be looking to find ways to do even more to help the retailer tap into the power of the magazine readers who are retailers’ most profitable customers.
Sauerberg stressed that retailers, as well as publishers, should be embracing and pushing to leverage big data/data partnerships on an industrywide basis, to achieve the scale needed to target efficiently to consumers.
Sauerberg also offered comments that summed up many of the themes in this session and others at the conference.
He said that he believes that magazines will continue to be very attractive to retailers from a profitability perspective. “But there are a lot of efforts that need time and support from all channel partners,” he said. “We need to work together to set priorities, create some wins, talk about these and get retailers excited, and make [initiatives] work financially for all parties. [As a publisher], we’re going to do all we can with content, innovation and putting digital assets on the table, but we’re all going to have to [collaborate] to think about the potential we have, rather than just manage decline.”
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