• Like
Media Pacific Paths to New Value in China's Magazine Market
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Media Pacific Paths to New Value in China's Magazine Market

  • 317 views
Published

 

Published in Economy & Finance , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
317
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
1
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Media Pacific Paths to New Value in China’s Magazine Market 14 May 2007 - Beijing Jeff Sprafkin Media Pacific Ltd Tel: +86-21-64046579 Fax: +86-21-64228387 mobile: +86-13818951047 [email_address]
  • 2. 2001-2007 China Magazine Market: An Explosion of Reader & Advertiser Choices 2001 2007 Travel… Sports… Business… General Business: Fortune, Global Entrepreneur Personal Finance, Management, Sales & Marketing, HR: Money Weekly, Successful Marketing , Gen’l Sports - Basketball, Soccer: Sports & Leisure, Olympic Stars, Contemporary Sports Gen’l Travel - China National Geographic, Travel Scope, Traveler Special Interest Sports F1, Golf World, Horse, sneaker titles Special Interest Travel Regional travel titles (HK, Tibet, Western China), adventure travel, outdoor 270,000 China-based Websites 700,000++ China-based Websites Online.... In Print.... ...with advertisers eager for new, efficient media
  • 3. Media Usage: Magazine Readership Continues to Rise…. … .but the battle for “share of mind” and “share of heart” is getting much fiercer
    • With weaker print media loyalties, young users are driving rapid, early adoption of new mobile and online media
    • Blogs, games, and search engines….”user-in-control” drives online growth
    • The appeal of community is connecting readers to like-minded “quan-zi” online
  • 4. Readers are developing clear-cut media formats preferences for different types of information Magazines, by themselves, risk not meeting these needs ….. …… while well-developed media brands can Dominant sources of information for middle-class, urban Chinese consumers in 2007…. (% indicating primary source)
  • 5. From Magazines to Media Brands….But for Whom? Behavior (when, with whom, etc.) Psychographics (lifestyle, attitudes, etc…) ?? Demographics (age, income, education, etc) Yesterday…. … .Today China’s fast-changing social landscape means that demographics are no longer enough to effectively position magazine brands
  • 6. Challenges: Can Today’s Magazines Move Beyond Traditional Ad Models and Single-Product Brands?
    • Tradition Ad-driven Business Models Support Today’s Market Leaders….good for now, but they can offer more
      • From 2003-2006, fashion category advertising grew at an average annual rate of 38%.....while circulation rose by less than 15%
      • Ad revenues represent more than 85% of total revenue for most glossy titles
      • But,…. less than 20% of middle-class, urban readers indicate that they’re willing to subscribe to their favorite magazine
    • Magazine-anchored brands….they need to offer more
      • 90% of Chinese magazines are single-product brands
      • Most readers indicate that they rarely visit magazine Websites….
  • 7. Opportunities: Under-exploited Brands + High Engagement….
    • Well-established magazines rank strongly among reader favorites….. great brand potential
    • Overall loyalty to favorite magazines has risen….readers spend more 25% more time with their favor magazine today than in 2003
    A growing pool of local integrated media players have created exciting roadmaps for success….
    • Magazines continue to play important roles in readers lives….enjoying them nearly 1.5 hours per week
    • Some of the highest value consumers….young, affluent, and eager to cultivate new interests…are China’s most avid magazine readers
    • Engagement levels compare favorably with similar levels in the US…
      • 84% of Chinese readers look forward to the next issue vs 78% in the US…
      • 85%-88% of Chinese readers find their magazines informative and authoritative vs 88%-95% in the US
  • 8. Roadmaps Toward Value Creation: China’s Integrated Media Brands
    • Integrated online/print media providing recruitment advertising -- #1 in category against several sophisticated competitors
    • 25 regional weeklies built on partnerships with local newspaper publishers drive 60%+ of revenue from print advertising
    • Founded in 1998; NASDAQ IPO 2004
    • Today: Market cap of $480 MM , near $90 MM in 2006 revenues
    • Integrated online/print media providing real estate sales and listing data -- #1 in category with large lead, locking out fragmented pool of local competitors
    • 4 targeted magazines added to complement Web-based product
    • Founded in 1999
    • Sold 51% to Telstra in 2006 - reported valuation of just under $500 MM
  • 9. Roadmaps Toward Value Creation: China’s Integrated Media Brands
    • Integrated online/print/event media providing personal financial information and training
    • Publishes two magazines, operates a personal finance exhibition, personal finance portal and training business
    • Partnered with VNU to produce Shanghai-based MoneyFair
    • Founded in 2001, adds training and MoneyFair in 2003, launches Amoney.com portal in 2004
    • B2B media group serving printing industry with integrated suite of publications, Website, exhibitions, books, and research
    • Publishes three trade magazines
    Common ingredients: building niche-dominating brands across multiple product formats…. … ..leveraging smart partnerships to increase reader touchpoints fast
  • 10. Where are the missing links?...... People
    • Talent gaps…..
    • Brand development – moving from product to brand-centric
    • Understanding and targeting readers – moving from ad-centric to reader-centric
  • 11. From Opportunity…..to Reality: What’s Next? Understand Changing Readers….Research, Interaction, & Careful Targeting Training and Development Leverage Partnerships….Don’t Go It Alone Build on Strong Magazine Brands….Fast