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335887, Joustra Elske Final Paper

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  • 1. The future of the glossy magazine industry Elske Joustra Researcher at Erasmus University Rotterdam, the Netherlands 335887ej@eur.nl, +31-(0)642 23 1656 Proposal presented at Sophie Spindler’s creative direction company January 2010
  • 2. Index 1. Preface 2. Summary 3. Introduction 4. Theory 4.1 Economic crisis 4.2 The content doesn’t change 4.3 The technological and social possibilities of new media 4.4 Social media 4.5 Social network sites 4.6 Women and social network sites 5. Literal-review 6. Answer to the central question 7. Proposal 7.1 Introduction 7.2 Strategy 7.3 Financial-table 8. Literature
  • 3. 1 Preface This business proposal is written in order of Sophie Spindler’s creative direction company to research if new media have influenced the traditional format of the glossy magazine. This paper was presented to the board on January 15th 2010 by Elske Joustra researcher at Erasmus University.
  • 4. 2 Summary The glossy magazine industry is facing some problems nowadays, caused by the economic crisis, the unsatisfied readers of the glossy magazines and the rise of new media. The economic crisis leads to a decline in the volume of ad pages, which lead to smaller edition sizes. The reason the readers are no longer pleased with the content of the glossy magazines is, because the glossy magazine industry hasn’t changed the content of the magazines for years and doesn’t know what kind of subject the readers want to read about. Because of the rise of the new media there came a lot of new forms of media, like social media. Social media give people the ability to talk, cooperate and exchange information with each other throughout online tooling, like social network sites. Social network sites are also very popular among the readers of glossy magazines witch share their interests with each other on the social network sites. If the glossy magazines want to reconnect with their readers, sell more magazines and attract there cosmetics-advertisers, glossy magazine companies have to use the social network site Facebook.
  • 5. 3 Introduction With a market share of 27 percent the women magazines are, beside radio- and television- magazines the most popular segment of magazines in the Netherlands. Women magazines exist in different forms and shapes. There are a lot more women magazines than there are magazines for men. From commercial view this is logical, because women read more and are a very attractive and profitable target group for advertisers. The market of the women’s magazines can be divined in two types of magazines; the women’s weekly magazines and the women’s monthly magazines. The market of the women’s weekly magazines exists of “the general interest magazines” and “the gossip magazines”. The market of the women’s monthly magazines can be divined in the subcategories; “glossy magazines” and “ special interest magazines”. This paper presents a research about the market of the glossy magazines. So for this reason there will be only taken a closer look at the subcategory of the women’s monthly magazines; glossy magazines. Glossy magazines are a type of women magazines that is mostly focused on subjects that are related to the appearance of the women. Glossy magazines became more popular in the nineties. The reason of the release of this new segment was because during this period there was a period of economic prosperity. Women got a higher education level, had more money to spend and for this reason were more interested in glossy and luxury goods. This made them a very attractive target-group for cosmetics- advertisers, the biggest source of income for this type of magazine. The reason glossy magazines become popular among their female readers was because of the huge success of the releases of the magazines; “Cosmopolitan” (from the America publisher Hearst) and “Elle” (from the France publisher Hachette). Through the years the women’s magazines have made some mature changes. For example nowadays there are no taboos anymore and the cover as well as the inside looks are more colorful than before. (http://vrouwentijdschriften.nl/). Other factors that have changed the form, production, distribution and consumption of the magazine have been caused by the rise of new media. The new media will also influence the future glossy magazines.
  • 6. The way new media will influence the structure of the classic magazine format of the glossy magazine will be answered during this research. In order to do so the following central question is addressed in this paper: “Have new media influenced and pushed and reinvented the structure of the classic magazine format of the glossy magazine?” To answer this question we will first address to the different developments in the glossy magazine industry existing of the economic crisis, the unsatisfied readers and the influence of new media. After we have theoretically framed the question we will discuss another literature –reviews about this subject. After this we will give our first answer to the central question and present a business proposal for Sophie Spindler creative direction company. 4. Theory 4.1 Economic crisis After finding out more information about glossy magazines there are a couple of developments witch have influenced the glossy magazine industry. The first development is the actual economic crisis. Because of the economic crisis publishers have to cut back on pagination and make smaller edition sizes, because of the decline of the volume of ad pages from there cosmetics-advertisers. Although referring to the following quotes not everybody wants to admit the position of the glossy magazine industry, caused by the economic crisis is become unstable. Peter Phippen, managing director of BBC magazines says about the economic crisis ; “It might not be one of the best periods for the industry, but still in time of recession consumers tend to gravitate toward strong brands”. Stephen Quinn, publishing director of Vogue agrees with Phippen by saying; “Consumers will continue buying the top-quality titles like my own magazine , Elle and other magazines like Cosmopolitan and Marie-Claire. So we will holding up well despite off the downturn in the economy” (Clark, 2009).
  • 7. 4.2 The content doesn’t change Beside the economic crisis there is another problem the glossy magazine industry is facing. The regular female readers of the glossy magazines are losing interest in the magazines. This problem is caused because glossy magazines are out of touch with the cultural changes that have been brought by social network sites. The readers want the content of the glossy magazines to change. Instead of changing the content of the magazines many glossy magazines have not evolved there content in years. For example prominent magazines, like US Vogue have become stale and repetitive using the same subjects about promising secrets to thinness and eternal happiness, that women that have been reading the magazines long enough know aren’t true. Another example is the way some glossy magazines have handled the economic crisis. Cover stories like : “simple luxuries”, “shopping in your own closet” and “how to stop the recession” makes the magazine seem soulless and without dept. And thereby not capable to adapt their content to changing value systems, causes by our temporary economic circumstances. So instead of reading about unrealistically beautiful celebrities in printed glossy magazines, the readers want to read the truth (Louw,2009). Another reason of the lost of interest of the readers in glossy magazines is the rice of the extreme popularity of personal style blogs and social network sites. Instead of printed glossy magazines, that present unrealistically beautiful celebrities , blogs and social network sites discuss issues and cover lines that are realistic and more inspiring , excising of a mix of high-end and budget fashion. The popularity of the blogs and social network sites is also caused by the rise of new media (idem:2009). 4.3 The technological and social possibilities of new media New media will lead to very big changes in the form, production, distribution and consumption of future magazines. Instead of traditional media, which is media that relies primarily upon print and analog broadcast models , new media is a term meant to point out the emergence of digital, computerized and communication technologies, like Internet. (Manovich, 2003: 13-25). The rise of new media is a result of the evolution of the new media technologies of electronic media, called globalization. Globalization means that we can communicate with people and get information from all over the world, whenever we want and without
  • 8. the need of being physical present. (Croteau & Hoynes, 2003:401-410). Thereby, instead of traditional media that offers one-way communication one of the characteristics of new media is that it can offer two-way communication called, interactivity. If we compare the traditional format of the magazine with the format of the magazine influenced by the possibilities of digital interactive media we see differences in the way new media leads to new textual experiences. This new textual experience are new textual and visual images in which the magazines are presented. (Lister & Dovey, 2003: 9-44). At last, one of the biggest trends of new media is the fact that consumers are becoming producers/creators. Until the twentieth century publishers of media products had the power over the distribution of media products. Because of the emergence of the new media group of users they don’t control de distribution anaymore. People can produce there own media, the so-called “user generated content”(UGC).This “self produced media” is a form of social media(Michael Opgenhaffen, 2008). 4.4 Social media Social media or web 2.0 is a collective term for sharing stories, knowledge and experiences on online platforms via online media, that is not controlled by any external authority, but by the users themselves. Because of the interactivity, online media can offers people to talk, cooperate and exchange information with each other throughout online tooling. Types of online tooling are blogs and social network sites (Lister 2001:200-201). 4.5 Social network sites A social network site is a webpage that focuses on building and reflecting social networks or relationships among people who share the same interest and/or activities. A social network site consists of visible profiles that display a list of friends that are also users of the system. Profiles are unique pages were each user can show texts, pictures and other things they are interested in or want to share with there friends. (Danah,2007). After joining a social network site an individual is asked to fill out a form with a couple of questions about your age, education level, location, interests and other factors that typically segment society. The answers on those questions give the users the ability to find other people who have the same demographic segments. This demographic information can also be used by companies that want to advertise on a social network
  • 9. site to reach out to a certain target group. A type of active users of social network sites are women. 4.6 Woman and social network sites According to a new study from SheSpeaks there are now 86 percent women that are using social network sites. 50 percent of the women use the social network sites to purchase products, because of the information they saw of the brand on the social network sites. The social network sites women like the most are Facebook and Twitter. They also use tot social network sites to interact with their friends or to share pictures. The differences between Facebook and Twitter is the fact that Twitter is a service that provides people to know what there friends are doing, instead of Facebook which provide a service were you also can create your own personal online platform. Thereby Facebook with there 60 million users is much bigger than Twitter that has about 18 million users. Finally the last difference between Facebook and Twitter is the fact that women that are using Facebook are likely to log in daily (72%) in stead of the women that are using twitter(36%). For marketers the overall growth and habitual use of social media by women represents opportunities to reach and engage women of all ages, and influence their purchase decisions (http://www.utalkmarketing.com). 5 Literature-review That social network sites are a great instrument to reach certain target groups is also reported in the research project in 2007 of two students of the Michigan State University. They did a research project about the big influence of social network sites on people. Other research that I have found are two articles about the great influence of the social network sites as a promotion tool. The most important finding in this articles were; “Social networking are increasingly popular, and have become wildly popular with a varied demographic. Nowadays many companies use social network sites to connect or reconnect with their costumers by communicating and sharing ideas. Thereby social network sites are a great business promotion tool. An example of a great social network site to use is Facebook. Facebook is one of the biggest social network sites in the world.
  • 10. It’s no longer just the social networking choice for teenagers, but is a thriving business promotion tool. Facebook give companies the ability to make their own personal business page were they can promote their company” (http://www.articlesbase.com). 6 Answer to the central question After discussing the highlights of our theoretical and literature-review we can give the answer on the central question: “Have new media influenced and pushed and reinvented the structure of the classic magazine format of the women glossy magazine?” New media has had a great influence on the structure of the classic magazine format of glossy magazines. Because of the rise of new media there became a lot of new forms of media, like social media. Social media give people the ability to talk, cooperate and exchange information with each other throughout online tooling, like social network sites. Social network sites are very popular among the readers of glossy magazines witch use the social network sites to share their interests with each other. This leads to the fact that the companies of the glossy magazine industry no longer know which subject the reader want to read in the glossy-magazines. To reconnect with their readers, sell more magazines and attract there cosmetics-advertisers, glossy magazine companies can use a social network site, like Facebook. 7 Proposal 7.1 Introduction After discovering the need for glossy magazine companies to use social network site, to promote their brand, we have written a proposal for Sophie Spindler’s creative direction company about how they can use this social network sites. In this proposal we first have chosen an certain social network site. Secondly we have written down the promotion- strategy that this social network site uses. After this we will show the financial-table to accomplish this strategy. The social network site we have chosen in our proposal is Facebook. The reason we have
  • 11. chosen this social networks site is because this social network sites seemed to have a strong reputation among the readers of the glossy magazine. Secondly, with more than 60 million active members, Facebook is the world’s largest social platform. The strategy Facebook uses to improve the reputation of companies exist of five different campaign types which will be described in the next paragraph. 7.2 Strategy The first campaign type you can use is the Poll Engagement Ads. With Poll advertisements you can get the users opinions on any topic you’d like. To solve one of the problems the women glossy magazine market is facing they can use the Poll advertisements to ask there readers what subjects they find interesting to read in certain glossy magazines. Another application that is quiet similar to the poll’s are the Quiz Applications. With the Quiz Applications they can also ask their readers what they want to read in the glossy magazines. Besides getting the opinion of your readers about certain subject there are a few more features Facebook can offer companies. Another campaign type Facebook can offer is the Video Engagement Ads. With Video advertising publishing companies can select a target demographic and display the video ads to them. This video has no limitation on the length of the video in a way similar to television advertisements. A third campaign application Facebook can is the Branded Gift Engagement Ads. This gift are virtual gifts that friends who are connected on Facebook give to each other The branded gifts will display on the homepage and users will be able to see those friends which have sent gifts to each other, as well as what they wrote when the gifts were sent. are a great way to get Facebook users engaging with your brand. The metrics provided to the brand following the campaign is the number of gifts sent as well as the demographics of the people who shared and received the gifts. This is a good way of promoting a women glossy magazine, like Cosmopolitan. One of the advantages are the fact that users can send the gifts to other friend and in this also promoting your brand.
  • 12. A fourth campaign application of Facebook is the Event Engagement Ads, who give companies the ability to get awareness by organizing an event. For example the glossy women magazine Cosmopolitan who launched a sponsored social media initiative called; “The Cosmo Karma Project”. This project encouraged Facebook and Twitter (another social network site) users to document acts of kindness. This acts of kindness meant that the magazine 320.000 fans could go to post their do- good activities, like racing money for a donation company, like War Child. Another application to promote a brand is by the Fan Page Ads. With this application Facebook users can become a fan directly from the advertisement and so automatically ask their connections if they also want to be fan of this fan application. For example you can make a “ cosmopolitan” fan application if you are making promotion for this kind of glossy magzine(http://ww.facebook.com/ads). To accomplish each of the advertising types you can read the financial cost in the financial-table below. 7.3 Financial- table Pricelist of the Facebook Engagement Ads Type of Ad: Price: Personal sales coordinator $3000 a month Poll Engagement Ads $10.000 a month The Quiz Applications. $5.000 a month Video Engagement Ads. $100.000 a month Branded Gift Engagement Ads $2.500 a month Event Engagement Ads $10.000 a month Total costs: $130500 a month
  • 13. 8 Literature Books: - Manovich, L.e.v. "New Media From Borges to HTML." The New Media Reader.” Ed. Noah Wardrip-Fruin & Nick Montfort. Cambridge, Massachusetts, 2003. - Lister, M., J. Dovey, S. Giddings, I. Grant & K. Kelly New Media. A critical Introduction.London, Routledge, 2009 - Croteau, David & William Hoynes Media, Society: Industries, Images and Audiences. London, 2002 Articles: - Clark, Nicole: “Weathering the magazine circulation storm”. February 2009. http://www.marketingmagazine.co.uk/news/881362 - Louw, Carina: “A glossy downturn”. May 2009. http://www.fluxtrends.com/web/index2.php? option=com_content&task=view&id=125 - Opgenhaffen, M, De commerciële waarde van user generated content. February 2008. http://www.denieuwereporter.nl/2008/02/de-commerciele-waarde-van- user-generated-content/ Thesis: - Danah, B. Ellison, N. “Journal of Computer-Mediated Communication”2007. Websites: - http://vrouwentijdschriften.nl - http://www.articlesbase.com - http://www.utalkmarketing.com - www.facebook.com/ads
  • 14. 9 Critical reflection This critical reflection is not part of the proposal we have written for the direction company of Sophie Spindler, but is written for academic purposes. Dear mr. Leendertse, For this assignment I had to answer the question: “Have new media influenced and pushed and reinvented the structure of the classic magazine format of the women glossy magazine?” The subject I have chosen for my research is the influence of new media on the glossy magazine industry. I have focused my research on the type of new media; social network sites. The reason I have chosen social network sites is because before I started my research I already had certain ideas about how the social network sites could influence the glossy magazine industry. But to prove my hypotheses I had to search for scientific theory. The theory about the different kind f media was easy to find. More difficult was finding the information about the current development of the glossy magazine market. One of my ideas about how social network sites could influence the glossy magazine industry was by reaching their target group throughout the social network sites. When I searched for information how the creative direction company of Sophie Spindler could use a social network site as a promotion tool for their glossy magazines, I founded the advertising tools that Facebook uses. This strategy agreed with my ideas of how a company could promote their company with a social network sites, so I was very pleased with this findings. The part I had much difficulties with was to find a good literature-review about this subjects. There is a lot of information about social network sites, but the problem is that most of the information is not scientific, but written on blogs or websites. To find enough information about my subject, to compare with my theoretical research, I have chosen more resources. I hope this is alright.
  • 15. Thereby I have to note that my financial table is totally fictitious, because I couldn’t find the prices for the ad engagements of Facebook and I have absolutely no idea what the cost of a personal sales assistant are. The last thing I want to add to this critical reflection is that I liked this assignment a lot, although it was very challenging for me, because this was the first paper I have ever written in my life. I hope I have fulfilled all the requirements. Greetings, Elske Joustra