Will advertisers continue to support consumer magazines online?
Leisure and lifestyle magazines: ? Facing the digital future Will advertisers continue to support magazines online?
What does a magazine have to sell? Advertisers DUAL PRODUCTContent Readership
Why does advertising matter? Business model of magazines online1. Subscription: Premium online article and/or multi-media content2. Search ads to web-site visitors, banner ads, affiliations to retail web sites, classified ads, product-purchase capabilities, advertiser directory links, or alternative informational/commercial purpose
Content online“Ingredients” to satisfy readers & advertisers online:• Great features and columns• Exclusive (Interviews)• Archives• Q&AMultimedia elements• Images• video & audio, Flash, Podcasts, Infographs, etc• Interactivity: Blog comments/Forum discussion, Social media, RSS, UGC,• Speed and depth: Latest, Current, Up-to-the-minute,
Content online“Ingredients” to attract advertisers online:• Multimedia with ads: Branded video and audio, pop up ads, RSS with ads• Display advertising• Classified advertising• Advertorials• Search engine• Pay per click, unique user ads
Readership of magazines onlineFacts that advertisers like: • 74% of adults in the UK are reached by one of the NRS listed magazines each average issue period • 81% of women and over 67% of men are reached by an NRS title each average issue period 15-24 year olds are the age group most likely to be reached by magazines. 79% of young adults in the UK are reached by one of the NRS titles each average issue period 56% of adults “almost always” read at least one of these titles Source: NRS Jan to June 2009 PPA – Adults reading one of the 147 titles listed on the NRS
Readership of magazines onlineFacts that advertisers like: • Magazine readers pay attention to magazines and are much less likely to engage in other activities relative to how they use other media. Source: PPA Absorbing Media / Recency Planning Advocates
Readership of magazines onlineFacts that advertisers like: Almost everyone who reads the title. 90% of pages are viewed – its up to the advert to catch attention and communicate • 48% of readers agree that advertising adds to the enjoyment of reading • 63% of Influentials say magazine advertising has influenced their recommendations Magazines have highest attention of all media. Readers are least likely to be doing „something else‟ than users of any other medium Source: NRS Jan to June 2009 PPA – Adults reading one of the 147 titles listed on the NRS
Readership of magazines onlineFacts that concern advertisers • Readers are getting used to the free content online nowadays • How many paying readers out there and remember ads or take action on them? • Web2.0 & Web3.0: Magazines (online) are facing tough competitions from social media, other websites that provide similar content to magazines may take away readers • How to measure the effectiveness of online advertising?
“ Fish where the fish are andyou will be a lot more successful” Sergio Zyman (2002) First CMO for Coca ColaAnyway…
Stats & trends Digital magazine readers• Most are “very satisfied” or “satisfied” with their digital publications• Timelier, easier, environmentally friendly, and more searchable.• Spending longer reading online publications compared to print versionsSource: Qmags. (2010). 2010 Annual Digital Magazine Readership Survey
Stats & trends What about advertising in digital edition?• More creative and engaging by having the ability to use different media• Audio or video giving the reader a different experience• Clearly capturing the readers’ attention• 55% of the survey respondents said they had clicked on a link within an advertisementSource: Qmags. (2010). 2010 Annual Digital Magazine Readership Survey
“ In the near future, mostdigital content will be free. Who willpay for it? The advertisers will. ” 2020 Shaping ideas Jeffrey Cole (2010)
Will advertisers continue to support magazines online?Going digital is the future • Printed advertisement income has shown moderate growth • Online advertisements are driving growth • More opportunities for advertisers with interactive content in a way not possible in print at lower costs
Will advertisers continue to support magazines online?• Bearing implications of dual products in mind: Content + Readership• Readers are migrating online• Advertisers can directly reach target audience online
Will advertisers continue to support magazines online?• Print: Circulation is low/on the decline• Online: Few unique visitor• Glossy lifestyle and leisure titles• Print: High circulation• Online: High traffics• Quality content• Attractive readership demographics & profiles