Loraine student 2011/2


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  • Thanks I’m Loraine Davies – Director PTC. Going to talk about mag publishing industry starting with PTC and what we do and who we are Q: Want to get a quick sense of what you’re really interested in to make sure I cover that ……………. Also want to encourage you to ask questions – you are, after all, journalists!
  • PTC’s remit is to drive up standards and work alongside publishers to enhance the performance of people who work in the industry. Alongside – really important. Build partnerships with industry and its suppliers – not best practice police. We sit within PPA – t he voice of professional publishers
  • The commercial area
  • The best of the rest
  • Closer look at the mag industry starting with a bit of context Mags sits within wider publishing sector along with books, newspapers (regional and national), learned journals, etc This sector V large turnover - bigger than more visible sectors like pharmaceutical High proportion of small companies - around half of the PPA members are companies with turnover of less than £1m Employs 209,000 people - many of whom work in larger companies Very London dominated (48%) - PTC located in West End because most major mag publishers are Unusual in that half workforce is female. But not unusual in that it is difficult - but not impossible – for a female to get to the top of the tree. Not partic diverse (27% London ethnic comm members vs 12% Industry which based predom in London!) Digital revolution Source for figures: Skillset , PWC Global Ents & Media Outlook
  • Three main pillars to industry - consumer, customer and business media. Q: Just want to tell me your definition of consumer, business and customer? The combination the print, online and face-to-face (live media) revenues mean sector is worth more than just print revenue. Mags publishers make a phenomenal contribution to the British economy and the industry has evolved dramatically to include multi-platform offerings. More about that later ………….
  • Just to give you an indication of split – the £5.1bn revenue is shared across the three pillars like this Q: Want to take a guess at the number of mags currently published in UK? Source: PWC 2010
  • Almost 8,000 magazines in UK market. Source: BRAD, 2011 Sector huge and diverse, covering titles ranging from The Economist to The Engineer , to Plastics & Rubber Weekly and Play & Party magazine. Although my favourite – Global Slag – has been withdrawn from the market and it’s topics are covered in Global Cement
  • Consumer market is the one most people know best Whilst there has been a downturn in the number of titles over the last couple of years the number of consumer titles has more than doubled over the last 30 years Q: Want to have a guess at the most popular sections within consumer mags?
  • Main sectors (Source: Brad) Q: What about business mags? Business magazines The big markets in the business press are Medicine & Health, Sciences and Social Sciences Q: So let’s talk about money. How do mag publishers make money?
  • Significant difference between consumer and business mags Consumer magazines revenue largely subs and copy price Majority of business magazines’ revenue comes from advertising Q: Can you think of an area where ad spend would have been print focused but has now migrated online? Jobs boards Of course, these figures only reflect income on print titles. There is much more to publisher business proposition now. Q: How else do publishers make money? Digital offerings, research, data selling (Yatch example), and face2face/live including awards, conferences, events, exhibitions, training, forums, as well as directory space etc Q: Ok – so name me some of the major mag publishers?
  • Q: What is the biggest selling consumer magazine in the UK?
  • From the NRS - An average reader is defined by the National Readership Survey as anyone who has read a publication in the interval between one issue and the next.
  • TV listings still dominate. And – yes - we’re still obsessed with celebrity Growth of “grey pound” market Q: Why do you think the stats specify “by active purchase”? Isn’t that a bit obvious? Pass-ons Q: Benefit of pass-ons to publishers? Top mags by circulation
  • Predominantly customer ……………. Customer magazines grown steadily over past five years. Six out of the top ten circulating magazines are customer titles. Most often produced by publishing companies on behalf of a client and distributed freely to their customers by mail or through a retail outlet.
  • Over the last 10 years we have seen business publishers become the focal point of the huge booming business communications market place. Mag not all there is to proposition “ Is mag industry dead in the water?”
  • PEST analysis – interesting sociological trends contributing to a strong magazine sector First – busy lives …
  • Working harder Losing balance
  • At the same time as we are feeling the pressure of more work, longer hours at work and the resultant squeeze on leisure hours, media choices have gone through the roof
  • We have increased choice in every area of our lives
  • Faced with too much choice, too much media, too much marketing, consumers are effectively filtering or actively rejecting the onslaught Looking for engagement OK – so what does this mean for mags?
  • Each mag talks one to one and is targeted to a person of specific attitudes, behaviours, ages etc. The reader feels that it is a magazine written for them. A magazine is actively consumed, the reader has made the choice and picked a magazine (from thousands) which is ‘for them’. Magazines are ‘self-editing’. The reader can take in as much or as little information he or she wants. They take control.
  • The ‘magazine moment’ These are the worst pix I have ever seen. Sorry – I nicked the slides from our marketing team! The “Absorbing Media” survey, published in 2002 by PPA and conducted by NFO WorldGroup [22, 23], called the experience of reading magazines the ‘magazine moment’. NFO wrote “The magazine moment was described warmly and positively by all respondents. It was treasured, as a break from work/housework/homework/etc, a totally different activity which transported the readers from their everyday situation… [sometimes] into other people’s lives (as with Hello! magazine) or into a dream life of their own, for example by reading DIY or travel magazines. It was generally an intensely personal moment. The reader was utterly absorbed in the magazine. Demands on one’s time could be forgotten for a while. “ The magazine moment often took place in relaxed places. Although the reader was often alone, in a private place, this was not always the case. The magazine itself could be sufficient to create a private ‘bubble’ that protected the reader from intrusion. “ Women with children in particular appreciated the fact that their relationship with magazines was like an unconditional friendship. The magazine would always be there when they had a moment, to talk to them for as long as they could spare. “ Magazines ‘feed’ the reader, and respondents did ‘devour’ their favourite magazines. They treasured buying them, taking them home to read as a treat, combined with other relaxing pleasurable activities – some even claimed to read their magazines in the bath. The satisfaction obtained was analogous to eating a favourite food.”
  • The reading experience is enjoyed both for its relaxing nature and for its active input – dipping in, conscious scanning of each page, re-reading – and is thus felt to be more engaging and of more merit than watching television and easier than using the internet. Magazines are consumed and absorbed in an order and at a pace which suits the individual. Respondents remarked how magazines can be taken where and when the reader wishes, are easy to pick up and put down, and are available when there’s time for reading. NFO commented that the real meaning of this portability of magazines “was that the magazine really can be a friend, always to hand but never demanding, just like a good friend should be”. Another aspect of the physicality of magazines is their tactile quality: some readers “really liked the feel of the magazine, and their response – both verbal and non-verbal – suggested a warm, comfortable moment.” Sometimes the magazine moment is something to be shared rather than kept private. For instance two respondents said: “ I’ll bring it in to work, and say in Bliss or Sugar they’ve got questionnaires, you do your little questionnairey things with people and rate them, and call out each others’ stars.” “ I find with magazines if I’ve found something good in it or something funny in it, I’d have it in my bag and I’d say ‘Oh just look at this’.”
  • Old covers but good example if fitting brand to a community Content is King; audience is God - whatever platform
  • Loraine student 2011/2

    1. 1. The UK magazine publishing industry Loraine Davies Director, Periodicals Training Council
    2. 2. Role of PTC <ul><li>Acts as the lead body </li></ul><ul><li>for </li></ul><ul><li>best practice in training and development </li></ul><ul><li>and </li></ul><ul><li>people management </li></ul><ul><li>for </li></ul><ul><li>the magazine and business media industry </li></ul>
    3. 3. Encouraging new talent <ul><li>MagNet </li></ul><ul><li>Accreditation </li></ul><ul><li>Masterclasses </li></ul><ul><li>Magazine Academy </li></ul><ul><li>PTC New Talent awards </li></ul><ul><li>Careers guide and advice </li></ul>
    4. 4. Developing existing talent <ul><li>Qualifications strategy </li></ul><ul><li>Open training courses </li></ul>
    5. 5. Supporting the industry <ul><li>PPAjobs </li></ul><ul><li>Benchmarking salary survey </li></ul><ul><li>HR and Training network groups </li></ul><ul><li>Training for academic partners </li></ul><ul><li>Link to Government’s skills agenda </li></ul><ul><li>Work experience and internship guidelines </li></ul>
    6. 6. The publishing sector <ul><ul><li>Total annual sales of between £18 and £22 billion </li></ul></ul><ul><ul><li>Annual turnover </li></ul></ul><ul><ul><ul><li>Consumer and business magazines £4bn </li></ul></ul></ul><ul><ul><ul><li>Customer publishing £1bn </li></ul></ul></ul><ul><ul><ul><li>National & Regional newspapers £5.8bn </li></ul></ul></ul><ul><ul><ul><li>Books, journals, educational £3.2bn </li></ul></ul></ul><ul><ul><ul><li>Directories £1bn </li></ul></ul></ul><ul><ul><ul><li>Newsletters etc £1bn </li></ul></ul></ul><ul><ul><li>7,200 employers, 85% small businesses (24 employees or fewer) </li></ul></ul><ul><ul><li>209,000 employees; 52% work in companies employing more that 200 staff </li></ul></ul><ul><ul><li>Just under half (48%) of employment located in London and South East </li></ul></ul><ul><ul><li>Men (53%) women (47%) </li></ul></ul><ul><ul><li>Ethnic minority under-representation </li></ul></ul><ul><ul><li>Young – 66% between 20-39 </li></ul></ul><ul><ul><li>A well qualified industry with a high level of learning </li></ul></ul><ul><ul><li>Big user of freelance workers </li></ul></ul>
    7. 7. More than magazines <ul><li>Three pillars: consumer, customer and business media </li></ul><ul><li>Print, digital and live media and brand extensions </li></ul><ul><li>£5.1bn market value (for printed magazines alone) </li></ul>
    8. 8. A £5.1bn industry <ul><li>Consumer magazine market is worth UK£2.5bn </li></ul><ul><li>(49% market share) </li></ul><ul><li>Business and professional magazine market* is worth almost UK£1.6bn </li></ul><ul><li>(31% market share) </li></ul><ul><li>Customer magazine market is worth almost UK£1bn </li></ul><ul><li>(20% market share) </li></ul>Value of Magazine Industry (UK£m) Source: PwC, 2010 (*This figure includes magazine publishing only and not other business media activities.) Consumer Magazines Business Magazines Customer Magazines
    9. 9. Almost 8,000 magazines in the UK
    10. 10. Over 2,900 UK consumer magazine titles <ul><li>2,924 consumer titles in UK market </li></ul><ul><li>80 new consumer titles launched in 2009 </li></ul><ul><li>In 1980, there were only 1,383 titles </li></ul><ul><li>I n the past 30 years, the number of consumer titles has more than doubled </li></ul>Source: BRAD
    11. 11. 2010 consumer sector breakdown Category Titles Leisure Interests 407 Sport 280 County, Town & Local Interest 283 Women's Magazines 232 Education & Careers 182 Youth 182 Travel and Tourism 150 Entertainment & Leisure Guides 136 Motoring 124 News & Current Affairs 120 Home Interests 91 Outdoor Pursuits 90 Music 88 Ethnic & Expatriates 79 Health, Fitness & Beauty 79 Men's Magazines 69 Buying & Selling 67 General Interest 64 Food & Drink 48 Computing 38 Motorcycling 38 Personal Finance 14 Home Entertainment & Electronic Equipment 12
    12. 12. £2bn consumer spend in 2008 <ul><li>Consumer expenditure accounts for more than 75% of total consumer magazine revenue </li></ul><ul><li>In the past 30 years, consumer expenditure has increased steadily (in real terms*) from £0.4m in 1980 </li></ul><ul><li>The recession has been largely responsibly for the recent decline in expenditure </li></ul>Source: AA/WARC, 2009 (*At constant prices i.e. not including the effects of inflation.) 2009: £1.96bn * 2010 est: £1.95bn
    13. 13. Major players in the UK magazine industry <ul><li>BBC Magazines </li></ul><ul><li>Bauer Consumer Media </li></ul><ul><li>British Sky Broadcasting </li></ul><ul><li>Centaur </li></ul><ul><li>Conde Nast </li></ul><ul><li>DC Thompson </li></ul><ul><li>Dennis Publishing </li></ul><ul><li>Egmont Magazine </li></ul><ul><li>Emap </li></ul><ul><li>Future Publishing </li></ul><ul><li>Haymarket </li></ul><ul><li>H Bauer </li></ul><ul><li>Hearst </li></ul><ul><li>Incisive </li></ul><ul><li>IPC Media </li></ul><ul><li>John Brown </li></ul><ul><li>Law Society </li></ul><ul><li>Reed Business Information </li></ul><ul><li>Redwood Publishing </li></ul><ul><li>United Business Media </li></ul><ul><li>William Reed </li></ul>
    14. 14. 87% of adults in the UK read magazines <ul><li>Top 10 magazines by readership: </li></ul><ul><li>Tesco Magazine 6,528,000 </li></ul><ul><li>Asda Magazine 5,483,000 </li></ul><ul><li>Your M&S 3,830,000 </li></ul><ul><li>The National Trust Magazine 3,474,000 </li></ul><ul><li>Sainsbury's Mag 3,406,000 What's on TV 3,289,000 </li></ul><ul><li>Boots H&B 2,855,000 Take A Break 2,714,000 Radio Times 2,334,000 </li></ul><ul><li>OK Magazine 2,201,000 </li></ul>Source: NRS, Jan-Jun 2011
    15. 15. Top 10 Selling Magazines (by active purchase) Source: ABC, Jan-Jun 2011 TV Choice 1,354,761 What’s on TV 1,271,675 Radio Times 895,912 Take A Break 797,519 Saga Magazine 616,097 New! 512,216 Glamour 490,003 OK! Magazine 459,918 Closer 452,711 Good Housekeeping 414,358 Star 402,589
    16. 16. Top 10 Circulating Magazines (by net average circulation per issue) Source: ABC, Jan-Jun 2011 Asda Magazine 1,980,740 Tesco Magazine 1,928,687 TV Choice 1,354,761 What’s on TV 1,271,675 Tesco Real Food 1,216,875 Morrisons Magazine 1,137,383 Radio Times 895,912 Sense Magazine 834,954 Take a Break 797,519 Saga Magazine 616,097
    17. 17. Top Business Magazines (by net average audited circulation per issue) <ul><li>RCN Bulletin – All Editions 399,000 </li></ul><ul><li>First Voice of Business 196,159 </li></ul><ul><li>Business Network 195,333 </li></ul><ul><li>Accountancy 158,986 </li></ul><ul><li>Accounting and Business 146,588 </li></ul><ul><li>People Management 131,418 </li></ul><ul><li>British Medical Journal 117,741 </li></ul><ul><li>The Law Society Gazette 114,392 </li></ul><ul><li>Management Today 89,809 </li></ul><ul><li>Professional Manager 80,948 </li></ul>Source: World Magazine Trends 2010/11
    18. 18. People are leading busier lives… ‘ I never have enough time to get things done’ Source : The Henley Centre Social context – madly busy
    19. 19. Source : The Henley Centre … and working harder… 1 in 6 (16%) of workers surveyed now work over 60 hours a week… … compared to just 1 in 8 (12%) of all UK workers in 2000 Social context – working harder twice as many employees would rather work shorter hours than win the lottery … getting out of balance
    20. 20. Time Squeeze Media choice Hours in a day Social context – less time, more media
    21. 21. Information Overload We receive more than 1600 commercial messages a day 10 billion spam mails are sent daily, 55% of total traffic Source: The Henley Centre, Planning for Consumer Change 2003 35% of the population agrees that: “ Nearly all TV advertising annoys me” (28% in 2000) Social context – bombarded
    22. 22. Coffee Types (espresso, cappuccino, macchiato, latte etc) 7 Toppings (none, cinnamon, vanilla etc) 5 Milk (skinned, semi-skinned, full fat, extra cream) 4 Sugar (none, white, brown, sweetener) 4 Cup sizes 3 Strength (extra shots, de-caffeinated) 3 Syrups 8 Over 6,000 different combinations. 16.5 years to try them all if you try a different one each day Source: Complicated Lives - Abbey National/©Future Foundation Social context – spoilt for choice
    23. 23. My world – my magazine Source: Henley Centre 2004 The World People trust governments and corporate institutions less than they did Our World Instead people look to their community, their colleagues, friends and relations for advice and reassurance My World My magazine
    24. 24. My world – deeply personal Source: Henley Centre: Delivering Engagement 2004 “ Magazines dovetail well with the concept of ‘MY world’, because they enjoy many of the same characteristics of a close friend” “ Magazines are triggers for conversations between friends” “ [Magazines] are crucial to people in generating points of view” “ People look to their magazines as a trusted agent……… Trust is a principal driver for brand development and reinforcement”
    25. 25. <ul><li>It is treasured , as a break from work, </li></ul><ul><li>housework, etc. </li></ul><ul><li>It transports the readers from their </li></ul><ul><li>everyday situation </li></ul><ul><li>It is generally an intensely personal </li></ul><ul><li>moment. The reader is utterly absorbed </li></ul><ul><li>in the magazine. </li></ul><ul><li>The magazine moment often takes place in relaxed </li></ul><ul><li>places. The magazine itself can be sufficient to create a </li></ul><ul><li>private ‘bubble’ that protected the reader from intrusion . </li></ul>The ‘Magazine Moment’. “ Absorbing Media” 2002: PPA/NFO WorldGroup My world – my space
    26. 26. The ‘Magazine Moment’. <ul><li>Women with children in particular appreciated </li></ul><ul><li>the fact that their relationship with magazines </li></ul><ul><li>was like an unconditional friendship . </li></ul><ul><li>They treasured buying them, taking them </li></ul><ul><li>home to read as a treat – some even claimed </li></ul><ul><li>to read their magazines in the bath. </li></ul><ul><li>The satisfaction obtained is analogous to </li></ul><ul><li>eating a favourite food. </li></ul>“ Absorbing Media” 2002: PPA/NFO WorldGroup My world – my space
    27. 27. My magazine - my world