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  1. 1. 13 themes from FIPP’s 2013 Congress Chris Llewellyn CEO FIPP – the worldwide magazine media association
  2. 2. About FIPP For more: www.fipp.com Communication FIPP.com Magazine World Newsletters Social Media Directories Presentations Research Insight World Magazine Trends Digital Media Factbook Innovations World Report Proof of Performance Licensing & Syndication Guide Environmental Handbook Events and meetings World Congress Digital Innovators Summit Worldwide Media Marketplace Digital Newsstand Forum Research Forum & Awards Innovations Forum Asia-Pacific Digital Ibero-American Magazine Webinars Professional Development Magazine Brand Management Certificate Executive Programme for Innovation and Change Digital Innovators’ Tour Join the FIPP network Members: 700 members 65 countries 6.000+ magazine media brands Benefit around: Thought leadership | Networking | Development Commercial Advertising Sponsorship Exhibitions
  3. 3. 1. Re-imagine the corporate structure  “The industry is renewing and reinventing itself and the leaders are doing so digital-first.” Peter Kreisky, chairman, Kreisky Media Consultancy, USA  "Successful, profitable, franchise-enhancing change only comes with organisational change.”  “You must change from a silo'd organisation to an integrated team.” John Wilpers, Innovations, USA
  4. 4. Organisational innovation What it isn’t  A couple of conference ideas slapped onto an existing organisational structure  Retro-fitting a traditional media company and thinking you’ll become instantly successful What it requires  Re-thinking the organisation  Change  Organisational structure  Work flows  Architecture  Job descriptions and expectations  Staff mix  Culture John Wilpers
  5. 5. Adaptive strategy & management culture • Based on predictability of market trends and competition • Emphasises scale as the primary basis for competitive advantage Before: Classic strategy • Turbulence is a given • Scale may not always provide an advantage • Build business model and capabilities to manage through uncertainty Now: Adaptive strategy Peter Kreisky – Kreisky Media Consulting
  6. 6. 2. The consumer is at the heart of the strategy  "We intend to reach consumers on every device, on every platform and engage when it's convenient for them.” Mark Wood, CEO, Future, UK  "Marketers need to put the consumer in the very centre of their storytelling.” Laya Pavone, managing director, Isobar, Italy  “Because of the devices that consumers own we need to think as consumer as center of their own media world.” Duncan Edwards, CEO, Hearst Magazines International, USA
  7. 7. Consumers are in control Consumer Magazine Tablet Mobile Website e- Commerce Social networking Live meetings and events Consumers have unprecedented choice. By placing the consumer at the centre, you recognise the need to reach them: When they want it On the platform they want it In the format they want it
  8. 8.  “Let go of your biggest asset (your brand), and give it to your audience.”  “We need to let the audience change us if we want them to pay attention.” Marjaana Toiminen, CEO Bonnier Publications, Finland  “Crowdsourcing our magazine allowed us to find out more about our readers and be more relevant to them.” Tarun Rai, CEO, Worldwide Media, India 3. Information moves at the speed of now
  9. 9. Community building Brands Live events Social media Crowd- sourcing Femina (Worldwide Media, India) Olivia (Bonnier, Finland)
  10. 10. 4. Experiment with social media  “Look at social media as streams, not sites. It’s all about sharing.” Michiel Buitelaar, COO, Sanoma Digital Media, The Netherlands  “Facebook played a key role for executing Cake Decorating’s strategy.” Alessandro Belloni, CEO, De Agostini Publishing, Italy
  11. 11. Social media engagement Michiel Buitelaar It’s early days…
  12. 12. Social media: real conversion happening The Facebook conversion path: From likes to subscriptions! If we attempt to quantify this • 470,000 FB likes • 188,000 to the website • 9,400 new subscribers alone Cake Decorating Allesandro Belloni
  13. 13. 5. Mobile is an opportunity  “Leveraging mobile and using it as part of our multi-screen approach. Going to be pervasive over next 5-10 years” Bob Carrigan, CEO, IDG, USA  “For us to stay relevant in consumers’ lives, we have to be where they are, when they’re there, in the format they want. The speed at which we make this change has to be accelerated.” Duncan Edwards, president and CEO, Hearst Magazines International, USA
  14. 14. Google confidential 17$ Minutes/$ Session$ 43$ Minutes/$ Session$ 30$ Minutes/$ Session$ 39$ Minutes/$ Session$ It’s a Multi-Screen World Google Multi-screen World August 2012 We spend 4.4 hours of leisure time in front of screens each day 90% of all media interactions are screen based
  15. 15. Hearst’s three digital priorities One Large-scale free web Two Curated tablet Three e-Commerce All on mobile - Duncan Edwards
  16. 16. 6. E-commerce is a legitimate space for magazines to play in  "We’re taking baby steps with ecommerce. Know editorial endorsement is important, but finding right model is key." Fiona McIntosh, editor-at-large, Grazia International Network, Italy  "Ecommerce and media require different capabilities. What are we prepared to commit, and what are the rewards?" Paul Keenan, CEO, Bauer Media, UK  "When it comes to ecommerce, we need to be clear about the size of competitors we're up against.” Duncan Edwards, CEO, Hearst Magazines International, USA
  17. 17. Others: Elle Shop (Hearst, Japan) Grazia Shopping (Bauer, UK) … //and more BrandNooz (Burda) Shop Bazaar (Hearst) Show Room (Burda)
  18. 18. 7. Digital newsstands: it’s not all about Apple  "The digital newsstand of the future should promote discovery. Experiment with social media.”  “We think a newsstand should be a place where consumers – particularly mobile – can snack on content.” Michelle Bottomley, president, Zinio. USA  “The benefit of a digital newsstand is millions of users who you are able to cross-sell content to.” Girish Ramdas, CEO and co-founder, Magzter, USA
  19. 19. 8. Advertising in magazines works  "65% per cent of our readers say that advertising enhances the enjoyment of a tablet magazine." Simon Carrington, publisher, Top Gear, UK  “Magazines are terrific at getting consumers closer to brands.” Marius Cloete, head of research, PPA, UK
  20. 20. 9. Clicks ≠ success  “The sweet-spot is where print, digital, web, mobile and others intersect.” Glenn Hansen, CEO, BPA Worldwide, USA  “It's time to do data-driven advertising. Take the data, create data-driven advertising and optimise it for your community.” Denise Colella, president, Maxifier, USA
  21. 21. But tech continues to develop With data offering deeper audience understanding and insight Metrics such as viewability, in- view time, # and time of universal interactions increasingly to the fore Denise Colella Be prepared for it
  22. 22. 10. RTB is the new frontier of media planning and buying “Make use of automation. Don’t fear it. It’s super relevant for you.” “RTB is the new gold for content AND advertising.” Joelle Frijters, CEO, Improve Digital, Netherlands
  23. 23. Ad tech empowers 50% of your digital revenue will be programmatic Joelle Frijters By 2015
  24. 24. WHAT(IS(RTB?( user visits a website ad-call Real(Time( Adver@sing( Technology( hundreds of bid request to buyers winning bid ADVERTISERS( DSP’S( AD(NETWORKS( AGENCY(TRADING(DESKS( OTHER(TRADING(DESKS( 1 view is generated DATA( + hundreds of bids coming back Ad delivered 1 view is generated Joelle Frijters What is RTB?
  25. 25. 11. Brands are becoming media owners  “Content players in the game are targeting editorial quality as a key part of the service. You will struggle to hang on to your people because they will be looking at your business model and worrying about the future.”  “We are now in the content creation game alongside our clients.” David Pullan, global head of Unilever, Mindshare, UK
  26. 26. 12. Mine your natural resources "Branded content must be: Shoppable, sharable, editable, actionable, measurable, portable and searchable.” David Pullan, global head of Unilever, Mindshare, UK “We've brought our content to life. Digital has furthered our mission, original how-to information that inspires.” Ruth Feldman, international editorial director, Martha Stewart Living, USA
  27. 27. 13. Innovation excites everyone  “If you really want to survive as a 21st Century company, you must innovate.”  “"The future is both exciting and lucrative...and the alternative is very bad for your magazine's health.”  "Innovation is what you become as an organisation.” John Wilpers, Innovations, USA
  28. 28. In summary 1. Re-imagine the corporate structure 2. The consumer is at the heart of the strategy 3. Information moves at the speed of now 4. Experiment with social media 5. Mobile is an opportunity 6. E-commerce is a legitimate space for magazines to play in 7. Digital newsstands: it’s not all about Apple 8. Advertising in magazines works 9. Clicks ≠ success 10. RTB is the new frontier of media planning and buying 11. Brands are becoming media owners 12. Mine your natural resources 13. Innovation excites everyone
  29. 29. FIPP – the worldwide magazine media association Website: www.fipp.com Twitter: www.twitter.com/FIPP_magazines Facebook: www.facebook.com/FIPPmagazines LinkedIn: FIPP group Instagram: http://instagram.com/fippworld YouTube: FIPP channel Email: amy@fipp.com Thank you

Editor's Notes

  • A syntheses of the themes and issues discussed by the world’s magazine media experts in ROME, September 2013.
    Speakers asked to
    Define the problem,
    explain the solution,
    show the results.
    700 delegates
    60 speakers.
    (And 40th Congress will be in Toronto next October)

    It was the best of times – it was the worst of times.
    It was the age of wisdom – it was the age of foolishness.
    It was the epoch of belief – it was the epoch of incredulity.
    It was the Spring of Hope – it was the Winter of Despair.
    It was a time when we had everything before us – it was a time when we had nothing before us.
    We were all off to heaven – we were all off to that other place.
  • FIPP formed in 1925
    44 National Associations, +600 operating companies worldwide.
    Events (Beijing, Berlin, Toronto, Research Forum)
    Insight (POP, Digital Media Factbook, e-newsletters and FIPP.com)
    Training (MBMC, EPIC)
  • The major theme, set by Peter Kreisky who is here today was that to grasp the future opportunity, organisations had to change.
    This was echoed by John Wilpers, also here today.
    The business strategies and business models of the future will be determined by where the consumer is going.
    And the consumer is increasingly going digital FIRST.
    Not digital ONLY
    Not digital PLUS
    And to deliver, a new operating structure is needed.

  • Again, echoed by John.
    Incremental change will not work.
    (Time Inc making Editors report to Publishers is really an incremental change)
    Its change at all levels.
  • Michael Porter wrote the definitive ‘Competitive Advantage’ book back in the late 80’s.
    CA was predicated on a company having SCALE, and TRENDS were PREDICTABLE.
    Scale, arguably is now a disadvantage – it slows down decision- making, and uncertainty and disruption are now constants.
    I shall leave it to Peter and John to describe what companies should and indeed are doing.
  • This is a seismic shift. Over the years, as people have described their strategy I have seen the diagrams that first used to
    show the magazine at the heart of our thinking.

    By 2011 and the Congress in India, everyone had their new diagrams with the brand at the heart.

    Now it’s the Consumer.

    This is how advertisers now think – consumer not platform.
  • The consumer is in control – they pull what they want from us instead of accepting what we push.
    Take what Duncan Edwards of Hearst International, said - that Hearst’s magazines
    ‘Make sure that we have a clear and distinct point of view, to make sure she comes back to us’.

    One consequence is an increase of importance in content metrics – what’s being read, what’s being shared.
    Hearst UK employing Mathematics graduates from Cambridge University.

    It’s a deeper dialogue with the consumer – Glamour getting fashion students to help shape the brand strategy.
  • Exclusivity last for 10 minutes before your story is blogged, shared, retweeted and ggogled.
    Therefore let the audience participate and build your community.
    It worked in Finland and India – two markets more different you cant imagine.
    RGC is the ultimate example.
  • We used to talk about selling magazines and building circulations – now its about building communities and how to engage them.

    Its why we are seeing an explosion in live events and experiences (Grazia at Westfield) Burda running crafts weekends with their titles (Fabrizio)

    Its why Social Media is becoming an important brand building tool.

    And the rise of crowdsourcing –not just on message boards but even the creation of content for the printed magazine
    (models different – Olivia paid their contributors, Femina didn’t – but best selling editions of the year).
  • Interesting in that the advice was pretty clear. Social Media is a slow-build. So don’t over-complicate, just experiment.
  • CMO Survey 2013 on Social Media Results
    49% - No impact on sales seen
    36% - Believe there is an impact on sales
    15% - Have proven impact on sales.
  • Here is a benchmark.

    From Facebook ‘like’ to subscriber is a 2% conversion rate.

    Its promising – certainly the return is in line with what the old direct mail techniques used to bring, but at a fraction of the cost.
  • Its actually not an ‘Opportunity’ but an ‘Obsession’.
  • A slide from Google

    90% of all media interactions are screen based.

    Ad dollars will go where the eyeballs are. Smartphones undersupported (17c per minute of ad revenue) and are the focus of attention. It will change.

    The delay is that of creativity - ads look awful on smartphones hence rise of ‘Native’.
    Debate at this conference, but the fact is that unless we find a suitable way to play this game we will be watching the revenue walk away.
  • To emphasise the importance of mobile, Hearst’s top three priorities are:


  • So how do we make money. E Commerce.
    We now see Retail meeting Media (Net a Porter) –so why not the other way around? After all, we’ve always ‘sold’ product (Fiona)

    Well yes, but understand its different

    Perhaps work with partners who bring the skills you don’t have. (Paul)

    Be clear about your competitors – e.g. Amazon, eBay, Alibaba

    Accept it is a low margin business
  • .Examples
    Harpers Bazaar hooking up with Saks of 5th Avenue
    Cosmo and Amazon for fulfilment
    Elle shop Japan.



  • Again we have speakers here today who will talk in greater detail about the digital newsstand situation.

    There is an obvious new business opportunity in a continent largely speaking the same language.

    English language publisher Future discovered that 80% of the buyers of the digital edition of T3 were from outside of the UK.

    The issues to face up to are
    Discoverability
    Pricing (the buyer expects digital editions to be half the price of the print version)
    Efficient content creation (create once, publish on all platforms)
  • Encouragingly, we were presented with evidence that proves the advertising effectiveness of magazine media.
    My colleague Cobus Heyl will be unveiling the launch of FIPP’s Proof of Performance which shows how magazines still work for advertisers
    So I’ll leave to him.
  • First ever banner ad – 78% click rate
    Now…….

    Dominic Porter CEO Group M - $50 bn dollars ad billings.
    ‘We haven’t found ways of building brands through the primary use of digital media’.
    But

    Marketers want evidence of deeper proof of engagement and interaction
  • Marketeers want
    to create brand awareness,
    want to know purchase intentions and
    likelihood of recommending a product.

    The data and metrics they will want from you in the future are not just a click metric or unique user figure, but deeper data such as;
    In view time
    Viewabiity
    Time of interractions

    Be prepared for it.
  • This means that the buying and selling of digital advertising will become an algorithmic process.
    It is profoundly changing the nature of our advertising relationships.

    It will be talked about at this conference.
  • So in September 2013 we were predicting that in the USA and Europe, 50% of your digital advertising would be programmatically bought by 2015.

    In May 2014 this report from AdExchanger in the USA said

    Currently more than two-thirds of agencies use automated ad buying for at least 20% of their budget,
    and more than a third are up to at least 60%. Almost half plan to get to 60% by 2015
    AdExchanger, research, USA. May 2014.

    The change is happening faster. Here in Brazil you have an opportunity to learn. We have a session on the programme which we believe will do that.
  • The fear is that this commoditises sales.

    The bad news is that CPT’s are low, the good news is
    that yields are growing.
  • Brands can now reach the consumer without us by using online and social media platforms.

    Two consequences

    1 Why do they need us?

    And

    2 Brands will now fight us for creative talent.
  • Felix Baumgarten sponsored by Red Bull (see their logo on his spacesuit).

    8 million live viewers on Youtue.
    58 million views to date.

    Coverage on every major news channel in the world.
    Above the line media expenditure -- 0.

    TVC /Economist
  • Some advice about playing to the strengths of what we do.

    David Pullan – runs the Unilever account, but worked with me in a magazine company memorably said that content now must be:
    Shoppable,
    Sharable
    Editable
    Actionable
    Measureable
    Portable
    And Searchable.

    And Ruth Feldman adds that digital has allowed them to bring their content to life (award winning app).
  • Finally, what always wins is innovation. People love new things.

    Advertisers will stop asking tough questions about if you can show you understand their
    Marketing problem and come up with an innovative solution.

    The consumer will engage with you if you are exciting them.

    1. 1. 13 themes from FIPP’s 2013 Congress Chris Llewellyn CEO FIPP – the worldwide magazine media association
    2. 2. About FIPP For more: www.fipp.com Communication FIPP.com Magazine World Newsletters Social Media Directories Presentations Research Insight World Magazine Trends Digital Media Factbook Innovations World Report Proof of Performance Licensing & Syndication Guide Environmental Handbook Events and meetings World Congress Digital Innovators Summit Worldwide Media Marketplace Digital Newsstand Forum Research Forum & Awards Innovations Forum Asia-Pacific Digital Ibero-American Magazine Webinars Professional Development Magazine Brand Management Certificate Executive Programme for Innovation and Change Digital Innovators’ Tour Join the FIPP network Members: 700 members 65 countries 6.000+ magazine media brands Benefit around: Thought leadership | Networking | Development Commercial Advertising Sponsorship Exhibitions
    3. 3. 1. Re-imagine the corporate structure  “The industry is renewing and reinventing itself and the leaders are doing so digital-first.” Peter Kreisky, chairman, Kreisky Media Consultancy, USA  "Successful, profitable, franchise-enhancing change only comes with organisational change.”  “You must change from a silo'd organisation to an integrated team.” John Wilpers, Innovations, USA
    4. 4. Organisational innovation What it isn’t  A couple of conference ideas slapped onto an existing organisational structure  Retro-fitting a traditional media company and thinking you’ll become instantly successful What it requires  Re-thinking the organisation  Change  Organisational structure  Work flows  Architecture  Job descriptions and expectations  Staff mix  Culture John Wilpers
    5. 5. Adaptive strategy & management culture • Based on predictability of market trends and competition • Emphasises scale as the primary basis for competitive advantage Before: Classic strategy • Turbulence is a given • Scale may not always provide an advantage • Build business model and capabilities to manage through uncertainty Now: Adaptive strategy Peter Kreisky – Kreisky Media Consulting
    6. 6. 2. The consumer is at the heart of the strategy  "We intend to reach consumers on every device, on every platform and engage when it's convenient for them.” Mark Wood, CEO, Future, UK  "Marketers need to put the consumer in the very centre of their storytelling.” Laya Pavone, managing director, Isobar, Italy  “Because of the devices that consumers own we need to think as consumer as center of their own media world.” Duncan Edwards, CEO, Hearst Magazines International, USA
    7. 7. Consumers are in control Consumer Magazine Tablet Mobile Website e- Commerce Social networking Live meetings and events Consumers have unprecedented choice. By placing the consumer at the centre, you recognise the need to reach them: When they want it On the platform they want it In the format they want it
    8. 8.  “Let go of your biggest asset (your brand), and give it to your audience.”  “We need to let the audience change us if we want them to pay attention.” Marjaana Toiminen, CEO Bonnier Publications, Finland  “Crowdsourcing our magazine allowed us to find out more about our readers and be more relevant to them.” Tarun Rai, CEO, Worldwide Media, India 3. Information moves at the speed of now
    9. 9. Community building Brands Live events Social media Crowd- sourcing Femina (Worldwide Media, India) Olivia (Bonnier, Finland)
    10. 10. 4. Experiment with social media  “Look at social media as streams, not sites. It’s all about sharing.” Michiel Buitelaar, COO, Sanoma Digital Media, The Netherlands  “Facebook played a key role for executing Cake Decorating’s strategy.” Alessandro Belloni, CEO, De Agostini Publishing, Italy
    11. 11. Social media engagement Michiel Buitelaar It’s early days…
    12. 12. Social media: real conversion happening The Facebook conversion path: From likes to subscriptions! If we attempt to quantify this • 470,000 FB likes • 188,000 to the website • 9,400 new subscribers alone Cake Decorating Allesandro Belloni
    13. 13. 5. Mobile is an opportunity  “Leveraging mobile and using it as part of our multi-screen approach. Going to be pervasive over next 5-10 years” Bob Carrigan, CEO, IDG, USA  “For us to stay relevant in consumers’ lives, we have to be where they are, when they’re there, in the format they want. The speed at which we make this change has to be accelerated.” Duncan Edwards, president and CEO, Hearst Magazines International, USA
    14. 14. Google confidential 17$ Minutes/$ Session$ 43$ Minutes/$ Session$ 30$ Minutes/$ Session$ 39$ Minutes/$ Session$ It’s a Multi-Screen World Google Multi-screen World August 2012 We spend 4.4 hours of leisure time in front of screens each day 90% of all media interactions are screen based
    15. 15. Hearst’s three digital priorities One Large-scale free web Two Curated tablet Three e-Commerce All on mobile - Duncan Edwards
    16. 16. 6. E-commerce is a legitimate space for magazines to play in  "We’re taking baby steps with ecommerce. Know editorial endorsement is important, but finding right model is key." Fiona McIntosh, editor-at-large, Grazia International Network, Italy  "Ecommerce and media require different capabilities. What are we prepared to commit, and what are the rewards?" Paul Keenan, CEO, Bauer Media, UK  "When it comes to ecommerce, we need to be clear about the size of competitors we're up against.” Duncan Edwards, CEO, Hearst Magazines International, USA
    17. 17. Others: Elle Shop (Hearst, Japan) Grazia Shopping (Bauer, UK) … //and more BrandNooz (Burda) Shop Bazaar (Hearst) Show Room (Burda)
    18. 18. 7. Digital newsstands: it’s not all about Apple  "The digital newsstand of the future should promote discovery. Experiment with social media.”  “We think a newsstand should be a place where consumers – particularly mobile – can snack on content.” Michelle Bottomley, president, Zinio. USA  “The benefit of a digital newsstand is millions of users who you are able to cross-sell content to.” Girish Ramdas, CEO and co-founder, Magzter, USA
    19. 19. 8. Advertising in magazines works  "65% per cent of our readers say that advertising enhances the enjoyment of a tablet magazine." Simon Carrington, publisher, Top Gear, UK  “Magazines are terrific at getting consumers closer to brands.” Marius Cloete, head of research, PPA, UK
    20. 20. 9. Clicks ≠ success  “The sweet-spot is where print, digital, web, mobile and others intersect.” Glenn Hansen, CEO, BPA Worldwide, USA  “It's time to do data-driven advertising. Take the data, create data-driven advertising and optimise it for your community.” Denise Colella, president, Maxifier, USA
    21. 21. But tech continues to develop With data offering deeper audience understanding and insight Metrics such as viewability, in- view time, # and time of universal interactions increasingly to the fore Denise Colella Be prepared for it
    22. 22. 10. RTB is the new frontier of media planning and buying “Make use of automation. Don’t fear it. It’s super relevant for you.” “RTB is the new gold for content AND advertising.” Joelle Frijters, CEO, Improve Digital, Netherlands
    23. 23. Ad tech empowers 50% of your digital revenue will be programmatic Joelle Frijters By 2015
    24. 24. WHAT(IS(RTB?( user visits a website ad-call Real(Time( Adver@sing( Technology( hundreds of bid request to buyers winning bid ADVERTISERS( DSP’S( AD(NETWORKS( AGENCY(TRADING(DESKS( OTHER(TRADING(DESKS( 1 view is generated DATA( + hundreds of bids coming back Ad delivered 1 view is generated Joelle Frijters What is RTB?
    25. 25. 11. Brands are becoming media owners  “Content players in the game are targeting editorial quality as a key part of the service. You will struggle to hang on to your people because they will be looking at your business model and worrying about the future.”  “We are now in the content creation game alongside our clients.” David Pullan, global head of Unilever, Mindshare, UK
    26. 26. 12. Mine your natural resources "Branded content must be: Shoppable, sharable, editable, actionable, measurable, portable and searchable.” David Pullan, global head of Unilever, Mindshare, UK “We've brought our content to life. Digital has furthered our mission, original how-to information that inspires.” Ruth Feldman, international editorial director, Martha Stewart Living, USA
    27. 27. 13. Innovation excites everyone  “If you really want to survive as a 21st Century company, you must innovate.”  “"The future is both exciting and lucrative...and the alternative is very bad for your magazine's health.”  "Innovation is what you become as an organisation.” John Wilpers, Innovations, USA
    28. 28. In summary 1. Re-imagine the corporate structure 2. The consumer is at the heart of the strategy 3. Information moves at the speed of now 4. Experiment with social media 5. Mobile is an opportunity 6. E-commerce is a legitimate space for magazines to play in 7. Digital newsstands: it’s not all about Apple 8. Advertising in magazines works 9. Clicks ≠ success 10. RTB is the new frontier of media planning and buying 11. Brands are becoming media owners 12. Mine your natural resources 13. Innovation excites everyone
    29. 29. FIPP – the worldwide magazine media association Website: www.fipp.com Twitter: www.twitter.com/FIPP_magazines Facebook: www.facebook.com/FIPPmagazines LinkedIn: FIPP group Instagram: http://instagram.com/fippworld YouTube: FIPP channel Email: amy@fipp.com Thank you

    Editor's Notes

  • A syntheses of the themes and issues discussed by the world’s magazine media experts in ROME, September 2013.
    Speakers asked to
    Define the problem,
    explain the solution,
    show the results.
    700 delegates
    60 speakers.
    (And 40th Congress will be in Toronto next October)

    It was the best of times – it was the worst of times.
    It was the age of wisdom – it was the age of foolishness.
    It was the epoch of belief – it was the epoch of incredulity.
    It was the Spring of Hope – it was the Winter of Despair.
    It was a time when we had everything before us – it was a time when we had nothing before us.
    We were all off to heaven – we were all off to that other place.
  • FIPP formed in 1925
    44 National Associations, +600 operating companies worldwide.
    Events (Beijing, Berlin, Toronto, Research Forum)
    Insight (POP, Digital Media Factbook, e-newsletters and FIPP.com)
    Training (MBMC, EPIC)
  • The major theme, set by Peter Kreisky who is here today was that to grasp the future opportunity, organisations had to change.
    This was echoed by John Wilpers, also here today.
    The business strategies and business models of the future will be determined by where the consumer is going.
    And the consumer is increasingly going digital FIRST.
    Not digital ONLY
    Not digital PLUS
    And to deliver, a new operating structure is needed.

  • Again, echoed by John.
    Incremental change will not work.
    (Time Inc making Editors report to Publishers is really an incremental change)
    Its change at all levels.
  • Michael Porter wrote the definitive ‘Competitive Advantage’ book back in the late 80’s.
    CA was predicated on a company having SCALE, and TRENDS were PREDICTABLE.
    Scale, arguably is now a disadvantage – it slows down decision- making, and uncertainty and disruption are now constants.
    I shall leave it to Peter and John to describe what companies should and indeed are doing.
  • This is a seismic shift. Over the years, as people have described their strategy I have seen the diagrams that first used to
    show the magazine at the heart of our thinking.

    By 2011 and the Congress in India, everyone had their new diagrams with the brand at the heart.

    Now it’s the Consumer.

    This is how advertisers now think – consumer not platform.
  • The consumer is in control – they pull what they want from us instead of accepting what we push.
    Take what Duncan Edwards of Hearst International, said - that Hearst’s magazines
    ‘Make sure that we have a clear and distinct point of view, to make sure she comes back to us’.

    One consequence is an increase of importance in content metrics – what’s being read, what’s being shared.
    Hearst UK employing Mathematics graduates from Cambridge University.

    It’s a deeper dialogue with the consumer – Glamour getting fashion students to help shape the brand strategy.
  • Exclusivity last for 10 minutes before your story is blogged, shared, retweeted and ggogled.
    Therefore let the audience participate and build your community.
    It worked in Finland and India – two markets more different you cant imagine.
    RGC is the ultimate example.
  • We used to talk about selling magazines and building circulations – now its about building communities and how to engage them.

    Its why we are seeing an explosion in live events and experiences (Grazia at Westfield) Burda running crafts weekends with their titles (Fabrizio)

    Its why Social Media is becoming an important brand building tool.

    And the rise of crowdsourcing –not just on message boards but even the creation of content for the printed magazine
    (models different – Olivia paid their contributors, Femina didn’t – but best selling editions of the year).
  • Interesting in that the advice was pretty clear. Social Media is a slow-build. So don’t over-complicate, just experiment.
  • CMO Survey 2013 on Social Media Results
    49% - No impact on sales seen
    36% - Believe there is an impact on sales
    15% - Have proven impact on sales.
  • Here is a benchmark.

    From Facebook ‘like’ to subscriber is a 2% conversion rate.

    Its promising – certainly the return is in line with what the old direct mail techniques used to bring, but at a fraction of the cost.
  • Its actually not an ‘Opportunity’ but an ‘Obsession’.
  • A slide from Google

    90% of all media interactions are screen based.

    Ad dollars will go where the eyeballs are. Smartphones undersupported (17c per minute of ad revenue) and are the focus of attention. It will change.

    The delay is that of creativity - ads look awful on smartphones hence rise of ‘Native’.
    Debate at this conference, but the fact is that unless we find a suitable way to play this game we will be watching the revenue walk away.
  • To emphasise the importance of mobile, Hearst’s top three priorities are:


  • So how do we make money. E Commerce.
    We now see Retail meeting Media (Net a Porter) –so why not the other way around? After all, we’ve always ‘sold’ product (Fiona)

    Well yes, but understand its different

    Perhaps work with partners who bring the skills you don’t have. (Paul)

    Be clear about your competitors – e.g. Amazon, eBay, Alibaba

    Accept it is a low margin business
  • .Examples
    Harpers Bazaar hooking up with Saks of 5th Avenue
    Cosmo and Amazon for fulfilment
    Elle shop Japan.



  • Again we have speakers here today who will talk in greater detail about the digital newsstand situation.

    There is an obvious new business opportunity in a continent largely speaking the same language.

    English language publisher Future discovered that 80% of the buyers of the digital edition of T3 were from outside of the UK.

    The issues to face up to are
    Discoverability
    Pricing (the buyer expects digital editions to be half the price of the print version)
    Efficient content creation (create once, publish on all platforms)
  • Encouragingly, we were presented with evidence that proves the advertising effectiveness of magazine media.
    My colleague Cobus Heyl will be unveiling the launch of FIPP’s Proof of Performance which shows how magazines still work for advertisers
    So I’ll leave to him.
  • First ever banner ad – 78% click rate
    Now…….

    Dominic Porter CEO Group M - $50 bn dollars ad billings.
    ‘We haven’t found ways of building brands through the primary use of digital media’.
    But

    Marketers want evidence of deeper proof of engagement and interaction
  • Marketeers want
    to create brand awareness,
    want to know purchase intentions and
    likelihood of recommending a product.

    The data and metrics they will want from you in the future are not just a click metric or unique user figure, but deeper data such as;
    In view time
    Viewabiity
    Time of interractions

    Be prepared for it.
  • This means that the buying and selling of digital advertising will become an algorithmic process.
    It is profoundly changing the nature of our advertising relationships.

    It will be talked about at this conference.
  • So in September 2013 we were predicting that in the USA and Europe, 50% of your digital advertising would be programmatically bought by 2015.

    In May 2014 this report from AdExchanger in the USA said

    Currently more than two-thirds of agencies use automated ad buying for at least 20% of their budget,
    and more than a third are up to at least 60%. Almost half plan to get to 60% by 2015
    AdExchanger, research, USA. May 2014.

    The change is happening faster. Here in Brazil you have an opportunity to learn. We have a session on the programme which we believe will do that.
  • The fear is that this commoditises sales.

    The bad news is that CPT’s are low, the good news is
    that yields are growing.
  • Brands can now reach the consumer without us by using online and social media platforms.

    Two consequences

    1 Why do they need us?

    And

    2 Brands will now fight us for creative talent.
  • Felix Baumgarten sponsored by Red Bull (see their logo on his spacesuit).

    8 million live viewers on Youtue.
    58 million views to date.

    Coverage on every major news channel in the world.
    Above the line media expenditure -- 0.

    TVC /Economist
  • Some advice about playing to the strengths of what we do.

    David Pullan – runs the Unilever account, but worked with me in a magazine company memorably said that content now must be:
    Shoppable,
    Sharable
    Editable
    Actionable
    Measureable
    Portable
    And Searchable.

    And Ruth Feldman adds that digital has allowed them to bring their content to life (award winning app).
  • Finally, what always wins is innovation. People love new things.

    Advertisers will stop asking tough questions about if you can show you understand their
    Marketing problem and come up with an innovative solution.

    The consumer will engage with you if you are exciting them.

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