Why Can’t We Be Friends? Resolve the Editorial-Advertising Dilemma
Preliminaries <ul><li>About us </li></ul><ul><li>About you </li></ul><ul><li>Back channel rep:  #amp11 </li></ul><ul><li>W...
Children’s Hospitals Today  Then & Now <ul><li>1993 </li></ul><ul><ul><li>quarterly </li></ul></ul><ul><ul><li>32 pages, ½...
Children’s Hospitals Today—Then
Children’s Hospitals Today—Then
Children’s Hospitals Today Then & Now <ul><li>2011 </li></ul><ul><ul><li>quarterly — 3 print & 1 online only </li></ul></u...
Children’s Hospitals Today—Now
Children’s Hospitals Today—Now
Magazine Distribution <ul><li>Member benefit—distributed to 5,500 children’s hospitals administrators </li></ul><ul><li>Me...
Magazine as Member Benefit <ul><li>Flagship publication </li></ul><ul><ul><li>involves members and association staff  </li...
Magazine as Member Benefit <ul><li>Education, networking </li></ul><ul><ul><li>connects members to programs & projects </l...
Magazine as Member Benefit <ul><li>Promotes member hospitals </li></ul><ul><ul><li>photos from hospitals </li></ul></ul><u...
Sponsorship + Ads <ul><li>More selling opportunities  – can speak about ad and sponsorship opportunities in the same conve...
Sponsorship + Ads
Sponsorship + Ads <ul><li>Ads are bundled into sponsorship packages </li></ul><ul><ul><li>- Conferences offer a reach of 5...
Bundled Ad Structure
Partner Ads
Special Ad Options
Building Sponsorship Support <ul><li>Conferences </li></ul><ul><li>Programs & projects </li></ul><ul><li>Working with exis...
Building Sponsorship Support <ul><li>Role of magazine in sponsorship </li></ul><ul><ul><li>discount ads  </li></ul></ul><u...
Children’s Hospitals Today—Now
Children’s Hospitals Today—Now
Realignment  Sponsorship + Magazine <ul><li>Separation of advertising and editorial </li></ul><ul><li>Regular vendor artic...
Children’s Hospitals Today—Online  <ul><li>Technology Makes It Easy to Be Green </li></ul>
UBIT – What is it? <ul><li>Criteria: </li></ul><ul><ul><li>Trade or business </li></ul></ul><ul><ul><li>Unrelated to tax-e...
Avoiding UBIT <ul><li>No net revenue = no UBIT </li></ul><ul><li>GREAT! </li></ul><ul><li>Wait…how do I do that? </li></ul>
Net Costs > Net Revenue <ul><li>Sources of revenue: advertising, subscriptions, percentage of membership dues </li></ul><u...
UBIT Resources <ul><li>IRS Publication 598, chapter 3 </li></ul><ul><ul><li>http://www.irs.gov/publications/p598/ch03.html...
UBIT Resources <ul><li>Steptoe & Johnson white paper </li></ul><ul><ul><li>http://www.steptoe.com/assets/attachments/3445....
UBIT Resources <ul><li>Sponsorships, Advertising, Endorsements and Cause Marketing: Understanding Critical UBIT Issues for...
Q&A <ul><li>Questions for us </li></ul><ul><li>Question for you: </li></ul><ul><ul><li>What should we try next? </li></ul>...
Takeaways <ul><li>Separate functions, same department (“Matrixed” team) </li></ul><ul><li>Including ads with a larger corp...
Takeaways <ul><li>Be flexible & open to suggestions from your corporate supporters </li></ul><ul><li>Be open (internally) ...
Takeaways <ul><li>Role of in-house ads – really helps to have an ad manager who’s also a designer (but you can’t have Nico...
Stay in Touch! <ul><li>Nicolette Daleske </li></ul><ul><li>Assistant Director, Sponsorship </li></ul><ul><li>p: 703.797.60...
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Why Can't We Be Friends: Resolve the Editorial-Advertising Dilemma

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Presentation given by Nicolette Daleske, Sallie Strang, and Elizabeth Engel for the Association Media & Publishing 2011 annual conference.

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Why Can't We Be Friends: Resolve the Editorial-Advertising Dilemma

  1. 1. Why Can’t We Be Friends? Resolve the Editorial-Advertising Dilemma
  2. 2. Preliminaries <ul><li>About us </li></ul><ul><li>About you </li></ul><ul><li>Back channel rep: #amp11 </li></ul><ul><li>What are your most important questions? </li></ul>
  3. 3. Children’s Hospitals Today Then & Now <ul><li>1993 </li></ul><ul><ul><li>quarterly </li></ul></ul><ul><ul><li>32 pages, ½ 4-color, ½ 2-color </li></ul></ul><ul><ul><li>in-house ads </li></ul></ul><ul><ul><li>limited budget </li></ul></ul>
  4. 4. Children’s Hospitals Today—Then
  5. 5. Children’s Hospitals Today—Then
  6. 6. Children’s Hospitals Today Then & Now <ul><li>2011 </li></ul><ul><ul><li>quarterly — 3 print & 1 online only </li></ul></ul><ul><ul><li>48 – 64 pages, 4-color </li></ul></ul><ul><ul><li>10 – 12 pages of ads/issue, plus 8-page resource directory x 2 </li></ul></ul><ul><ul><li>3 – 5 in-house ads </li></ul></ul><ul><ul><li>limited budget, with freedom to experiment </li></ul></ul>
  7. 7. Children’s Hospitals Today—Now
  8. 8. Children’s Hospitals Today—Now
  9. 9. Magazine Distribution <ul><li>Member benefit—distributed to 5,500 children’s hospitals administrators </li></ul><ul><li>Members of Congress </li></ul><ul><li>Free subscription offers to media and allied associations </li></ul>
  10. 10. Magazine as Member Benefit <ul><li>Flagship publication </li></ul><ul><ul><li>involves members and association staff </li></ul></ul><ul><ul><li>excellent ratings in annual member survey </li></ul></ul><ul><li>Ours, not mine </li></ul>
  11. 11. Magazine as Member Benefit <ul><li>Education, networking </li></ul><ul><ul><li>connects members to programs & projects </li></ul></ul><ul><ul><li>provides contacts for more info </li></ul></ul>
  12. 12. Magazine as Member Benefit <ul><li>Promotes member hospitals </li></ul><ul><ul><li>photos from hospitals </li></ul></ul><ul><ul><li>public officials visits </li></ul></ul><ul><ul><li>child’s story, hospital highlight, hospital rounds </li></ul></ul>
  13. 13. Sponsorship + Ads <ul><li>More selling opportunities – can speak about ad and sponsorship opportunities in the same conversation to find best fit </li></ul><ul><li>Customization opportunities – high level sponsorship packages can be modified and ads are often a way to offer alternative benefits </li></ul>
  14. 14. Sponsorship + Ads
  15. 15. Sponsorship + Ads <ul><li>Ads are bundled into sponsorship packages </li></ul><ul><ul><li>- Conferences offer a reach of 500 - 600 attendees </li></ul></ul><ul><ul><li>Ads offer a larger reach of 6,000 + subscribers </li></ul></ul><ul><ul><li>Ensures a stable amount of ads in each magazine issue </li></ul></ul>
  16. 16. Bundled Ad Structure
  17. 17. Partner Ads
  18. 18. Special Ad Options
  19. 19. Building Sponsorship Support <ul><li>Conferences </li></ul><ul><li>Programs & projects </li></ul><ul><li>Working with existing relationships </li></ul><ul><ul><li>McManis, Health Ink, Karlsberger </li></ul></ul>
  20. 20. Building Sponsorship Support <ul><li>Role of magazine in sponsorship </li></ul><ul><ul><li>discount ads </li></ul></ul><ul><ul><li>article submissions </li></ul></ul><ul><ul><li>resource directory distribution </li></ul></ul>
  21. 21. Children’s Hospitals Today—Now
  22. 22. Children’s Hospitals Today—Now
  23. 23. Realignment Sponsorship + Magazine <ul><li>Separation of advertising and editorial </li></ul><ul><li>Regular vendor article submissions </li></ul><ul><li>Freedom to experiment </li></ul><ul><ul><li>special issue on facility design </li></ul></ul><ul><ul><li>inserts </li></ul></ul><ul><ul><li>technology support for green design online </li></ul></ul><ul><ul><li>cover wrap </li></ul></ul>
  24. 24. Children’s Hospitals Today—Online <ul><li>Technology Makes It Easy to Be Green </li></ul>
  25. 25. UBIT – What is it? <ul><li>Criteria: </li></ul><ul><ul><li>Trade or business </li></ul></ul><ul><ul><li>Unrelated to tax-exempt purpose </li></ul></ul><ul><ul><li>Regularly carried on </li></ul></ul><ul><li>Sponsorship dollars are NOT subject to UBIT </li></ul><ul><li>Advertising dollars ARE subject to UBIT </li></ul>
  26. 26. Avoiding UBIT <ul><li>No net revenue = no UBIT </li></ul><ul><li>GREAT! </li></ul><ul><li>Wait…how do I do that? </li></ul>
  27. 27. Net Costs > Net Revenue <ul><li>Sources of revenue: advertising, subscriptions, percentage of membership dues </li></ul><ul><li>Sources of expense: direct advertising costs, “readership” costs </li></ul><ul><li>So how does this work? </li></ul>
  28. 28. UBIT Resources <ul><li>IRS Publication 598, chapter 3 </li></ul><ul><ul><li>http://www.irs.gov/publications/p598/ch03.html </li></ul></ul><ul><li>Infobloom </li></ul><ul><ul><li>http://www.infoloom.com/taxmap/pubs/p598-007.htm </li></ul></ul>
  29. 29. UBIT Resources <ul><li>Steptoe & Johnson white paper </li></ul><ul><ul><li>http://www.steptoe.com/assets/attachments/3445.pdf </li></ul></ul><ul><li>Association Law Handbook , chapter 76, pp. 384-392 </li></ul>
  30. 30. UBIT Resources <ul><li>Sponsorships, Advertising, Endorsements and Cause Marketing: Understanding Critical UBIT Issues for Nonprofits – webinar/luncheon at Venable LLC June 16, 2011 </li></ul>
  31. 31. Q&A <ul><li>Questions for us </li></ul><ul><li>Question for you: </li></ul><ul><ul><li>What should we try next? </li></ul></ul>
  32. 32. Takeaways <ul><li>Separate functions, same department (“Matrixed” team) </li></ul><ul><li>Including ads with a larger corporate package  full ad pages, which is appealing – ads breed ads </li></ul><ul><li>Sell big (1/2 page, full page, inserts) </li></ul><ul><li>Price low but not too low </li></ul>
  33. 33. Takeaways <ul><li>Be flexible & open to suggestions from your corporate supporters </li></ul><ul><li>Be open (internally) about what you’re doing  trust  freedom to experiment </li></ul><ul><li>Have an ad manager and give her flexibility – “let’s make a deal” </li></ul>
  34. 34. Takeaways <ul><li>Role of in-house ads – really helps to have an ad manager who’s also a designer (but you can’t have Nicolette) </li></ul><ul><li>Sponsorship dollars are tax exempt – advertising dollars are not </li></ul><ul><li>If total publication costs > total publication income, no UBIT </li></ul>
  35. 35. Stay in Touch! <ul><li>Nicolette Daleske </li></ul><ul><li>Assistant Director, Sponsorship </li></ul><ul><li>p: 703.797.6087 </li></ul><ul><li>e: [email_address] </li></ul><ul><li>Elizabeth Weaver Engel, MA, CAE </li></ul><ul><li>Director, Marketing & Sponsorship </li></ul><ul><li>p: 703.797.6041 </li></ul><ul><li>e: [email_address] </li></ul><ul><li>t: @ewengel </li></ul><ul><li>li: http://www.linkedin.com/in/ewengel </li></ul><ul><li>Thanks for Playing: http://thx4playing.blogspot.com/ </li></ul>National Association of Children’s Hospitals & Related Institutions 703.684.1355 www.childrenshospitals.net Sallie Strang Director, Communications p: 703.797.6013 e: [email_address]

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