Profitable Digital Publishing

Gregg Hano, CEO Mag+ · September 10-11, 2013 · Stockholm
Profitable Digital Publishing
Developing Your App Strategy
Thursday, September 26, 13

Mobile devices are the
future of computing.

Tomorrow’s Consumer
By the end of 2013 there
will be 5.9 billion mobile
devices in use globally.
Source CSS Insights, IB Times June, 2013
By 2017 there will be more
mobile devices in use
than people on the planet!

Tomorrow’s Consumer
By the end of 2013
there will be 5.9 billion
mobile devices in use
Source CSS Insights, IB Times June, 2013
By 2017 there will be more
mobile devices in use than
people on the planet!
Global shipments of smart mobile
devices (phones & tablets) will
increase 2.5 times between 2012
and 2017

Gregg Hano, CEO Mag+
• Advocate of magazines on
the iPad
• SVP of Bonnier Corporate
Sales & Technology Group
• Publisher of Popular Science
• Member of The Association
of Magazine Media’s Tablet
Metrics Task Force
Proﬁtable Digital Publishing

Mag+ is the most ﬂexible and eﬃcient digital publishing
platform in the world. We enable publishers, businesses and
content owners of all types to design stunning digital content
and distribute it to apps on tablets and smartphones
worldwide.
What is Mag+?

How It Works

History of Mag+
2009
• Started four months of research & testing
2010
• Launch Popular Science+
2011
• Became independent company, active
licensing platform
2013
• 1,500+ Apps w/oﬃces in New York,
Stockholm and San Diego
• More than 700 clients in 80+ countries
• More than 9.5 million app installs
• 600,000+ users have used a Mag+ app
in the last 30 days

Today: 1,500+ Apps

Why do you need a
digital publishing
strategy?

Digital Publishing is Your
Future
• It’s Business Progressive: Companies staying ahead
of the technology curve are using mobile apps.
• It’s Engaging: The infinite canvas has a host of new
creative opportunities.
• It’s Cost Effective: Paper manufacturing and
distribution costs add up quickly.
• It’s Easy: Anyone able to use InDesign
can create an engaging app.
• It’s Measurable: App publishing
platforms make it easy to deploy
analytics.

How are
people
consuming
content today?

Content Consumption
Adults spend more time on
mobile media than they do on
newspapers and magazines
combined.
*Nielsen 2013
36% of adults read news or
current events on their mobile
phone at least twice a week.
*Statistic Brain 2013
57% of people say that
the tablet is their favorite
place to consume
content.
*Mequoda Tablet Study 2013
91% of adults have
their mobile phone
within arms reach 24/7.
*Neilsen 2013
33 Million consumer-
owned tablets in
Western Europe in 2012
*Forrester Research
The Apple iPad is the dominant tablet in
Western Europe - 83% of Europeans that
have an iPhone AND a tablet, selected
an iPad tablet.
*Forrester Research 2013

What is the
market
opportunity?

A Growing Audience
Source:Apple, Mashable 2013
Cumulative number of apps downloaded from the Apple App Store from
June 2008 to January 2013 (in billions)

A Growing Audience
Source:Apple, Mashable 2013
Cumulative number of apps downloaded from the Apple App Store from
June 2008 to January 2013 (in billions)
Nearly 20 Billion of these app
downloads occurred in 2012 alone.
*Apple Press Info 2013

Customers are downloading
more than 800 apps per second
at a rate of over two billion apps
per month in the App Store.
*Apple Press Info, May 2013
A Growing Audience

A Growing Audience
Source:Apple,Techcrunch 2013

A Growing Audience
US Digital Audiences
(monthly active users as of February 2013)
Source:: Flurry, Comsccore Media Metrix Report 2013
224 Million
App Users
221 Million
Laptop & Desktop Users

An Engaged Audience
Flurry:April 2013
80% of a mobile users time is spent in Apps rather than mobile web.

App developers have been paid
over $11 billion for their sales
in the App Store. Half of this
was earned in the last four
quarters.
*ASYMCO, August 2013
Money Around Apps

App developers have been paid
over $11 billion for their sales
in the App Store. Half of this
was earned in the last four
quarters.
Money Around Apps
App developers are currently
being paid at the rate of $1 billion
per quarter.

App Store has 575 million
credit cards on file.
*Apple Intelligence, 9to5mac.com, June 2013
Money Around Apps

Your Competition

Your Competition
Other apps in the space set a
very high standard. To compete
you MUST customize your
content for the device.

How do you do it?

Customized Content
Comment From User chocojoe on Sept 18. 2012; Customer Ratings Dated: 09/20/12
Delivering what your audience
wants
• Fully enhanced apps consistently
rate higher in app stores
• Engagement levels increase
when interactive design is
integrated correctly
• Each device has both a form and
functionality that allows it to do a
specific job in a users life. Build
with this in mind.

Customized Content for
Speciﬁc Devices
British Journal of Photography iPad App
• 16,000 subscribers
• 200,000+ downloads (7,846 print readers)
• Phenomenal growth overseas with 2,000
downloads a day in the US alone
• Average session length is 5 minutes, but over
10,000 sessions lasted longer than 10 minutes
• Live news function doubled the number of iPad
users to BJP - online
• Won ‘Best Use of Mobile’ award at British
Media Awards, April 2012
• Nominated for ‘App of the Year’ and ‘Best
Digital Magazine of the Year’ for 2013 PPA
Digital Publishing Awards

•
WeSC - WeAreTheSuperlative
Conspiracy
• Swedish street fashion brand that has
extended into the digital world to create
a richer experience for their clothing line
• Allows WeSC to be more interactive with
their customers
• WeSC clothes are showcased and
consumers are able to directly purchase
products from this app.
• The app is made to inspire their core
audience to purchase their products and
share the creativity and individuality
which is what the brand is all about.
Customized Content for
Speciﬁc Devices

There is
money to be
made

Revenue Streams
There are many ways to make money
with digital publishing
• Single Issues
• Subscriptions
• Advertising
• Sponsorship
• In-App Purchasing

Revenue Opportunities
Source: Strategy Analytics,App Revenue Forecast, November 2012
Global App Revenue Forecast 2008 - 2017 ($M)
Tablets Phones

Source: Mequoda 2013 Tablet Study
39% of tablet users spent $100+ on their tablet in the last 12
months (apps, books, magazines, videos or subscriptions)

Source: eMarketer, Dec 2012

In-app purchases are a powerful
money-making mechanism. In
January 2012, 53% of iPhone App
Store revenue in the U.S. was
attributed to in-app purchases. That
number has now climbed to 76%.
*TechCrunch, April 2013

*Source TechCrunch, April 2013

iPhone App Store revenue
percentage attributed to in-app
purchases by country.
• U.S.A 76%
• Germany 61%
• Hong Kong over 90%
• Japan over 90%
*Source TechCrunch, April 2013

Publishing Reinvented

Think Beyond the Magazine
This is a new channel, not
just a replacement for print.

Be creative with issues.

Remember what you do well:
delivering curated content to
focused audiences.

New York Magazine
• Blending weekly magazine
content with daily website content
‘window shade’
• Keeps users coming back on a
daily basis
• Launched April, 1 2013

The Atlantic
Magazine
The Atlantic
Weekly Digital
Editions
The Atlantic Web
Properties
The Atlantic
Daily Photo
Blog - In Focus
Theatlantic.com
The Atlantic Wire
The Atlantic Quartz
The Atlantic Cities

Source: PopularScience+
August Home Publishing
• ‘Packet Publishing’ approach
• Demizine - short interactive magazine
published every two weeks (replacing
a print publication released every two
months)
• eNotes - free decorating tips,
delivered weekly, offered for free
before user must subscribe
• eBooks - series of theme-based
eBooks sold as singles

Community Membership Model
• Offer multiple ways for consumers to
connect with your brand and charge
them
• What if it were an “issue”?
• Automatic delivery BEFORE you could
see it on TV
• Exclusive Sponsor
• Include: slideshows of behind-the-
scene content, interviews, plot
summaries of previous episodes, and
the actual show!
• It’s about bundles of content

Your Incubator Moment
LEARN
FAIL/SUCCEED
(just fail quickly)
TEST

Thank you!
magplus.com
Profitable Digital Publishing
Developing Your App Strategy

Profitable Digital Publishing

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