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Magazine Media in the
          Digital Age
                       
                                       
              Chris Kevorkian
                Chief Marketing and
                      Digital Officer
                                MPA

                  September 12, 2012
Magazines: The universal medium
Younger = more involvement
Top magazine ad categories
                                                                       Jan-June 2012
                                                   % 2012
TOP Magazine Ad Categories 2012 DOLLARS
                                                   dollars

                                  $1,514,248,313    16.3
TOILETRIES & COSMETICS                                                      -4% in
DRUGS & REMEDIES                   $981,569,423     10.6                    dollars
                                                     8.6                    -9% in
APPAREL & ACCESSORIES              $799,882,612
                                                                            pages
FOOD & FOOD PRODUCTS               $772,151,454      8.3

MEDIA & ADVERTISING                $762,777,371      8.2

RETAIL                             $650,431,982      7.0

DIRECT RESPONSE COMPANIES          $541,499,900      5.8

FINANCIAL, INSURANCE & REAL                          5.4
ESTATE                             $502,325,715

AUTOMOTIVE                         $449,983,227      4.8

HOME FURNISHINGS & SUPPLIES        $446,314,109      4.8
        ASME Internship Program
PUBLIC TRANSPORTATION,                                       Source: Publishers Information Bureau   5
                                                     4.3                         Source: PIB
HOTELS & RESORTS                   $404,462,607
Magazine circulation
                                                           Jan-June 2012
• Total circulation, including digital iPad, was flat in first half 2012.
• Paid subscriptions were up 1% to 260 million copies.
• Single copy sales account for 10% of total distribution.
• Single copy sales were down 9.6%.
   • General interest titles were up 27.7%. 
   • All retail magazine sales channels were down first half.
   • Supermarkets, by far the top channel for magazine retail
     sales, were at 34% (down from 34.4% in 2011).
   • Unit sales of most supermarket item categories were down for
     the 12 months ending June 2012.



                                          Source: Audit Bureau of Circulations (ABC) 2011   6
ASME Internship Program   7
Digital Age




ASME Internship Program            8
Multi-channel programs mean infinite
              consumer touch points




     Food & Wine + Toyota Prius
   The Economist+ Bon Appétit + BMW
      “Star Chef’s Kids Cook”             “Ideas on the Table”



                                                                       9
Magazines power
               content marketing evolution
  Branded content spending at all-time high: 

         $1.9 million+ per company




ASME Internship Program                          10
Magazines have “sending power”
                                        The drive to digital

                                       TV
    Brand
  Awareness                   Powerful brand and
                           message awareness builder


                                    ONLINE
               Message      Boosts brand awareness,
                            message and sponsorship
                                  association

Favorability
                                 MAGAZINE
                           Most effective at influencing
                Purchase    purchase intention and
                 Intent         brand favorability


                                                           11
Digital enablers power magazine
                    engagement




ASME Internship Program     12
Smartphones: The bridge between
platforms, programs and persuasion
                            Ad Related Cell Phone Activities in Last 30 Days by Medium
                                      (Heavy Users Indexed to General Population).



 200




 150

                                                                                              Magazines
                                                                                              Television
 100                                                                                          Internet



  50




   0
        Visited      Used Texting          Redeemed         Watched a    
   Downloaded   
       Advertiser         to    
           Mobile          Video Clip         an App
        Website     Respond to Ad           Coupon

  ASME Internship Program                                                                                            13
                                                                                                    Source: GfK MRI, Fall 2011
Digital landscape
Tablets hit home: increasingly popular
                    in U.S. households
Tablets go global
The digital newsstand opportunity                                 

                          Digital newsstand across different devices and platforms




                                                            Kindle Fire
                                                               •      Kindle Store
iPad
  •
  •
  •
        Nook
        iOS5
        Newsstand
                          Android
  •     Zinio
                                              Nook Color/

  •     iTunes
                             • Zinio
                       Tablet
                                                               •      Nook Newsstand
                             •    Next Issue Media
                             •    Nook Newsstand
Magazine media tablet study
                                               Nov 2011

The tablet study was conducted to provide an
understanding of magazine readership,
engagement and actions taken as a result of
tablet usage. 

The study was conducted among adult
magazine readers using tablets to access
magazine content.
Magazine media tablet study
                                                                      Key findings
Magazine readers are embracing electronic access to magazine content on their
mobile devices:
 
                 
• 73% spend one hour or more reading electronic magazines on 

   mobile devices.

•   59% say that the amount of time they spend reading electronic issues of magazines
                                                        
    increased since they first acquired their mobile device.


                                                             
• 66% expect to increase this type of reading in the next year.
 
• Nearly 50% say their total magazine readership (both printed and electronic) has
   grown compared to a year ago.  

                                                              Source: Affinity/MPA 2011
Magazine media tablet study
                                                                                            Key findings
Readers of electronic magazines are engaged readers:
 
                                                         
                                                      
                                                                  
• 63% visited the magazine’s website as a result of downloading an electronic magazine version or select content.
 

• 74% have downloaded up to five magazine apps (median is 3.7).



• 55% read both current and some back issues of electronic magazines.       

• 86% access an issue at least twice with the median at nearly three.   





                             
• 73% read or tap on ads in electronic magazines – and those more engaged with mobile devices are more likely to see
  the value of the these ads.




                                                                                    Source: Affinity/MPA 2011
Magazines + e-commerce = 
          consumers BUY NOW
70% want the ability to purchase products and
services directly from electronic magazines.




Source: Affinity/MPA Program
      ASME Internship 2011                      21
The promise …
The tablet offers an unprecedented opportunity to deliver
extraordinary content in creative new ways:

                                  

            Interactive, immersive reader experience

                                • • •

                 Immediate and dynamic content

                                • • •
     Broader, more affluent, educated and premium audience 
                                • • •
                                  
                                  

How we got here
                               October 12, 2011   
                            iOS 5 newsstand launch.  
                                                    
                             Leads to authentication/
                               subscriptions/push 
                                                   
                              notification/automatic
                                    downloads.



   April 3, 2010
                                                   
                                                                 2012
Apple launches iPad.    
                                                
                                                            Opportunity for
Steve Jobs includes     
                                tablet measurement
  Wired and TIME    
                                                    
                                                           becomes viable.
               
    in his demo.
MPA Tablet Metrics Task Force
MPA led a team – a broad coalition of members in sales, marketing, consumer
  marketing, consumer research and insights – to take on the challenge.

Input solicited from leading agencies

 “It’s been two years, you must
                                          “Metrics will help encourage
        have something on
                                            clients to invest in tablet
 subscriptions and readership.”
                                                     creative.”
               “Numbers will help us
               convince clients they       “Getting publishers to
              should be in this space.”      agree to the same
                                           thing? Good luck with
“Everyone has a different term for                 that.”
  the same thing. It’s confusing.”

                   “How soon and how often
                    can we get numbers?”          “Will everyone give us
                                                     the exact same
                                                       information?”
Focus on three key elements


> Metrics


> Time Frames 


> Tablet Terms
Tablets
        The range of tablet/wireless
touchscreen devices including iPad,
     Kindle Fire, and all larger than
               smartphone devices.
Tablet Issue
The generic term for a tablet
     edition of a publication.
Tablet
          Reader
  An individual who has
     opened a magazine
  issue on their tablet at
least once. Device level
             readership.
App
Downloads
         The installed
            containers 
  (or shells) on tablet
devices where issues
      are downloaded
Tablet Issue
Subscription
Paid subscription to the
    tablet issues of the
             publication
Tablet Issue
Subscription
Paid subscription to the
    tablet issues of the
             publication
Paid Single
         Issues
Tablet issue access via the
 purchase of a single issue
  from a digital newsstand
Authenticated
        Access
Digital issue access provided
   to print edition subscribers
SFP 
(Straight From Print) Editorial or advertising content where the
   page on the screen looks exactly like the print page. With no
                                                               
        interactive enhancements except for the activation links
SFP+
   Editorial or advertising
  content where the page
      on the screen looks
exactly like the print page
 — with some interactive
  enhancements (beyond
        activation of links)
DFT
                            (Designed For Tablet)
                             Editorial or advertising
                          content where the page
                          on the screen has been
                           re-designed specifically
                          for reading on the tablet
                                 and is meant to be
                          displayed at 100% (that
                        is, there is no need to tap
                                          and zoom)
Editorial- O Magazine
EFT
                (Enhanced For Tablet) 

                 Adding enhancements
                    and bonus content to
              designed for tablet (DFT)
                  editorial or advertising
                     content to more fully
               utilize the tablet medium
                           (e.g.,hotspots,
              photographic slideshows,
                      video, audio, in-app
Editorial- GQ
                                 browser)
SITI
                 (Special Interest
                    Tablet Issues)
                 contain the native
                         or uniquely
                   curated content
                  that is not part of
                         the regular
                          frequency


Ad- Cook Fresh
So what’s next?
Adoption and use of metrics, timelines and terminology: 


•   It’s early days; only a handful of the companies that created
    the guidelines can currently provide metrics.
•   Key publishers have joined the MPA Tablet Metrics Task
    Force: Active Interest Media, American Express, The
    Economist, National Geographic, New York Magazine,
    Rodale. 
•   Development of corresponding measures for advertising
    and engagement.
Tablet metrics: Continuing the conversation

Voluntary Tablet metric guidelines received a positive
reception by the media community – and we continue to
move ahead to:
•   Share the information with agency and client communities to
    socialize within their organizations. 
•   Facilitate development of innovative and forward-thinking editorial
                                   
    and advertising tablet creative.
•   Partner with magazine media to ensure that metrics are shared as
    they become available 
•   Extend adoption globally.
Magazine media social media study 



MPA released a benchmark study on
social media and the magazine
reading experience in 2012, conducted
by GfK MRI. 

The study revealed that social media
usage among adults 18-34 enhances
the magazine reading experience.
Magazine media social media study
                                         Key findings

• Magazine readers are highly connected social
  media users…with a very high propensity “to share”
  content. 
• The benefits accruing from readers’ desire to
  “connect and to share” will be significant for both
  editors and advertisers. 
• Content that has real value to consumers is the
  key to social interaction with brands.
Magazine media smartphone study
A benchmark smartphone research study was
conducted to understand the impact of smaller
screen on magazine content engagement and
actions taken. 

The study was conducted by GfK MRI among adult
magazine readers 18-34 who own smartphones
and read magazine content on them.
Magazine media smartphone study
                                      Key findings

• Among magazine readers, there is pervasive
  downloading of magazine content onto Android
  and iPhone devices.
• Magazine content on smartphones is stimulating
  increased magazine usage in total.
• Melding of smartphones and magazine content is
  resulting in very high levels of content
  “socialization.”
SUMMARY
        Magazine Media in the Digital Age:
                                                     Summary
• Magazine media are evolving to maximize and leverage
  digital opportunities.
• MPA took a leadership role in defining tablet audience
  metrics - and will lead the effort to establish advertising
  and engagement metrics.
• Tablets and smartphones will prove to be the ideal web-
  based platform extensions for magazines (and their
  advertisers). 
• Advertisers who “take the plunge” now will reap
  significant benefits as magazine apps come of age.

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Magazine Media In The Digital Age

  • 1. Magazine Media in the Digital Age Chris Kevorkian Chief Marketing and Digital Officer MPA September 12, 2012
  • 3. Younger = more involvement
  • 4.
  • 5. Top magazine ad categories Jan-June 2012 % 2012 TOP Magazine Ad Categories 2012 DOLLARS dollars $1,514,248,313 16.3 TOILETRIES & COSMETICS -4% in DRUGS & REMEDIES $981,569,423 10.6 dollars 8.6 -9% in APPAREL & ACCESSORIES $799,882,612 pages FOOD & FOOD PRODUCTS $772,151,454 8.3 MEDIA & ADVERTISING $762,777,371 8.2 RETAIL $650,431,982 7.0 DIRECT RESPONSE COMPANIES $541,499,900 5.8 FINANCIAL, INSURANCE & REAL 5.4 ESTATE $502,325,715 AUTOMOTIVE $449,983,227 4.8 HOME FURNISHINGS & SUPPLIES $446,314,109 4.8 ASME Internship Program PUBLIC TRANSPORTATION, Source: Publishers Information Bureau 5 4.3 Source: PIB HOTELS & RESORTS $404,462,607
  • 6. Magazine circulation Jan-June 2012 • Total circulation, including digital iPad, was flat in first half 2012. • Paid subscriptions were up 1% to 260 million copies. • Single copy sales account for 10% of total distribution. • Single copy sales were down 9.6%. • General interest titles were up 27.7%. • All retail magazine sales channels were down first half. • Supermarkets, by far the top channel for magazine retail sales, were at 34% (down from 34.4% in 2011). • Unit sales of most supermarket item categories were down for the 12 months ending June 2012. Source: Audit Bureau of Circulations (ABC) 2011 6
  • 9. Multi-channel programs mean infinite consumer touch points Food & Wine + Toyota Prius
 The Economist+ Bon Appétit + BMW “Star Chef’s Kids Cook” “Ideas on the Table” 9
  • 10. Magazines power content marketing evolution Branded content spending at all-time high: 
 $1.9 million+ per company ASME Internship Program 10
  • 11. Magazines have “sending power” The drive to digital TV Brand Awareness Powerful brand and message awareness builder ONLINE Message Boosts brand awareness, message and sponsorship association Favorability MAGAZINE Most effective at influencing Purchase purchase intention and Intent brand favorability 11
  • 12. Digital enablers power magazine engagement ASME Internship Program 12
  • 13. Smartphones: The bridge between platforms, programs and persuasion Ad Related Cell Phone Activities in Last 30 Days by Medium (Heavy Users Indexed to General Population). 200 150 Magazines Television 100 Internet 50 0 Visited Used Texting Redeemed Watched a Downloaded Advertiser to Mobile Video Clip an App Website Respond to Ad Coupon ASME Internship Program 13 Source: GfK MRI, Fall 2011
  • 15. Tablets hit home: increasingly popular in U.S. households
  • 17. The digital newsstand opportunity Digital newsstand across different devices and platforms
 Kindle Fire • Kindle Store iPad • • • Nook iOS5 Newsstand Android • Zinio Nook Color/
 • iTunes • Zinio Tablet • Nook Newsstand • Next Issue Media • Nook Newsstand
  • 18. Magazine media tablet study Nov 2011 The tablet study was conducted to provide an understanding of magazine readership, engagement and actions taken as a result of tablet usage. The study was conducted among adult magazine readers using tablets to access magazine content.
  • 19. Magazine media tablet study Key findings Magazine readers are embracing electronic access to magazine content on their mobile devices:   • 73% spend one hour or more reading electronic magazines on 
 mobile devices. • 59% say that the amount of time they spend reading electronic issues of magazines increased since they first acquired their mobile device. • 66% expect to increase this type of reading in the next year.   • Nearly 50% say their total magazine readership (both printed and electronic) has grown compared to a year ago. Source: Affinity/MPA 2011
  • 20. Magazine media tablet study Key findings Readers of electronic magazines are engaged readers:   • 63% visited the magazine’s website as a result of downloading an electronic magazine version or select content.   • 74% have downloaded up to five magazine apps (median is 3.7). • 55% read both current and some back issues of electronic magazines. • 86% access an issue at least twice with the median at nearly three. • 73% read or tap on ads in electronic magazines – and those more engaged with mobile devices are more likely to see the value of the these ads. Source: Affinity/MPA 2011
  • 21. Magazines + e-commerce = consumers BUY NOW 70% want the ability to purchase products and services directly from electronic magazines. Source: Affinity/MPA Program ASME Internship 2011 21
  • 22.
  • 23. The promise … The tablet offers an unprecedented opportunity to deliver extraordinary content in creative new ways: 
 Interactive, immersive reader experience
 • • •
 Immediate and dynamic content
 • • • Broader, more affluent, educated and premium audience • • • 

  • 24. How we got here October 12, 2011 iOS 5 newsstand launch. Leads to authentication/ subscriptions/push notification/automatic downloads. April 3, 2010 2012 Apple launches iPad. Opportunity for Steve Jobs includes tablet measurement Wired and TIME becomes viable. in his demo.
  • 25. MPA Tablet Metrics Task Force MPA led a team – a broad coalition of members in sales, marketing, consumer marketing, consumer research and insights – to take on the challenge.

  • 26. Input solicited from leading agencies “It’s been two years, you must “Metrics will help encourage have something on clients to invest in tablet subscriptions and readership.” creative.” “Numbers will help us convince clients they “Getting publishers to should be in this space.” agree to the same thing? Good luck with “Everyone has a different term for that.” the same thing. It’s confusing.” “How soon and how often can we get numbers?” “Will everyone give us the exact same information?”
  • 27. Focus on three key elements > Metrics > Time Frames > Tablet Terms
  • 28.
  • 29.
  • 30. Tablets The range of tablet/wireless touchscreen devices including iPad, Kindle Fire, and all larger than smartphone devices.
  • 31. Tablet Issue The generic term for a tablet edition of a publication.
  • 32. Tablet Reader An individual who has opened a magazine issue on their tablet at least once. Device level readership.
  • 33. App Downloads The installed containers (or shells) on tablet devices where issues are downloaded
  • 34. Tablet Issue Subscription Paid subscription to the tablet issues of the publication
  • 35. Tablet Issue Subscription Paid subscription to the tablet issues of the publication
  • 36. Paid Single Issues Tablet issue access via the purchase of a single issue from a digital newsstand
  • 37. Authenticated Access Digital issue access provided to print edition subscribers
  • 38. SFP (Straight From Print) Editorial or advertising content where the page on the screen looks exactly like the print page. With no interactive enhancements except for the activation links
  • 39. SFP+ Editorial or advertising content where the page on the screen looks exactly like the print page — with some interactive enhancements (beyond activation of links)
  • 40. DFT (Designed For Tablet) Editorial or advertising content where the page on the screen has been re-designed specifically for reading on the tablet and is meant to be displayed at 100% (that is, there is no need to tap and zoom) Editorial- O Magazine
  • 41. EFT (Enhanced For Tablet) 
 Adding enhancements and bonus content to designed for tablet (DFT) editorial or advertising content to more fully utilize the tablet medium (e.g.,hotspots, photographic slideshows, video, audio, in-app Editorial- GQ browser)
  • 42. SITI (Special Interest Tablet Issues) contain the native or uniquely curated content that is not part of the regular frequency Ad- Cook Fresh
  • 43. So what’s next? Adoption and use of metrics, timelines and terminology: 
 • It’s early days; only a handful of the companies that created the guidelines can currently provide metrics. • Key publishers have joined the MPA Tablet Metrics Task Force: Active Interest Media, American Express, The Economist, National Geographic, New York Magazine, Rodale. • Development of corresponding measures for advertising and engagement.
  • 44. Tablet metrics: Continuing the conversation Voluntary Tablet metric guidelines received a positive reception by the media community – and we continue to move ahead to: • Share the information with agency and client communities to socialize within their organizations. • Facilitate development of innovative and forward-thinking editorial and advertising tablet creative. • Partner with magazine media to ensure that metrics are shared as they become available • Extend adoption globally.
  • 45. Magazine media social media study MPA released a benchmark study on social media and the magazine reading experience in 2012, conducted by GfK MRI. The study revealed that social media usage among adults 18-34 enhances the magazine reading experience.
  • 46. Magazine media social media study Key findings • Magazine readers are highly connected social media users…with a very high propensity “to share” content. • The benefits accruing from readers’ desire to “connect and to share” will be significant for both editors and advertisers. • Content that has real value to consumers is the key to social interaction with brands.
  • 47. Magazine media smartphone study A benchmark smartphone research study was conducted to understand the impact of smaller screen on magazine content engagement and actions taken. The study was conducted by GfK MRI among adult magazine readers 18-34 who own smartphones and read magazine content on them.
  • 48. Magazine media smartphone study Key findings • Among magazine readers, there is pervasive downloading of magazine content onto Android and iPhone devices. • Magazine content on smartphones is stimulating increased magazine usage in total. • Melding of smartphones and magazine content is resulting in very high levels of content “socialization.”
  • 49. SUMMARY Magazine Media in the Digital Age: Summary • Magazine media are evolving to maximize and leverage digital opportunities. • MPA took a leadership role in defining tablet audience metrics - and will lead the effort to establish advertising and engagement metrics. • Tablets and smartphones will prove to be the ideal web- based platform extensions for magazines (and their advertisers). • Advertisers who “take the plunge” now will reap significant benefits as magazine apps come of age.