Publishing/Writing: Insights, News, Intrigue

11/07/2011

‘The Week Magazine’ Proves Print Power Still Exists


Print Magazine Success!

When most print magazines have been devoting more and more effort to digital operations to save their very skins … The Week magazine has been growing print subscriptions and advertising sales like it was the glory days of the 1960’s. 

How are they doing this, you ask? 

I asked too … and found this incisive article by Matt Kinsman, Executive Editor of FOLIO magazine

Print Power

How The Week continues to grow print revenue (and profits) in a dotcom world.

Mobile content and community brands dominated the media category of the 2011 Inc. 5000, which recognizes the 5,000 fastest-growing privately-held companies in the U.S. (The number one company in the media category: GoLive! Mobile, which “creates and packages content, including videos, games, and social media, for consumers to access on their mobile phones”, as well as offers consulting services to companies that want to create their own mobile content.)

But “traditional” publishers made the list as well, including two Felix Dennis-owned publications: Mental Floss, ranked #50 in the media category with three-year revenue growth of 52 percent to $3.1 million in 2010, and The Week at #51 in media with three-year growth of 49 percent to $38.4 million in 2010. Unlike many of the other publishers on the list, The Week continues to flourish as a print enterprise.

Here, president Steve Kotok talks to FOLIO: about how The Week continues to boost print revenue and profit, why readers are the brand’s best way of gaining new subscribers and why The Week is waiting until 2012 to finally jump into the app race.

FOLIO: The Week recently made the Inc. 5000 as one of fastest growing media brands. Where is the growth coming from?

Steve Kotok: I would say the growth is coming equally from subscription and advertising. The subscription growth is coming from our ability to raise price, that’s the biggest thing. According to ABC, our price is up 40 percent, and as measured by us as net-net it’s doubled.

On the ad side, it’s going from selling print ad pages to engaging with these larger brands. The number of ad packages we’ve sold at $500,00 or more since 2008 went from one to three to 10, this year it should be 15. The vast majority are combining print, digital, and events. We wouldn’t say, ‘Oh, it’s coming from print ads or digital ads.’ It’s coming from our ability to offer larger packages to the advertising brands and serve them if they want to make a splash in D.C., to serve them digitally, to serve them in multiple ways.

There is stuff we put in buckets for accounting, but when really looking at our biggest sales, we may say $600,000 of this goes to print, $400,000 goes to digital, and $50,000 goes to an event fee. We wouldn’t be able to sell any of it without the other.

FOLIO: Are packages coming from existing advertisers or new advertisers?

Kotok: It’s a combination. Every year you start new, some are existing advertisers, a lot of them are new…it’s definitely breaking a lot of new business but that’s not really a distinguishing factor. Every year we make our best shot at them.

FOLIO: Please talk about current revenue ratios (print versus digital versus other channels). What is it today and how has that changed in recent years? What does it need to be going forward?

Kotok:
Subscriptions and print advertising are more or less equal with Web ads being 15 to 18 percent of the revenue generated by print ads. However, print and Web ads combined exceed subscription revenue.

FOLIO: Do you see that changing going forward?

Kotok: I don’t now if we will see a huge change. A few years ago we may have thought that ads were going to grow faster than subscriptions but our ability to grow subscription revenue and keep it growing has surprised us. I don’t think we’ll start doing more digital advertising than print advertising.

We’re going on the Kindle, Nook and iPad in January and that’s all circulation revenue. I don’t see the mix radically changing, although we still see our print subscriptions and our print ads growing. Web ads are growing faster but at 15 percent of print revenue, it’s not a massive shift—we may go 80/20, 75/25, print to digital in the future. We have a good business. We’re aware of the trends. Even before digital, there were trends to follow. We’re not embarrassed of print.

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07/19/2010

Vogue’s Ad-Pages Increase Significantly


Consumer print magazines are indeed climbing out of a big downturn…Conde Nast and it’s harem of luxury magazines are just one example, other magazines are also reporting increases in ad pages and revenues (see my 12 July post).

As I have mentioned before on this blog, I am of the opinion that much of the rebirth of magazines (and newspapers) print popularity is due to online digital exposure…much of it free. Now if they can just get the online digital monetization and paywall thing solved…a new publishing business model might be in our presence!

Read this from Matthew Flamm of Crain’s New York Business:

Luxury magazines, like the economy, are making a slow comeback. On Monday, Vogue magazine will announce ad-pages results for its all-important September issue, and industry insiders say that the fashion monthly will show a spike of 100 advertising pages, or 23% over a year ago, for a total of 529.

The relatively improved economic climate has been boosting numbers for Vogue’s sister titles at Condé Nast, the most luxury-oriented of the major magazine publishers and the one that was hardest hit by the downturn. But even 23% growth for the September issue—in which designers and fashion companies display their next season’s lineups—barely puts Vogue back in the league it was in a few years ago.

In 2007, the magazine carried a record 727 ad pages—and weighed in at four pounds nine ounces. In 2008, Vogue dropped 7% of its ad-weight, coming in at 674 pages.

Condé Nast will release the September issue information at 6 p.m. on Monday. Vogue Publisher Susan Plagemann declined through a spokeswoman to comment.

Once known for sticking closely to its rate card pricing and only offering discounts to advertisers making large corporate deals, Condé Nast has become more flexible in its negotiations over the past year, according to media buyers and executives at rival publishers.

Insiders say that Vogue has not been an exception, and that some of the increase in paging is the result of deals in which digital advertising inventory was essentially given away.

Others point out, however, that Condé Nast still markets its titles at a premium and that Vogue’s latest numbers show a marked improvement from the devastation of a year ago, when pages plunged 36%.

“Condé Nast is perhaps bending a little on what we call ‘added value,’ but I don’t think you can attribute a 100-page increase just to that,” said Roberta Garfinkle, director of print strategy at media buying agency TargetCast tcm.

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