Publishing/Writing: Insights, News, Intrigue

11/30/2011

Digital Magazines – The 2011 Stats


The tablet age (along with some other mobiles) is only about a year old … But, there have been digital editions for over a decade (and I didn’t realize that!). At any rate, the blossoming digital publishing age did come along at a time when print mags were sliding. And from all indications digital editions have revived the magazine industry … even pumping up their print sisters in some cases 🙂

Now, let’s get into some business performance numbers for 2011 RE this rather new industry … provided by Matt Kinsman, Executive Editor of FOLIO magazine

The State of the Digital Edition Industry in 2011

Publisher satisfaction grows but monetization continues to frustrate.

We’re only about a year into the tablet age but more than a decade of using digital editions. Today, with the rise of ever increasingly sophisticated mobile devices and apps, digital editions are poised to leap to the forefront of publishers’ revenue generation plans and serve as their flagship on devices such as the iPad.

But are they able to deliver? Nxtbook Media recently wrapped its 2011 State of the Digital Edition survey, which looked at audience development and revenue growth, as well as where mobile fits in.

The good news? Publishers on both the consumer and b-to-b sides are more satisfied with their digital editions than last year when Nxtbook first conducted the survey. However, there is some growing frustration as publishers continue with how to actually monetize digital editions.

Satisfaction Up by 40 Percent

Forty-nine percent of respondents said they are satisfied with their digital edition (12 percent are “quite satisfied” while 37 percent are “somewhat satisfied”), up 40 percent from 2010. “Publishers this year are more optimistic and they’re also more decisive than last year,” says Nxtbook marketing director Marcus Grimm.

However, while publishers are realizing digital editions have great potential for growing audience, they aren’t sure how to do so. Sixty-four percent of respondents say they are confident there are many more readers out there but they don’t know how to reach them (up from 59.3 percent who said the same last year). “That speaks to the youth of our audiences,” says Grimm. “Publishers are trying lots of things; we know readers are out there, but we’re not cracking the code. The iTunes store brought us to a totally different place—every time we think we have this space figured out, it changes.”

Just 21 percent of respondents said they know there are more digital magazine readers out there and they know how to reach them.

Still, Grimm advises publishers should strive for 15 percent of their readership to come from digital editions at this stage. “If you can get to that, it’s a vibrant number,” he adds. “It’s a large enough number that your advertisers will care about.”

Advertising Satisfaction

Publishers are less satisfied with digital editions as an advertising tool than as an audience tool. Just 29 percent of publishers say they are very or somewhat dissatisfied with the advertising revenue of their digital editions, about the same as last year.
However, the satisfaction gap between b-to-b publishers (Nxtbook’s main clientele) and consumer publishers shrank over the past year.

“The iTunes store has helped b-to-b pubs a lot and specialty optimized magazines are helping with sponsorship,” says Grimm. “Advertisers are getting excited about new optimized magazines.”

Still, just 12 percent of respondents say they have a firm handle on how to generate money with digital magazines. Sixty-one percent of respondents say their digital magazine can be a revenue generator but are unsure how to get to the next level.

Perhaps most troubling, the number of respondents who say they’ve tried many ways to make money with digital editions and are fairly convinced they can’t nearly doubled from last year to 8 percent.

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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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