INNOVATIONS IN MAGAZINES 2011

www.innovation-mediaconsulting.com

http://www.innovation-mediaconsulting.com/

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INNOVATION

INNOVATION MEDIA CONSULTING

WORLD LEADERS IN HELPING PUBLISHERS RE-INVENT THEIR TITLES FOR THE DIGITAL AGE

DESIGN + CONSULTANCY

INNOVATION

INNOVATION

‘GOOD JOURNALISM IS GOOD BUSINESS’

INNOVATION

1. HOW TO PROFIT FROM SOCIAL MEDIA

2. WHERE IS THE MONEY IN THE DIGITAL AGE?

3. HOW DO WE GROW THE PRINT MAGAZINE

4. ARE APPS OUR SALVATION?

INNOVATION

INNOVATION

‘LIFE WAS EASIER WHEN AN APPLE AND A BLACKBERRY WERE JUST FRUITS’

INNOVATION

‘LIFE WAS EASIER WHEN AN APPLE AND A BLACKBERRY WERE JUST FRUITS…

BUT IT’S NOT AS EXCITING AND POTENTIALLY PROFITABLE

AS IT IS TODAY’

INNOVATION

INNOVATION

iPad IS THE GREATESTPLATFORM INNOVATION SINCE GUTHENBERG - LACK OF INNOVATION

FROM PUBLISHERS

INNOVATION

RATING

IPad Apps

2.2

Magazines(Source App

Store)

GQ Magazine

Vanity Fair

National Geographic

Paris Match

Der Spiegel

L’express

Wired

Time Magazine

Newsweek

The New Yorker

INNOVATION

INNOVATION

AVERAGE

RATING

2.5

IPad Newspaper

s(Source App

Store)

USA Today

Die Welt

De Standaard

The New York Times

Financial Times

New Zealand Herald

Evening Standard

Le Monde

Corriere della sera

INNOVATION

INNOVATION

SENSE OF SALVATIONPERHAPS OUT OF DESPERATION

INNOVATION

WILL THE IPAD AND TABLETS OFFERA SECOND LIFE TO MAGAZINES?

INNOVATION

YESIF PUBLISHERSRE-INVENT THEIR TITLESNOIF WE RE-PURPOSE

INNOVATION

HEARST$10 MILLION IN SUBSCRIPTION BY SUMMER

CONDE NAST$15 MILLION IN 2011 IN SUBSCRIPTIONS AND AD REVENUE

INNOVATION

YOU CANNOTPOUR OLD WINE

INTO NEWBOTTLES

INNOVATION

WE HAVE TO REINVENT THE WAY WE TELL

STORIESIT'S THE JOURNALISM NOT THE PLATFORM

INNOVATION

NEW GRAMMAR FOR NEW MEDIUM

INNOVATION

STORIES YOU CANREAD

WATCH AND

TOUCH

INNOVATION

DESIGN FOREYESAND

FINGERS

INNOVATION

EXPERIENCE MORE IMPORTANT THAN BRAND

INNOVATION

THE iPad as PDF?

INNOVATION

THE iPad as A MAGAZINE ON

STEROIDS?

INNOVATION

THE iPad as SHOVELWARE?

INNOVATION

MORE PRINTY LESS WEBBY

NEITHER PRINTY OR WEBBY

INNOVATION

IT'S AN APP!

INNOVATION

WE NEED MORE DEMOSAND LESS MEMOS

INNOVATION

DIFFERENT CONTENT FOR DIFFERENT PLATFORMS

PAPER - LONG NARRATIVETABLET - DEPTH AND EXPERIENCE

MOBILE - INSTANT NEWSINTERNET - BREAKING NEWS,

BROWSING, ARCHIVES, AGGREGATING, HYPERLINKING...

INNOVATION

THE iPad as InfographicsUnique VideoSlideshows

Caricatures/Art

INNOVATION

ONE MAG MANY APPS

INNOVATION

WE MUST UNBUNDLE THE BUNDLE

INNOVATION

DISAGREGGATE 3 STRANDS

INFORMATION

SERVICES

ISSUES AND PASSIONS

INNOVATION

TABLETS AS PREMIUM

INNOVATION

iPad means iPay

INNOVATION

FREE is very EXPENSIVE

INNOVATION

PRODUCE MORE FOR THOSE WHO PAY

AND LESS FOR THOSE WHO DO NOT PAY

INNOVATION

SINGLE ISSUE SALES DO NOT WORK

SUBSCRIPTION IS THE WAY

INNOVATION

INNOVATION

WE ARE MOVING TOWARDS AN APP-

BASED WORLD WHETHER IT BE

TABLETS OR MOBILE – WHICH RIGHT NOW

HAS A MUCH BIGGER POTENTIAL

INNOVATION

INNOVATION

INDIA 2007

INNOVATION

INNOVATION

INDIA 2009

INNOVATION

INNOVATION

INDIA TODAY

INNOVATION

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THE INNOVATION:

• • Personalizing your Personalizing your digital information feed digital information feed in a magazine format in a magazine format

on a tableton a tablet• • Taking your social Taking your social

media feed and media feed and blending it with a news blending it with a news

feed and slick picsfeed and slick pics

WHAT WE THINK

• • Flipboard and then ZiteFlipboard and then Zite beat us to the punch. beat us to the punch.

• • Simplifying and Simplifying and aggregating our daily aggregating our daily information flow is a information flow is a

priceless service, AND priceless service, AND it’s done elegantly, it’s done elegantly, easily for the usereasily for the user

INNOVATIONINNOVATION

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THE INNOVATION:

• • Connecting with Connecting with readers at the precise readers at the precise

moment when they moment when they need information in a need information in a

particular locationparticular location• • Hooking up with Hooking up with high-profile tech high-profile tech

leaders to expand leaders to expand brand awarenessbrand awareness

THE INNOVATION:

Bon Appetit, Good Bon Appetit, Good magazine, New York, magazine, New York,

Advertising Week, Advertising Week, Vogue, People Vogue, People all have all have tens of thousands of tens of thousands of

followers they wouldn’t followers they wouldn’t havehave

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WHAT WE THINK:

Very simply, we need Very simply, we need LOTS of platforms to LOTS of platforms to leverage our content leverage our content

and reach our and reach our readers when THEY readers when THEY

want us to reach want us to reach them, not the other them, not the other

way around!way around!INNOVATIONINNOVATION

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THE INNOVATION:

• • Building (and selling) Building (and selling) social games around your social games around your

core contentcore content• • Elsevier created “Top Elsevier created “Top Doc” medical diagnosis Doc” medical diagnosis

gamegame• • National GeographicNational Geographic: : “Herod’s Tomb,” “Rain “Herod’s Tomb,” “Rain

Forests”Forests”

WHAT WE THINK:

• • Casual gaming is Casual gaming is exploding (200 million exploding (200 million

users play monthly). They users play monthly). They are yet another audienceare yet another audience• • Casual games deliver Casual games deliver content, reach a wider, content, reach a wider, younger, more female younger, more female audience, and are very audience, and are very

addictiveaddictiveINNOVATIONINNOVATION

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THE INNOVATION:

• • Selling Selling subscriptions via subscriptions via mobile devicesmobile devices

• • Selling “snack-Selling “snack-sized” magazines sized” magazines

for mobile for mobile consumptionconsumption

WHAT WE THINK:

• • More and more More and more consumers are living on consumers are living on

their mobile devicestheir mobile devices• • This is another This is another

example of going where example of going where the audience isthe audience is


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THE INNOVATION:

• • Offer fun, Offer fun, valuable, unique valuable, unique content instantly content instantly

via mobile phonesvia mobile phones• • Make print pages Make print pages

come alive in come alive in creative wayscreative ways

• • Let’s try it right Let’s try it right nownow

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WHAT WE THINK:

• • Augmented reality Augmented reality (AR) like 3D is fun ... (AR) like 3D is fun ... but to what end? Is it but to what end? Is it

worth the investment?worth the investment?• • QR codes or 2D tags QR codes or 2D tags deliver useful content deliver useful content

instantly on a instantly on a increasingly ubiquitous increasingly ubiquitous platform. A no-brainer. platform. A no-brainer.


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THE INNOVATION:

• • The year 2010 was The year 2010 was a banner year for 3D a banner year for 3D

coverscovers• • From glasses to From glasses to augmented reality augmented reality

3D covers and 3D covers and spreads, magazines spreads, magazines pulled out the stopspulled out the stops

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WHAT WE THINK:

• • 3D is not a gimmick; 3D is not a gimmick; it drives sales and it drives sales and

boosts brand boosts brand awareness, but it’s a awareness, but it’s a once a year type of once a year type of

tactictactic• “• “What would people What would people

most like to see in most like to see in 3D? Probably a naked 3D? Probably a naked

lady” lady” — — PlayboyPlayboy Founder Hugh Hefner Founder Hugh Hefner


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WHAT WE THINK:

• • 3D combined 3D combined with Augmented with Augmented

Reality can be a lot Reality can be a lot of fun and of fun and

generate a lot of generate a lot of buzzbuzz


JOURNALISTS SHOULD SPEND 10% OF THEIR TIME ON

SOCIAL MEDIA

VG NORWAY & OTHERS

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THE INNOVATIONS:

• • Every staffer must Every staffer must blog blog

• • High-quality High-quality outside bloggers are outside bloggers are

integrated integrated • • Advertisers are Advertisers are invited to publish invited to publish content and “join content and “join the conversation the conversation

with readers”with readers”

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WHAT WE THINK:

• • Staff blogs increase Staff blogs increase staffers’ connections staffers’ connections

with readerswith readers• • Outside blogs Outside blogs

increase breadth, increase breadth, depth of contentdepth of content

• • Advertiser blogs Advertiser blogs create relationships create relationships

w/audiencew/audienceINNOVATIONINNOVATION

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THE INNOVATION:

•Promoting your Promoting your content AND your content AND your

advertisers content advertisers content (but NOT their (but NOT their

products) with regular products) with regular fan page & Twitter fan page & Twitter

feedsfeeds

WHAT WE THINK:

•ContigoContigo in Brazil: in Brazil: Subscriptions up 16% Subscriptions up 16%

after creating after creating Facebook campaign, Facebook campaign,

which also was bulk of which also was bulk of 46% ad increase 46% ad increase

’09-’10’09-’10INNOVATIONINNOVATION

WHAT WE THINK:

• • Facebook, Twitter Facebook, Twitter followers are fans of followers are fans of

choice, promoting you choice, promoting you exponentially to friends, exponentially to friends, driving traffic, building driving traffic, building

loyalty (which loyalty (which advertisers love)advertisers love)


WHAT WE THINK:

WHY is this critical? The WHY is this critical? The NEW metric: NEW metric:

ENGAGEMENT. ENGAGEMENT. No longer just PVs, No longer just PVs,

uniquesuniquesNow: FB connections, Now: FB connections,

RTs, Social bookmarks, RTs, Social bookmarks, Tweets, comments, re-Tweets, comments, re-

links, etc.links, etc.INNOVATIONINNOVATION

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THE INNOVATION:

• • Reader-generated Reader-generated contentcontent

• • More magazines More magazines integrating itintegrating it

• • Some 100% RGC Some 100% RGC issuesissues

• • oliveolive in UK: 13% in UK: 13% sales jumpsales jump

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• • RGC is absolutely RGC is absolutely essentialessential

• • YOU can no longer YOU can no longer create all the create all the

“answers” to readers “answers” to readers information needs in information needs in

your nicheyour niche• • RGC increases RGC increases relevance, reach, relevance, reach,

readership, revenuereadership, revenueINNOVATIONINNOVATION

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WHAT WE THINK:

• • Let’s see: Sell subs on Let’s see: Sell subs on platform w/600 million platform w/600 million

membersmembers• • Keep ALL subscribers Keep ALL subscribers

informationinformation• • What’s NOT to like?What’s NOT to like?

• • Social coupon services Social coupon services exploding & are another exploding & are another

platform for usplatform for usINNOVATIONINNOVATION

THE INNOVATION:

• • Selling subs on Selling subs on Facebook (where readers Facebook (where readers spend 1/3 of their online spend 1/3 of their online

timetime• • Offer stories on Offer stories on

Facebook w/ads and Facebook w/ads and subscription optionssubscription options• • Use social coupon Use social coupon

services like GroupOn for services like GroupOn for sub discountssub discounts

DIGITAL FIRST, YES. BUT DIGITAL ONLY IS

NOT ENOUGH

FROM THE DIGITALTO THE PHYSICAL

WORLD

FROM DIGITS

BACK TO ATOMS

THE LONELIEST

GENERATION OF

CONSUMERS -

UNILEVER EXECUTIVE

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THE INNOVATION:

• • Taking successful Taking successful web-only sites into web-only sites into

printprint• • Determining what Determining what works on web and works on web and

what works on what works on paperpaper

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WHAT WE THINK:

• • A vote of A vote of confidence in our confidence in our

historical platform!historical platform!• “• “If you enjoy If you enjoy

reading, or if you reading, or if you love to be stimulated love to be stimulated by great visuals, or if by great visuals, or if you are looking to be you are looking to be surprised, then print surprised, then print

can still win” can still win” — — Future Publishing Publisher Nick MerrittFuture Publishing Publisher Nick Merritt


INNOVATION

THE PAPER OF THE 21ST CENTURY?

INNOVATION

TABLETS OR PAPER?

NOTABLETS AND PAPER

PRINT IS ALIVE AND WELL AND WILL

REMAIN A PROFITABLE OPTION FOR DECADES

– BUT NOT AS WE KNOW IT

INNOVATION

Paper as Paper as PREMIUMPREMIUM

Haute Couture Haute Couture

Online and Mobile as Online and Mobile as MASS MEDIUMMASS MEDIUM Pret a Porter Pret a Porter

INNOVATION

INNOVATION

Less Circulation + Revenue

CHARGE MORE

1X5 MULTIPLE

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INNOVATION:

• • Identifying a Identifying a brand with a global brand with a global

cause that cause that resonates with resonates with readers: World readers: World Kindness DayKindness Day

• • Partnering with Partnering with corporate and corporate and media partnersmedia partners

WHAT WE THINK:

• • It works: It works: Website traffic Website traffic

doubled; ad doubled; ad revenue revenue

increased 25%; increased 25%; newsstand sales newsstand sales

went up 15%went up 15%INNOVATIONINNOVATION

EDITORIAL AND BUSINESS

INTEGRATION IS ESSENTIAL TO

COMPETE IN THE DIGITAL AGE –

COOPERATION IS NOT INTEGRATION

INNOVATION

YOU CANNOT EXPECT DIFFERENT RESULTS BY

DOING THINGS THE SAME OLD WAY

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THE INNOVATION:

• • Among many other Among many other industry leading industry leading

innovations, innovations, Entertainment Entertainment

WeeklyWeekly has led the has led the way in creating a 24-way in creating a 24-

7 content flow for 7 content flow for their readerstheir readers

INNOVATION

PAPER VERSUS ONLINE –

IT’S A FALSE DICHOTOMY

INNOVATION

NEWSROOMS IN A PERMANENT STATE OF BETA

INNOVATION

WE NEED MANY, MANY DEVELOPERS

IN-HOUSE AND OUTSOURCED

INNOVATION

1 DEVELOPER FOR EVERY 5 JOURNALISTS -

BENCHMARK

ONE DIGITAL KITCHEN MANY

DIFFERENT RESTAURANTS

AUTHOR ONCE PUBLISH EVERYWHERE

THE NEW HOLY TRINITY:

JOURNALIST + DESIGNER + DEVELOPER

WORKING TOGETHER

INNOVATION

Tablet & Mobile Workflow

INNOVATION

WHERE’S THE MONEY?

INNOVATION

4 MAIN DRIVERS

OF DIGITAL REVENUES

INNOVATION

3 WE DO NOT KNOW OR

UNDERSTAND

INNOVATION

E-COMMERCE

SOCIAL CONTEXTUAL

ADS AND COUPONS

LEAD GENERATION

INNOVATION

SUBSCRIPTIONS & SINGLE ISSUE

COPY SALES

1WE THINK WE KNOW

AND UNDERSTAND

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THE INNOVATION:

• • Enable purchases Enable purchases from your Facebook, from your Facebook, website or app pageswebsite or app pages• • Use existing content Use existing content

to inform readers’ to inform readers’ purchasing decisionspurchasing decisions

• • Increase revenue via Increase revenue via % of sale% of sale

WHAT WE THINK:

• • If our goal is to be If our goal is to be essential in our readers’ essential in our readers’ lives, enabling informed lives, enabling informed purchases meets that purchases meets that

missionmission• • Offer complete shopping Offer complete shopping

experience. Why send them experience. Why send them elsewhere?elsewhere?

• • Make more money? Duh!Make more money? Duh!INNOVATIONINNOVATION

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THE INNOVATION:

• • UK’s Emap — From free UK’s Emap — From free to paid: 20% increase in to paid: 20% increase in subs; 5% renewal hike; subs; 5% renewal hike; increased ad revenueincreased ad revenue• • Charge for unique Charge for unique

content available nowhere content available nowhere elseelse

• • Create new pay-for Create new pay-for products, like webinars, e-products, like webinars, e-learning modules, special learning modules, special

publicationspublications

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WHAT WE THINK:

• • Produce more for those Produce more for those who pay than for those who pay than for those

who don’twho don’t• • No extra value having No extra value having

exactly same pub on app exactly same pub on app as you already have in as you already have in

print or onlineprint or online• • Create completely Create completely

different but different but complementary contentcomplementary content


TO CHARGE OR NOT TO

CHARGE FOR ONLINE CONTENT?

TO CHARGE OR NOT TO CHARGE FOR ONLINE CONTENT?THAT IS NOT THE QUESTION

TO CHARGE OR NOT TO CHARGE FOR ONLINE CONTENT?THAT IS NOT THE QUESTIONTHE QUESTION IS, WHAT CAN WE CHARGE FOR?

“The internet replaced the economics of scarcity with economics of abundance and all of us are dealing with the consequences of that.”Eric Schmidt, Google – Eric Schmidt,

CEO and Chairman, Google Inc.

ECONOMICS 101"... (Economics is) the science which studies human

behaviour as a relationship between ends and scarce means which have alternative uses."

– Lionel Robbins, 1932

Scarcity means that available resources are insufficient to satisfy all wants and needs.

Absent of scarcity and alternative uses of available resources there is no economic problem.

Wikipedia-Economics

PEOPLE WILL NOT PAY FORUSEFULNESS,RELEVANCE,VALUE

PEOPLE WILL CONSUMEWHAT IS USEFUL, RELEVANT,VALUABLE…… BUT WON’T NECESSARILY PAY FOR IT

ONLY WHAT IS SCARCECAN BE CHARGED FOR

WE HAVE TO FIND SCARCITY

GOOGLE HAS FOUND IT ON INTERNET

GOOGLE HAS FOUND IT ON INTERNETPROPRIETARY ALGORITHM

GOOGLE HAS FOUND IT ON INTERNETPROPRIETARY ALGORITHM OPPORTUNE CONTEXT

GOOGLE HAS FOUND IT ON INTERNETPROPRIETARY ALGORITHM OPPORTUNE CONTEXTLIMITED SEARCH TERMS

WHERE IS THE SCARCITY?

WHERE IS THE SCARCITY?UNIQUE CONTENT

WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITY

WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITYUNIQUE CONVENIENCE

WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITYUNIQUE CONVENIENCEUNIQUE PACKAGING

WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITYUNIQUE CONVENIENCEUNIQUE PACKAGINGUNIQUE EXPERIENCE

FREEMIUM MODEL

ABUNDANT CONTENTFREESCARCE CONTENTPAY

WHAT ABOUTADVERTISING?

WHAT ABOUT ADVERTISING?OVERABUNDANCE OF BULK CONTACTS DRIVES CPM TO ZERO

WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS

WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXT

WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILE

WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILELOCATION

WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILELOCATIONINTENTION

WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILELOCATIONINTENTIONFULFILMENT

OUTDOOR PRINT RADIO TV WEB MOBILE TABLET

MESSAGE

CONTEXT

AUDIENCE PROFILE

-

LOCATION- - -

INTENTION - - - -

FULFILMENT-

POTENTIAL TO DELIVER

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THE INNOVATION

• • Meredith took client Meredith took client from display & banner from display & banner ads to multi-channel ads to multi-channel integrated marketingintegrated marketing• • Meredith produces Meredith produces

paid magazine (1 million paid magazine (1 million subscribers), weekly e-subscribers), weekly e-mails, recipe website, mails, recipe website,

iPhone app (iFood iPhone app (iFood Assistant), iPad app (Big Assistant), iPad app (Big

Fork Little Fork) and Fork Little Fork) and branded entertainment branded entertainment

program program

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WHAT WE THINK:

• • Promotion in multiple Promotion in multiple channels increases the channels increases the amount of purchasesamount of purchases• • Either you help your Either you help your

clients create clients create integrated marketing integrated marketing

campaigns or someone campaigns or someone else will.else will.


HOW DO WEFIND THE MONEY?

HOW TO FIND THE MONEY?FOCUS ON YOUR CLIENTS’ NEEDS…

HOW TO FIND THE MONEY?FOCUS ON YOUR CLIENTS’ NEEDS……AS OPPOSED TO YOUR PRODUCTION NEEDS

FROM “MEDIA IN A BOX”…

Editorial/Programming

Finance

Admin

HR

IT

Legal

TV

Production

Marketing

Ad Sales

Editorial

Printing

Circulation

Ad Sales

Editorial

Printing

Circulation

Ad Sales

Newspaper

Magazine Radio

Editorial/Programming

Production

Marketing

Ad Sales

MEDIA INC.

TO A COMMERCIAL ENGINE

AUDIENCE

EDITORIAL

MARKETINTELLIGENCE

SUPPORTFUNCTIONS

BRANDS AD SALES

ADVERTISER

WHERE IS THE MONEY?

WHERE IS THE MONEY?YOUR CLIENTS HAVE IT, SO…

WHERE IS THE MONEY?YOUR CLIENTS HAVE IT, SO…… FOCUS ON THEIR NEEDS

FIND YOURSCARCITY…

FIND YOURSCARCITY…… AND YOU WILL FIND THE MONEY

GOOD JOURNALISM IS SCARCE

INVEST IN QUALITY SCARCE JOURNALISM AND THE MONEY WILL

COME

INNOVATION

WE ARE THE WINE NOT THE BOTTLE

SIMPLICITY IS THE DRIVER OF

INNOVATION

Dom Sagolla, co-creator of Twitter

IT'S TIME TO INNOVATE

the end

THANK YOU

WWW.INNOVATION-MEDIACONSULTING.COMSENOR@INNOVATION-MEDIACONSULTING.COM

TWITTER - @JUANSENOR

Thank you!

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http://livepage.apple.com/

INNOVATIONS IN MAGAZINES 2011

Business

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