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The Right Business Model Helps Magazines Harness Industry Trends

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AccuList’s business periodical clients will face challenges and opportunities in the fast-moving currents of publishing in 2020. The good news for printed magazines: Print is not only viable but thriving in many cases, with 64% of printing industry members telling Quocirca’s Global Print 2025 study that print will remain important well into 2025. At the same time, surveys show that digital subscriptions, advertising and content are increasingly necessary drivers of the bottom line.

Publishers Invest More in Digital and Content Marketing

In fact, worldwide news publishers surveyed now say digital publishing subscriptions are their top revenue stream. Given mobile and social audience trends, publishers also say they are increasing efforts to recreate quick-loading content for any device and are using more digital content, including videos and podcasts, to drive audience development–and that includes distribution via social media networks. At the start of the year, a What’s New in Publishing post by magazine consultant Mary Hogarth suggested that the best way to navigate the challenges of digital expansion, content innovation and multi-channel audience-building is to develop a solid business model. Periodicals need a model that will  keep cash flow strong to fund reinvention, she notes, citing cash drivers such as subscription sales, pre-paid ads and advertising space series, timely payment systems and expenditure discipline. However, it’s even more important for a magazine model to focus on expanding revenue streams across print and digital channels. 

A Smart Business Model Will Expand Revenue Streams

Of course, these revenue growth efforts are where AccuList’s targeted lists and direct marketing services can be of greatest use in adding subscribers, advertisers, members or event attendees. Among Hogarth’s suggestions for boosting revenue streams:

  • Brand extensions, such as digital editions, sister publications, books, events, conferences, courses and festivals;
  • Advertising sales strategy innovations, for example selling online plus print advertising as one package;
  • Expanding sponsorships/promotions and services by facilitating strategic partnerships or third-party sponsorship of in-house events, plus selling design and content packaging services;
  • Increased copy sales via digital/print magazines on newsstands, subscription growth, in-house back issue sales, and direct sales to partners/advertisers if appropriate;
  • Memberships schemes that can help cash-flow and likely increase audience reach and reader loyalty;
  • Online content/paywalls, such as using a micro-payment system to sell additional content;
  • Product licensing, such as selling the rights to content to be re-purposed in an existing title, or licensing the brand in terms of merchandising.

See the complete article on magazine business models for more detail.

 

2018 Offers New Growth Opportunities for Publishing Marketers

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There’s no doubt that AccuList USA’s business and consumer publishing clients face some pivotal audience- and revenue-building challenges in both print and digital marketing, but there are also growth opportunities in 2018. We note three potential positives recently highlighted by Publishing Executive magazine.

Quality Content Over Free Content

Audiences are increasing their demand for quality content, and advertisers are seeking publishers who can deliver that quality. There is a lot of untapped revenue potential for publishers who commit to quality, especially since the free-information era is ending as readers become wary of free but low-value content and increasingly willing to pay for reliable quality. For digital publishers, the downside of a shift to paid quality content can be a shrinkage of circulation, forcing them to balance potential gains in subscription revenue against lower page-views for ads. The Publishing Executive article offers various mitigating tactics: leaky paywalls; metered paywalls; charging only for premium content; allowing only paid subscribers to comment or participate in an online community; early access to certain articles for paid subscribers; access to paywalled content for subscription to a free newsletter, etc.

It’s All About Niches

With consumer access to vast amounts of information spewing into print, online, media and social every day, mass-market-oriented print and digital publications have been struggling, and niche publishers proliferating. Readers want to focus on what’s relevant to their specific interests, and many advertisers want to reach the right pool of people more than just the largest pool of people. The trick for publications is to embrace niche demand without sacrificing too much circulation. The Publishing Executive article offers some suggestions. Digital publications can create a product-within-a-product on the website, for example, with content targeted to a subset of the normal audience and attractive to new sponsors who want to reach that specific audience. For print publications, there are niche-targeted inserts, bonus sections, customized covers, polybagged special reports, or ad packages that combine a full-page ad in the magazine with a more in-depth cover wrap or insert for a special event or audience.

Demand for Brand Safety Grows

Brand advertisers have become concerned about aligning with publishers who tolerate fake news, violence, extremism, or other offensive content. The Association of Magazine Media recognized the danger and the opportunity in 2017 and released an ad campaign (“Better. Believe it.”) to highlight magazines’ quality content and brand safety. This means that respected publishers can court advertising revenue (and circulation) in 2018 by stressing brand quality and safety in their promotions. On that point, Publishing Executive quotes from an Advertising Age piece in which Shelagh Daly Miller of AARP declared: “Only when brands partner with reputable publishers can they have full confidence in where their ads are being placed. That’s a message that should be all over our industry’s media kits. And tattooed onto the foreheads of our ad reps.”

For more on publishing growth opportunities in 2018, read http://www.pubexec.com/post/6-growth-opportunities-publishers-2018/