Media Business:What changes are coming next year?
Nick Cavnar: Smartphones, tablet computers and digital readers are pulling more and more of us away from our laptops. The app will soon rival the website as a channel for delivering information to our audiences. Texts and tweets are competing with e-mail, especially among younger users. There's a great opportunity here to expand our audience relationship and business. I think the app represents the first truly successful model for getting people to pay for content delivered electronically.
MB:What are the biggest challenges today?
Cavnar: On the b-to-b side, our companies still have not overcome the mindset of the controlled-circulation model, where [building] audience was relatively inexpensive. To launch a new b-to-b magazine, all you had to [do] was buy a list from a business database and start mailing. Boom! You had a well-targeted audience of 50,000. A few telemarketing campaigns, and that was upgraded to audited-request circulation. To develop a well-identified, well-targeted b-to-b audience today takes much more customized effort through many more channels.