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Hey, Magazines, Are You in or Are You out?

Time to Step Up and Declare Whether You Still Believe in Publishing

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I've got a few questions for American magazine publishers:

Are you in or are you out?

Do you still believe in the very act, the very business, of publishing?

And do you still believe in presenting carefully selected words and pictures -- expertly produced information -- for a targeted audience?
No shelter: Time Inc. shuttered Cottage Living as part of a companywide cutback.
No shelter: Time Inc. shuttered Cottage Living as part of a companywide cutback.

Lately, some companies seem to be answering yes -- for instance, Ziff-Davis, which announced last week that it is discontinuing its PC Magazine as a print product but has been investing in its internet strategy and is therefore ready and able to continue publishing the title on the web.

Other companies seem to be answering no -- for example, Time Inc., which, in the midst of a massive, companywide reduction in staff, entirely folded its once-promising Cottage Living last week. That's it. The brand is dead. The magazine's sizable audience (the rate base was 1 million) will be abandoned, and even the website will be shuttered. That's not exactly a surprise given Time Inc.'s previous half-hearted attempts at transitioning brands from print to web. When it shuttered Teen People, for instance, it briefly pretended to be interested in keeping the brand alive at teenpeople.com but ultimately killed that, too.

That big publishers can't manage to sell enough print ads, in a post-print media economy shadowed by a larger economic meltdown, is not exactly shocking. What is shocking, though, is that they're essentially saying to scrappier, upstart online competitors: Take our business, please! We're throwing in the towel! If we can't play by the old rules of publishing -- the profit-soaked, imperial model with endless layers of coddled management ensconced in luxe trophy offices -- then we don't want to play at all! (As for Cottage Living and Teen People, keep in mind that, housing crisis notwithstanding, there is still a large audience interested in the shelter category, and there are still millions of teens who are obsessed with celebrity. And those audiences are on the web, looking to be served editorially.)

Again, I'm not talking about print vs. online -- the slow death of print is beside the point here -- and I'm not talking about necessary recessionary belt-tightening. I'm just asking: Are you willing to radically adjust your business model precisely because you still believe in the act of publishing?

And when I say "radically adjust your business model," I don't mean radically amputating so the patient bleeds to death faster. I don't mean cutting all the front-line content producers -- the editors and writers and art staffers who don't make million-dollar-plus salaries -- in great brutal rolling waves so that soon you'll be unable to produce any content anymore. I don't mean changing your business purpose from editorial brand building to, basically, editorial brand hospice care -- abusive, inadequate hospice care at that.

Retrenching during an economic contraction is one thing. But starving and killing off your brands one by one -- and refusing to invest adequately in the transition from print to web -- suggests that you're simply abdicating. You've lost faith in what you do. You've lost faith in publishing.

Recently, my colleague Nat Ives asked the Magazine Publishers of America for an estimate of online ad revenue for the industry. An MPA spokesperson, rather astonishingly, e-mailed back, "We don't track. Don't know who does." As MediaWorks Editor Ann Marie Kerwin put it, "How do you not track that? How do you not try and set some benchmarks there?" (Then again, she said, maybe they are tracking the number -- but it's so pathetic, "they just don't want to share it.")

A few weeks back, MSNBC talk-show host Rachel Maddow appeared on "The Colbert Report" and noted that the governing failures of the Bush administration -- its failure to respond to Hurricane Katrina, etc. -- were inevitable, because George W. Bush stocked his government with people who were ideologically anti-government. "I mean, I like vegans," she joked, "but it's like hiring a vegan to be your butcher. If you have somebody who is really against the idea of providing you the service that you have hired them for, they're going to be bad at providing that service."

Looking around at some of America's largest magazine publishers, I see something similar: publishers who are anti-publishing.
10 Comments
Subscribe to comments on: Hey, Magazines, Are You in or Are You out?
  By aprilrc1908 | Charlottesville, VA November 24, 2008 11:53:15 am:
Very insightful and true!
  By jeffmarchand | Toronto, ON November 24, 2008 12:02:23 pm:
Bravo!!! Hammer, meet nail. Nail, prepare to be whacked on the head. Absolutely perfect. And this could be extended to dozens of other media sellers posing as brands. I've often rolled my eyes as I sat across from senior sales executives pitching our clients on how much they care about their (our clients') businesses, and how interested in partnerships they were. They're not even interested in their own!
  By aboer | GREENWICH, CT November 24, 2008 03:05:16 pm:
Five changes have happened in rapid succession that have made quality magazine publishing (particularly niche publishing) unprofitable and unsustainable for the foreseeable future.
1) The Internet took down any competitive advantage from distribution -- anyone can now become a publisher, including brands, merchants, and individuals.
2) Readers behavior changed -- people increasingly now find their content through RSS, search or search proxies like Google News, blogs, and social networking -- few online magazines still get meaningful traffic to their homepages as "destination sites".
3) Ad Networks allowed advertisers to reach audiences based on the context of the content and the identity of the reader -- for many advertisers this a much more effective mechanism than direct ad sales, allowing for greater scale at 1/5 the price, and with accountability and tracking. This value proposition also far exceeds the equivalent ad spend in print advertising, which hastens its demise.
4) All of the above substantially lower the barriers to entry to creating a successful online business, leading to massive increases in relevant content inventory, with only a moderate decline in overall quality.
5) Smart publishers begin to realize the only way to compete in this crowded environment is by increasing the scale of content production (About.com and Huffington Post) -- with a few exceptions quality and focus alone won't get you enough of an audience to support that 5x priced direct buy.

6) Niche magazines like Cottage Living ultimately realize that their audience/traffic is too small online to sustain a direct advertising sales force. At the ad network rates, a tradition publishing pay structure is not sustainable.

High quality niche Content simply isn't king anymore --

Broad, plentiful, relevant content is. If you can adapt to that new world, do. But if your team, ethos, and raison d'etre is to excel at High quality niche content, best to quit now and for the foreseeable future.

This model will only be successful again when 1) quality becomes a real problem and 2) the ad networks shake out.
  By kaolin | ACTON, CA November 25, 2008 02:36:34 am:
GUD is in--all in. But I think that must be true of any small-press magazine. We're trying to get into every niche we can afford while maintaining a certain brand identity. http://www.gudmagazine.com/
  By jmontaigne | brooklyn, NY November 25, 2008 01:48:08 pm:
I think your thinking is dead on, but doesn't go far enough. If the magazine industry would just wake up they would take a page from the plight of the Detroit automotive industry. Both have ignored the realities of the market for too long and both are addicted to the easy money of continuing to conduct 'business as usual'.

Magazines are great, but their entire business model is obsolete and irrelevant. If you have something of value, you had better be much more innovative in determining how to price it than simply resorting to the customary price increases because your costs are going up.

I fear that until one of the four or five major magazines falters (and one will, that's for sure), the industry will just continue to put its head in the sand and hope tomorrow is a better day.

Where are the brand stewards? Our faltering economy is a golden opportunity for a rethinking of an industry that deserves better. Who is going to step up?
  By CarlosDavid | Montreal, QC November 28, 2008 10:41:03 am:
I'm constantly amazed that more magazines don't take advantage of a service like Zinio, that will completely Digitize their publication and set them up with a subscription service all rolled into one.

A lot of people at these publications are sooo 20th Century !
-Carlos
  By bendingoak | Houston, TX December 2, 2008 01:49:50 pm:
As a writer and designer of direct mail packages for consumer magazines for the purpose of subscriber acquisition, I've witnessed first-hand the astonishing stupidity of publishers on a variety of fronts. #1, the decision to hoodwink new subscribers with mail solicitations that look like bills and sell no content. #2, the decision to mail these packages because they produce a cheaper cost per order -- but at the expense of selling content, the brand, and personality. And #3, spending millions on needlessly redesigning their magazines, alienating the loyal reader base, and ending up with a product no one recognizes, likes, or relates to. Regardless of the popular view that it's the internet and nothing else, I suggest it's both. Look at New York magazine. Great magazine. Great website. Each compliments the other. Neither cannibalizes the other. BUT -- print publishers must get back to content, content, content -- and SELLING content with direct mail that's allowed to do its job. Better to lose the expensive perks, a few overpaid layers of bureaucracy, and needless redesigns and use those dollars where it can really pay off: selling the magazine they way we used to. With 6x9 mailings that feature well-written outers, letters, and lift notes, and brochures that capture the look, tone, feel, and personality of the magazine and its content. It's time for a leap back to the good old days -- when publishers recognized the life or death importance of selling what they published. Print's NOT dead! But it IS dying. Yet the cure is so obvious publishers don't see it. Those of us you know how to sell print -- in the mail and online -- just need to be given the chance to do it. Sure it will cost more than sending out those trick mailings, but think of it as an investment in rebuilding a loyal audience, who will come back and renew if the content delivers what they're looking for. Forget "publish or die." These days, it's "sell or die." Is anybody listening?
  By jkrawl | Chicago, IL August 3, 2009 02:24:36 pm:
Many publishing companies need to make some drastic changes if they expect to endure during this recession. The problem is mainly due to "status quo" publishing execs who refuse to change their business model. This stubborn attitude contributes to the fall of many companies that refuse to adjust themselves after a major shift in the market. Right now, the publishing trend is heading online with a major emphasis on building internet social communities.

Publishing companies MUST embrace this model!
http://www.absrocketpro.com
  By BPoston | Raleigh, NC August 28, 2009 04:55:56 pm:
This is just another reminder that the smaller and more nible publisher can and will beat the Goliaths of the industry. So long as they honor, believe, and give their all the publishing act while staying very close to their customers.

Ben
http://www.howtobuildgolfclubs.com
  By gmiddleton | Indiana, PA August 30, 2009 03:36:49 pm:
Just like what the newspaper industry is also experiencing, it will only be a matter of time before the inivitable happens and magazines are a thing of the past :(

Gaston
http://www.Ultimate-Resell-Rights.com
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