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TUESDAY,
OCTOBER 26
Understanding Tomorrow’s Consumers…Today J. Walker Smith, President, Yankelovich Partners, Inc. In his presentation about the new consumer environment, Yankelovich’s J. Walker Smith spoke about the “mainstreaming of affluence” – a world in which formerly “high-end” items such sushi and plastic surgery have become commonplace. He also provided insight on the growing importance and vitality of multicultural markets, citing Tiger Woods’s “Cablinasian” (a conflation of Caucasian, Black, American Indian and Asian) in reference to the fact that he’s not just an African-American. The future of America looks like Tiger Woods, and to reach the multicultural consumer, Smith said, it is imperative that marketers target attitudes, not traditional demographics. The “new consumers” are also self-inventive, more sophisticated, better empowered, less forgiving, less trusting and more demanding. They are using technology to interact in different ways and demand more from the marketplace. “In the future,” stated Smith, “we may actually have to pay consumers to watch our advertisements.” There has also been a profound shift from “cocooning” to “bee hiving.” In a cocooning environment, the consumer wants to retreat from the world, disconnecting oneself from society. However, consumers are increasingly moving towards “hiving,” which, like a bee hive, represents engagement with the outside environment. Hives have larger, open gathering areas that lead to exposure and interaction with a diverse community. Understanding the attitudes and values of increasingly diverse markets provides new opportunities for strengthening consumer relationships and improving advertising messages.
Staying in Tune with New Targets Russell Simmons, Chairman & CEO, Rush Communications; Roy Johnson, Assistant Managing Editor, Sports Illustrated Russell Simmons, founder of Hip Hop music label Def Jam Recordings, and founder of male sportswear brand Phat Farm, spoke with Roy Johnson about understanding the values of the emerging urban market. The Hip Hop generation, at the core, was
born from a world of struggle and poverty. According to Simmons,
rap music is poetry, and it depicts where artists come from, what
they have been through, what they do, what they wear and what they
like. Simmons pointed out that 80% of people who listen to Hip Hop are not African American, but this audience has been largely under-marketed throughout the years. He alluded to staffing issues as part of the cause. He stressed the need to hire young and diverse talent that can provide valuable input on connecting with these Hip Hop consumers. The
Power of the Cover Cullen Murphy shared three lessons about magazine covers that he has learned. First, the cover story is the engine. It is one of the most important parts of the magazine. Second, there is no substitute for clarification. Information must be concise, accurate and educational. Third, said Murphy, “To some readers, sometimes, Donald Rumsfeld can be as interesting as Britney Spears.” Murphy gave a detailed presentation on the history of his magazines covers and how they have changed since the magazine’s inception in 1857. In the beginning the covers on Atlantic Monthly were dominant easy messages with simple bold graphics. “After a few decades we decided to use covers to show the readers what’s inside of the magazine,” Murphy said. Newsstand sales have doubled since 2000 and have kept climbing since then. The magazine is now selling approximately 60,000-80,000 copies per issue. According to Murphy, his readers are educated and involved. The cover doesn’t really need to grab the attention of readers, like Cosmopolitan or Newsweek, as much as it needs to contain a decent amount of information that will draw people to read.
Moderator Panelists Evan Smith moderated the session which emphasized that the magazines represented by the panelists started with small staffs and were launched a few months from inception. Suzanne Boyd said that she began work in March 2004. Two months later, her creative director was hired and a month later the fashion director was on board. The first issue of Suede came out in late summer. The editors said their publications found their own niche demographic and filled a void in the market. As Ariel Foxman, Editor-in-Chief of Cargo, explained, “We answered new questions and brought new people to the newsstands.” Another reason for the success of these magazines is that they were first displayed as newsstand specials at an early stage in their development. “The idea here is to put readers first, to see how a magazine can do without really much promotion,” said Dave Zinczenko, of Best Life.
The Debate on Magazine Measurement Moderator Panelists A lively debate over magazine measurement ensued on Tuesday morning between publishing CEO Jack Kliger, advertising media executives Alec Gerster and Andrew Swinand, and researcher Rebecca McPheters. The panel discussion moderated by Ad Age’s Scott Donaton delved into the pros and cons of rate base metrics versus audience measurement. Kliger raised his concerns about the dual measurement standards inflicted on the magazine medium alone, and especially about media buyers’ emphasis on audited circulation data. The latter essentially discounts reader pass-along rates, which, according to Kliger, comprises roughly 75% of magazine readership. To this, Gerster countered that magazines are “handled differently” because the medium is intrinsically different from others. He stressed the importance of standard metrics, which, supported by solid distribution practices, provides enough data to adequately compute audience numbers. Swinand asserted that publishers are at the tipping point with the advertising community with their new messaging about “engagement,” especially in light of consumers’ ability to zap television ads. (Swinand referenced research that revealed that 70% of TiVo users skip ads.) He also debunked the long-held advertiser belief that average-price-paid by subscribers was a good indicator of magazine “wantedness,” stating Starcom has found that price-paid “had absolutely no correlation with anything.” However, Swinand also emphasized the need
for more “real-time” circulation data, as opposed to
the six-month waiting period for publishers’ estimates, and
18- to 24-month audited figures. Bonnie Fuller, EVP, Chief Editorial Director, American Media Inc. Bonnie Fuller said there were several factors that go into composing a powerful cover.
“Show me a beautiful and artistic cover today, and I’ll show you a low seller,” said Fuller, who said that today cover appeal has shifted from artistic expression to what will sell. In a time where there are so many different media choices, covers have only a few seconds to grab the attention of the buyer. Non-news celebrity covers don’t tend to work, Fuller explained, because readers want drama and surprise. Covers now need to package a celebrity with a compelling news story. Fuller said that readers want humor. “When the subject is right, we’ll have fun with it.” In one of his first appearances since his heart surgery in September, former President Bill Clinton addressed several hundred top-level representatives from the magazine industry at AMC. He was interviewed by Jim Kelly, Managing Editor, TIME, and also answered questions from the audience.
John E. Potter, Postmaster General & CEO, United States Postal Service Postmaster General Jack Potter stated that
the magazine industry and the Postal Service face similar challenges
in the form of a changing marketplace, competition from the Internet
and securing one’s place in this digital age. Potter asked industry leaders to remain close to postal management in the upcoming months so "we can continue to explore ways to keep your costs and our costs as low as possible." He also urged that the active partnership between the magazine industry and the Postal Service continue, to get magazines to readers “on time, and at affordable rates.” He added that through magazines delivered in the mail, “the American public depends on both of us to keep them connected with ideas, entertainment and information that directly relate to their lives.”
Great
Minds Think Alike…or Do They? This year’s magazine executive panel, an AMC tradition, featured a prestigious lineup: Steve Lacy of Meredith, Ann Moore of Time Inc., Steve Murphy of Rodale, and Tom Ryder of Reader’s Digest Association. In a lively discussion moderated by BusinessWeek’s Steve Shepard, the industry heavy hitters tackled some of the most critical issues facing the publishing business today, including the Internet, advertising and circulation challenges and editorial integrity. Some highlights from the discussion: Tom Ryder, on magazines reclaiming advertising share: “Television is way more vulnerable than I’ve ever seen it. …And all that experimentation that’s going on right now – people throwing advertising money at the Internet – that will settle itself out. Eternal verities will become verities again, and we are one of those. I think we can help that process along.” Steve Murphy, on magazine content online: “The buy will be, and needs to be, a multiplatform buy, with print married to online. It’s part of our job to have…‘real’ edit in both mediums. Not a magazine parading online as a page, but real online edit [with] brand consistency.” Steve Lacy, on raising magazine prices: “If you have a very, very strong editorial product that solves a problem for the consumer, they’re willing to pay.” Steve Lacy Ann Moore, on allowing product placements:
“No, we’re not going to cross the line, and shame on
us if we can’t go back to the client…with a creative
marketing idea to solve his problem.” |
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