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Media Intelligence : July 2007
Published by Media Titles Pty Ltd Publisher John Blondin firstname.lastname@example.org Associate Publisher Chris Bishops email@example.com Consulting Editor Barrie Parsons firstname.lastname@example.org Features Editor Prue Corlette email@example.com National Sales Manager Jono Burke firstname.lastname@example.org Design & Production Daniel Fung email@example.com Publishing Administration Ellise Blondin firstname.lastname@example.org Database Manager Bianca Keen email@example.com Contributors: Melissa Parker Issac Wales Errol Finigan Photographer: Britta Campion HEAD OFFICE: Suite 309, Edgecliff Centre 203-233 New South Head Rd Edgecliff NSW 2027 Australia Phone: +61 2 9327 3876 Fax: +61 2 9327 3864 Email: firstname.lastname@example.org www.mediatitles.com New Zealand Office Level One 3 Robert Street Ellerslie Auckland Phone: +64 9 525 5434 Fax: +64 9 525 5435 General Manager: Margaret Mitchell Printed by: The Quality Group Distributed by: AP Mail Management © All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by means electronic, mechanical, photocopying, recording or otherwise, without prior permission requested in writing from the copyholder. Print Post Approved: PP:255003/07552 Custom and client publishing is an essential weapon in the battle to engage the hear ts and minds of consumers, and, well executed, is a lethal tool in the armoury of savvy mark eters and brands. It o ers a high level of engagement with readers, a ords entry into speci c target markets for advertisers, and is easily integrated with new media. According to Lovonne Burrow, managing direc tor of The Publishing Partnership ( TPP), custom publishing can be brie y summed up as "publishing where a company makes the strategic decision to publish its own magazine as part of brand- building or customer-retention strategies" . M ost commonly, a brand will engage a publisher to write and produce the content, under speci c guidelines from the brand management. Depending on the client s objectives, the for mat of the publication can follow a predetermined model, or be organic in concept. Fiona Hardie, managing director of Hardie Grant Publishing, talks to her clients about what they are hoping to achieve from the communication, or about the versatility of the medium. "I n our minds, there is no xed model, so we might show them the range of expressions that [their message] could appear in, even down to the types of styles and formats of the publications that can re ect their brand in lots of di erent ways, but are also responsive to their customers. " Janice Williams, associate publisher at Universal Magazines, agrees. "I n terms of pitching models, it really comes down to the communication challenge because, at the end of the day, we are addressing a client s communication needs. You might have a client who has a database that the publication is reaching that represents oppor tunities, but they just don t want adver tising, and that is ne. Occasionally you will get a client who wants an advertiser- funded model and they don t have the database, and it s not really going to work, so it does come down to what a client s assets are. Where a client doesn t have an asset, we give them a good, realistic appraisal of what they can expect. Some of [our custom titles] do have cover prices and sell on the newsstand, but, even if they don t, you are still battling with other magazines and other media for share of mind, so there really isn t any point in doing it unless you believe there is a legitimate publishing model with a legitimate need for readers." The custom-publishing industr y is well entrenched in the UK and US, with custom publications accounting for the top ve magazines by circulation in the UK. Despite the obvious di erences of a far smaller market and a less developed sector in Australia, the trend has star ted to in ltrate locally. Take the Virgin Blue in ight magazine, Vo yeu r . Published by Text Paci c, it has become the fastest growing publication in Australia, with the readership for the December 2006 quarter increasing from 314,000 to 349,000 per month, which is an increase of 78.1% from the December 2005 gures. " We had a strategy around increasing readership," says Tex t Paci c s managing director, Georgina Brujic. " The number of people on planes 30 MediaTitles Custom and client publishing MediaTitles 31 hasn t increased as much as our readership has, but it is all about creating a strategy going forward. " Virgin Blue s brand specialist, Melissa Brooks, sees the success as a re ection of attitude towards the publication. "It has been successful, as its strategy is primarily for guests needs and secondar y for the airline, whilst being able to support itself as a business unit. The objective has been to provide guests with a value-add product that they would want to read and take with them -- not exclusively for our [Virgin Blue s] needs." For the right brand with the right concept, custom media can be an authoritative tool, and the growth of the industry has increased with the recognition that custom publications can be a powerful marketing communication strategy. "They do very well in engaging a customer and there is enormous momentum about engaging customers right now," says Brujic. "What custom magazines do, better than any other medium, is that they inform, they inspire, they tell people what your brand is really about. They also generate a high level of trust with readers. You need that level of trust not only with clients, but you need to generate it with readers." Titles can work side by side with third- par ty advertisers, often giving these 'outside brands valuable exposure, as is the case with Hardie Grant s Mercedes Australia magazine (see boxon page 33) to an elite and di cult- to -reach target market. However, TPP s Lovonne Burrow cautions any brand against launching a custom publication for the sake of it. "A custom publication cannot be seen in isolation. Any advertiser should have an integrated solution to communicate with its clients." She reveals that part of the strategy of a well-known retailer who has a successful magazine is to also publish a fortnightly catalogue program to drive sales, reinforce the value perception and maintain tra c. This combines with a loyalty program that rewards the top quartile of customers by delivering the custom publication free of charge. The magazine incorporates special promotions, engaging editorial and a gift voucher. "The customers feel special and respond in turn," she adds. While research into the e ectiveness of custom media is in its infancy in Australia, with much research being under taken in-house, the Association of Publishing Customer retention, brand reinforcement, loyalty, increased sales, higher brand awareness, customer acquisition and communication are just some of the benefits of establishing a custom publication. Leveraging the brand's goodwill Stress Addr ess the GIVEAWAY! Bonu s your world of good health WINTER 20 0 7 CHEM WORLD CHEMST WILL WE FOLLOW THE TRENDS? • The number of new custom launches in the UK in 2006 exceeded those launched in 2005 (which previously held the record) by 16%.* • The Custom Publishing Council of the USA reports that a study conduc ted by Roper Public A airs in 2005 found that 85% of all consumers would rather get information through an interesting collection of articles than through an ad. 75% feel that custom publications prove a brand is interested in building a good relationship with them.^ • More than a quarter of all readers pick up a custom magazine three or more times before they are nished with it.* • 44% of consumers interact in some way with the brand as a direct result of reading a custom magazine.* • The UK industry is worth more than £385m, (AU$925m) with year-on-year growth of 10%, and is projected to be wor th more than £531m (AU$1.276b) by 2009.* *Association of Publishing Agencies; ^Custom Publishing Council 22 Paul Foster, National Marketing Manager, Lion Nathan 44 TMPC s Alan Kirk 48 Allan Dib, MD, Nielsen// NetRatings 3 MAIN MEDIA ADVERTISING LIFTS BY 2% Top Media Advertisers Report reviewed. 22 THE BRAVE NEW WORLD Industry heavyweights discuss the past 10 years and how the playing eld has changed for the media buyer and planner. 30 LEVERAGING THE BRAND S GOODWILL Analysing the strategy behind the growth of custom and client publishing. 38 CONSUMER MAGAZINES SHOW RESILIENCE IN THE NEW MEDIA ENVIRONMENT How a return on investment is justi ed in this major market sector. 44 B2B MAGAZINES HOLD THEIR GROUND Integrating with online media presents a bold challenge in the B2B arena. 48 DEMISTIFYING ONLINE ACCOUNTABILITY Measurement metrics in this growth sector. 52 Global Media Agency Networks 54 Glossary of Media terms 58 Media Associations DIRECTORIES Publisher Listings (incorporating magazines) Consumer Magazine Listings B2B Magazine Listings CONTENTS Internet continues upward surge The gures from the annual ZenithOptimedia global advertising sur vey predic t that internet ad spend will grow 28.2% in 2007, while the rest of the industry will increase by a more modest 3.9%. • The internet s share of total ad spend will increase from 5.8% in 2006 to 8.6% in 2009, and is headed for well over 10%. • The internet will overtake outdoor in 2007 and radio in 2009. The report explained, " We expect the inter net to take nearly 9% of global ad spend by 2009, but experience from the most developed markets suggests it is heading for well over 10%. The internet already attracts more than 10% of ad spend in three markets (Norway, Sweden and the UK), and by 2009 we expect it to do so in ten mark ets (Australia, Canada, Israel, Japan, Norway, South Korea, Sweden, Taiwan, the UK and USA). The internet has its highest share in the UK, where it will attract 13.5% of ad spend this year and 21.5% in 2009. "Newspapers and magazines are still growing -- by 3% and 4% a year respectively. Even af ter adjusting for in ation, print ad spend continues to grow by 1% a year. However, classi ed advertising is migrating to the internet or being substituted by auction or search sites, while newspaper circulation continues to decline in the developed world." In line with the favourable economy, ZenithOptimedia predicts the world ad mark et will grow 5.4% in 2007, 5.8% in 2008 and 5.3% in 2009, staying ahead of the 5.1% rate at which it has grown for the previous ten years. Asia Paci c, Central and Eastern Europe, and the Middle East are dr iving the above-trend growth with Central and Eastern Europe ad markets moving rapidly towards maturity. Despite the small markets in this region, ZenithOptimedia forecasted growth of approximately US$13.8 billion between 2006--2009, compared to the much larger markets in Western Europe, where they predic t growth of about US$12.9 billion. "Asia Paci c spend is accelerating in the run-up to the Beijing Olympics in 2008. We expec t growth to drop o slightly in 2009, the year after the Olympics, but it should remain faster than the growth in North America, Western Europe and Latin Amer ica. China, India and Indonesia all continue to grow at double- digit rates. The gap between Asia Paci c and Wester n Europe will narrow from US$11 billion in 2006 to just US$5 billion in 2009. " 16 MediaTitles Global ad spend Major media (newspapers, magazines, television, radio, cinema, outdoor, internet) US$ million, current prices Currency conversion at 2005 average rates 2005 2006 2007 2008 2009 Asia Pacific 85,496 90,542 96,217 103,334 109,441 North America 174,072 183,182 190,828 198,634 205,690 Western Europe 98,111 101,544 105,391 109,706 114,442 Central and Eastern Europe 23,336 27,210 31,455 35,994 41,006 Latin America 18,401 19,732 20,568 21,570 22,647 Africa/Middle East/Rest of World 10,434 12,812 14,188 15,863 17,588 World* 409,849 435,022 458,648 485,101 510,815 Source: ZenithOptimedia MediaTitles 17 BEIJING OLYMPICS TO BOOST ASIA PACIFIC AD SPEND UNTIL 2008 US$ million, current prices Currency conversion at 2005 average rates 2005 2006 2007 2008 2009 Magazines 52,993 54,807 57,021 59,450 62,078 Newspapers 119,178 123,460 127,125 131,179 135,228 Television 151,187 160,391 167,149 176,671 184,502 Radio 34,348 35,443 36,543 37,821 39,548 Cinema 1,697 1,812 1,938 2,087 2,272 Outdoor 21,769 23,473 25,190 27,054 29,126 Internet 18,712 24,454 31,344 36,926 42,685 Total 399,883 423,839 446,310 471,189 495,438 Major media (newspapers, magazines, television, radio, cinema, outdoor, internet) year-on-year change (%) 2005 v 2004 2006 v 2005 2007 v 2006 2008 v 2007 2009 v 2008 Asia Pacific 5.4 5.9 6.3 7.4 5.9 North America 3.0 5.2 4.2 4.1 3.6 of which USA 2.9 5.2 4.1 4.1 3.5 Western Europe 3.7 3.5 3.8 4.1 4.3 Central & Eastern Europe 15.4 16.6 15.6 14.4 13.9 Latin America 18.9 7.2 4.2 4.9 5.0 Africa/Middle East/Rest of World 15.8 22.8 10.7 11.8 10.9 World 5.3 6.1 5.4 5.8 5.3 Source: ZenithOptimedia ZenithOptimedia is one of the world s leading global media services agencies with 175 o ces in 69 countries. Key clients include Alcatel, Beam Global Spirits & Wine, British Air ways, Darden Restaurants, Electrolux, General Mills, Giorgio Armani Par fums, Hewlett-Pack ard, King sher, Mars, MBNA Europe, Nestlé, L Oréal, Puma, Polo Ralph Lauren, Qantas, Richemont Group, Sano -Aventis, Siemens, Thomson Multimedia, Toyota/Lexus, Verizon, Whirlpool, Wyeth and Zurich. ZenithOptimedia is committed to delivering to clients the best possible return on their advertising investment. This approach is suppor ted by a unique system for strategy development and implementation, The ROI Blueprint. At each stage, proprietary ZOOM (ZenithOptimedia Optimisation of Media) tools have been designed to add value and insight. The ZenithOptimedia Village enables the widest range of communications opportunities and skills to be brought together to ensure the most powerful connections are made with consumers. Share of total ad spend by medium 2005--2009 (%) 2005 2006 2007 2008 2009 Magazines 13.3 12.9 12.8 12.6 1 2.5 Newspapers 29.8 29.1 28.5 27.8 27.3 Television 37.8 37.8 37.5 37.5 37.2 Radio 8.6 8.4 8.2 8.0 8.0 Cinema 0.4 0.4 0.4 0.4 0.5 Outdoor 5.4 5.5 5.6 5.7 5.9 Internet 4.7 5.8 7.0 7.8 8.6 Internet expenditure by type US$million, current prices Currency conversion at 2005 average rates 2005 2006 2007 2008 2009 Display 7,043 8,617 10,462 11,849 13,292 Search 7,833 10,610 13,993 16,803 19,711 Classified 3,291 4,578 6,169 7,532 8,856 Other* 545 649 721 742 825 Total 18,712 24,454 31,344 36,926 42,685 * email and mobile advertising Paid search is already the largest type of internet advertising, and the gap between search and display is widening. However, display includes video ads and other innovations that are exploiting the creative opportunities offered by high-speed broadband, and still has a lot of potential for growth. Meanwhile, classified continues to migrate from print to online.
2009 - 2010