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Media Intelligence : July 2007
estimated spend of $3.5 million. Other advertisers to signi cantly increas their magazine budgets since 2004 included Telstra, Nestle and Unilever Foods. The top ve magazine advertise groups in 2006 were Nestle/L Oreal ($42m Procter & Gamble ($14.4m), Commonwealt Government ($12.7m), Unilever Australi ($12.1m) and Telstra ($11.8m). MT Travel + Leisure Australia was launched into the Australian market in 2005. How would you rate the success of the publication so far, and does it herald a move by Fairfax further into the consumer newsstand/ subscription magazine model? Travel + Leisure Australia has been a great success for us, with strong circulation -- around 80,000 -- and positive feedback from readers and advertisers alike. Our readers have really embraced the magazine, and it's clear from recent overwhelmingly positive reader surveys that there was a need for a quality specialist travel title in the market. Ye s , we're extremely keen to grow our successful magazine business and move further into the newsstand market. What makes newspaper-inserted magazines (NIMs), besides the fact they are free, an attractive proposition for both readers and advertisers alike? The quality of our titles and the quality of our audience is what makes our newspaper- inserted titles so popular with both readers and advertisers alike. Our outstanding writing, photography, design and ideas give us a clear edge in the market, both editorially and commercially. At Fairfax we are well-known as being Australia's leader in journalistic excellence, and our readers know they can trust us. We also know our readers well, and we're able to deliver magazines that are engaging, compelling, sharp and entertaining. Our discerning, hard-to-reach audience is a huge asset and the envy of our competitors. With the continuing strength of our brands, the future does indeed offer huge opportunity -- around brand extensions, events, new launches and organic growth -- and we're actively working on many exciting ideas. With the focus on magazines and their digital offering, where do you see the NIMs placed, and how do you think it differs from cover-priced magazines? Our NIMs are extremely well-placed to leverage their strong reader loyalty in the digital space, and looking at the overseas-experience websites is integral as a complement to -- certainly not a replacement of -- the magazine brand. We can see clear benefits for us and our advertisers in talking to our readers more often and more directly through websites, and in further promoting our very successful reader events. Our Travel + Leisure website and e-magazine have already proven a big success, and extending our other strong brands is a high priority. What are the biggest issues facing the industry now and into the future? I think the biggest issues facing the industry are how to engage the time-poor reader in an increasingly competitive media environment; the constant challenge of staff and production costs; and how to embrace new media to enhance, and not compete with, traditional platforms. But generally there's no better place to be than in magazines -- there will always be a growing appetite for good brands and I'm very optimistic about the future. INSERT MAGAZINES FOCUS ON QUALITY FOR EFFECTIVENESS Lisa Hudson, Publisher of Fairfax General Magazines, speaks to Media Titles COMPOSITION OF ABC AUDITED MAGAZINE MARKET • Consumer demand for magazines catering to special interests has resulted in a significant growth in the number of titles available, with sales coming from a broad range of magazine categories. • The table below shows the number of ABC audited magazines by category and their share of gross annual Australian sales in 2005/06. As well as these audited titles, there are hundreds of magazines that are not ABC audited, covering a vast array of interests from specialist hobbies to witchcraft. • The 11 audited major women's magazines dominate the market, accounting for 56.5% of all sales. The next largest selling categories are men's interest/lifestyle, current affairs/business, home & garden, food/entertaining, and fashion. Composition of 2005/06 ABC Audited Magazine Market (Australia only) Number of Share of Gross Audited Titles Annual Copies In Category Sold in 2005/2006 Major Women's 12 55.4% Fashion/Lifestyle 9 5.0% Health/Parenting 5 1.0% Sub-total 26 61.4% Home & Garden 16 5.4% General Interest/Craft/Other 22 5.0% Food & Entertaining 11 4.4% Sub-total 48 14.8% Sport 16 2.4% Motor/4WD/Truck 26 4.3% Men's Interest/Lifestyle 9 6.9% Sub-total 51 13.6% Current Affairs/Business 6 5.0% Computers 6 1.3% Sub-total 12 6.3% Youth/Music 4 1.9% Kids 7 1.9% Sub-total 11 3.8% TOTAL 152 100.0% Source: Based on annualised gross copy sales of ABC audited consumer magazines July-Dec 2005 and Jan-June 2006 CASE STUDY 3
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