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Media Intelligence : 2008 Intelligence
Published by Media Titles Pty Ltd contents 77 Publisher John Blondin firstname.lastname@example.org Assoicate Publisher Chris Bishops email@example.com Features Editor Prue Corlette firstname.lastname@example.org Publishing Administration Ellise Blondin email@example.com Database Manager Greta Bockler firstname.lastname@example.org National Account Manager James Winter email@example.com Design & Production Daniel Fung firstname.lastname@example.org Photography Jean-Louis Gravelét Britta Campion HEAD OFFICE: Suite 309, Edgecliff Centre 203-233 New South Head Rd Edgecliff NSW 2027 Australia Ph: +61 2 9327 3876 Fax: +61 2 9327 3864 Email: email@example.com www.mediatitles.com NEW ZEALAND OFFICE Level One 3 Robert Street Ellerslie Auckland Ph: +64 9 525 5434 Fax: +64 9 525 5435 General Manager: Margaret Mitchell Printed by: The Quality Group Ph: 02 9743 3499 Fax: 02 9743 4078 Fulfilment: D&D Mailing Services Sydney: Ph: 02 9725 2114 Fax: 02 9725 3642 Melbourne: Ph: 03 9790 5844 Fax: 03 9795 8410 © 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 in writing to the copyholder. Print Post Approved: PP:255003/07552 8 DIGITALMAGAZINES – THE FUTURE CATCHES UP It’s back to the future as publishers start to take another look at digital magazines. Prue Corlette investigates 16 MOBILE, YOURTIME STARTS…NOW It’s been a long time coming, but 2008 is set to be the year that mobile advertising finally comes into its own. digital magazines It’s back to the future as publishers start to take another look at digital magazines. After a couple of false starts, the technology has matured to become cost effective and easy to use. Prue Corlette investigates. T DTHE FUTURE igital Magazines – he first purely digital flip-through publications hit the market about ten years ago, but the speeds were slow, and specific programs had to be installed to view the pages. As technology improved, more publishers began to experiment, but the medium never really got off the ground. It wasn’t until 2006 that a mainstream publisher decided to test the market, with Pacific Magazines launching Red Zero in August 2006. The launch, in conjunction with advertising partner Target, was hailed as the way forward for magazine publishers struggling in an increasingly fragmented market, but Red Zero didn’t bring on board anticipated subscriber numbers and this, combined with its sluggish pace – publishing every three months – saw the magazine close in February this year. Pacific Magazines CEO Nick Chan said that despite the groundbreaking nature of the publication, it wasn’t doing what it needed to, and that the money could be better spent elsewhere. Simon Davies, head of print at OMD says that Red Zero was really pushing into new territory, as the space is dominated by smaller, niche publications. “To go into that more mainstream type approach was quite a brave move and certainly something we supported as a result of that,”he says, “although there were elements that were refreshed more regularly, it was something that came out quarterly 8 MEDIA Trends + Strategy when peoples expectations of online is all related to immediacy.” B2B and specialist publishers have long been early adopters of new technologies as well as having a willingness to experiment and were quick to take the first tenuous steps into digital magazines, but it soon became evident to many publishers that the online versions just weren’t hitting the mark. Geoff Hird, associate publisher at leading industrial and technology publishers Westwick-Farrow agrees that an online presence is a must for publishers. “As a media provider, if you want to cover a market – whether it is consumer or B2B, you “ B2B is a great example of where you have lots of tightly defined communities … in some ways it gets harder the bigger your audiences are, as it would with consumer-type titles.” – Simon Davies, OMD 12 SEARCH ENGINEMARKETING – A DEEPER CONSUMER EXPERIENCE Semfi re’s Christine Parfi tt, and Willie Pang, head of Yahoo! Search Marketing for Australia and New Zealand tell why search needs to be an integral part of any digital marketing campaign. 22 MEDIA 2008 – THE STATE OF PLAY Media Trends+Strategy speaks to leading figures about what 2008/09 holds for the media industry. feature working on a platform which had existed since 1998. For a long time we fought with a very blunt butter knife against the competition. We levelled that playing field and the feedback from advertisers was very positive. And that translated to a 35% increase in the number of active advertisers we had in the first half of 2007 vs the second half. Where do you see the market heading? need to be aware that your traditional reader has changed their habits significantly in the last year or two.”Hird stresses however, that whether this online presence should include a digital magazine, should be dependant on a carefully selected target market. “We tried a digital version of Radio Comms Asia-Pacific magazine a couple of years ago,”he says “and the issue we came up against, is that it depends on your audience and their access to technology and the security elements they have on their network. We found that a lot of our readers are happy to get a digital version of Radio Comms Asia-Pacific, rather than a print version, but as many of the readers in that industry sector were government organisations, they had restrictions on what programmes they could add to their computer, as well as restrictions on what they could view through the network” But things are changing rapidly for digital magazines. New CATCHES UP Geoff Hird, associate publisher, Westwick-Farrow As search engine marketing continues to develop and evolve, marketers and business owners alike are trying to understand the vast and dynamic world of SEM. MT+S asks two industry experts for their insight into the increasingly competitive world of SEM, and why search needs to be an integral part of any digital marketing campaign. Christine Parfitt is the Principal of internet marketing and management services company Semfire. Willie Pang is the Head of Yahoo! Search Marketing for Australia and New Zealand. technology means that consumers no longer need to download plug-ins, speedy internet connections mean that rich-media publications are faster and more interactive to use and niche and B2B publishers are slowly coming back to the fold. With research from the US indicating that consumers are more accepting of online magazines than they may have been a few years ago, digital magazines appear to have passed through the transitional technology phase and are becoming a popular mechanism for not only adding-value to an existing masthead, but as a way of extending the brand. Current technology MEDIA Trends + Strategy 9 How would you rate the current performance of the industry? Willie Pang: The search engine marketing (SEM) industry has really exploded. From 2005 to 2006, the market grew 100% year on year. From 2006-2007, depending on which analyst you speak to, it grew somewhere between 60 and 80%. This year it is expected to growbetween 30 and 50% so it is still very explosive 12 MEDIA Trends + Strategy growth. I guess the top line facts and figures, depending on who you listen to, was that 2007 was the first year that SEM spend overtook general display advertising. That is in line with what we are seeing in global trends. In 2007 we launched a new technology platform called Panama which was designed to help us catch up with the competition from a technology standpoint. It has fuelled our growth through the second half of 2007. Yahoo! SEM had been Search Engine Marketing – A deeper consumer experience Christine Parfitt: Websites still need to be optimised so that they show up in search engines. There will still be a place for the basic techniques search managers use, such as keyword research, optimising the content and so on, but what I think is going to happen is that it is becoming more competitive. In paid search, some of the larger organisations and brands are starting to show up in the search results much more these days, whereas previously it was the smaller businesses that were at the forefront of trying all of this. It’s getting more competitive and one of the results of that will be to drive the click costs up. There are ten places on the front page for any search term and the more advertisers in there, the more they will have to pay. People will be forced to get smarter about how well their campaigns are managed. Google makes a big point about how easy it is to set up a campaign and to leave it running without much management, and I think if it gets more costly to do that, and more competitive,we will need to see better management of those campaigns in order to get the costs down. Search pages are looking different all the time. There is personalised search now, so the results one person gets might be different to another person. Previous search history and visited websites are taken into account so the search results are altered slightly. Google are giving more prominence to things like blogs and news sites. Because this is all changing really quickly, any professionals that are working in the field who might have been doing the same thing for a few years now have to be aware of the changes and adapt accordingly. It will become much more multi skilled and multi-disciplinary but just to be a search engine optimisation company and do the things you have always done, probably won’t work. WP: I think that there are three key trends over the next 6-12 months. In relation to the slowing of overall advertising,we haven’t seen it in search. As the economy slows, marketers in “ Brand advertisers are very intelligent. They know that search is the centre of the universe from an online perspective.” – Willie Pang, Yahoo! Search Marketing MCn’s GM, Sales and Marketing, Damian Keogh