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Media Intelligence : MT Resource Guide 2012
MediaTitles Whereas previously media buyers were faced with comparing titles, they are now often tasked with comparing brands with similar opportunities from a cost and reach perspective. Gavin Ashcroft, group business director of Carat Melbourne distils the challenge to a series of questions. “How has the title leveraged other assets across web, mobile and tablet to create the most compelling opportunity? What level of integration is on offer and has the title demonstrated that they are going to get behind your campaign? What is the value equation and who is delivering the type of value that satisfies the needs of the campaign? The bottom line is how well the title understands your clients business and that is the job of the agency to educate and the responsibility of the title to listen and learn,” says Ashcroft. Ashcroft’s comments suggest that peripheral platforms such as social media could be an influencing factor where buying decisions are down to the wire. Morrison Media’s Sims admits to promoting social media on media kits as “an indication of the connection we have with our readers”. Universal McCann’s chief executive Mat Baxter says that advertisers and marketers are interested in social media and often view it as a medium in its own right: “Of course content-led businesses like magazines have a different relationship with their customers – as opposed to say banks – people tend to proactively reach out to them. Most brands continue to operate using the Universal McCann’s chief executive Mat Baxter discusses relationships with print and the power it holds as a medium for advertising. “Print has always been a strong medium. It is particularly good at communicating detail and convincing people of something using rational persuasion. It has a deeper level of engagement with its readers than many other media. “Newspapers have always been critical in building trust for brands. If you are trying to mislead someone the most effective way is to use newspapers – people trust what they read in newspapers more than any other channel. “Magazines have a far more intimate relationship with their readers. They are great for building deeper levels of engagement because people tend to spend a lot of time with their magazines and most importantly spend their hard earned money buying them. When you pay for something you value it and that helps advertisers appearing in that environment. “Many magazines might not have the reach that TV has, but if you’re a fashion brand then there’s not many things that can create immediate credibility in the fashion category like Vogue or Marie-Claire because you are borrowing their equity. “The niche magazines have to be realistic. If you are dealing with clients that are trying to reach a broad audience they might not be the most effective use of the budget. However, when you’re looking for niche audiences they are an enormously powerful and influential vehicle.” The STaTe of app adverTiSing level of engagement to advertising. advertisers are only just beginning to realise this potential. Part of the transition is ruled by the market share of each channel. today, print is still a very large percentage of the subscriber base — with a correspondingly high percentage an advertiser’s non-broadcast spend. however, tablet adoption is exceeding initial projections, which means that advertisers must embrace the potential of this medium a lot sooner than anticipated. – John Parsons, foliomag.com The level of economy- wide advertising expenditure in australia is sensitive to economic activity. The rate of real growth in the australian economy for the five years through 2016- 17 is expected to be faster than the rate of growth experienced in the five years through 2011-12. growth in consumer spending will also pick up and this should promote retail activity, advertising spending and periodical sales. – IBISWorld www.IbISwOrLd.COM.Au Magazine Publishing in Australia March 2012 8 Industry Performance Industry Outlook continued fragmentation of magazine and periodical titles will continue, which will add to industry costs. The level of economy-wide advertising expenditure in Australia is sensitive to economic activity. The rate of real growth in the Australian economy for the five years through 2016-17 is expected to be faster than the rate of growth experienced in the five years through 2011-12. Growth in consumer spending will also pick up and this should promote retail activity, advertising spending and periodical sales. However, there are risks that could adversely affect consumer spending, including a significant rise in interest rates and a decline in Australian housing prices. If these risks are realised, economy-wide advertising spending could also weaken; such scenarios could have a particularly adverse influence on specific consumer magazine markets such as home improvement and fashion titles. demographics and competition Australia’s population is expected to grow at a slower pace over the five years through 2016-17 than it did over the previous five years. There will be slow growth in the population of younger adults, which includes age cohorts that are major markets for many consumer magazines. Some industry players will need to focus more on older audiences. Competition for readers and advertisers will intensify among media service providers as online advertising spend increases as a share of total media advertising budgets. The internet, tablet computers, smartphones and an increasing number of TV channels will all offer advertisers greater scope to reach target audiences and specific niche markets. The development of social network websites, video sharing websites and internet-based marketplaces, along with households’ growing use of the internet, will produce significant competition for magazines targeting young audiences and for trade-based periodicals. Nevertheless, the internet and digital devices offer publishers the opportunity to retain and grow their print and online readership, provide value- added content (e.g. complimentary content, pod casts, blogs and analysis tools) and further stratify their markets, all of which could improve selling propositions to both readers and advertisers. New devices capable of accessing media content also provide publishers with the potential for new revenue streams. The internet offers publishers a low- cost distribution platform and the opportunity to provide additional value to readers. Some readers prefer low-cost internet periodicals to printed versions. Business models should seek to ensure that growth in profits from internet offerings is not overwhelmed by any reduction in profits earned by the print franchise. Furthermore, libraries are looking at ways to reduce their spending on journals and serials through more targeted purchases, by pooling purchasing and by electing to receive content via electronic means rather than print media. The women’s magazine market accounts for over half of the market circulation of consumer magazines, revenue is forecast to increase by an annualised 0.1% in the next five years, totalling $1.86 billion in 2016-17. although efficiency gains and innovations will help to keep industry costs down, savings from these initiatives will be offset by declines in unit selling prices. – IBISWorld p6-9,13 FeatureMain.indd 9 11/6/12 1:51:04 PM
Media Trends+Strategy 2012
MT Resource Guide 2013