Case Study: 31.5 Million Viewers Will Use Digital Magazines Within Two Years

 Note: This study was excerpted from the 2008 Gilbane Report. To view the webinar, click here.

 The Challenge: Can Publishers Satisfy the Needs of Advertisers and Readers?

Marie Griffin contributing editor at Media Business Magazine examines the challenge of ad dollars moving online. There’s been a falling demand for banner ads and clients are increasingly looking for sources of lead generation. Marketers are no longer new to the web and ad clients want unique ad programs. Publishers are looking for dynamic products that satisfy customer and advertising needs.

Can digital editions satisfy this need, and if so how can publishers use them to increase revenue and readership in such a competitive landscape?

Bob Fernekees, vice president and group publisher for Information Today, Inc. and Steve Paxhia, lead analyst of the publishing practice of the Gilbane Group examine the answers to these questions.

In 2005-2007 b2b growth was examined. The following are the results from the study:

• This publication growth for audited magazines increased 215 percent within two years.

• Digital subscripts went up from 773,000 to 1.5 million in 2007.

• The penetration rate went from 13.3 percent to 15 percent in two years.

• There are 1,816 business-to-business publications offering digital subscriptions. This is up from 556 in 2005.

• There are 8 million people getting digital subscriptions and that is an increase of 315 percent.

• In all major categories such as page views and titles grew more than 40 percent. The number of pages read and the average length of the sessions grew more than 100 percent. The number of link click-through increased by more than 100 percent and the number of unique readers grew by 150 percent. People aren’t just using this as a quick glance over, but rather reading and engaging with the material.

• Strong growth is projected with numbers ranging between 30 and 50 percent in all areas in the next two years. Growth is expected to increase and thus the average number of clicks is also expected to increase.

• Projected growth is anticipated to grow from 3,000 to upwards of 8,000.

• More than 31.5 million viewers are projected to use digital formats within the next two years.

• When readers go through digital editions, 81 percent of readers save articles. Sixty-two percent of people send articles to others. Fifty-three percent of readers e-mail articles to their friends while 32 percent of readers recommend products to friends in digital editions.

• This results in an 18 percent likelihood that a product will be purchased.

• The people who are reading digital magazines are active readers. These readers find it easier, faster and more efficient to use digital editions as opposed to print. The purchasing of products continues to grow and flourish.

• Digital editions are used to identify potential products 61 percent of the time. Readers use digital magazines to be able to do their jobs better 85 percent of the time. Fifty-one percent of readers use digital magazines to do their jobs better and 33 percent of readers use the information to make purchasing decisions online.

• Publishers can help digital magazines gain traction to move the editions forward. If magazines can incorporate browsing features, search functions within the context and serve as an authoritative link between related content it will help magazines to gain momentum.

• Publishers need to be wholly involved in the reader’s cycle. They need to help readers facilitate their searches for further information.

• Readers need to be directed to authoritative information because readers have difficulty understanding what is real, accurate and correct. By adding respected links, it will increase the validity of the magazine.

• Algorithms need to be in place to publishers can understand who clicks on their content.

• Mash-ups are key to use geographical data so people can understand what is important to their locale.

• Additionally, appropriate media should be used to help serve a customer’s needs.

• All publishers need to use a true cross-media publishing strategy to attract broad readership.

• A collaboration and community technology needs to be deployed to help build brands and loyalty.

• Products need to be developed that are germane to the new media.

• More entertainment will increase readership which in turn will drive where advertisers place their money.

• Because of the metrics and measurability are the best, advertisers can prove they’re effective to do well during a lean economy.

• Digital yields the best results for advertisers.

• Digital editions and Web sites are becoming complementary.

• Search is becoming an important reason for preferring digital publications because it is what readers really want.

• Readers can find articles in Google.com and this is what drives readers to specific publications. Publishers can make their content discoverable and drive readers to the content.

• Business to business growth is far outstripping business to consumer growth. The business to consumer base needs to find a sweet spot for readers.

Note: This study was excerpted from the 2008 Gilbane Report. To view the webinar, click here.