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.

 

Case Study: mediaIDEAS—Will magazines survive the shift to online media?

 Note: This study was excerpted from 2008 Webinar with FOLIO Magazine. To view the webinar, click here.

 

Bob Sacks and David Renard of mediaIDEAS presented “The Definition of a Print and Digital Magazine.”

Sacks said Charles Darwin once commented on magazines.  Darwin said, “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”

In order to understand how information is distributed, first it is important to examine the process of reading.  

Reading is the process of mentally interpreting written symbols. The symbols could be letters, words, or pictographs but individually and collectively they give the reader information. They pass along a thought. How do we interpret symbols today? When readers interpret symbols are they reading? There are multiple symbols in the world such as road signs and icons.

These symbols needed to be portable so other people could read and understand them from place-to-place. It is a way to share thoughts.

In fact, the first portable way to store information outside of the brain was the baton. The baton was the start of the reading revolution and it is 25,000 years old. In fact, the Ishango Baton is the World’s oldest known mathematical artifact. The baton passed on information from generation to generation. Since reading is the process of mentally interpretation of symbols, we have been storing information for 25,000 years.

Information distribution has been changed and constantly involving. It didn’t matter if the people communicating used batons, the Gutenberg Press or scrolls. The only thing that mattered was that people could send information and there were multiple types of portable reading devices over the centuries.

The digital platform is getting better and better and it is becoming a dominant way to send information and store it outside of the brain much like scrolls, pictographs and batons were for ancient people.

One of those new digital platforms is perfect for e-magazines. Right now e-magazines are dynamic because the process is constantly evolving. As we move forward we need to ask ourselves if people will read print or will they read be a “screenage” and use technology available in cellular ways and the Internet.

Once the hardware catches up to the software it doesn’t matter what substrate readers use to read.

These six key properties make up 80 percent of all magazines whether in digital or print:

• Magazines are metered: A magazine is divided into defined pages of content that are presented together. In print this is not only bound sheets of paper but also has become more prevalent with the stylepress, pamphlets, lithographs and other objects. The outline of these pages can follow a more traditional model or one of the new models that includes the intuitive horizontal scrolling model.

•  Magazines are edited: The editor selects the articles and images, and online selects the videos and sounds that fill each page as opposed to supplying a stream of aggregated data such as news articles, images and video that is selected automatically by virtual intelligent agents.

•Magazines are designed. This means the included content is arranged to enhance the reading and visual experience.

• Magazines are date stamped meaning an issue is published on a specific date that becomes the indelible time stamp on the publication.

• Magazines are permanent. In a magazine all content for an issue is set by its release date, even though the edited content for an issue can be more than what each reader is presented which, to allow for varying levels of customization. Once it’s created, it is set and can no longer be changed or corrupted apart from minor revisions.

• Lastly magazines are periodic. A magazine is created to have subsequent issues and it may have more than 52 a year or, in the end, only be published once.

• Today publishers are scrambling to find a new media outlets to dictate the future of media. Market predictions include within 15 years there is a 70 percent chance that 30 percent of the media will be purely digital. Within 25 years is it predicted there will be an 80 percent probability that the magazines will be digital. 

• Digital magazines will follow the 80/20 Rule.  Eighty percent of the time, the six key properties will be followed in creating a digital magazine. Provided the magazine follows the key six properties that make up a magazine, it will be denoted as such during the evolution. There will always be some magazines on the fringe of the rules.

• Information distribution has always been changing and is constantly involving.  Digital magazines are just another step in the evolution.

• To date, digital magazines are not the standard, for most publishers today, going with a digital version of the magazine is about hedging your bets to learn the skills for the future since the movement toward digital magazines will soon be the norm. Some magazines are created from the ground up just to be digital magazines sans print. Most magazines will look at several things including feature rich pieces to put in the magazine such as blogs and videos. What magazines should look for now is training for tomorrow so publishers can know how their mediums will change in the future.

• Publishers should use digital magazines today so they can be competitive in the future so the entire organization can move forward when the time is right. Digital magazines will be the dominant force. It is important to note the printed magazine will not dry up and go away, but mediaIDEAS believes digital magazines will be dominant.

• Digital magazines are growing exponentially.

Case Study: Housing Giants decides to go digital only

Reed Business Information (RBI) is a business-to-business publishing company. RBI is quickly becoming an online media company with great print products. The company operates 75 brands in various vertical markets including construction, electronic, manufacturing, hospitality, entertainment, and retail spaces.

The company has been involved in digital editions for four years now. The company produces digital editions of 51 print magazines (48 are controlled circulation) using various technology platforms.

RBI constantly reviews new technology in the marketplace. To date the program has been a cost savings initiative. Last year the company deployed 2.8 million e-mail blasts and saved $1.5 million in print costs.

Housing Giants represents a new program for RBI and John Blanchard, Vice President of Manufacturing focused on the technology and manufacturing perspective about launching Housing Giants in a digital only format.

Housing Giants was a budgetary-challenged magazine. Due to the limitations, the publisher decided to make it a digital only product.

Housing Giants increased the frequency to 24 times and modified the editorial and created a list of 30,000 subscribers in a model based upon paid sponsorship and advertising.

The design of the new publication was intended to take advantage of the platform’s digital capabilities incorporating streaming video, flash animated advertising created internally and by ad agencies. Font types and sizes are modified for optimized reading on the Internet.

Additionally the company is using Nxtbook Media statistical tracking system to track the opens, page views, click through rate, and the length of time spent on each page.

• RBI received feedback from readers and digital vendors. The company learned how to optimize print legibility and make it so readers wouldn’t have to zoom to read the content.
• Search features and navigation tools and mouse over zoom on content made it better for advertisers.
• The table of contents helped with branding, direct links to digital edition conversions and Web site links.  
• Open rates, across the board, were better than e-newsletter products.

• Digital editions are a transitional product to guide readers from print to online editions.
• The editions save on postage increases.
• E-tear sheets help companies be more efficient in house.
• RBI used digital editions to reach international customers in Asia and Europe.

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

Case Study: Subiesport leveraged digital editions to find new subscribers

MediaSpigot Publishing focuses on niche titles that appeal to auto enthusiasts. Ryan Douthit, owner and publisher said the company is in all the major newsstands and has a large subscriber base.

The company’s products include Subiesport Magazine (Subaru), Mazdasport Magazine (All-Mazda), and Forever MX-5 Magazine (Miata-Specific) amongst others.

Subiesport launched a digital edition in December 2004. The title is small, but profitable, with 10,000 paid subscribers. The newsstand is a high sell-through with an average of 55 percent. Subiesport is the leading title in make-specific magazines. The average reader is net savvy. Customers and are between 25-45 make more than $70,000 annually.

Subiesport has been active in online promotions with YouTube and Subiesport.com. Subiesport has been leveraging the power of social networks including Myspace and Facebook to build a community around the title because it is free marketing for events and promotions.  The company has more than 4,000 friends on Myspace.

Subiesport also creates digital content products such as blogs, email newsletters and as of December 2004, the digital editions.

MediaSpigot Publishing wanted to successfully leverage the digital edition of Subiesport.

Subiesport approached the idea of a digital edition with the mindset of, “What are our subscribers going to get out of it?”

The magazine decided there should be no additional cost for their print subscribers.

Additionally, the decision was environmentally conscious. This decision meshes well with Subaru brand values because the company prides itself on being environmentally sound.

Subiesport thought the digital addition would be a strong product for international readers especially for the U.K. and Australia because there are large groups of Subaru enthusiasts.

The ability to preview the issue appealed to the magazine because potential subscribers were able to preview a subscription before decided to subscribe. It gave Subiesport the option of having a free trial subscription without being bogged down by postage delays. This, in turn, kept subscription costs reasonable.

The publisher anticipated the following benefits on their behalf:

The company could expand readership without generating more waste.

Subiesport wanted to increase customer satisfaction and retention because subscribers don’t want to wait for their publication.

Advertisers wanted a cost effective option to gain more exposure.

Since Subiesport prides itself on being “report junkies” the company wanted to find out which articles people are interested in and can tailor the editorial to suit the demographics.

After reviewing all of the pros and cons, they knew they needed to find a company that would fit their final requirements.

The company had to have a non-subscriber preview option with the ability to share issues electronically. It had to have a payment processing option.

The digital edition had to be available offline for Mac and PC users and Subiesport wanted to find a company that would fit well into their existing workflow where they could upload a PDF Press File and still maintain a $2,000 per issue budget.

• Advertisers loved it because they received additional exposure with no additional money.
• Advertisers considered “spiffing up” their digital ads. They wanted to know how they could better use that tool.
• The “ma and pa shops” wanted to learn how to increase their ad values to grab readers’ attention.
• Subscribers loved getting the digital addition as a supplement to the print edition.
• Existing subscribers gave away passes to forum friends.
• Subscribers enjoyed the rich “magazine like” experience.
• Postal delay complaints were reduced.
• Sold 25 straight digital editions without promotions.

• For digital only subscribers, Subiesport learned it need to make the transaction process to be smooth. There was no way for subscribers to look up their own status and it was hard to troubleshoot errors because we used a hosted solution.
• Few isolated log in issues were reported.
• A few cases of subscribers have received the digital edition and then expect the printed edition to arrive promptly thereafter. Subiesport learned it needed to educate customers about the process.
• Learned they were aiming for new subscribers, not conversions.
• Product needs its own unique promotion.
• Need to reassure customers they will receive a print edition also. It’s a constant education campaign.
• Looking forward, the company is thinking about adding digital editions to other magazine under the publishing umbrella.
• A new digital edition magazine is in the works.

• Subiesport was able to find a company that would fit well into their existing workflow where they could upload a PDF Press File and still maintain a $2,000 per issue budget while receiving an unexpected 25 requests for digital only versions of the magazine.
• Subiesport was able to appeal to advertisers because they received additional exposure at no additional cost while postal complaints were reduced because readers were able to receive their content promptly.
• The magazine was able to obtain information of what articles grabbed readers’ attention so they could better customize the publication and tailor it to suit the subscribers wishes.

Note: This study was excerpted from the 2008 Gilbane Report. Click here to view the Webinar.

Case Study: Psion Teklogix — Keeping abreast of ever-changing products

Psion Teklogix is a 40-year-old company and a leading global provider of mobile computing solutions designed to improve business efficiency and productivity for major enterprises around the world. The company’s solutions are built around a range of high-quality, innovative mobile computers designed for harsh and demanding environments. The company manufactures a multitude of products including, but not limited to PDAs, vehicle mount computers, mobile printers and wireless infrastructures.

Toni Condi is the director of marketing at Americas Psion Teklogix Corporation and has more than a decade of experience. Condi has directed marketing campaigns for more than 20 million prospects and has had record success.

 The Challenge

America’s Psion Teklogix Corporation produces a catalog of services and products rolled into one book. The company has many spec sheets and makes it difficult for customers to beep abreast of the ever-changing products it carries. The Nxbook option gave the company a way to update the sections as necessary.

The company decided to convert the printed guide to Nxtbook because it allows the company to print fewer guides and this, in turn, saved money on hard printing.

This was critical because the products are constantly changing and the company didn’t want to have to constantly reprint the guides for reference.

Since the company is global, print distribution is a challenge due to printing nuances and problems with the postal service.

America’s Psion Teklogix Corporation considered other options including prior to using Nxtbook.

First, the company looked into alternative digital formats but found it wasn’t user friendly.

Next, the company considered short run digital printing but found it wasn’t cost effective and the quality wasn’t good.

The company also considered Microsites but learned the sites wouldn’t go into enough details and found the process cost prohibitive.

Then, the company looked into creating individual product sheets but ultimately decided the digital solutions would a better option.

America’s Psion Teklogix Corporation’s internal design team put the copy together in about 12 weeks. The internal deisn team made the product exactly what they wanted it to be. Then the company uploaded the guide to Nxtbook.

Nxtbook returned the product in about a week.

America’s Psion Teklogix Corporation deployed the solutions guide by the Web site and Web distribution through several rental e-mail campaigns. The company also implemented a general distribution through Google. The company also put together e-signatures that have the flipping pages from Nxtbook and draws the eye through any e-mail. The company crated dedicated e-mail blasts that it sends out with the e-newsletter and the company also does field sales and partner distribution.

• Company tracked statistics through Nxtbook and Google Analytics and learned which client clicks on what particular part of the publication. The company found the statistics are robust and concise.
• America’s Psion Teklogix Corporation looks at the pages to get a quick summary.
• Condi said viewers have a tendency to look through more pages on the Nxtbook than on the Web site.

• Nxtbook created customized opening pages with our logo so it appears as if they’re staying with the company for the entire time.
• In the future the company hopes to continue to expand the digital solutions guide and perhaps include video embedded on the book to describe products.
• Company found the product has been critical to lead generations.
• Company learned Nxtbook is an easy way to get the products distributed.
• Condi said the company can hit way more marketing channels online, and
• Product cost effective and it’s also a resource for the sales team.

• After researching at least four other options, Psion Teklogix Corporation found Nxtbook to be the most cost effective option to reprint guides. These guides, in turn, have been critical for lead generations because the guides provide an easy way for the information to be distributed worldwide since the company can hit many more marketing channels online.
• The decision to go digital caused potential buyers look through more pages on the Nxtbook than on the Web site while providing a way to update the ever-changing content.  

Note: This study was excerpted from a 2008 Webinar. Click here to view the Webinar.

Case Study: West — Reducing printing costs increased sales

West, a Thomson Reuters business is a leader in both print and online products for legal professionals. The company helps large law firm librarians obtain a large number of electronic catalogs. These catalogs give libraries an efficient way to share legal and regulatory material.

Cincy Stearns is the Senior Account Executive in the Marketing Services Department at West. She works with response marketing like direct marketing, e-mails to link the sales team with potential clients.

 

West recognized librarians needed a tool to aid in purchasing process of their legal catalogs.  The tool needed to be an efficient, easy-to-update process because the catalogs have a relatively short shelf life due to ever-changing laws.

The company decided to create a resource tool so clients could access the catalogs on the Internet.

The company knew going digital would accomplish three goals: It would save on printing costs, give librarians a unique way to share information to potential clients and aid in the sales process.

 

Though a partnership with Nxtbook Media, the company was able to create online catalogs for librarians and potential clients. The partnership enabled the company to reduce printing costs while creating a more efficient way for clients to view the products within the online catalogs.

Catalogs were prepared the same way as a regular printing process. Instead of sending the .PDFs to the printer, it was uploaded to Nxtbook Media. Within seven to 14 days, an e-mail was sent back to West, A Thomas Reuters so the company could ensure the accuracy of the links. Even with large catalogs with nearly 1,000 listings, Nxtbook Media was able to accomplish the task within two weeks.

Then West tested the links to ensure the accuracy of the links. Once the links were tested, the company was able to e-mail their links to external clients to reveal their catalog.

West not only e-mailed clients but also made the catalog accessible via a custom URL on their Web site and posted it on the company’s Intranet.

 

Results

• The sales team found it was a great tool because they could e-mail the link to potential clients as opposed to bogging down clients’ e-mail with bulk .PDFs.
• National librarian meetings became more efficient because librarians had access to the catalog anywhere and did not need to carry a catalog with them to check for new reference material.
• Sales increased because potential clients were able to page through the catalog, navigate the contents and could purchase products for libraries or individual use.
• The links helped potential clients find information for their services and in turn, they were more apt to purchase products.
• West saved on printing and postage costs.

 

• Check URLs from the start so broken links wouldn’t be distributed to clients.
• Pre-check processes ensure link quality.
• It is best to provide additional support when there are a lot of products within a catalog.
• Educate clients that they’ll need to allow pop-ups on their computer to view the catalog if they’re using a firewall.

 

• The decision to publish an online catalog accomplished six goals.
• It saved on printing costs.
• The decision gave librarians a unique way to share information to potential clients
• It aided in the sales process.
• Additionally, the online catalog caused meetings to become more efficient.
• The decision also eliminated the need to bog down clients’ e-mail with bulk .PDFs and brought in more clients because the catalog was simple to use.
• Even with larger catalog requests, Nxtbook Media ensured a rapid turn around which means the catalog could be distributed to potential clients quickly.

 

Editor’s Note: This study was excerpted from a 2008 Webinar featuring digital catalogs success stories. Click here to view the Webinar.