With advertising revenue less reliable than ever—overall ad spending declined another 15.1 percent in Q1 2009 (Bernstein’s Research)—this prolonged and brutal economic downturn will claim even more magazines before the year is over, requiring the rapid development of alternative revenue streams and pitting those still standing in an intriguing, high-stakes game of “Outwit, Outplay, Outlast”. One of the seemingly obvious steps to take would be to raise the deeply discounted subscription rates that were formerly subsidized by advertising, sending a clear message to readers (and advertisers) about the true value of the content being published. While most magazines would undoubtedly lose subscribers, the ones they retained would be more profitable, more engaged, and more responsive to relevant advertising and direct-to-consumer offerings.
Author: Guy LeCharles Gonzalez
Sometimes loud, formerly poet, always opinionated. He/Him.
Guy LeCharles Gonzalez is primarily a marketer by day, but he's worn many other hats over the years. This is his personal website reflecting his personal thoughts and opinions, some of which may have evolved over time. YMMV.
How Much is a Magazine’s Content Worth? Part I
I’m no fetishist or luddite, though, and while I tend to favor print, my definition of a magazine is platform neutral. I’ve worked in magazine publishing for over 15 years now—from audience development to advertising sales, freelance editorial to events planning, corporate to DIY—and stand firmly with the digital generation that’s purportedly out mugging elderly newspapers in broad daylight, and striking fear in the hearts of cowardly and superstitious magazines in the middle of the night. Seeing subscription offers like the one above for Fast Company and Inc.—two solid print magazines devaluing their editorial content at only $.75/issue while simultaneously making it all available for free online—I think that the death of the current ad-supported model is inevitable and, arguably, a good thing.
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