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.
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.
Starbucks is more socially responsible than I thought.
One of the great things about “social media” is the ability to engage in conversations with a variety of people, anywhere in the world, on pretty much any topic of interest, no matter how obscure or inane. Thanks to forums, blogs and Facebook, I’ve connected with poets, writers, comic book fans and creators, and re-connected with friends and family, past and present, most of whom I don’t get to see nearly as often as I used to. My.BarackObama.com pulled me deeper into a political campaign than I’d ever been.
From a marketing perspective, new social media tools offer an incredible opportunity for companies to engage with customers (and potential customers) on a level that old-school interruption advertising and media relations simply can’t come close to. While some choose to avoid them completely or approach them tactically for preemptive damage control, I prefer to see them enabling proactive engagement, joining the community and participating in the conversation, no matter which direction it goes… and sometimes it can go in unfortunate directions, as Amazon found out a few weeks ago.
"I have just read the immortal poems of the ages and come away dull. I don't know who's at fault; maybe it's the weather, but I sense a lot of pretense and poesy footwork: I am writing a poem, they seem to say, look at me! Poetry must be forgotten; we must get down to raw paint, splatter." Charles Bukowski Confession: I loathe most formal poetry. Sestinas, sonnets, terza rimas, oh my! While I appreciate the exercise of writing in a particular form, the end result is usually a self-indulgent bit of forgettable wordplay rarely worth reading, never mind hearing…
“The greatest trick the Devil ever pulled was convincing the world he didn’t exist.”
–Roger ‘Verbal’ Kint, The Usual Suspects
[UPDATED BELOW; THRICE!] Starbucks profited greatly from years of an aggressive and purposeful over-expansion that successfully wiped out many of their independent competitors and established their brand as a counter-intuitive status symbol (it’s just coffee, people; get over yourselves!), but the beaten-down economy has made their overpriced coffees a luxury many are choosing to do without, and the bean counters are starting to feel the heat.
2008 wasn’t a very good year for SBUX, and 2009 isn’t tracking too well, either, as 2nd-quarter net income reportedly dropped 77 percent, while Dunkin’ Donuts and McDonald’s McCafé are threatening to chip away at their market share:
Starbucks has for the last year tried to reverse declining revenue by closing stores and recasting itself as an affordable brand for value-conscious consumers. The company has long been characterized as appealing to affluent professionals, while abandoning the lower end of the market to competitors like McDonald’s, which has begun selling specialty coffee drinks.
So in March, Starbucks began offering a breakfast value meal. Customers can buy a cup of coffee and an egg sandwich, cup of oatmeal or piece of coffee cake for $3.95.
Mr. Schultz said the company’s new value-oriented strategy is paying off…
“Speculation that Starbucks is losing retail market share to competitors has been grossly exaggerated,” Mr. Schultz said on a conference call with analysts on Wednesday. “Starbucks coffee does not cost $4, as people are charging.” The comment was a reference to a recent ad campaign by McDonald’s that says, “Four bucks is dumb.”
Schultz’ optimistic bravado is betrayed by his company’s actions, though, as their “value-oriented strategy” is contradicted by a new, notably defensive ad campaign that suggests they probably agree that “four bucks is dumb”, but realize they can’t say that; nor can they really compete on the value playing field without compromising what their brand has come to stand for.
You're not listening anyway. by MadRussianPhotography
You know the stereotype of the guy on the first date who can’t stop talking about himself, only to wonder why he doesn’t get a kiss at the end of the night, never mind a second date?
That guy is like advertising.
In the latest flare-up of the “print is dead” debate, Michael Josefowicz’ provocative article for MediaShift entitled “The Fallacy of the ‘Print Is Dead’ Meme” has generated some interesting feedback, partly for daring to counter the meme, and partly for clinging to the ad-supported model that has pushed many newspapers and magazines onto the endangered list:
[T]o extrapolate from personal experience to a statement about what is going to happen in the world doesn’t work. But that’s exactly what many of the people foretelling the death of print are doing.
That’s because most of the public discourse tends to be dominated by information junkies and there is little doubt that if you’re an information junkie, the web is the way to go. But the reality is that info-junkies are only a small tribe. They consume the news at a prodigious rate and the web is the fastest way to satisfy their appetite. Thus, they’re also the most vocal tribe — so it’s easy to get the impression that theirs is the most widely held conclusion. But if you listen to some of the discourse, it soon becomes apparent that it’s only one way to look at it…
Because every business understands the value of print advertising, the trick is only to make the buy for a print/web ad combo easy and affordable.
Responding to MediaBistro’s highlighting of the article, I noted: “I agree with Josefowicz that print isn’t dead, but he’s wrong about advertising; that ship has sailed. Interruption IS dead.”
I don’t do many events these days beyond the random open mic appearance at louderARTS or Urbana, so I’m very excited about these two gigs this week, the NY Round Table Writers’ Conference and Acentos Poetry Workshop, as well as the Conversational Marketing Summit I’ll be attending in June.
The Acentos Writers Workshop was established with the purpose of nurturing the newer voices in the poetry community. With writers from across several genres donating their time, the workshop encourages newer writers to hone their craft, establish and create community, and perform their work in front of growing audiences. The workshop accepts writers of all backgrounds and skill level to foster growth and maximize their full potential and grow as writers.
