Conde Nast Targets Non-Media Budgets with Ideactive
Services include app, website development; social media, mobile marketing.
Conde Nast has launched a new marketing services division called Ideactive, which is taking aim at the non-media budgets of current Conde Nast advertisers, as well as new clients.
Services offered to Ideactive clients include custom-content creation in print, digital, video and mobile platforms; Web design and development; social media marketing and community development; and app development and mobile marketing, among others. Ideactive, which currently consists of six staff members, is also able to assist clients in creating products such as games and television shows.
Lou Cona, who oversees the Conde Nast Media Group as the chief marketing officer at Conde, will also oversee this new division. Janine Silvera has been tapped as vice president of Ideactive.
Conde has long worked with clients on creating custom content for advertising campaigns through its Integrated Marketing division. With this new endeavor, Conde is looking to create new revenue streams ‚Äúwithout cannibalizing any other business models‚ÄĚ, according to a spokeswoman with the company.
Ideactive is expected to turn a profit within its first year, due to client interest and the level of accessibility to Conde‚Äôs other resources in-house for client requests.
There will be preferred pricing for current Conde Nast advertisers, and all other pricing will be ‚Äústandard market rate‚ÄĚ, according to the Conde spokeswoman.
When Robert Sauerberg became president of Conde, he spoke of a new business model for the company, including equalizing ratio of revenue streams. In July 2010, Sauerberg said, ‚ÄúWe intend to enhance our vast array of media opportunities to speak to the ever changing needs of our advertisers through recession environment and beyond.‚ÄĚ
Conde Nast joins the scramble of magazine publishers entering the marketing services game. Hearst has done so with the creation of the Content Lab, after purchasing digital marketing firm iCrossing for $350 million; last week Source Interlink just bought digital marketing and visual effects studio Mind Over Eye in hopes of becoming a ‚Äúfull-service creative agency.‚ÄĚ
Meredith began the trend with their Integrated Marketing division (MIM). In fiscal 2005, custom publishing accounted for 100 percent of the MIM‚Äôs revenue; in fiscal 2010, custom publishing made up 49 percent of the revenue and CRM/digital represented 51 percent.
Before Jack Griffin parted ways with Time Inc., he seemed to be pursuing a similar strategy of when he worked at Meredith for marketing services. This included promoting Stephanie George to executive vice president and chief marketing officer and Paul Caines as executive vice president and chief revenue officer in December 2010.
B-to-b publishers have also decided to try their luck with marketing services. Northstar Travel Media just creating a new marketing solutions division with two internal staff members; Penton bought EyeTraffic Media last year, an online marketing firm. Summit Business Media has also created a new custom media group, made up of seven staff and a number of freelancers.