FOLIO: BLOGS Josh Gordon

To Monetize Podcasts Think Sponsorships, Not Ads

Matt Kinsman — Thu, 16 Dec 2010 12:12:36 -0500

A study released earlier this year advocates sponsorships over advertising as the best way to monetize podcasts. The Association for Downloadable Media along with Edison Research report that podcast listeners HATE radio style ads but relate much better to "this content is brought to you by" sponsorships. The study says that it helps if the podcast host makes the sponsorship announcement.

When podcast listeners were asked about traditional radio style ads their response was negative with 62% saying they "generally dislike" them.

But when the same audience was asked about sponsorship plugs instead 67% responded they "Don't mind them and occasionally find them useful." Sponsorships seem the way to gain exposure for advertisers without without turning off listeners.

There were other findings as well. According to Edison Research Vice President Tom Webster, "A podcast advertising buy is not a redundant media buy for advertisers and marketers. These are attractive, affluent consumers that mass media is losing." He also notes, "Ninety percent of these respondents indicated that they had taken some kind of action as a result of podcast advertising or sponsorship, and over 40% reported purchasing behaviors, which indicates that they are receptive to the right message, in the right context."

More findings include:

1. Active Podcast consumers are mobile media consumers - and content creators and advertisers alike should continue to take advantage of that fact
2. Active podcast consumers are not receptive to interrupt advertising, but they are receptive to targeted messages in podcasts
3. There is a "halo" effect ascribed to brands, products and services that sponsor podcasts.

To download a PDF of all the ADM Edison Study findings or watch an hour-long Vimeo video where Edison Research presents the findings, turn to Josh's original blog here.

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Print Magazines Have Never Stopped Selling

Matt Kinsman — Fri, 11 Jun 2010 13:17:47 -0400

At the just concluded FOLIO: Show, Kerry Smith, Red 7 Media CEO, offered a surprising view of what the future of print publishing might be. Challenged, like all publishing companies, with the decline of print ad revenue, Smith has diversified his organization's offerings to include marketing services such as research, and consulting. But even as less of his company's revenue is tied to print he is more committed to it. Why? Because he has found that his magazines are most often the first point of contact leading to the sale of all the other services he is now selling.
Today, publishers of all kinds are using the presence they have in their markets to start related businesses. For example:
• Premier Guitar, sells sheet music to subscribers
• Oil and Gas Journal sells industry data and research
• Dwell, a shelter book for the modern home, sells modern prefabricated homes
But this "new" trend where publishers use a magazine presence to sell products and services to readers is not so new. Marketers have used sponsored or branded magazines to do this for years. Despite the migration of ad dollars away from print magazines, the dollars flowing into sponsored magazines are going strong as documented early this year by The Financial Times:
According to the UK research body Mintel, this type of "customer publishing" is booming. It estimates that the industry in the UK alone is likely to be worth £1bn by 2013. Between 2008 and 2009 it grew 16 per cent, and by 2013 it is projected to increase by a further 22 per cent - no mean feat when the rest of the glossy magazine world is in the doldrums.
What attracts companies is the direct impact on consumers. "Our research has shown that these magazines create an eight per cent uptick in sales," says Julia Hutchison, chief operating officer of the Association of Publishing Agencies, the representative for the customer publishing industry in the UK. "On average, every customer spends 25 minutes reading these titles. That's 25 minutes spent with the brand. Lots of companies are redirecting their ad and marketing spends to this avenue."
In the past, some sponsored publications were little more than product promos. But now, savvy marketers are investing in quality writers, photographers, and more objective journalism to attract larger audiences. The FT article continues:
"Whereas in-house magazines used to be glorified advertorials, today the branding is much more subtle and there's a genuine effort to tap top editorial talents and introduce original material; Inez van Lamsweerde and Vinoodh Matadin, photographic stalwarts of the fashion publications Vogue and Visionaire, shot the latest YSL manifesto.
The investment makes sense: it gives depth to a brand in an environment they can control. It pushes product without the obvious "sell", and in many instances may be cheaper than advertising. Asos' title, for instance, which is known for its mix of celebrity, shopping and entertainment, is now the second largest women's fashion title in the UK with an annual circulation of 471,522. Terri Westlake, head of media at Asos.com, says, "Customers are savvy; they understand that it's a brand title (and not independent), but they still appreciate a very good free magazine."
Print magazines can provide marketers with a "media marquee" that gives them consistent visibility hard to duplicate in the crowed online world. What Kerry Smith, and a growing number of publishers are taking advantage of is the same benefit marketers using sponsored publications have used for years...print magazines sell!
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Are You in the Content Delivery Business?

Mon, 17 May 2010 11:46:29 -0400

Many print publishing companies are failing in their transition to digital by giving the wrong answer to the question, "What business are you in?"

In Theodore Levitt's classic marketing essay, "Marketing Myopia" he describes how the once mighty railroads went bankrupt by failing to understand they were in the transportation business, not the railroad business. Many publishers are making the same mistake, thinking they are in the content delivery business when they are actually now in the customer engagement business.

Like the railroads, many publishers are failing to see how much new technology can transform an industry.

The Internet makes content a commodity. Think that great celebrity interview in your June issue is so unique? Type her name into Goggle followed by the word "interview" and see ten other interviews your readers can instantly access. But your ability to use content to engage and service readers has never been more valuable. The internet may commodotize content, but is also creates a need for knowledgeable guidance though the vast, conflicting, unmoderated content chaos that is the Internet.

Also, digital media does not just "transmit" content like print media does, digital media transforms it. When content is delivered through digital social media channels the content added by readers can be more important than content generated by editors. How many readers link to an article can have a profound effect on search engines ranking which can make or break the life of a piece of content. Publishers who think their "transition to digital" is about swapping analog transport for digital ignores the importance of interactive reader participation. This came out loud and clear in the recent study, "The Case for Advertising in Interactive Digital Magazines" as it documented the core reason marketers advertise in digital magazines is to deliver an interactive brand experience to readers. When value comes from interactivity it is not hard to see why straight digital replicas of print magazines have less value to advertisers.

It is important to anticipate that digital content will be aggregated, redistributed, rated, commented on, ranked by Goggle, repurposed, trashed, praised, and ignored as part of the process. All this is very healthily, adds value to the content you create, and is the key to your ability to monetize it. Why? Because it shows that the mere content that you pump out is driving the creation of an online community. If you can show a lot of interactivity between your community members, the value increases. Again, online, most content is a commodity, but when you use it to build a community, you create something of unique value that you can charge for.

For publishers, the transition from analog to digital can be painful, unfair, and frustrating. At the heart of a successful transition to digital is a reinvention of the business model. Magazine publishers are often initially surprised by the tiny revenue their digital media generates as they swap $10K print pages for $1K newsletter banners. But those newsletters, operating within a community as data gatherers, can return big profits when leveraged properly. Subscriptions for magazines and newsletters are harder to charge for when they go digital, but free subscriptions operating as content development centers, can be leveraged to create other reader experiences that can be monetized.

The key to figuring all this out starts with answering the simple question, "What business are you in?" Online, most content is a commodity. If you still think you are in the content business...please, think again.
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Six Editorial Forms That Work Better in Print Than Online

Matt Kinsman — Wed, 17 Feb 2010 09:20:13 -0500

Magazine editors still suffer from a sense of entitlement. Most grew up in a world where if you created articles that were well-written, relevant, and targeted for their audience it would automatically attract an audience...and advertisers. But the many new ways readers get content, by the time a magazine arrives to compete for a reader's attention, a lot of content needs have been satisfied. Magazines edited with an "If you build it they will come" mentality are now in danger.
But despite the more efficient online and mobile ways to get content to readers there are still some types of content that is better delivered in print. As we move into a Web centric world these are forms of editorial print publications should consider embracing.
This is the new job for every editor of a print magazine: coming up with content that is best delivered in print for your particular market.
1. Analytical content. In depth content where the reader may want to set aside a magazine and pick it up later, re-read passages for clarity, or write notes or highlight detailed passages are better delivered in print. Technical journals, analytical articles, or detailed content can work better in print.
Want proof? Take a look at the struggling newsweeklies. US News & World Report scaled back its frequency to monthly with Newsweek and Time struggling. But the one newsweekly whose revenue, and paid circulation, is stable and growing is the more analytical Economist.
2. Marquee content. A print publication can often call attention to a single feature article and get it noticed above the crowds better than websites. A monthly publication carrying a feature article can time shift its way through a reader's life over the course of a month. Can't read it on the day arrives? It will be on your desk a week after. Not in your office? Take it on the plane. It has an entire month work its way into the reader's life. Websites, in contrast, are under tremendous pressure to be constantly updated to maintain large audiences. It is rare a single piece of content will be featured for an entire month. If an article is featured as a magazine's cover story it truly becomes a piece of marquee content. It is rare that a website home page can match the focused longevity of a magazine cover story.
Want proof? When was the last time you heard someone refer to a piece of content that ran on a website as a "cover story?"
3. Award content. A few years ago a full-page photo of me ran in SellingPower magazine. I immediately got a call from a company offering to take my 4-color page into a plaque for my office. It's a real thrill to be written up in a print magazine, where the honor has a sense of permanence no website can duplicate. Framing a write up you get on a website don't have the same impact.
Want proof? Take a look at Media Post Publications. Media Post Publications, which maintains a monthly print edition that is heavily used when they create award programs.
4. Directive content. One way that print applications can offer a real service to readers is to offer direction to readers on where to find content on the Internet, before they get online. Content overview guides offer a real service real service. Laying out the kinds of websites offering which content can be a great service. Magazines can become a sort of table of contents to a new web journey.
Want proof? A newspaper executive from an organization that has extensive online holdings once described his print newspaper component as being the table of contents do they are online content.

5. Content on the go. As of now there is no live Internet access on airplanes. No restrooms, awkward in waiting rooms, limited access on trains and busses. Guide books at trade shows. If you want to reach traveling rock and roll bands, electrical contractors who are always out in their trucks, or any other mobile demographic, print has an advantage.
Want proof? Look around any airport.
6. Reference content. If you have content that simply cannot be found anywhere else, a print publication is a great way to release and keep relative control over it. Directories, research, and unique content that only you can provide work well in print.
But these only begin the process. It is imperative that every editor of a print publication rethink their editorial mission with the consideration that much content they publish and also be found online. How and what they choose to publish must offer a more compelling read in the same content found for free online.

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The Revolution in Magazines Will Be Here This Summer

Wed, 13 Jan 2010 14:13:00 -0500

By June of this year we will be having a very different discussion about interactive magazines. By then, the behind the scenes work going on in several areas will come together enabling the printed magazine to evolve into its inevitable digital form. Soon content publishers, content distribution companies, and hardware technology companies, working on different pieces of the puzzle, will have their pieces on the table. Once connected, a new way to look at magazine content and how it is delivered will emerge and the skeptics of digital magazines will need to reconsider their views.

The activity is everywhere:
■ Apple is quietly working behind the scenes to lineup publishers for rumored digital magazine distribution through iTunes alongside the release of an Apple tablet reader.
■ Hearst just announced an e-reader to support their magazine content at the Consumer Electronics show.
■ Condé Nast, Hearst, Meredith, News Corporation and Time Inc. announced a "Hulu for magazines" to distribute their digital magazines.
■ At the Consumer Electronics Show, which just ended, e-readers were so prominent some reporters to called it the year of the e-reader.
The pieces are coming together. Let's connect the dots:

First: What the experience will look like.

Two publishers have animated the concept on videos showing what interactive magazines will look like on the next generation of digital readers. The readers are responsive to the users touch, and highly interactive as they intuitively create a dynamic reader experience. The first video shows the anticipated edition of Sports Illustrated with a play by play of what that publication will look like in digital form:

The second is a concept video is from Bonnier Corp, the publisher of Popular Science, and offerers a detailed look at how content for interactive magazines will be created and delivered:

Science fiction? Nope. The digital Sports Illustrated edition will be out in June, and as for Popular Science, they have been publishing interactive editions of the PopSci Genius Guide since last year. In addition there are already dozens of interactive magazines published around the world. What will be different six months from now is that the next generation of digital readers will be making their way into the hands of readers. Which brings us to the next piece of the puzzle...

Second: the digital readers are coming.

Here is a video report from the recent Consumer Electronics Show where a wide variety of notebook computers with specialized e-reader features, as well as dedicated e-readers were shown. In this video Associate Press reporter Haven Daley predicts that 6 million notebook computer and e-readers will be sold in the US this year.

Third: Digital distribution technology is moving ahead.

Several digital magazine service companies are not waiting for the digital readers, they have launched applications to deliver a magazine reading experience to smart phones that are available now. Look at these three videos:

Zinio's CEO Rich Maggiotto explains how his organization's iPhone app delivers both a high end graphical experience and readability to a small screen:

Nxtbook Media's marketing director Marcus Grimm shows how his organization's smart phone app creates ad revenue opportunities for publishers:

Finally, a demonstration of Texterity's iPhone version of Elite Traveler magazine:

Magazine content, e-reader hardware, and distribution technology are all coming together. When the three are finally in place be prepared to rethink everything you know about magazines.
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How Publishers Profit When Advertisers are Publishers

Wed, 12 Aug 2009 16:48:11 -0400

A publisher client of mine lost a large media sale when a CMO said, "I have a huge social media presence and post as much content as you do. Why advertise with you?" How do you respond when social media tools enable all your advertisers to become online publishers themselves?

What publishers do (and always have done) that business cannot do for themselves (even in the age of social media) is to offer content as a third party. Chances are, your client’s content, no matter how great the volume, comes from their point of view. It will about their products, their customers, and told from their perspective. Their competition likely offers content from a different point of view. Where can all of their customers go for an objective perspective? Hopefully to your community/Web site.

Social Media Today CoFounder and CEO Robin Carey refers to this objective function as "being an honest broker of third party content.” Your social media centric clients will understand the value in this.

But it is not enough just to be an "honest broker." You need to leverage your content so you can deliver a benefit advertisers will pay for.

There are two essential steps:
1. You must become your markets content aggregator. As a third party content supplier you can credibly aggregate content in your market from all suppliers. No one of your advertisers can do this as they will hit resistance and credibility problems posting content from competitors. Some traditional publishers have problems posting a lot of content they did not create or influence. I say, get over it. If the law of the jungle is kill or be killed, then the law of the Internet is aggregate or be aggregated. Here is the really bad news; if you don't do the aggregation, another publisher in your market will.

2. Shape your content so you get 3rd party credit in "search." When people search for objective content as they enter a buying cycle will they recognize yours? “Search” never evaluates the quality or objectivity of an article. So you need to “sell” potential readers on this benefit who find you though search. For a moment, take the point of view of a Google searcher who has never heard of your brand but sees an article of yours in a search list. If your article is worded to indicate an objective perspective it will be opened over others. An article titled "The five leading buying trends in electric fans" can become "Our editors pick the top five buying trends in electric fans." Etc.
On the Call

Earlier this year I did a study for the social media website "The Energy Collective." In this post based on the survey we see that the community spits over the question, “Should the gas tax be substantially raised?” As an “honest broker” of content "The Energy Collective" supports all points of view.

For advertisers this is invaluable. Do you think the same divide would occur on a website/community built by the Sierra Club or Exxon/Mobile? Nope.

But If I were the marketing manager of either the Sierra Club or Exxon/Mobile where will I find new people to convert to my perspective? Not on my own website, I would need my message carried by an “honest broker.”
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Are We In A Social Media Advertising Bubble?

Matt Kinsman — Mon, 03 Aug 2009 09:56:55 -0400

A recent issue of Media Life laid out a compelling case making the current enthusiasm for social media sound a lot like the "irrational exuberance" leading up to the dot com bubble crash of 2001.

Consider:

"The fact is, it's a good bet these social networking sites will never figure out
a workable business model because there may not be one. On the
internet, it's accepted faith that if you build traffic, revenue will
follow, typically from advertising.

But it simply may not apply to social networking sites such as MySpace, Twitter and Facebook.

That's for a reason that makes perfect sense on the face of it. Social networking
sites are about people communicating with one another and sharing
information. It's not a format that's suited for ad messages. In that
environment, advertising becomes social interference, in some ways akin
to eavesdropping, and it has the potential to backfire.

Why should we know this already? Because of the telephone.

Telephones have been around for more than 100 years, and yet despite numerous
attempts, Americans have resisted attempts to put advertising on
phones, even when the phone service was offered for free. Note too the
rising public protest over telephone marketing, which eventually led to
the federal do-not-call program several years ago.

One might argue that over time internet users will give in and accept advertising
on their social networking sites. One might also reason that over time
hell will indeed freeze over and Canada will indeed run dry. But it is
the sort of bet anyone in their right mind would place billions on? No.

There are several lessons to be drawn from this.

One is that where big money in involved--call it greed--our inability to remember lessons of the past can be mind-numbing.

Another is that after all these years, we still don't fully appreciate how
different and unique a medium the internet really is. We assume that
because advertising works in some environments, it works in all. And it
doesn't."

Agree or not, economic bubbles happen. One will happen again.
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Social Media is Now Your Business

Thu, 09 Jul 2009 12:30:42 -0400

The findings of my recent study, "The Coming Change in Social Media Business Applications,” should give traditional publishers a reason to take another look at social media. Results showed that social media is used as a general communications tool in public relations and marketing, but is evolving into a major tool of customer engagement.

Research found that companies are now looking to social media as a primary way to engage their customers, enabling lead generation, immediate customer contact and customer interaction.

As content publishers, consider that all ads and sponsorships sold are for this same goal; customer engagement. If social media becomes a primary way that this happens then you need to be a part of it. Luckily, a lot of what goes into building social networks is about leveraging focused content. That’s something publishers know a lot about, and should see as an opportunity.

The Social Media Shift

This study, to my knowledge, is the first to measure a coming shift in how companies will use social media. There are several factors driving this trend.

First, with more people spending time on online social media sites and companies are realizing a lot of their customers can be found there.

Second, the shift to online communications has made it easier for potential customers to dodge traditional lead generation and sales strategies. Social media can help break the ice.

Finally, a recession is causing every company to rethink its customer engagement strategy.

The report offers an overview of the shift toward uses in social media as well as measurements specific to Twitter and social networks like Facebook and LinkedIn. (I had the good fortune to interview social media gurus Brian Solis, Shel Holtz, Dan Schnabel, Ari Herzog and Dan McCarthy.)

For publishers, this is a real opportunity and an important trend to get in front of.

Click here to download the full report.
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Is the CMO of Your Advertiser on Twitter?

Mon, 11 May 2009 13:03:52 -0400

One great way to get on the "inside" of an account is to follow key marketing decision-makers on Twitter. Anyone can "follow" anyone with a Twitter account, and by "following" a marketing executive you will receive a steady stream of anecdotal information that can better help you understand and ultimately sell the account.
The question is, who in your client's marketing department is on Twitter? I've noticed that most ad managers and people focused on internal functions are often not. Even though Twitter is all the rage, most people who start do not continue. A recent survey by Nielsen found that slightly less than 60 percent of Twitter beginners continue after a month. In business, the people who tend to keep Tweeting are ones who find a business benefit. For internal people, like media buyers, once the novelty wears of it can be hard to justify the time, effort and discipline required to keep up a steady flow of Tweets.

But a chief marketing officer who Tweets can attract positive attention for an organization. Since most will assume they are involved in company policy, when their posts generate a positive reaction, it reflects on the company. That is a business benefit.

On a large account, you may never meet or call on the CMO. But by "following " them on Twitter you can gain insight into the mind, values, and where abouts of the person setting the tone and direction for an organizations marketing.

Let's get started. Check this list of CMOs who are on Twitter maintained by by Systemic Marketing to see if you already know a CMO on Twitter. Hey, that's Zinio's CMO Jeanniey Mullen at #33 on the list. See? I already know a CMO on Twitter. I'll bet you do too!
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Why Europe is Ahead of the U.S. in Auditing Digital Magazines

Fri, 08 May 2009 15:36:58 -0400

A digital magazine story making the rounds on the Web is about a subject some publishers dread and media buyers have suspicion: digital magazine open rates. Napier News asked a few European digital magazines what their open rates were. The admittedly informal query yielded the following:

Four titles had open rates of 11-12 percent
One title had an open rate of 16 percent
One title had an open rate of 19 percent

A media buyer hearing these numbers might conclude that digital editions are useless for advertising.

But there's a huge difference between digital magazines created as replicas of print magazines for the convenience of readers to archive and search their print publications and those "designed for digital" publications created to fight for audiences in competitive online environments.

"Designed for digital" publications have much higher open rates, so much so that many are making their case with advertisers without discussing open rates.

In Europe, the recent ABCe audit for digital only publications makes its core metric copies delivered and opened. By design, this audit does not mention how many copies/invites are originally sent out to achieve this. In other words, if an ABCe audit for digital only magazines confirms a 100,000 monthly circulation, it means 100,000 copies sent are opened by readers that month. The audit will not share how many copies/invites were originally sent out to achieve that 100,000 number.

If advertisers are not told how many issues are originally sent out, they cannot calculate an open rate. I think this is terrific, because it shifts the question "What is your open rate?" to "What can we achieve for this advertiser with these delivered and opened copies of this digital magazine?"

I have not heard of an audit for digital-only magazines in North America that verifies open rates. Please post a reply if you know of one.

If none exist, I would encourage North American publishers to press their audit organizations to create an appropriate audit for digital only editions

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