2013 Fall Sales Newsletter Fall Newsletter : Page 4

STEP 1: Identify Costs and Benefits (What Does Success Look Like?) No matter what size, every publisher has to identify and weigh the costs of publishing on a digital platform. Many are discovering that, at least initially, creating a digital product can be a fair amount of work. (We’ll discuss costs in more detail later.) More importantly, publishers must identify and quantify the potential revenue benefits of using a digital platform. Knowing what success looks like—and how to measure it—is the only basis for taking the digital plunge. For most of the smaller publishers we interviewed, retaining advertisers was the primary revenue-related reason for going mobile. Paul Majeski at The Music Trades (www.musictrades.com) pointed out that their new digital products—especially their event-specific mobile apps—provide a brand new venue for advertisers’ “must see” products and services. For now, these are offered as a bonus for current advertisers, rather than an added line item. Keeping existing advertisers happy was the primary goal. “What I will say unequivocally is that [digital] is giving us staying power in a tough competitive market,” Majeski says. Other publishers see the potential of digital as a means of creating compelling new advertising inventory, such as special editions with interactive elements. For example, Via Satellite magazine (www.satellitetoday.com/via) created a special supplement in their digital facsimile edition. The multi-page “insert” featured a live, streaming broadcast of a satellite launch from Kazakhstan. The primary advertiser—a satellite manufacturer—gladly paid a premium to sponsor the exclusive event. The migration of streaming video from desktop facsimile and web editions to mobile apps will become a likely source of advertising and subscription value for publishers. On the circulation side, revenue potential can be gauged by looking at how users interact with their mobile devices. For many tablet and smartphone users, social networking is a primary activity, so a digital publication that integrates well with social platforms is likely to have more traction with potential subscribers. Similarly, if a digital publication makes good use of a device’s built-in features—its GPS or camera, for example—then it has a higher potential for attracting and retaining paid subscribers. Jason Wagenheim at Teen Vogue cited the magazine’s apps (Figure 1) as examples of that Figure 1: Teen Vogue’s smartphone apps utilize the device’s built-in features (camera and GPS) to connect its subscribers to additional editorial and advertising content — and to each other, via social networking. PAGE 4 Going Mobile: Revenue Opportunities for Publishers

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