Beyond the Computer Screen…

Mags Night…

Media Agency session at Bauer Media...

Less about this Box...

Taking aspiring planners beyond the Box...

Penetration of Magazines when I started

1960’s 2013

Penetration of Magazines when I started

1964 2013

Penetration of Magazines when I started

1963 2013

5 cents..................................................................................... $4.20

Penetration of Magazines when I started

1961 20131981

5 cents..........................................50 cents................................$4.30

NZBC-TV

1 Channel

Black & White

NZBC – Radio NZ

Network

Billboards – NZ Rail

hiding unsightly

Railway Yards

One

Cinema Chain

Static Slides

20% Media Commission!

From a Planning perspective, the Desktop can no longer provide the answers in isolation...

Evolution in planning for Magazines...

The ‘60’s & early 70’s Laptop!

Plus ABC Circulations and

a (non) negotiable

rate-card

Late 70’s early 80’s...

Readership made planning by

numbers fashionable

Mid 80’s-1990’sNZ Creative product came of age... and so

did a new way of thinking... Placing creativity and media in CONTEXT!

Media planners and Creatives actually started talking to each other!

The brief was to extend out the content from the media agency session... But you guys know all that stuff...

Between your own publisher knowledge, the MPA and Nielsen...

you should do!

So... I’ve changed the brief somewhat...

But firstly a little bit on-brief!

This Evening’s Session...

NZ Magazine Market competes well against plethora of International titles distributed

Approx. 2,800 Magazine titles distributed in NZ

Only about 11% of these are NZ publishers

But by volume, 74% of magazines sold in NZ are locally published

Accounting for 61% of total sales value at retail

NZ300

Australia700

United Kingdom

1000

USA800

NZ Magazine market bucking International Ad Revenue Share Trend

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

USA United Kingdom

Australia Asia Pacific World New Zealand

International Magazine Market Revenue Share Trends 2008-13 Proj.

2008 2009 2010 2011 2012 Proj. 2013 Proj.

-18%

-50%-36%

-39%

-29%

-4%

Source: GroupM Global

International per Capita’sAustralia 1:33,000

USA 1:31,000UK 1:25,000NZ 1:15,000

NZ Magazines share my Lifestyle...

Primary Magazine attributes... Reader Relationship & Environment

Whilst I think it is a step too far to say Magazines are unique in terms of communications planning...

Core properties are different...

The Relationship the Reader has with his/her Magazines is a core strength

From a Planning perspective, Environment the single most important consideration

The importance of Integrating creative

platform with editorial environment...

And searching for the synergies

between the Reader and the

Magazine environmentEditorial

Environment

Reader Relationship with

Magazine

Major Media Agency CEO... “I don’t care about the (readership) numbers... What’s important is how I get people to engage with my client campaigns

Cannot stress enough the importance of qualitative thinking around strategy planning... no longer sufficient to ‘Reach’ the consumer... Need to make connections that create an action

Media-centric analysis justifies specific title selection... But only after the strategic thinking has been done: What is the appropriate mix?

Where do Magazines fit and what is their role... standard format or content generation?

Specific titles for specific needs?

Reach, Frequency, Cost Efficiency

Where do you as Magazine Champions need to be in the consideration continuum... Are you in Sales any more?

Consumer Media Insights... CMI

Two key aspects to CMI from a Magazine planning perspective...

Quantitative... Trading

Qualitative... Thinking

Vast amount of attitudinal data pertinent to Magazines... You have the same data as your media agency counterparts ... and in reality, are probably using it more regularly...

An Opportunity!

Single media campaigns in the digital age a rarity...

Magazine Planners must be able to think Integrated... both internally... and externally

Integrated Campaigns generally the name of the game

Conventional Media Channels

(83% of total revenue)Online(16%)

SocialMobile

(1%)

This Evening’s Session...

Now the ‘Off-Brief’ bit...

As Magazine Publishers...

content creators...

what are the challenges you face in this ever-evolving communications environment?

Increasing Revenue

Magazine revenue and share growth static at best:

Magazine revenue sitting at pre-2004 levels ($210M)

Market has lost $50M in revenue since 2005 peak

Projected to rise 2.4% 2013-2015

Share static at around 9.5% overall (10.4% top 5)

Role of MPA and how Magazines continue to adapt to greater focus on integrated campaign activity will be key to future growth

The need to challenge historical convention away from standard formats into greater content development

across channel platforms... And ROI!!!!

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Proj.

2014 Proj.

2015 Proj.

NZ Media Ad Spend Shares 2004-2015 ProjectedTop 5 Media Channels

Television (All)

Magazines

Online

Radio

Newspapers

An example of internal Digital Integration

BLOGS

Have Creative Agencies lost the art of writing/conceptualising for Print?

James Hurman... CEO Y&R:

Of the 140 Effie Awards 2009-2012, only 32 (23%) were Magazine awards

From a Magazine perspective...

Is the media agency/creative agency relationship seamless?

Are you visible outside the media agency?

“People read what interests

them... Sometimes it’s

an Ad!”

200914

20109

20118

20121

Effie Winners using Magazines

20097

20105

20112

20120

Axis Winners using Magazines

Is Agency Trading focus impacting the planning process? Trading a key component of larger agencies... via agency volume deals, a key profit centre

Continued soft market environment continues to drive pricing down

Trading separation from original Planner/Buyer structure

Pre-occupation with price... Is added value/innovation/editorial content association treated as a premium or relegated to the ‘Deal’?

Important to ensure the relationship levels are structured to allow strategic inputs separately from trading: Younger, less experienced planners making key channel decisions... ‘planning by numbers’

Planning should be un-encumbered by potential trading restraints (‘procurement’ parallel)

Trading an important and integral part of the process, but at what point?

Future Trading developments could alter the face of media owner sales structures and agency relationships

The way of the Future?

A potential game-changer...

“Programmatic buying is the process of executing media buys in an

automated fashion through digital platforms such as: exchanges,

trading desks, and demand-side platforms. This method replaces

the traditional use of manual RFPs, negotiations and insertion

orders to purchase digital media.”

Still in its infancy but currently in the US... 5-15cents in every dollar... projected to be 50cents by end-2015

Mainly utilised in the Online space, but TV trading also growing... predicted to be across OOH and Radio in medium term

Automation & Programmatic different but connected: Real Time bidding for inventory across both

But Programmatic will allow for a myriad of planning variables to make up the buy

Back to the Computer

Screen!

The Planning-Buying-Seller Relationship will change

Media Owner sales will be more about marketing and merchandising their channels... less about physical selling... will be done for them

It will require a new breed of media sales people... or the ability to adapt

Just like the TV pre-emptive rate-card of the 90’s... the opportunity to increase yield exists as well as the opportunity to drive pricing down

Will it affect all media?... Time will tell!

Great Magazine Creativity

Fight Against Illiteracy

Gold Lion Cannes –

DDB Paris

Sometimes you need Aspirin... Other times you need Aspirin plus Caffeine!

Gold Lion Cannes –

BBDO

Sao Paulo, Brazil

iPad Mini – Back Cover of Magazine with Front Cover page i-Pad mini size

Grand

Prix Print

Cannes

TBWA

Los

Angeles

And Creativity in Formats

Hawaiian Tropic... Enjoy the Sun

Greenpeace... De- forestation

Arcor Bubble Gum...

Autocar Magazine…

Cars of the year issue

Automotive Market Sledging alive & well!

Dove - ‘You are more beautiful than you think’

Gold Lion Cannes –

Ogilvy Sao

Paulo, Brazil

To Conclude...

Print media is being challenged... more-so Newspapers, but Magazines need to continue to evolve and provide integration across digital and social platforms

Done creatively and relevantly, Print and Digital can co-exist and grow

Continue to recognise the special relationship you have with your Readers

Thank You for Listening

Mags Night…