In this Monday’s New York Times, David Carr writes about print magazines and how they fit into his overall media consumption. Read the article—he makes the case that there is less and less time for print and publications like The Week will thrive in the web era with its style of short articles and quick hits of the week’s news. He may be right for some people, but I don’t agree.
To me, the strength of print is the long article and thoughtful analysis. I can get quick AP type headlines and news on the Web all day long. In fact, I do—I monitor the major news outlets on myyahoo.com feed all day long. In addition, I make time for the Boston Globe and the New York Times print editions to get behind the news stories and personalities. I also make time for Newsweek, Sports Illustrated, The New Yorker, Portfolio, Inc. and Boston Magazine. What I get from each of these is long form, in-depth journalism that I would not tend to read online. That may change someday, but for me and probably others my age, nothing can duplicate the environment and affinity you get with your favorite magazine. What I love about magazines is discovering and learning about something I had no idea I would be interested in; or a unique take on an old topic.
For example, this New Yorker story about Rupert Murdoch buying the Wall Street Journal by long time journalist and media analyst Ken Auletta; or well known tech writer Steve Levy writing in Newsweek about Amazon.com and the future of the ebook.
That being said, the magazine industry faces enormous challenges as a marketing vehicle as we move into the Private Media era. Of the magazines I read each week—I could recall only one ad through unaided assistance—the back cover of the New Yorker had an ad for the Mercedes C series, a car I really want to buy in the spring. It is ironic; the only ad I remember is a product I was already sold on.
The case for print advertising is a tough one to make. It is neither actionable nor measurable to the advertiser, and it is the classic example of “interruption” based advertising. The ads are only relevant to a small amount of people who have an interest or ability to buy that particular product. Each week my reading is interrupted with dozens of very expensive ads for pickup trucks, minivans, video games, outdoor camping equipment, energy drinks, credit cards, after dinner liquor and pharmaceuticals that I will never, ever buy. The amount of marketing dollars wasted reaching prospects in the manner is mind-boggling. And by the way, is this the way to have a dialog with your current customers?
Print publishers face a huge challenge—how to stay relevant and profitable at the same time. Most smart publishers are far down the road to becoming multi-platform media brands with strong online, video, events and lead generating offerings. They need to get to a point where the print product is no longer the center of the universe. This evolution will only accelerate over time as most consumers under 35 are online focused and will not have the attachment to print that us middle-aged people do.
However, a stumbling block to the future is that these media companies are stocked with people who have spent their entire careers in print and still see the Web as an ancillary product. And, because print still drives profits, most media company compensation plans are skewed towards selling print ads. I love this quote from Felix Dennis, owner of The Week, and founder of Maxim magazine.
“The American magazine industry has been massively overstaffed for years and years. It is one of the most inefficient businesses in the history of the world. And you know what? The chickens are coming home to roost,” Mr. Dennis said. “They can sit around the campfire listening to the scary noises out in the dark, wondering where it all went, but what I would suggest is that they take some of the chickens, skin ’em, and stick ’em on the campfire and start eating.”
This sentiment will resonate with anyone who spent significant time working for a traditional old line publishing company. Their staffing and business models are still heavily weighted to print, especially in management and sales. Print sales reps still make huge salaries compared to people selling online media and event sponsorships—does that still make sense? Grab a copy of any consumer or trade publication and take a hard look at the masthead and you will be amazed at the layers of management (thick with VPs, EVPs, SVPs and Extra Special Super Terrific VPs) and the people with titles (anything with “Strategic” in it) that look like what they are—old timers and buddies hanging around at big salaries. Add this overhead to rising costs for paper, production, circulation and postage and you have some significant costs that must be covered by print advertising’s declining margins.
I share Mr. Dennis’s opinion—it’s time to blow up the internal structures of these companies and realign assets and people to reflect the new reality of the multi platform, Private Media world. It’s time to bite the bullet and come to the realization the long term future is not a print dominant world. They need slash costs and hire and reward the people who are driving online, video and event products—not the risk-adverse print veterans who are waiting for the “good old days to come back”. Time and progress only move forward, get on the bus or be run over by it.
