Custom Publishing

2009 was not a banner year for the media industry, but there were a few bright spots.  Social media was a major story and became a key player almost overnight.  There is not a marketer alive who is not thinking about social media in some manner for their brand. Social media provides some important tools such as interactivity and the ability to broadcast a message for free to a community of people.  However, the more significant trend of 2009 is the continued growth of content marketing and how it is eating into traditional advertising. 

The reason why is not really surprising.  Content marketing takes advantage of permission based marketing to build relationships with customers and prospects while advertising depends on interrupting people while they are consuming unrelated content.   Thanks to advances in technology, brands are able to create and distribute branded content at a higher level than ever before.  The Custom Publishing Council and ContentWise recently released a study of major US companies to quantify this phenomenon.  Here are some of the highlights:

• Total spending on branded content was over $1.8 million per company, with 51% spent on print publications, 27% on Internet media and 22% on categories such as video or audio.
• 78% of respondents said that branded content initiatives are more effective than other leading forms of advertising and marketing. Seventy percent said it was more effective than television advertising; 61% said it was more effective than direct mail and 57% said more effective than public relations.
• According to 54% of the companies surveyed, the primary reason for branded content initiatives was to educate customers. This was followed by customer retention (25%) and brand loyalty (21%). Up-selling was at the bottom of the list, indicating that corporate marketers are looking for long-term returns rather than a stimulus for short-term transactions.
• The use of external agency services (custom publisher, design firm or video production company, for example) to handle some aspect of branded content initiatives matched an all-time high from 2005, with 54% of companies reporting that they outsourced some portion of their branded content.
• Among companies that outsource, the average spend on branded content was a whopping $886,000. The previous record high was $316,000 in 2006. When extracting nontraditional forms of branded content from this equation, the total outsourcing spend was $650,000, 105% higher than previous records.
• The survey showed that 24% expected spending to increase in 2010; 20% expect it to decrease and 56% say it will stay the same.  Print publishing is expecting to decline, while other forms such as digital are expected to increase.

Another study conducted by Junta42 states that 60% of marketers will increase their spending on content initiatives.  The study also shows that social media and mobile apps with be important channels for branded content.  It all ties back to measurability and ROI.  When you create your own content and environment you increase the ability to measure and get positive results.  And, as we slowly come out of a recession, all that matters are results and profitability.  Branding initiatives are fun and nice to have, but unless they can demonstrate a clear return they won’t help your company’s bottom line or valuation. 
 

This is an article I wrote that appeared recently on Marketing Profs. 

The hottest trend in brand marketing right now is the very thing that has fueled traditional advertising’s ongoing evolution: Brands are bypassing traditional media outlets in favor of creating their own private media platforms. That’s right, brands are becoming the media.

Savvy marketers have realized that for the same price they once paid for a glossy ad or 30-second TV spot, they can now own their fully branded publication, video series, or interactive online platform.

Moreover, they’re providing the same high-quality and engaging content found in those third-party publications and broadcast outlets, offering it to mainstream audiences for free and, in essence, competing with those very outlets that used to serve their advertising needs.

Of course, as new media channels continue to emerge, audiences become more dispersed, creating an urgent need for brands to spread their efforts across channels to capture the attention of their target audiences.

That fact alone negates the logic once used to rationalize huge ad spends on single outlets or mediums. Knowing that marketers must find revolutionary methods of enticing customers and prospects to engage with their brands, what better method is there than for brands to simply become the media?

Cases in Point

That’s the theory, but exactly which brands are becoming the media? I Can’t Believe It’s Not Butter!, U.S. Wellness Meats, Nike, Gillette, Kikkoman, and hundreds of others.

Consider Unilever. Its new-media initiative for I Can’t Believe It’s Not Butter! features Spraychel—the brand’s animated mascot—and her adventures in the fridge.

Looking for a new way to generate buzz for the brand, Unilever created an innovative, entertaining brand experience that compelled consumers to spread the word through viral-marketing efforts.

Weekly webisodes and a “celebrity-esque” blog allow consumers to follow the storylines and deliver the latest gossip in the fridge. Moreover, viewers chime in to decide the outcome of upcoming webisodes. Unilever’s most-recent campaign is at VoteSpraychel.com.

When U.S. Wellness Meats—a producer and distributor of grass-fed animal meat—realized that current educational materials on grass-fed meats were not only diffuse but often inconsistent, unclear, and untrue, it took on the challenge of becoming a dependable educational source for those seeking reliable information on grass-fed meat.

Its audience comprises athletes, parents, doctors, and others concerned about the nutritional value of the food they consume. Thus, U.S. Wellness Meats overhauled USWellnessMeats.com, which was once a traditional e-commerce site, and turned it into a regularly updated destination site for those looking for facts on sustainable eating, the difference between grass-fed and grain-fed meats, and the health benefits of the company’s products.

Inspired by its customers’ passion for health and cooking, and the many communications it has received over the years, U.S. Wellness Meats uses its new platform to feature professional and home chefs, a Wellness blog, and Wellness Kids, among other features. Instead of relying on outside media to educate its consumers, U.S. Wellness Meats can do that on its own, knowing that the information is accurate.

Another consumer brand that understands content marketing is Kikkoman, famous for its soy sauce. To familiarize more consumers with the versatility of soy sauce, Kikkoman’s website has a Food Forum that has original recipes and serves as a resource center on Japanese cooking and culture.

Kikkoman has been running an innovative campaign around umami, or the fifth taste (the discovery of which recently celebrated its 100th anniversary).

The brand launched a commercial campaign on the Food Network and YouTube that introduces viewers to umami and presents various foods—including Kikkoman Soy Sauce—that evoke the fifth-taste sensation.

The commercial directs viewers to a micro-site www.DiscoverUmami.com to popularize the idea with customers by providing appealing and educational information, as well as more ways to use the product. The sell is subtle as the viewer gets deeper into the world of Kikkoman and Japanese-flavored recipes.

The New Rationale

People are more comfortable getting their news from multiple sources—a perfect environment for any business thinking about stepping in and becoming a trusted source of information.

And that’s the general logic: When your company educates its current and prospective clients on its field of expertise instead of pitching them products or services, it effectively becomes a reliable source of information and entertainment.

In other words, your company (or brand) becomes the media and is in a position to provide thought leadership and build customer affinity.

You’ve established your company as a trusted resource; as a result, your customer feels more confident buying from you, and you have increased your ability to measure results in terms of generating leads and creating incremental sales.

Though traditional advertising will always serve as a means of general awareness, private media channels encourage brand loyalty and affinity,   allowing companies to speak directly to their customers and prospects in a controlled environment.

Add a bit of good research to the equation and brands are able to create content that resonates specifically with the needs of various audiences and current customers, as well as content that supports permission-based marketing tactics that will woo their prospects.

Here’s the bottom line: When a company or brand becomes the media, it effectively creates a direct dialogue with customers that leads to a predetermined behavior and increased sales. Creating your own media channel also increases accountability and measurability, which is critical in today’s economic environment.

Here are this year’s media predictions.  Last week, I took a look back at 2009’s to see how we did, click here to see the scorecard.  Here are a few other places to check out where we participated.

Junta42 - Over 100 predictions from 70 of the top content marketing minds in the world.

Folio Magazine - 115 (give or take) magazine and media predictions for 2010.

eMedia Vitals – Media Blogs We Love (includes the King Fish ThinkTank) and Nine Bold Predictions for 2010

Here are a few thoughts for next year:

2010 will be the year that content goes mobile in a big way.  Having a mobile strategy will no longer be a “nice to have”, but a requirement for media brands and custom content.  The success of the iPhone and Kindle has shown that there is an appetite for content to be read in a “third place” away from both home and office.

More and more pure play online companies will discover multi-channel marketing paired with content drives customer engagement.  Look for more online retailers to create “magalogs” pairing content and offers in an appealing environment using both print and digital formats.

Broadcasters (network and cable) will create more integrated online content and advertising programs for the so called “second screen”.  According to Reuters, Nielsen’s research shows that “57 percent of TV viewers in the U.S. who have Internet access use both mediums at the same time at least once a month. That translates to more than 128 million U.S. consumers.”

This opens the door to creative ties-ins for deeper content, social media connections and games/contests to extend a marketing campaign.

Consumers will slowly begin to accept that they will have to pay for some premium online content.  The decline of print advertising means that online content can no longer be subsidized.  It will only be successful with unique, relevant content such as hyper local news or brands such as the New York Times or Variety.  Basic news and opinion found in places such as Newsweek and Business Week stand little chance of collecting a fee for content because there are so many other sources for that information.

Twitter is leveling off as many people quit or abandon after a short time.  I see that trend continuing, though the idea of micro blogging is here to stay. It’s too effective a communications tools not to have a purpose.  It makes more sense integrated into something else rather than a stand-alone; and it is still a mystery how Twitter will make a profit.  I am losing some interest –a lot of tweets are just of the “look at me, I’m clever” variety or other self promotional nonsense.  The whole “social media” frenzy will slow down considerably as it becomes just another marketing tactic and media channel. The cottage industry of social media experts, consultants and dedicated agencies will wane.  It’s like when “e” was finally dropped from e-commerce and it became just another commerce channel.  We can now drop the “Social” and recognize it’s just another media channel.

Tiger Woods is done as a mainstream pitchman for at least the next 3-5 years, probably forever.  There was a level of recklessness to his behavior as he was done in by the new media avalanche (texts, tweets, face book postings, TMZ, You Tube) of evidence.  The speed of these viral networks is blinding and can end careers in a matter of a week.  It is possible Nike and golf equipment vendors could continue to use him, but I can’t imagine current sponsors such as Gillette, AT&T, Tag Heuer continuing to feature him in ads.  I think they will follow Accenture and start dropping him in January. For a good long while, when people see his image they will either snicker or think about porn.  Not good for selling razors, watches and consulting services. 

As of today President Obama has slipped beneath the 50% benchmark for job approval in almost every poll.  The common refrain among his supporters is that it is “all about the economy, and the same thing happened to Reagan, so nothing to see here”.  I think that analysis misses the mark and don’t think he will go past 52% or 53% approval anytime during 2010.  In fact it is likely he will stay below 50%.  Why?  Classic marketing mistake – the White House does not understand its audience (a center right country) and never moved from campaign mode (lead acquisition) to governing (customer retention).  The 2010 mid term elections are going to be a nasty battle with much media money spent.  The net result will be narrow but unsteady majorities for the Democrats in the House and Senate.   This will take the President down one of two roads.  Does he turn to the center like Clinton and get reelected, or stay left and get nothing done?

Do you have a mobile content strategy?  If not, it’s time to start thinking about it.  While social media has grabbed many of the recent headlines, the iPhone/smart phone phenomenon is picking up steam.   Apple is selling roughly five to six million handsets per quarter and it is estimated there are 20 million iPhones now in use, and it’s not hard to see that doubling in a year.  The App Store has delivered over 1 billions apps (paid and free) among the 25K-35K apps that have been released.  How many professionals do you know who don’t have an iPhone, Trio/Pre or Blackberry?  I am guessing not many.

I am an avid iPhone user and believe it is a transformational technology for media and content.  The speed, versatility and readability are amazing compared to where smart phones were in the pre-Apple era.  It has become a critical delivery platform for your “third place”.  This is anywhere that is not your office or home where you are likely to be sitting in front of a computer or TV screen.  Your third place could be a hotel, train, airport, coffee shop, waiting room etc.  No need to lug around a laptop or even a netbook because the iPhone can do it all, including hold all your games, music, pictures, videos and act as a GPS system.

If you are creating content you have to think about a mobile strategy.  For some that can mean optimizing your site for mobile browsing, but you need to take it a step further.  Leading brands such as the Wall Street Journal and the New York Times have created popular apps to push content.  A recent survey by the Audit Bureau of Circulation shows that media companies across the board are experimenting and planning apps of their own.  It is a great way to build a closer relationship with readers and gives you more interactive advertising opportunities to sell.

However, it is not just for traditional media.  You should also consider an app reader for your custom publications and original content you are creating for your web site, white paper/ebooks and blog.  It’s time to consider smart phones part of your private media channel along with social networking sites and traditional platforms of print, interactive and email marketing. 

In fact, any companies who rely on affinity/trust relationships with customers (i.e. online retailers for consumers and order tracking /supply chain for B2B) need to have a customer facing app.  Amazon has one that I have used and it extends my relationship with the retailer away from my desk. 

The strength of a private custom media channel is the ability to serve relevant content to customers on a platform they prefer so they are receptive to your message.  It is becoming clear that the smart phone platform is gaining favor at a rapid pace.  For many companies, a mobile content strategy can be a powerful customer retention tool.

Here is a blog posting I contributed to e Media Vitals. Check out the site.

Publishers often talk about their plans to negotiate the new media landscape with innovative web strategies, live and interactive events, and other programs to “engage” their target audience. But as it becomes harder and harder to sell traditional advertising, why is there not more buzz around custom media?

The most valuable assets a media brand has are its audience file and the relationship readers have with the brand. Think creatively about your database not as a mass market, but as a collection of niche audiences. Are there advertisers who would pay a premium for just a special slice?

Media companies can build off of that asset by creating custom media channels for their clients to talk directly to segments of their audience. A custom media channel consists of advertorial or original edit that is customized to a specific topic and created in partnership with the sponsor. Because the content is relevant to the audience and delivered to them on a preferred platform (the media company’s site), the potential return on investment for the advertiser is high.

This is also an opportunity for publishers to drive greater value to the people who are part of their social media community. Just as publishers are creating Facebook fan pages, LinkedIn groups and Twitter followings for their own brands, they can also make these communities part of the custom media channels they are creating for advertisers. Social media networks are dependent on having fresh content to keep members engaged, and custom content can be utilized in this manner.

Many publishers are wary of custom content, as it shifts the advertising-editorial paradigm. Some editors are concerned about the editorial integrity of the brand; while publishers worry that custom content programs may eat into their traditional advertising revenue.

The fact is, selling print ads in a B2B publication is a growing challenge, and custom content– webcasts, web sponsorships, events, and the like – are a better way to demonstrate ROI. (In our soon-to-be-published study on marketing, media and measurement, 74% of our survey respondents said original content and media is the most effective method for generating marketing ROI; only 4% cited traditional advertising as the most effective ROI vehicle.)

Traditional media companies need to take a hard look at their business models and think about custom media as an integral part of the mix rather than an ancillary business.  When you get right down to it, marketers want your readers as customers and prospects.  The best way to survive this crazy market is to give them access in as many ways as possible.

Booz and Company just released a smart new white paper entitled “The Promise of Private label Media” which is worth reading if you are charged with your companies sales and marketing strategy. 

Private label media or private media is one of the most important, if not most important marketing trend of the new media landscape.  Companies can create their own private media channel to communicate directly with customers and prospects with original content.  Essentially, the brand becomes the media. 

People are more comfortable than ever getting their content from multiple sources–a perfect environment for any business thinking about stepping in and becoming such a trusted source of information.  This is the general logic: when your company educates its current and prospective clients on its field of expertise instead of pitching them products or services, your company effectively becomes a reliable source of information and entertainment. In other words, your company becomes the media, and is now in a position to provide thought leadership and build customer affinity.  You’ve established your company as a trusted resource, and as a result, your customer feels more confident buying from you.  And you have increased your ability to measure results in terms of generating leads and creating incremental sales.

While traditional advertising will always serve a purpose in terms of general awareness, these private media channels encourage brand loyalty and affinity, and allow companies to speak directly to their customers and prospects in a controlled environment. Add a bit of good research to the equation and now brands are able to create content that resonates specifically with the needs of various audiences and existing customers, as well as content that supports permission-based marketing tactics that will woo their prospects.

Bottom line: when a company or brand becomes the media, it effectively creates a direct dialog with customers that lead to a pre-determined behavior and/or increased sales.  Creating your own media channel also increases accountability and measurability, which is critical in the current economic environment.

King Fish Media, in partnership with HubSpot, Junta42 and the Upshot Institute, is conducting a short survey among marketing executives—both on the brand and agency sides—to gauge the ever-changing opinions and activity regarding new media, advertising, marketing and measurement.

While I’m sure you receive a fair share of invitations to participate in various studies, I hope you will give special consideration to this one. In return for your time, we will offer participants exclusive access to the survey for one week prior to making it available to the general public and media. The results will be compiled into an e-book format and will be supplemented by an in-depth analysis. Our hope is that this research will help marketers better craft their new business pitches and offer brand marketers a better sense of the continually evolving trends they should be paying attention to and preparing for.

Please take just a few minutes to fill out this online survey to help us understand the needs and plans of senior marketers.  Click here to take the survey

You will be asked for your email address at the end of the survey, but your answers will be kept completely anonymous. This is purely so we can send you the research in advance of its official release.  Otherwise, the results will be available for free download at kingfishmedia.com no later than Sept. 15th. 

Thank you very much for your participation.  Got to the Survey Here

Forrester just released their five year forecast for US Interactive Marketing and it is an interesting read.  Five year forecasts are always dicey in today’s new media world. How many people in 2004 predicted the most talked about politicians in 2009 would be Barack Obama and Sarah Palin?  Zero.  About the same amount of people in 2004 who predicted the country would come to a standstill to watch and follow Michael Jackson’s memorial on Face book and Twitter. 

However, the numbers confirm and quantify what most of us already know – the amount of dollars to be spent on interactive marketing are growing fast and taking share from traditional media.  Overall, search marketing will be the biggest component, and Mobile (27% CAGR) and Social Media (34% CAGR) will grow the fastest.  All of these media/technologies are game changers in terms of information/content consumption and marketing.  Anyone who has taken a spin around an iPhone can see just how radically our content consuming habits will change.  And, marketers must follow suit.

Here is a quote from Forrester’s Shar VanBoskrik’s blog:

But to me, the most interesting takeaway from the research is that overall advertising budgets will decline.  Yep.  With dollars moving out of traditional media toward less expensive and more efficient interactive tools, marketers will actually need less money to accomplish their current advertising goals.   But reasonable marketers won’t relinquish budget because their programs are running too efficiently. Instead, marketers will allocate unused advertising dollars into investments like innovation, research, customer service, customer experiences, and marketing-specific technology and IT staff, in order to further marketing’s strategic influence within their companies.

If I may add my two cents – this gives marketers and brands the opportunity to become the media.  By creating their own original content, brands can build trust and affinity with customers and prospects.  The budget and technology now exists for marketers to totally bypass traditional media and ad agencies and talk directly to customers.  Content is what will fuel search and social media, so the opportunity for companies to engage in content marketing has never been greater.  I may not be bold enough to predict what the marketing world will look like in 2014, but I do know one thing.  I would not invest in any traditional ad agencies any time soon.

Question: Has your sales and marketing tactics changed radically over the past five years?  Not to over hype it, but the second half of this decade has brought changes in media consumption that rivals the introduction of the printing press and television.  You need to keep your customer’s behavior in mind when deciding which marketing and sales tactics to use in light of the dramatic changes.

Five years ago no one had yet heard of YouTube, Hulu, Face book or Twitter.  Reality TV now dominates the ratings as Andy Warhol’s prediction of instant fame actually came true.  Public Wi Fi is everywhere and Google is now a verb.  The new generation of smart phones would amaze James Bond.  DVRs  and IPODs have completely changed the concept of consuming and buying entertainment.  When it comes to content, the influence of bloggers in politics, sports and entertainment often drive the media narrative with the mainstream media chasing. 

Major newspapers like the Boston Globe are a dying business model.  Network TV viewership is at an all time low and the level of creativity is even lower – how many crime shows do we need?  Magazine are shrinking and trying to reinvent themselves like Newsweek, Playboy and Reader’s Digest.  The B2B trade press is migrating from print to online content, web casts and virtual trade shows.

Thanks to advances in technology, the balance of power has shifted from media to consumer and that changes everything for marketers.  Have you adjusted your marketing plans to take advantage of these changes or are you maintaining the status quo?

Here are ten burning questions you need to ask yourself now:

1. Are you conducting or finding research to understand how your customers are consuming media? 

2. Does this research tell you the information needs of your customers and prospects?

3. Are you still renting expensive ad space in print and TV with the majority your budget? 

4. Are your producing original content and owning your own media channel to create an interactive dialog with your customers?

5. Is your company using original content to become a trusted media brand?

6. Are you creating passion and communities among your customers?

7. Do you make an effort to balance your retention and acquisition efforts, or are you over investing in lead generation?

8. Do you have a defined social media strategy to engage with customers and prospects where they are spending more and more time?

9. Are you personally engaged with Linked In, Face Book and Twitter to find prospects and talk to your customers?

10. Do you have measurement metrics in place for all of your marketing and sales tactics?

Think about your honest answers to these questions and take stock of where you are with both your company and career.  It is easy for mid career professionals to write these changes off as a passing fad or “for kids”.  That is probably what they there thinking at the Boston Globe and Newsweek just a few years ago.  We are in the midst of big time changes across the spectrum of politics, economics and media consumption.  The companies that adopt swiftly will thrive over the next decade. 

During last few weeks I have noticed a ratcheting up of inbound direct mail (postal and email) coming to me from companies that I had bought from in the past.  It ranged from Lowes and the Sunglass Hut sending me $50 off coupons for purchases over $200 to Omaha Steaks and 1800 Flowers emailing me great deals for Mothers and Fathers Day. 

Marketing to current or past customers is always smart, but even smarter during a recession.  Acquiring new customers can be a very expensive but necessary operation.  When funds are tight nimble companies tweak the balance between retention and acquisition.  By mining your customer database you can target past customers who will be more receptive to your messages.  Keep in mind most consumers are cutting back and trying to spend wiser.  A good deal from a familiar voice can get them to open their wallets.  It is always easier to convince someone to buy again rather than for the first time. 

Customer retention is even more powerful when paired with content marketing to build stronger relationships with customers who will see you as a trusted information resource.  This content can take the shape of custom magazines or magalogs, newsletters or webcasts.  Even face to face events for current customers could deliver a solid return.

How are you balancing your acquisition and retention efforts?  Do your customers see you as a trusted source of information or just someone trying to sell them something?

A content rich custom media customer retention program may be your best bet during trying economic times.

You may have seen Time Inc’s latest foray into custom media.  They sold Lexus into a sole sponsorship for a magazine called Mine (tag line – My Magazine - My Way) which is compiled from several of their titles to consumers who request it.  Give Lexus credit for wanting to own a private media channel to potential customers, but is this really custom media?  Anyone could sign up for it, and I did.  They didn’t develop the audience to be car buyers or people in the right demographic for Lexus.  It appears that anyone with internet access could sign up.  The content consists of articles selected by Time from several of their existing magazines.  The gimmick is that subscribers can pick which magazine reprint they can receive all in one place.  I don’t remember exactly what I signed up for, but I know for sure I didn’t sign up for Sports Illustrated because I already subscribe, and I certainly didn’t ask for Golf Magazine.  I want to read about golf about as often as I want to watch a Harry Potter movie or listen to jazz and that is never.  Here is the editorial line up in my “customized” magazine that came My Way:

Travel and Leisure – An article on how to look out an airplane window, and a feature on fancy tents.  I already know how to look out a window and will likely live the rest of my life without ever being in a tent, no matter how swanky.

Real Simple – A side by side nutritional comparison of juices, and a “how to” on road trips.  Let’s just say the editorial mission of being “simple” is coming through loud and clear.

InStyle – How to find the perfect pair of jeans, interview with Marc Jacobs, and fitness page staring Aisha Tyler talking about how to build biceps.  Not bad edit if I were a woman, but alas I am not.

Sports Illustrated – An amusing article from a soccer hater giving the game a try.  Good article and I liked it the first time I read in Sports Illustrated. 

Golf Magazine – Interview with golfer Natalie Gulbis, (of Celebrity Apprentice fame) and a “watch and learn” breaking down Tiger Wood’s swing.  This would be helpful if I didn’t hate golf.

As you can see this is really My Magazine, My Way.  A few weeks ago I received an email from Time that said a “computer error” may have caused me not to get exactly what I ordered in terms of content. 

Custom media and content marketing works best when you create original content that is designed for a specific audience and their information needs.  Mine misses the mark on all counts, the audience was not qualified nor selected as customers or prospects of Lexus; and the content is anything but original or aimed at a specific audience.  This is a classic big media company maneuver.  Take some edit that is already in the can, patch it together and send it to a random list.  And finally, get someone to sole sponsor five issues.  Only an auto company would go for something this off target and old fashion. 

“I wouldn’t call this an ad, this goes much beyond this,” said David Nordstrom, Lexus’ vice president of marketing. “Our message of ‘driver-inspired’ and ‘customization’ will come through a lot stronger.”

Here is what came across to me – the back page is an ad that screams in 28 pt type: THE ALL NEW 2010 RX. NOW WITH MORE GORDON PLUTSKY

It is so much more than an ad; it is off putting and annoying.

All that being said, it will probably be a decent money maker for Time Inc, but please don’t call it custom media when it is a glorified reprint.

Magalogs – catalogs that include elements of both editorial content and story-telling through design – help traditional catalogers build brand affinity and connections with their customers. To see an example, click here for a magalog King Fish created for PC Connection aimed at their small business customers.  Retailers are recognizing the benefits of this approach, and are morphing their print to better serve customers, showcasing products in far more engaging environments. And to further demonstrate effectiveness, magalogs are also becoming digital versions, where customer shopping, referral behavior and site interaction is measured for true return on investment. Savvy marketers are starting to use this platform – and there is no reason not to – all retailers should. Build affinity, enhance shopper experience, and track results. That’s a recipe for job security.

They key to a successful magalog is producing the project with a team of creative and marketing-types that understand how to incorporate the elements that result in measurement and increased affinity. There are several applications that improve both measurement and sell-through, so be sure your content provider has a solid knowledge in these areas. A media investment should be accountable and measurable, and when executed properly, magalogs can be at the top of the ROI food chain.

Here is a very interesting take from David Meerman Scott on the possible movement of journalists from traditional media to creating meaningful content for companies.  It seems everyday media companies are cutting back and sacking writers and journalists.  (Old joke – When does a recession become a depression?  When journalists lose their jobs)  At the same time the content marketing/custom media business continues to grow.  More and more companies are creating their own content and private media channels to talk to customers.  Here is a clip from the Mr. Scott’s posting:

“Many organizations — corporations, nonprofits, government agencies, and educational institutions — finally understand the value of what I call “brand journalism,” creating interesting information online that serves to educate and inform consumers. People in companies now realize web marketing success comes from creating content-rich web sites, videos, podcasts, photos, charts, ebooks, white papers and other valuable content.”

He gives advice to journalists to be thinking about taking their skills to brand journalism where they can tell stories and impart information to a different set of consumers.  It is pretty sage advice when looking over the current media landscape.  While we can joke about it being the “Dark Side” the fact remains that companies have grown far past the old fashion “advertorial” to creating compelling, rich content for customers and prospects.  Companies like Cisco are maintaining full-fledged news rooms online while leaving the advertorials to Vince the Sham-wow/Slap chop guy.

It is pretty clear which way the market is moving, so come on over to the “Dark Side” you may just find yourself a new career.

Check out this article: “Why Advertising is failing on the Internet” written by Professor Eric Clemons of the University of Pennsylvania.  He makes a case why an ad supported business model may not work over the long term on the Internet.  One of his main themes is that pushing messages at consumers on the web is not a winning combination.  Below is a excerpt:

“Pushing a message at a potential customer when it has not been requested and when the consumer is in the midst of something else on the net, will fail as a major revenue source for most internet sites.  This is particularly true when the consumer knows that the sponsor of the ad has paid to have this information, which was verified by no one, thrust at him.  The net will find monetization models and these will be different from the advertising models used by mass media, just as the models used by mass media were different from the monetization models of theater and sporting events before them.  Indeed, there has to be some way to create websites that do other than provide free access to content, some of it proprietary, some of it licensed, and some of it stolen, and funded by advertising”

In addition he thinks that ads will fail because of the following:  consumers don’t trust ads, nor do they want them.  And, they don’t use advertising for research on the web since there are so many other sources of information available.

He goes on to talk about some models that may work, but I think the critical point is that marketers can’t rely on concepts and tactics that worked off line by merely porting them online.  It makes more sense to build a relationship of trust with customers and prospects rather than jamming advertising at them.  Additionally, marketers should take advantage of the fact that people use the Internet to search for content and information.  Unlike magazines where people browse passively, the Internet is interactive and active. 

It is that dynamic that makes the web ideal for content marketing and private custom media channels.  Talking directly to consumers with relevant content provides them with information and builds trust.  When marketing on the web, content marketing is a better tool to engage consumers than pushing out advertising.

Cam Brown, President
King Fish Media

2009 will feature the greatest redirect in marketing approach that the media industry has seen since the explosive growth of cable television (and its subsequent usage opportunities that caused planning confusion in the 1980s and early 90s) . Looking forward, savvy marketers will broker deals with media companies not for reduced page rates or air time, but for their subscriber list – the more selects available, the better. Media companies will re-structure their sales teams, reducing the workforce of 30 and 40-something reps and elevating the most insightful marketers.

This new staff will gain immediate credibility with advertising partners who will not view them as yet another new face pitching the same old story, but as a strategic marketer identifying the most targeted database possible from their circ files, and guiding the best practices for usage of that file. The story of targeted efficiency over reach, and reduced top line advertising revenue in exchange for a smarter, more collaborative client relationship, is the story of 2009 and beyond.

Gordon Plutsky, Director of Marketing
King Fish Media

Custom Media, across all platforms, will be one of the few areas that will grow in revenue in 2009 thanks to two important trends:

    -  Companies becoming publishers and producing their own content to talk directly to customers and prospects.

   -   The need for more measurable media and high ROI during a recession.

The continued growth of web casting, virtual trade shows and online video will take a significant chunk of revenue from trade shows and live events during 2009.

The decline of the US auto industry will result in huge cut backs in print advertising from the big three, and several magazines will close as a result.  Local TV stations and newspapers will see big decreases in ad revenue as car dealerships close after GM kills Buick, Pontiac and Saturn and Ford also pares brands as part of a government bailout.

Several IT publications will follow the lead of PC Magazine and abandon their print issue to reposition themselves as online and events brands.  They will thrive once all the print overhead is removed.

Facebook will explode and become a “must have” for professionals in 34-54 age group who will continue to blur the lines between personal and business life.

The big television networks will continue to become less relevant in the lives of Americans as they spend more time on niche cable networks and social media sites.  The 2009 fall season will produce zero new hits.  The continued penetration of DVR’s will further erode their advertising base and they will have to make major cutbacks.

A major US daily newspaper will fold its print edition and go digital only.

Sarah Palin will write a book about her experiences during the 2008 campaign.  She will get a giant advance and it will go to #1 on the New York Times Bestseller list much to the dismay of New York Times.

American Idol will see a strong decline in ratings - over commercialization and bland contestants killed the golden goose.

Kathleen Martin
RocketComm

The markets will continue to ride the roller coaster through the third quarter. Big business will continue to contract but there will be explosive growth in small service firms and mid size companies. Contracting will be the norm versus traditional company employment.

Social media will continue to grow and the challenge in 2009 will be how to manage the scale and depth of your social networks and leverage the various media options for maximum return. As customers accept the flashing boxes on the sidebar and scrolling headers the media agencies will be looking for new ways to gain not only mind share but retention in a non-retentive environment.

I also think Elvis and Marilyn Monroe have a pretty good chance of being invited to the inauguration and we will see another Kennedy in the senate.

Joe Pulizzi
Junta42

More and more media companies will shed unprofitable titles in certain verticals to stay profitable and solvent. This will open up opportunities for corporate brands to become the content providers for those industries.  I wouldn’t be surprised if you started seeing corporate brands with some cash in the bank buy out small, niche media properties as they work to build out their content strategies.

Traditional media spend will continue to drop as corporate marketers will lean on web statistics for ROI. Marketers will take half of what they are pulling out of traditional and spend on content-driven activities, social media, and other more “experimental” media. Some “forward-looking” brands will see an opportunity to go back to targeted print activities, such as custom magazines and customer newsletters, to differentiate themselves from the barrage of email marketers. 

 What are your predictions?  Send them to gplutsky@kingfishmedia.com and we will post them or leave a comment. 
 

Some very interesting new data out from emarketer this week.  Several large investment banks and media analysts are predicting a significant drop in overall US advertising in 2009.  That is not unexpected given the recession and the lack of a presidential election and Olympic Games in 2009.  The big story in these numbers is the change in share of specific types of media in US ad spending.  The traditional methods of broadcast (TV and radio) and print (newspapers and magazine) are on the decline while the internet and Custom Publishing/Custom Media is on the rise.  The reason is simple - measurability.  Marketers are shifting their dollars to places where they can measure the return on their investment in addition to having control over the environment.  Additionally, Custom Media is ideal to talk to your current customers in addition to prospects with specific messages for each.  Print and broadcast does not give you the ability to target customers vs. prospects nor does it give you a measurable return.  Telling your story with custom content is a much better way to build a relationship with customers than blasting ads at them when they are watching TV or reading a newspaper. 

For the cost of a couple of ads in a major newspaper or during a prime time show you can create a quarterly custom magazine, or a custom web site or a series of live or interactive events with your own content.  It is a decision more and more companies are making. 

If you project current trends, it is easy to see how by 2013 the internet and custom media will be the two most popular marketing vehicles available to companies.  It is not hard to understand why media companies heavily dependent on print media are having fits trying to change their business models.  The latest is the development is about Newsweek who is currently losing money.  They plan to slash their rate base, keep ads dollars up, abandon news and become more of a thought leader publication.  Name me another magazine that pulled off that kind of rapid and radical transition.  My guess is that by this time next year, they will be losing more money than they are now.  It is not about the circ or the edit mission, it is about smart money moving away from print advertising to interactive and custom media and there is nothing Newsweek or anyone can do about that.

The news broke today that PC Magazine will no longer produce a print edition and will focus totally on their very popular network of sites.  While some past PC Mag employees may find this to be a sad passing of time, I think it is the right move.  We are long past the turning point when the web became the primary information source for technology information.  And, tech advertisers have embraced interactive media, custom media, events and other ROI based marketing tools while essentially abandoning print trade advertising.

I was the Marketing and Research Director of PC Magazine from the mid 90’s until 2002, and when I left the print issue was in deep decline.  According to this article from paidContent, 70% of the brand’s revenue now comes from online sources.   Printing several hundred copies of a monthly magazine makes no sense when people really want the information online.  A few weeks ago I wrote about how media companies had to make the web the center of their universe, not print, if they wanted to survive.  This move by Ziff Davis Media is a foreshadowing of what we will see during 2009 as the recession forces the hand of media companies.

I am glad that I got to be a part of publishing history.  There were a couple of years where we ran more print ad pages than any magazine in the US and once booked over $7 million in a single issue.  PC Magazine was incredibly profitable and influential in the tech industry.  Working with talented people such as Michael Miller (see his blog on the closing here) was like going to publishing grad school.  Most of the people I worked with at PC Magazine have gone on to very successful media careers.

Looking back, I remember the day that was the beginning of the end.  We were at one of our regular meetings at Dell and they told us they just started selling PCs over the web and were grossing nearly a million dollars a day.   At the time companies like Dell and Gateway were running 10-12 expensive ad pages an issue to present every SKU they had to our readers complete with 800 numbers to purchase.  With the advent of their online stores that ad commitment would be coming way down.   All they needed to do was drive web traffic.  It took roughly ten years but the web finally killed the magazine.  I wonder how many other tech magazines will follow their lead.  Most of them have just a handful of print ads from the big players.  I say, let it rip, go 100% digital/online and move on before you get left behind.

The International Association of Business Communicators recently did a special issue on content marketing.  Here is how they describe it:

Content marketing is about revealing the credibility of your brand through customer-focused information—with an authentic and trusted voice. It’s an opportunity to use creative thinking—rather than a big budget—to get better results than traditional marketing methods.

I was lucky to one of several contributors to add an article to the special edition of their bulletin.  I chose to talk about creating a content-rich private custom media channel rather than traditional advertising.  Here is an excerpt from the article:

When a company educates its current and prospective clients on its field of expertise instead of pitching them products or services, that company becomes a reliable source of information. Your company becomes the media, and you’re now in a position to provide thought leadership and build customer loyalty. You’ve established your company as a trusted resource, and your customer feels more confident buying from you.

It’s no surprise that more and more companies are creating their own private media channels with original content to speak directly to their customers. With content and private media channels, marketers can start to take prospects down the road of permission-based marketing, where marketers must first ask permission before sending content or advertisements to prospective customers. This method requires that people first “opt-in,” rather than allowing people to “opt-out” only after the marketing messages have been sent. It also helps to build trust and affinity between marketers and their potential customers. Eventually, you will get to the point where customers and prospects will welcome your content and messages because of the trust you have built with them. Trust and affinity lead to increased sales.

This tactic stands in contrast to traditional advertising and marketing methods, which rely on renting media channels from media companies at very high costs. In that model, prospects are seeing marketing messages such as ads in magazines, on web sites and television, and are likely spending little or no time absorbing them.

In addition, rented media relies on “interrupting” your prospect with your message, an inefficient way to get out your marketing messages that is more likely to build resentment than trust. When a company owns its own media channel, it is engaging in direct dialogue with customers.

Every day more companies are creating their own media channels with original content to bypass traditional media outlets. In so doing, marketers take control of their message and their audience. Not only can marketers speak directly to customer interests and concerns, but now they do not have to worry about marketing messages being surrounded by distracting—or even inappropriate—content that may conflict with their brand. In addition, the financial rewards of private media speak for themselves: For the price of a few ads in a national magazine, newspaper or broadcast network, a company can create its own custom magazine with original content for a targeted audience. We believe this trend will grow rapidly over the next few years as advances in technology and consumer behavior make it more feasible. There is no better way to drive marketing ROI than by surrounding your potential customers and prospects in a controlled environment that you own.

To read the whole special report – click here.

The reports of bad news from the world of traditional media have been startling.  Check this link to the I Want Media site and you will see story after story of layoffs and cut backs in everything from staff to frequency.  It seems that all sectors are being hit from consumer to B2B.  US News and World Report is becoming a monthly, and the Christian Science Monitor is closing the print edition.  The cutbacks are hitting all the big names: Time, Conde Nast, Rodale and G&J.  In addition, the troubles of daily newspapers have been well documented. 

This seems different than the usual end of the year cut backs that seem to happen in the industry.  It would be tempting to explain away this activity to a general economic slowdown and impending recession.  That is a big factor for sure and media companies are smart to pare cost going into 2009.  However, I think something bigger is going on than just recession based cutting.  The long talked about decline of print media may be gaining some steam, and approaching critical mass.

Traditional media companies are under intense pressure to transition their business from print to digital and alternative media.  The shift of business model is a killer because with rare exception, people do not often pay for online media vs. print subscriptions and the advertising CPMs for online are much smaller than print.  The web has become the default in most cases for information gathering and reading content.  In the past I never thought I would abandon the daily newspaper.  Now, I keep asking myself why am I paying $30 a month to have the Boston Globe delivered.  All the content is online for free and by time I get a chance to read it at night, the news is ancient.  In the “Green” age having a newspaper dropped at your door everyday seems very wasteful and not eco-friendly.   It now seems clear that information gathering and readership behavior has changed forever. 

The news is equally bad for print media on the advertiser side since print advertising is both expensive and un-trackable. Not a great combination in era of ROI based marketing.  The trend of companies communicating directly with customers and prospects is here to stay and growing.  The content marketing movement is clearly taking a bite out of traditional media.  Custom media is growing at the expense of print media in many cases.  More and more companies are bypassing media companies and creating their own private media channel.  In fact, we just launched a magazine for Aramark, the food service company, to talk directly to customers in the healthcare vertical.  You can see the details here. In addition, we are constantly talking to clients about digital magazines and online video to talk directly to their customer and prospects.  These sometimes are from budgets that traditionally had gone to traditional advertising.

Hopefully the people running media companies recognize the permanent status of these trends and are not just hoping for the market to “turn around”.   It is time for a new business model and cost structure.   However, the biggest change needed is mindset.  For today’s media brand the web needs to be the center of the universe and print thought of as an ancillary product.  This change needs to start at the top of these companies and they have to get out of their comfort zone.  Perhaps the news this month is the first step.  The first step of a long and tough journey that is now necessary for survival.

It now seems clear that we are heading into rough waters next year.  You can see the slowdown everywhere.  It will be interesting to watch how marketers respond to the challenge.  Some will overreact, shut things down and go dark to save money.  Yes, you will save money, but you are also sending a signal to prospects, customers and competitors that you are nervous and perhaps a company that will not be around for the long haul.  Other companies will just continue bad habits like overspending on “branding” and expensive, hard to measure ads in rented media such as broadcast television and print.  However, I think the smart companies will be opportunistic by mining their most valuable asset – their customer database.

This is a great time to talk to your customers with your own private media channel and accomplish two important objectives.  First, you can firm up their support and make sure they have a strong affinity for your company, and won’t be swayed to leave for a cheaper product or service.   More importantly, it is an opportunity to earn incremental revenue from a group of people who you have already acquired and sold as customers.  Now it is time to reap the reward of the investment you made to make that person a customer. 

This week I received a mailing at home from a company who does a great job of cultivating their customer base – Lowe’s – the home improvement store.  As a homeowner I am a pretty regular customer, and I prefer it to Home Depot, mainly because of the customer service and nicer atmosphere of the stores.  Recently I bought a storm door and had Lowe’s installed it for me since I am completely useless in that area.  I must have received 10 calls from Lowes and the contractor they hired to set up the appointment, thank me for the purchase and make sure I was satisfied with the installation job.  I was pretty impressed, and it left me with a great experience and strong affinity towards Lowe’s.

The mailing I received was sent to current customers and had two main messages.  One was to send two gift cards – one for $10 off a $50 purchase and the other was $25 off of a $250 purchase.  They called them “Project Starters” which is an excellent idea. The cards are a great method to give someone the motivation to get into a store and spend money with Lowe’s.  The other message was near and dear to my heart.  It was an offer to subscribe to one of three custom media magazine’s that Lowe’s produces for customers.  They gave a web address and an 800 number to subscribe and see back issues on the site.

Lowe’s is doing a great job of creating a content based private media channel to retain and market to their customer base.  When you combine that effort with superior customer service, you have a company that will do fine even during a housing and economic downturn.  I wonder how many companies will follow Lowe’s down the Private Media path of content marketing.  It is much harder than just going dark or the status quo, but the payoff is significantly greater.  There is opportunity in chaos and the companies who are smart in 2009 will emerge even stronger for the recovery.

Last week I had the pleasure of speaking at the Folio 08 Conference in Chicago.  It is billed as the national event for magazine professionals.  Ironically, there was not a lot magazine talk.  The big buzz was about web sites, lead gen, SEO, digital editions and face to face events.  I ran a lively and interactive session on B2B event models to a packed room.  It was clear that the “magazine” professionals are looking to extend their brand, and find new sources of revenue. 

While there was plenty of talk about web sites and events, it struck me that there was not a lot of focus on custom media.  The most valuable assets these media brands have are their circ files and the relationship their readers have with the brand.  Magazines can leverage that asset by creating custom media channels for their clients to talk directly to their readers.  Most are hesitant to do that for many reasons, but chief among them is a desire to stay within the paradigm they know so well.  It has been my experience that once you ask a traditional media person to shift away from running display ads, they get concerned.  It could be worries over editorial integrity, or the fact that selling run of book ads is so darn profitable they don’t want to give it up.  The fact is, selling print ads in a B2B publication is going to continue to be a challenge due to the obvious reason you can’t show measurable results.  And, there are so many great other options to generate ROI – web casts, lead gen, web sponsorships, events etc. 

Traditional media companies need to take a hard look at their business models and think about custom media as an integral part of the mix rather than an ancillary business.  When you get right down to it, marketers want your readers as customers and prospects.  The best way to survive this crazy market is to give it to them in as many ways as possible.

I recently came across some interesting brand loyalty research.  This article from Chief Marketer  refers to a study done by Brand Keys that looks at a “Customer Loyalty Engagement Index”. In a nutshell the findings suggest customer loyalty greatly increases when products and services are customized to the consumer.  This makes perfect sense, as customization is becoming more critical to marketers as product differentiation is becoming hard to come by these days.  It is a testament to world wide engineering and manufacturing skills that most products sold in the US today are made very well.  Since most competitive products do the same thing reasonable well, the ability to customize for a specific buyer has become an attractive product attribute.

The two factors driving the age of customization are the same ones that are driving the move to private media channels and content marketing.  An advance in technology and web adoption has made ordering customized products or consuming custom content real and easy to do.  However, the biggest factor is that consumers have the power and are in control of their choices.  The web has empowered consumers to shop and/or gather information across the globe.  It also plays into the consumer’s mindset – they would much rather have something created just for them instead of the same product purchased by the guy down the street.

You can see how this can apply to your marketing choices – if you send your customers content that has been customized for them, you will increase your chances of building a relationship of affinity, trust and loyalty.  Many companies are missing a golden opportunity to build a stronger relationship with their customers by not communicating with them in a customized private custom media venue.  How many companies are still relying on mass market bulk mailings to talk to their customers if they talk to them at all?  The technology exists where you can mine your database to know a customer’s interests and tastes; why not send them content and marketing messages that are customized for them instead of a generic catalog or email?  Or even worse, do think you are hitting your current customers with a mass media ad that is focused at prospects?  Marketers are required to evaluate their customer communications in light of changes in the way people desire and consume information. 

We are in the age of customization, and savvy marketers don’t want to be sending yesterday’s news to tomorrow’s customers.

Folio just reported on a recent Magazine Day where there was much conversation about the future of magazines (Magazines 3.0) and print in general. The drum beat of bad news for the traditional print business has been steady as consumer eyeballs and marketing dollars migrate to events (live and interactive) and online (e.g., Web sites, video, social networking, etc.)

I was really struck by the juxtaposition of quotes coming from the conference. John Griffin, Chairman of the Magazine Publishers of America (and group President of National Geographic) is trying to put a positive spin on it, but he seems to be fighting a losing battle. He is hoping to be able to deliver faster “audience metrics” to compete with online and TV. Huh? How is getting MRI and ad readership scores quicker going to help compete against the web? There will never be a real and tangible way to tie a print ad in a publication like National Geo (with close and materials deadlines a month ahead of publication) to any measurable return – that fact is driving the migration of advertisers away from print media.

However, that is only one issue responsible for the decline of print media. The other is also mentioned in the Folio article. There are still existing hard walls between edit and sales in American print media. Check these quotes out:

“Advertisers want to borrow—or steal—the credibility and authority we have with our readers,” Griffin said. “And we want to give it to them” without threatening the credibility and authority, he said. “[At National Geographic] we’re always asking ‘How far can we go with this?’ It’s a contestant internal struggle.”

“It’s the single biggest point of contention within our company,” said Deidre Depke, Newsweek.com’s assistant managing editor. “The only editorial asset our magazine has is its content—for us to abandon that, and let advertisers do what they want with it, would be a big mistake.”

In sum: there is a holier than thou streak that runs though these companies and publications that goes beyond what is really necessary and required by consumers. But read this quote – it is excellent, and I think sums up how many marketers/advertisers feel today.

“[The line] has been self-governed and self-policed—you’ve put the handcuffs on yourselves,” Steve Sturm, group VP of strategic research and planning at Toyota Motor North America said. “The federal government, the state government, they haven’t told you to do it. You put up all these roadblocks” that other media don’t have. And a younger generation of potential readers, he said, “don’t play by the same rules you play by.”

Dead on. One of the things that I learned in doing dozens of reader focus groups and readership studies is that the readers don’t care nearly as much about the actual brand name of the content as the editors would like to think they do. Consumers just want good honest, credible and accurate content that helps them in some way or to enjoy for entertainment. No one cares about all the editorial awards or devotion to “church and state”. It’s all about leads, ROI and moving product for the savvy marketer, not having their ad appear across from “pure” award winning editorial. Think about American Idol – it is essentially a commercial for Ford, Coke, AT&T and iTunes wrapped in a talent show. It is a brilliant marriage of content and sponsorship. Consumers get content they love, and marketers get a private media channel for their brands.

Today’s consumer, of all ages, is extremely media savvy and knowing. They can tell the difference between marketing messages and content. Editors need to give the consumer more credit for understanding the dynamic between marketing and content. The prevalence of corporate sponsorships, product placement, content relevant Web ads and custom media have made consumers come to expect marketing messages and content together in one package. In fact, I would argue they find it more valuable.

A magazine’s key asset is its database and the relationship with the people in that database. That is what they should be leveraging to compete. Marketers are tired of renting media channels in print publications when they can own their custom media channels using original content and targeted content delivery. Print can still be a valuable marketing tool when used as part of a private media solution that provides value for the reader and targeted messaging for the marketer.

As Steve Sturm mentions, younger consumers have a whole different perception of media and content. Magazine publishers are going to have to make some hard decisions and quickly. The old way of doing business is gone forever.