And this could get ugly.
Many articles keep delving into the same question: can digital save the magazine industry? Is there a chance that the magazine publishers who drastically cut their subscriptions prices to rates as low as $3/year can turn their ship around and find success in rates as high as $20/year through apps and other digital offerings?
After all, up to 85 percent of the new digital subscribers through apps have never had a print subscription before, so they don't know what a "deal" they could have gotten. But now that publishers are targeting current print subscribers, many people are asking for/expecting digital for free (forever), or at least at the low rates they have gotten their print for.
Recently I was interviewing a number of online/mobile acquisition vendors and deal bloggers. I was asking them what types of offers and incentives could drive mass volumes of sales for digital magazines. To my surprise I learned that my offers don't need to compete with other companies offering similar products; as much as they need to, I am battling their own print offers! This made me think.
If a "new to digital" consumer is surfing the Internet and comes across some great content about fixing up their home recommended from inside a magazine, they might be willing to buy that magazine. If they see that they can get one year of that home magazine for $5 (in print), and a few sites later they see the same magazine being offered for $19.99 (in digital) they will most likely opt for the print issue. At the very least they will look for a digital option that costs less.
This consumer perception issue is real; the consumer is always right. And, this could cause some larger issues in the future for anyone in the magazine industry. The industry needs to take positive steps to change this now. We can all move forward to drive more return for amazing product. We can't afford to enable brokers and agents on the print side to put digital profitability at risk. For volume digital sales, publishers should create some industry best practices around pricing to help protect their future profitability plans. This area should get no less attention than digital ad sales and tracking attention.
If we don't address this now, we will find ourselves commoditizing our digital business in order to compete with our own internal print products. And it won't be pretty.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Early Bird Rates expire May 29. Register today and save!
Jeanniey Mullen is the vice president of marketing at NOOK by Barnes and Noble, focused on business growth and customer acquisition.
Prior to her role at NOOKTM Jeanniey launched a wearables fashion technology company called Ringblingz. Before getting into the wearables business, Jeanniey was the chief marketing officer (CMO) of Zinio, where she grew the business by more than 427 percent, into one of the largest global digital newsstands. Other notable roles in her career include her involvement as the executive director and senior partner at OgilvyOne, where she led the digital Dialogue business and worked with Fortune 50 brands including IBM, Unilever, and American Express, and being a general manager at Grey Direct. At Grey Direct Jeanniey launched the first email marketing division of a global advertising agency. Prior to her time in advertising, Jeanniey spent seven years in retail leading a variety of groups from Consumer Relations and Operations, to Collections and Digital at JCPenney.
One of Jeanniey's favorite times in her career was when she founded the Email Experience Council (which was acquired by the Direct Marketing Association). Jeanniey is a recognized "Women in Business," a frequent keynote speaker, and has authored three books and launched a number of companies ranging from entertainment to technology and fashion.
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
June 10, 2015
12:00pm ET/9:00am PT