The Audit Bureau of Circulation (ABC) has released its semiannual FAS-FAX report on U.S. consumer magazines, covering July to December 2011.
The champion among subscriptions: AARP [American Association of Retired People], The Magazine, with 22.4 million subscribers, closely followed by AARP: The Bulletin, with 22.2 million. But, these publications are benefits of AARP membership, with its 50+ demographic. Only two other titles in the list are membership-based, being AAA Living and American Legion Magazine.
Excluding those, Better Homes and Gardens tops the list, with 22.2 million subscribers—down just a hair from 2010. BHG (a Meredith title) claims a monthly readership of 38.33 million readers, 30.28 million of whom are women.
There is likely very little crossover in demographics between BHG and #4 on the list—Game Informer, covering the interactive gaming market. Publisher Sunrise Publications offers no insight into its demographics (which presumably reflects those of gamers, being largely male and under 30).
10% downtick at newsstands
Still, single-copy sales were down 9.96% during the period, which Media Life called the “steepest slide in the last four reporting periods.” Single-copy sales across 408 consumer titles dropped from 32,118,948 in the latter half of 2011 to 28,919,153. They were down 9.15% during the first half of 2011, and down down 7.27% latter 2010.
Ad pages were down in 2011 as well, and consumers likely cut back on impulse buys, particularly of celebrity titles like OK!. Newsstand sales of OK! plummeted 27.5%. Women’s titles suffered as well, with Oprah Winfrey’s O down 32%.
Still, publishers are pushing valiantly into the digital space—a good move: According researchers GfK MRI, almost three-quarters (71%) of tablet owners say they are interested in reading magazines on their devices. Publishers are not surrendering on the newsstands, either. Yesterday marked the launch of a revamped Ladies’ Home Journal, (12th among paid subscriberships in latter 2011, absent from the top 25 in newsstand sales). In addition to a new look and logo, the new content creation model invites readers for a stipend to submit personal growth stories—ostensibly for a more engaged readership.
Facebook Ads: NYT Questions “Active Visitor” Figures
The New York Times read between the lines of Facebook’s IPO prospectus. As chief mergers and acquisitions reporter Andrew Ross Sorkin figures like 845 million monthly active users “should have an asterisk next to them.” Facebook counts among those 845 million monthly active users, and daily active users of 483 million, anyone who visits it’s Web or mobile site; but also, anyone who uses a Facebook “Like” or “Recommend” button in third-party sites, to share activity with Facebook friends.
How significant is that? Practically all significant online properties, including CNN.com, MSNBC.com, TheSmokingGun.com (pictured below) and ESPN.GO.com, include a “Like” or “Recommend” button alongside stories. So an “active user” may never leave the ESPN or CNN sites; theoretically, an active user may never visit Facebook, or see its featured ads.
Also counted among those active users: those click on the Facebook logo within a “Follow Us” bar, which typically includes an RSS feed logo, Twitter, Digg and email logos, among others.
The numbers climb. If the third-party site uses a Facebook ID for log-in (HuffingtonPost.com is one such site, and the feature is called “Facebook Connect”), and the user leaves a comment on a story in that site, he or she is counted as actively using Facebook. So, opined the CEO for equity research of Fusion IQ, those visitors “cannot be marketed to, they do not see advertising,” they simply used the extensive Facebook infrastructure.
However optimistic the unique-visitor figures, they are considerable anyway; and Facebook ads offer considerable cost-per-click savings of up to 45%, by some estimates. And a publicly-traded Facebook, with plans to become a news outlet as well, will necessarily become meticulously transparent in its traffic figures.
Research: 70% Of Tablet Owners Want to Buy through Digital Magazine Ads
Fully 70% of tablet computer owners want to be able to buy items by clicking on digital magazine ads, reports GfK MRI. Another 70% say they like electronic ads that are personalized to their interests. GfK MRI is the consumer-centric market research firm, which regularly polls its iPanel, composed exclusively of tablet computer and eReader owners.
GfK MRI polled tablet owners who read a magazine on their devices in the last 30 days with several digital-magazine related topics. Additional findings include:
- Nearly three-quarters (72%) of tablet owners who would prefer all digital magazines to be formatted in the same way
- A majority of tablet magazine readers (67%) say that, if available, they would rather read an electronic version of a magazine than a paper version
- Still, 65% say it's more satisfying to read a magazine the traditional way
- Almost half (48%) of tablet magazine readers say electronic magazines take too long to download, 46% say that videos in digital versions of magazines are "just a gimmick" and 43% claim they find it hard to search for magazines they want to read on their tablets
So tablet makers have a few obstacles to overcome before digital magazines offer a fully-satisfying experience, and thus, an entirely effective ad platform. "Although magazine publishers are experimenting with different formats in order to differentiate their digital brands, this is not necessarily resonating with digital readers adopting the new tablet technology," said Risa Becker, SVP Research at GfK MRI.
Still—with a full 70% of digital magazine readers wanting to buy through the format, advertisers have an opportunity to reach some attractive demographics (see chart for tablet/eReader ownership by age).
comScore Data: Newspaper Websites Gaining, Holding Interest
Newspaper websites in Q4 2011 averaged more than 111 million monthly unique visitors (MUVs), up by more than 6 million compared to the same period in 2010, reports the Newspaper Association of America (NAA), citing comScore data. Fully 63% of adult Internet users visited newspaper websites.
A comarison of newspaper website usage data year-over-year (YOY) revealed that average daily visitors increased by more than 3 million, or nearly 15%. Unique visitors increased nearly 6%, while total minutes increased 14%.
The comScore data demonstrate “The growing appeal of newspapers’ online content,” said NAA President and CEO Carolline Little, “particularly for engaged, informed and affluent users whom advertisers…seek to reach.” As Little described, 70% of Internet users with household income (HHI) above $60,000 are reached by newspaper websites, and 75% when looking at HHI above $100,000.
Other key findings about Q4 2011: Among people 45 to 54, newspaper website percentage reach climed to 67%. In the 18 to 34 demographic, website reach remained at or above 60%.
Newspapers are answering these numbers with a steady stream of what NAA calls “innovative strategies designed to maintain and build their digital audiences.” For example, the Star-Ledger of Newark, N.J. launched animated editorials, and the New York Times launched a fashion-focused niche app.
“During all of 2011, the percentage reach of Internet users enjoyed by newspaper websites never dipped below 61 percent,” Little said. “Web-based and other digital platforms at newspaper are capturing—and holding—attention in the marketplace.”
Signs of hope
Editor & Publisher described 2011 as “the lowest point yet” for newspaper ad revenue," with 2011 revenues of $24 billion, down from the record high $49.4 billion in 2005. E&P observed that, however important a digital strategy appears to be, it has yet to fulfill its potential in newspaper revenue. “Sure, digital advertising climbed 8.3%, but digital still contributes only 14.3% to overall publisher revenue. But the newspaper industry is clearly aware of the trend, and 2012 will likely see the digital contribution approaching 17%. E&P opined that newspaper must compete on content, and the papers are treating apps, animation and streaming video as exactly that—content—if not the content they are used to providing.
Facebook Releases Ad Revenue: Huge and Growing, Arguably Justified
As required in its IPO filing, Facebook has released its ad revenue, for 2009-2011. Ads brought in $3.2 billion in 2011, a year-over-year (YOY) growth of 69% from $1.9 billion in 2010, leading Business Insider’s Jim Edwards to declare, “Wow. This is a massive ad sales business.”
In terms of volume, there was a 42% increase in the number of ads delivered in 2011, and, an 18% increase in the price of ads.
In its prospectus, Facebook described its value to advertisers: “Advertisers can engage with more than 800 million monthly active users (MAUs) on Facebook or subsets of our users based on information they have chosen to share with us such as their age, location, gender, or interests. We offer advertisers a unique combination of reach, relevance, social context, and engagement to enhance the value of their ads.” In terms of growth, Facebook claims those 845 million MAUs as of December 31, 2011, is a YOY increase of 39% as compared 2010. Facebook went on to describe how it creates value for advertisers, with—
- Relevance, as ”Advertisers can specify [user subsets by] demographic factors and specific interests that they have chosen to share with us on Facebook or by using the Like button around the web.”
- Social Context, which highlights a user’s friends’ connections with a particular brand or business (e.g., that a friend Liked a product or checked in at a restaurant). We believe that users find marketing messages more engaging when they include social context."
- Engagement, as the shift to the more social web “creates new opportunities for businesses to engage with interested customers. Any brand or business can create a Facebook Page to stimulate an ongoing dialog with our users.”
The Economist summed it up this way in a poll: “It collects huge amounts of data about its 800m plus users, can serve up creepily well-targeted ads.”
But does it work?
Advertisers use Likes as a kind of social media “Nielsen rating,” but the ratings can be disappointing. In terms of engagement, only slightly more than 1% of Facebook users who “Like” brands like Procter & Gamble or Coca-Cola actually engage with the brands, according to research. And engagement can include reposting a clever ad from YouTube—good for branding, but without measurable sales.
Earlier this month, TBG Digital (TBG) in its Global Facebook Advertising Report observed “considerable savings” were possible in cost-per-clicks (CPCs), up 45%, for advertisers on Facebook. But, those advertisers must keep the clicker within Facebook: directing a visitor away from Facebook and onto the advertiser’s own website drives up the CPC.
So the ad revenue is impressive, as are the claims. But as an effective ad platform, Facebook still defies analysis. Likely it will have to come up with more solid figures for its annual investor calls.
Digital Ads: Affluent Buyers Highly Mobile, Digital, But Penny Wise
“Affluents” with a minimum $100,000 in yearly household income spend far more time online than the general population, reports eMarketer. They spend 26.2 hours online per week, versus 21.7 for the population overall. But they watch far less television, at 17.6 hours per week versus the 34 for the average American.
Affluents number 58.5 million, and 33% owns smartphones. Research suggests that the digital ads that reach affluents are—
- Opt-in email ads
- Sponsored websites from search results
- Targeted ads, relevant to what the affluent is doing or searching in the moment
- Ads tied to demographics (e.g., local restaurants, gyms, grocery stores).
On the downside, affluents have money because they don’t throw it away. “The vast majority…do not regard themselves as rich, however, and don’t spend as if they were,” said eMarketer Analyst Mark Dolliver. Of those 58.5 million, only 11% has a household income of more than $250,000. Affluents are in fact cutting back. So, ads for luxury goods and destinations are less likely to reach the affluent than ads for consumer goods and deals on dining and entertainment.
Fox News Channel Marks 10 “Most Watched” Years
Today’s Nielsen ratings for Sunday will cement Fox News Channel’s 10th-straight year as the most-watched cable news network, reports New York Daily News.
FNC in 2011 averaged 1.86 million viewers in prime time; rival MSNBC averaged 775,000 and CNN, 689,000. For January 2012 prime time, FNC has averaged 1.98 million, CNN 875,000 and MSNBC 817,000. Finally, FNC is posting 1.11 million on a total-day basis, versus 454,000 for MSNBC and 449,000 for CNN.
The figures are even more impressive, surrounding GOP Primary Coverage. As Multichannel News reported, FNC averaged 2.63 million viewers between 7 p.m. and 11 p.m. on Jan. 22, covering the South Carolina Primary. That is more than double the viewership of CNN (1.21 million watchers) and MSNBC (985,000). Further, it took an average 703,000 viewers 25-54, versus 417,000 for CNN and 240,000 for MSNBC, respectively.
FNC launched 15 years ago, and quickly took heat for its “bend to the right.” No matter, Fordham University Professor of Communication and Media Paul Levinson told the News. “What’s often overlooked when people talk about Fox News is they…focus on the politically conservative commentary (but) miss how it’s been as an overall news organization.” Fox News chairman Roger Ailes banked on vivid commentary, said Levinson, and a commitment to round-the-clock news.
Research: Digital Magazines Attract Male Readers, Stretch Ad Exposures on Tablets
Old ads may find new life on tablets, suggests new research from GfK MRI. The market research firm surveyed its iPanel, composed exclusively of Tablet and eReader owners. Among other findings: male tablet computer owners are particularly interested in reading digital magazines, and that tablets generate readership of back issues of publications (meaning more exposures for long-ago ad purchases).
According to the GfK MRI iPanel, almost three-quarters (71%) of Tablet owners say they are interested in reading magazines on their devices. Men, in particular, are open to digital magazine reading: 77% of male tablet owners expressed interest in reading magazines on their device versus 68% of female owners. Among younger male Tablet owners, ages 18 to 34, 85% expressed interest in reading magazines on their device.
Moreover, digital magazines seem to be sparking new reading behavior among consumers. For instance, almost one-fifth (19%) of tablet owners who read a magazine on their device in the last 30 days also took the opportunity to read back issues of a title during their reading session. In this instance, there was little difference between genders, with 20% of males having read back issues compared to 19% of females.
"The fact that younger men who own tablets are interested in reading digital magazines bodes well for digital magazine advertisers, since this demographic has been historically hard to reach," said Risa Becker, SVP Research at GfK MRI.
The most popular way in which tablet owners read a magazine or magazine-related content is with an App. Almost two-thirds (65%) of tablet owners who read a magazine on their device in the last 30 days did so via an App; 47% of tablet owners accessed magazine content on their devices by visiting a magazine's website; and 37% read a digital reproduction of a magazine, which includes both print content and advertisements.
QR and “Action Codes” Doubled in 2011 Magazine Ads
A full 8% of magazine ads in December 2011 included action codes (including quick-response or QR codes), up from 3.6% in January. That according to mobile technology provider Nellymoser, and reported in Adweek.
The company surveyed the top 100 magazine titles throughout the year, and offers these findings:
- 4,468 codes appeared in the top 100 magazines during 2011
- Only 352 codes appeared in Q1, and grew to 1,899 in Q4, for 439% growth
- Advertisers drove the growth with 4,011 codes, while editorial (supporting the publisher or magazine) drove the remainder
Nearly 40% of the codes came under beauty, fashion and home. Top users were John Frieda with 82, L’Oreal with 79, Cuisinart with 74, Garnier with 72 and Revlon with 67. That is why most of the codes were in women’s magazine titles, and the top 10 included InStyle, Self, Allure, Glamour and Shape.
Male-oriented titles using QR codes included ESPN Magazine, Sports Illustrated and Wired. Advertisers in male-oriented magazines tended toward electronics (Bose, Samsung), credit cards (American Express) and retailers (American Eagle).
Finally, advertisers used QR codes for four types of campaigns:
- Video demonstrations and branding (e.g., a look behind the scenes)
- Data capture and list building (e.g., with sweepstakes)
- Links to e-commerce sites and store locators for brick-and-mortar locations.
- Social media sharing with links to Facebook and Twitter.
The significance of QR codes is that 18% of those who regularly scan the codes are moved to purchase. Magazines represent the highest use of QR codes (versus billboards and on-screen ads) at 35%.
CNN Signs Millionth “iReporter,” But One Advertiser
CNN’s iReport, its citizen journalism news community, announced this week it had passed the 1 million mark for registered contributors. iReporters contribute stories on practically any topic, including entertainment, politics, technology and health. CNN does not vet or fact check the stories, but it offers some guidelines as to what makes a good iReport, and uses the iReports selectively in its other sections.
The reports run the gamut of silly—a mother and her barely-verbal toddler mourning the cancellation of “Chuck”—to raw, like on-the-ground footage of anti-government protests in University Square in Bucharest, Rumania. That iReport includes analysis and commentary by Rumanian iReporter “mindcrusher,” a graphic designer living in Bucharest. iReports give CNN a stronger reach, and at little cost: it does not pay its iReporters, some of whom (but not all) are amateurs. CNN had little coverage of January protests in Nigeria over fuel prices, but iReporters flooded CNN with photos, videos and on the ground reports submitted by users in Nigeria.As Lila King, participation director for CNN Digital told The Poynter Institute, “It made us say, ‘Gosh, you know we really need to be paying attention to this.’ ”
CNN iReport has numerous ad offerings, including main-page and in-story ads, in formats like long-form video banners and floating ads. What it does not appear to have is advertisers. A quick check of several dozen iReports reveals one advertiser, 3m, with a flash ad promoting its privacy screen protectors for mobile devices. CNN offers detailed demographics for advertisers on its main pages, but none whatsoever for its iReport section.
CNN iReport warns, ominously, that “In the case of extreme negative user feedback/interference the CNN iReport management team reserves the right to pull creative prior to campaign delivery. Advertiser would then have the right to make good impressions with other mutually acceptable inventory.”
However strong a platform for citizen journalism CNN iReport is—and it is uniquely strong and organized versus other platforms like YouTube—it has yet to organize or maximize its ad potential. Perhaps the perception is that low-cost journalism is also low value. CNN labels its iReports NOT VETTED BY CNN, but a spokesperson told Poynter that it does vet and fact check 8% of the more than 500 uploaded stories per day.
